comparitive analysis of two vehicle i.e swift and i20...
A PROJECT REPORT ON
“ C O M P A R A T I V E S T U D Y B E T W E E N M A R U T I S W I F T A N D HYUNDAI I20 ”
In partial fulfillment of the requirements for the degree of
MASTER OF BUSINESS ADMINISTRATION 2013-14
Submitted To:
Submitted By:
MR. HABIB UDDIN Kabeer
Mohd. Roll
No.1300122062 MBA 1STYear, 1ST Sem.
DEPARTMENT OF BUSINESS MANAGEMENT
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FACULTY OF MANAGEMENT & RESEARCH INTEGRAL UNIVERSITY, LUCKNOW
ACKNOWLEDGEMENT
Through this acknowledgement, I express my sincere gratitude towards all those people who have helped me in the preparation of this project, which has been a learning experience.
I would like to thanks the Professor (Dr.) AFTAB ALAM HEAD of the Department of management and research, the librarian and the administrative staff of the Department of the Business Administration for their support.
Finally, I express my sincere thanks to MR HABIB UDDIN who guided me throughout the project and gave the valuable suggestion and encouragement.
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EXECUTIVE SUMMARY
I have made this project report under the guidance of MR HABIB UDDIN. The report is made for comparing the vehicles of the two leading automobile company in india i.e Maruti and Hyundai. The duty assign by the sales manager to me get market survey to know the strategy of the product of the company.
To know the various marketing strategy which help in influencing the market effectiveness. To know which type of programs is more convincing. To know how much people are aware about the product of the company’s product, how, when, why, they but these product. This is helpful to measure the effect of the strength of communication plan used by the organization. To know the Consumers perception towards the products of the company.
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DECLARATION
I, Mr. Mohd Kabeer, a First year master of business administration student of Integral University, hereby declare that I have duly completed my project on “COMPARATIVE STUDY BETWEEN MARUTI SWIFT AND HYUNDAI I-20" for the academic year 2013-2014.
The information submitted is true and original to the best of my knowledge.
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INDEX
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Sr no.
Particulars
Page no.
1
Acknowledgement
2
2
Executive summary
3
3
Introduction
07
4
Automobile Company Profiles
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5
History and Marketing strategy
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6
Analysis and Interpritation
45
7
Conclusion and Recommendations
58
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Bibliography
61
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Annexure
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-Table of Contents-
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CHAPTER NO.
CHAPTER NAME
Chapter No. 1 Introduction 1.1 – Objectives 1.2 – Research Methodology 1.3 – Limitations
Chapter No. 2 Corporate Overview 1.1 - History and Statistics 1.2 - Marketing Strategies 1.3 - Car’s Profile 1.4 - Producer’s Profile 1.5 - Timeline of Generations 1.6 - SWOT Analysis
Chapter No. 3
Analysis and Interpretation
Chapter No.4
Conclusions and Suggestions
Bibliography
Questionnaire
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Chapter No. 1
INTRODUCTION
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-INTRODUCTION-
This project is an attempt to give a comparision between Maruti Suzuki Swift and Hyundai i20. It aims to know the marketing strategies, performance analysis and consumer perception regarding these cars alongwith factors which influence their choice.
It focuses on the following:-
1. In 1st Chapter you will find the Objectives, Research Metholodgy and Limitations of the study. 2. In 2nd Chapter you will find an overview of the History, Profile of Cars, Producer’s Profile, Key Persons, Timeline of Generations, Marketing Strategies and SWOT Analysis of all the 3 companies. 3. In 3rd Chapter you will find Analysis and Interpretations on the Project Report. 4. In 4th Chapter you will find Conclusion and Recommendations on the Project.
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5. In the end, you will find the various sources I referred for gathering information.
-OUR OBJECTIVES-
1. To know the market share of Maruti Suzuki and Hyundai.
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2. To know the performance of Swift and i20 respectively. 3. To know the perception of customers regarding these cars. 4. To determine customers satisfaction regarding cars. 5. To determine the factors the choice of customers regarding cars.
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-RESEARCH METHOLODGY-
It is a well known fact that the most important step in marketing, research process is to define the problem. Choose for investigation, because a problem well-defined is half solved. That was the reason that at most care was taken while defining various parameters of the problem. After giving through brain storming session, objectives were selected and the set on the base of these objectives. A questionnaire was designed major emphasis of which was gathering of new ideas or insight so as to determine and bind out solution to the problems.
DATA SOURCE Research included gathering both Primary and Secondary data. Primary data is the firsthand data, which are selected a fresh and thus happen to be original in character. Primary Data was crucial to know various customers and past consumer views about cars and to calculate the market share of this brand in regards to other brands. Secondary data are those which has been collected by some one else and which already have been passed through statistical process. Secondary data has been taken from internet, newspaper, magazines and companies web sites.
RESEARCH APPROACH The research approach was used survey method which is a widely used method for data collection and best suited for descriptive type of research survey includes research instrument like questionnaire which can be structured and unstructured. Target population is well identified and various methods like personal interviews and telephone interviews are employed,
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SAMPLING UNIT It gives the target population that will be sampled. This research was carried in Faridabad and New Delhi. These were 16 respondents.
DATA COMPLETION AND ANALYSIS After the data has been collected, it was tabulated and findings of the project were presented followed by analysis and interpretation to reach certain conclusions.
SCOPE My project was based on the Comparative Study of Swift vs. i20 and data was taken in Faridabad and New Delhi only.
-LIMITATIONS OF RESEARCH STUDY-
1. Research work was carried out in Faridabad and New Delhi only the finding may not be applicable to the other parts of the country because of social and cultural differences.
2. The sample was collected using connivance-sampling techniques. As such result it may not give an exact representation of the population, it is also very small which represent my research on consumer behavior.
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3. Shortage of time is also reason for incomprehensiveness.
4. The views of the people are biased therefore it doesn’t reflect true picture.
5. I had only found the upper-middle class family to fill up the questionnaire, but generally, an average middle class family was required for the study.
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Chapter No. 2
CORPORATE OVERVIEW
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Maruti Suzuki’s Profil
In early 1980s Indian Govt decided to produce a small car, which would be within buying reach of Indian middle class. The obvious place to shop for technology was Japan, which had developed world class capabilities in small cars by that time.It was not Toyota, or Nissan, or Honda ,three largest player in Japan, but Suzuki, a much smaller company with strong capcabilities in making small cars. Suzuki grabbed the opportunity with both hands and formed a joint venture with govt. called Maruti Udyog.
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Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for about two decades. Its manufacturing plant, located some 25 km south of New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per annum, with a capability to produce about half a million vehicles.
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 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.
The company has a portfolio of 11 brands, including Maruti 800, Omni, premium small car Zen, international brands Alto and WagonR, off-roader Gypsy, mid size Esteem, luxury car Baleno, the MPV, Versa, Swift and Luxury SUV Grand Vitara XL7.
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, Zen and Esteem, 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
Maruti tops customer satisfaction again for 8 th year in a row according to the J.D. Power Asia Pacific. India Customer Satisfaction Index Study. The company has also ranked highest in India Sales Satisfaction Study.
In keeping with its leadership position, Maruti supports safe driving and traffic management through mass media messages and a state-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.
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Hyundai Motors Profile
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest car manufacturer and the largest passenger car exporter from India. HMIL presently markets 54 variants of passenger cars across segments. The Santro in the B segment, the Eon, i10 and the Premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata and elentra in the E segment and the santafe in the SUV segment.
Hyundai Motor India Ltd, continuing with its tradition of being the fastest growing passenger car manufacturer, registered total sales of 489,328 vehicles in the calendar year (CY) 2012, an increase
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of 49.6 percent over CY 2011. In the domestic market it clocked a growth of 22.4 percent with 245387 units in 2008, while overseas sales grew by 92.5 percent, with exports accounting for 243,931 units in 2012.
HMIL's manufacturing plant is located near Chennai which has advanced production quality and testing capabilities in the country. Inorder to provide the Indian customer with global technology, HMIL started its second plant in February 2008 which produces an additional 300,000 units per annum, raising HMIL's total production capacity to 600,000 units per annum. Apart from expansion of production capacity, HMIL currently has 260 strong dealer network across India.
The production management processes at Hyundai Motor India are overlaid with an organizationwide implementation of manufacturing best practices like Just-in-time inventory management, Kaizen, TPM and TQM, that help us in making the world's best cars, right here in India.
Hyundai Motor Company was established in 1967, Hyundai Motor Co. has grown into the HyundaiKia Automotive Group which was ranked as the world’s fifth-largest automaker in 2007 and includes over two dozen auto-related subsidiaries and affiliates. Employing over 75,000 people worldwide, Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms.
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 Santro, i10, eon, i20, Accent, Verna, Sonata, elentra, santafe, etc.
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-HISTORY OF MARUTI SUZUKI SWIFT-
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In India, Suzuki has launched Swift as a joint venture with Maruti and the car is known as Maruti Swift. In the Indian auto market Swift is available with seven variants four with petrol and three with diesel engine option. The petrol version of Maruti Swift is powered by 1.2L K-series engine. The 1.2L, K-series petrol engine present in Maruti Swift is highly fuel efficient with the availability of 16 Valve light weight DOHC engine that reduces friction and improves durability and fuel economy to the best in town. Maruti Swift is endowed with 5 Speed Manual Transmission Gearbox. This gearbox is cable type gearshift which is of great help at the time of shifting of gear. Maruti Swift’s powerful engine with the emission of BS IV and is very fuel efficient and a very good performer that offers an impressive mileage of 14.4 kmpl in the city roads and 18.1 kmpl on the highways. However, the diesel version of Maruti Swift is packed with 1.3L, DDiS engine with a displacement of 1248cc. The 1.3L diesel engine is packed with turbocharger and intercooler combination that offers efficient combustion and clear emissions. The diesel engine is endowed with 5 step multi injection common rail system that offers better fuel combustion and hereby gives good performance and makes the car economical to run. This compact diesel engine is incredibly fuel efficient and offers a mileage of 16.9 kmpl in the city roads and 19.6 kmpl on the highways.
Statistics:
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BODY TYPE Body Type
Hatchback
Number of Doors
5
ENGINE Capacity
1197cc
Number of Cylinders
4
Number of Valves
16
Bore x Stroke
73.0mm x 71.5mm
Compression Ratio
10.1:1
Maximum Power
85ps @ 6,000rpm
Maximum Torque
113Nm @ 4,500rpm
Fuel Distribution
Multipoint injection
Emissions
BS IV
TRANSMISSION Five-speed manual, with synchromesh in all gears, one reverse
Type
Gear Ratios
1st
3.545
4th
0.914
2nd
1.904
5th
0.757
3rd
1.280
Reverse
3.272
DIMENSIONS Overall Length
3,760mm
Overall Width
1,690mm
Overall Height
1,530mm
Wheelbase
2,390mm
Track
1,470mm 1,480mm
Front Rear
Ground Clearance
170mm
Minimum Turning radius
4.7 metres
Luggage Capacity
232 litres (with seatback raised) 368 litres (with seatback folded)
CHASSIS Steering
Rack and pinion, power assisted
Brakes
Front Rear
Ventilated discs Drums
Suspension
Front Rear
MacPherson strut and coil spring Torsion beam and coil spring
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TYRES
165/80 R14 / 185/70 R14 (tubeless)
WEIGHTS Kerb Weight
980 kgs [LXi] / 1,000 kgs [VXi] / 1,010 kgs [ZXi]
Gross Vehicle Weight
1,415 kgs
FUEL TANK CAPACITY
43 litres
The Generation V Swift debuted at the Paris Auto Salon in September 2004. This generation of the Swift marked a significant departure with the previous Cultus-based models, with Suzuki redesigning the vehicle as less of a "low price alternative" subcompact and more of a "sporty" subcompact. The Swift's design and driving characteristics focused on the European market with its chassis refined through a road-testing program across Europe.
2009 Indian Suzuki Swift Indian Engineers were called to Japan to help Suzuki design this generation of Swift. Available with 1.3 (92 PS (68 kW; 91 hp)) and 1.5 (102 PS (75 kW; 101 hp)) L petrol engines, the new Swift is Suzuki's new "global car", produced in Hungary, India, Japan, Pakistan and by Chang'an in China. In Japan, only the 5-door body is available and four-wheel drive is an option for the 1.3 L or 1.5 L petrol engine. 1.2 L CVT transmission version also available in only front wheel drive version. The design of the new Swift was previewed on the Concept S and Concept S2 concept cars at auto shows, in the years leading up to its launch. In Europe, the Swift was launched in 3- or 5-door hatchback form, with 1.3 and 1.5 L petrol engines, and a 1.3 L DDiS engine supplied by Fiat. The 1.3 L petrol is also available with an automated manual gearbox or with four-wheel drive. The British Autocar magazine gave the new Swift a favourable 4/5 stars in road test, judging it a "thoroughly impressive all-rounder". The Generation IV Swift has received a four stars out of five rating in the EuroNCAP crash tests.
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-MARKETING STRATEGIES-
Objectives The main objective of Maruti Suzuki Swift is to conquer the market of hatchback car segments. Launched in 2005, Maruti Suzuki aimed to make Swift the leader of top quality hatchback cars, and since then no car of its competitors has been able to tackle Swift’s sales. The MS Swift’s share is more than 15% in the market, and is currently the best selling Car of its segment in India.
Target Markets Swift targets the domestic market first and it will not face any capacity constraint here. A sizeable number of cars have been manufactured at Maruti plant in Gurgaon and deliveries will commenced by the first week of June 2005," Arvind Saxena, chief general manager, sales, MSL said. "Over 85 per cent of the car has been indigenized. Swift is based on the latest European design and styling, built with Japanese quality and precision, utilizing Indian engineering capability. The car has an universal appeal," he added. At present, MSL has an installed capacity of 3,50,000 units per annum and the company manufacturers around 6,00,000 vehicles per annum on a two-shift basis. However, the company officials did not divulge the exact number of Swift cars to be manufactured in India. According to industry estimates, around 50,000 Swifts are expected to be sold in India in the first year. Currently, being launched across the globe, Swift has received rave reviews internationally for its path breaking looks and styling and superior safety features. It has become one of the top 20 best-selling models in Japan since its launch there in November 2004.
Positioning Using product differentiation, Maruti Suzuki Swift will be placed as the most comfortable, convenient, value added hatchback model for above target market used. The marketing strategy will be focused on promoting the car as the best hatchback car model for the next generation.
Strategies Product The Maruti Suzuki Swift is fully loaded and comes with a warranty of upto 3 years, it can also be extended upto 5 years maximum. Also a higher model, Maruti Swift DZire has been introduced in 2010, as a replacement for Maruti Esteem, which has completed its run.
Price: Maruti is expected to take Hyundai heads on with the pricing of their upcoming Maruti Suzuki Swift car. After launching cars for the masses since so many years, India’s largest automobile manufacturer is now
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targeting the premium segment with their latest model from the Suzuki’s stable. The analysts predict thepricing of this premium hatchback to start from Rs. 4 lakh. This price range would practically rip apart Hyundai’s offering in i20, which is priced at a much higher tag of Rs. 4.5 lakh. Both the companies are known for their value based offerings and Maruti with their extensive service network and brand reputation for making reliable cars should get the customer’s nod over their competition. The official pricing however is still not out. However, the company is said to be studying the prospects of launching the base model at the 4-lakh price tag. There is another advantage in doing so considering in the capital city of Delhi NCR road tax on the sub 4 lakh priced cars is comparatively lower at 2%. Cars at a price higher than 4 lakh have to pay a 4% road tax. Delhi NCR is one of the major targeted markets and it might get the benefit of this policy. And if they indeed do take the chance of pricing Suzuki Swift at a considerable lower price than Hyundai Getz, they would quite likely force the competition to rethink their strategy.
Distribution • The Stockist will represent 4 to 5 districts in a State. • The Dealer will represent a district or main City. • The Sub-Dealer shall represent a particular area or taluka. • The booking agents will be individuals working on freelance basis.
Marketing Communications By integrating all messages in all media we will reinforce the brand name & main points of product differentiation. Research about media consumption, pattern will help our advertising agency to choose appropriate media and timing to reach prospects before & during the product introduction. Thereafter, advertising will appeared on a pulsing basis to maintain brand awareness and communicate various differentiation messages. The agency will also co-ordinate public relation efforts to build Maruti Suzuki brand & support the differentiation message. To attract market attention & encourage purchasing, we will offer a limited time, registration & insurance. To attract, retain & motivate channel partners for a push strategy, we will use trade sales promotions and personal selling to channel partner.
Advertisements Good promotional strategy is adopted by Maruti Suzuki to transform its thoughts to the people about its products by marketing through advertisement in television, radio, newspaper, etc. Through radios they try to promote their product by organizing quiz contests and the person who wins are offered special discounts, gift vouchers, coupons, etc.
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Through television they promote their vehicle by showing the utility value, its comfort level.
After Sales Service “Kya yahan Maruti Service Station hai” Availibility of service stations even in the remotest place in the country.
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 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.
Tie up with many banks
To promote its bottom line growth, Maruti launched Maruti Finance in Jan 02. Prior to the start of this service Maruti had started two joint ventures – Citicorp Maruti and Maruti countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan. Today Maruti has tie ups with ABN Amro Bank, HDFC Bank, ICICI Ltd, Kotak Mahindra Bank, Standard Chartered Bank etc.
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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SBI Maruti Car Loans The country’s largest bank and the largest car maker have joined hands to make affordable car finance available to more and more people across the country. The mega alliance makes car loans available at lower interest rates to a wider section of people, with transparent terms and conditions.
The unbeatable advantages of SBI Maruti car loans:-Two market leaders in their respective industries with trusted brand names. -Low interest rates -No processing fees or hidden costs to ensure transparency. -Car loans available for diverse categories of customers including govt. employees and agriculturist.
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-CAR PROFILE-
Chairman
Mr. Shinzo Nakanishi
Year of Establishment
2000
Sector
Light Motor Vehicle (4 Wheeler)
Business Group
Maruti Suzuki India Ltd.
Presence
Produced and Distributed over several countries like Australia, Germany, India, Pakistan and Japan etc.
Manufacturing Unit in India
Manesar, India.
Head Office in India
Maruti Suzuki Limited 1, Nelson Mandela Road, New Delhi - 110070 Vasant Kunj, Delhi Tel. No.: 011 4678000
Joint Venture
Maruti and Suzuki Ltd.
Contact No.
1800 1800 180
Email ID:
[email protected]
Official Website:
www.marutiswift.com
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-PRODUCER’S PROFILE-
Maruti Suzuki India Limited
Type
Public (BSE MARUTI, NSE MARUTI)
Industry
Automotive
Founded
1981 (as Maruti Udyog Limited)
Headquarters
Delhi, India
Key people
Mr. Shinzo Nakanishi, Managing Director and CEO
Products
Automobiles
Revenue
US$4.8 billion (2009)
Employees
6,903 [1]
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Parent
Suzuki Motor Corporation
Website
MarutiSuzuki.com
Other Car Models produced by Maruti Suzuki: 1. Alto 800 (Launched 2010) 2. Omni (Launched 1984) 3. Gypsy (Launched 1985) 4. WagonR (Launched 2002) 5. Alto (Launched 2000) 6. Estilo (Launched 2009) 7. Grand Vitara (Launched 2007) 8. SX4 (Launched 2007) 9. Swift DZire (Launched 2008) 10. A-star (Launched 2008)
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11. Ritz (Launched 2009) 12. Eeco (Launched 2010) 13. Ertiga (launched 2010)
-TIMELINE OF GENERATIONS-
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First generation (2000–2004) The first generation Swift was introduced in 2000 as a replacement for the Suzuki Cultus. Outside of Japan, the Suzuki Ignis name was widely used. The Ignis was originally manufactured as a fivedoor hatchback, powered by a new generation of Suzuki straight-four gasoline engines, the M family. Displacement ranged from 1.3 to 1.5 L, and the standard transmission was the usual five-speed manual, with an optional four-speed automatic gearbox. The vehicle is available with either front or four-wheel drive, although the 4WD/auto combination was limited to the Japanese and Australian markets.
Maruti Swift in Production
A shorter three-door version, with redesigned bumpers, was introduced in 2003, named Swift Sport in Japan and Ignis Sport in Europe. The Ignis Sport used the same 1.5 L as the regular Ignis, but with power increased. The Swift/Ignis Sport went out of production in 2005. In 2001, General Motors introduced the Chevrolet Cruze—a crossover SUV based on the Swift, retaining the original car's basic dimensions and power plants. The Cruze was restyled, adopting a crossover look between a tall hatchback and a sport utility vehicle, and the three-door body was dropped. The "Chevrolet Cruze" commercial designation was used in most of south Asia, while in Australia the car was sold by as the Holden Cruze from 2002 to 2006. Suzuki in Europe introduced the Cruze as an update of the Ignis in 2003, although extended by roughly 150 millimetres (5.9 in) in length, to improve interior room and luggage space. This version was manufactured by Suzuki's Hungarian Magyar Suzuki plant specifically for the European market.
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Also in Europe, due to an agreement with Subaru, the car was also sold as the Subaru Justy (4WD only) from 2003, as happened previously with the previous generation Cultus-based Swift. The Cruze-based update was never sold in Japan as a Suzuki, only as a Chevrolet. Europe was the only market to receive the updated car as a Suzuki.
Second generation (2004–2010) The second generation Swift debuted at the Paris Auto Salon in September 2004. This generation of the Swift marked a significant departure with the previous Cultus-based models, with Suzuki redesigning the vehicle as less of a "low price alternative" subcompact and more of a "sporty" subcompact.[2] The Swift's design and driving characteristics focused on the European market with its chassis refined through a road-testing program across Europe. [3] Available with 1.3 (92 PS (68 kW; 91 hp)) and 1.5 (102 PS (75 kW; 101 hp)) L petrol engines, the new Swift is Suzuki's new "global car", produced in Hungary, India, Japan, Pakistan and by Chang'an in China. In Japan, only the 5-door body is available and four-wheel drive is an option for the 1.3 L or 1.5 L petrol engine. 1.2 L CVT transmission version also available in only front wheel drive version. The design of the new Swift was previewed on the Concept S and Concept S2 concept cars at auto shows, in the years leading up to its launch. In Europe, the Swift was launched in 3- or 5-door hatchback form, with 1.3 and 1.5 L petrol engines, and a 1.3 L DDiS engine supplied by Fiat. The 1.3 L petrol is also available with an automated manual gearbox or with four-wheel drive. The British Autocar magazine gave the new Swift a favorable 4/5 stars in road test, judging it a "thoroughly impressive all-rounder". The second generation Swift has received four stars out of five rating in the Euro NCAP crash tests.[4] It also was awarded 2006Semperit Irish Car of the Year in Ireland.
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Maruti's team of 25 engineers who went to Japan to co-develop the Swift
Since its global launch in 2005, which was kicked off with a marketing campaign fronted by the footballer Cristiano Ronaldo in many European countries, the Swift has recorded above forecast sales in most markets. In Japan, sales figures have been twice the forecast and in many European markets the model has been a runaway success. In Denmark, the Gen IV Swift has been consistently in Top 3 for more than 2 years and was the car with the highest sales figures in 2006. In India, rapid sales of the new Swift model contributed to the 64% rise in Q1 profits for Maruti Suzuki. The Swift will be reintroduced to the U.S. market in 2010 to replace the Suzuki Reno
Third generation (2011-till present)
A look of new Maruti Suzuki Swift awaiting its launch in 2011.
A new model for Maruti Suzuki Swift is under development in India, and is going through various tests, It is planned to be launched in India by the first phase of 2011. This model is better than the older one is various prospects. he changes on the exterior are quite subtle with no major changes reflecting from the spy shots. Interiors are under cover and customers can keep guessing until the official pictures are revealed. However, an increased wheelbase promises more space in the
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interiors. The new Maruti Suzuki Swift looks to be powered by the latest K12 1.2L engine that powers current model and Maruti Ritz. The diesel variant can be sourced from Fiat which will be the 1.3L Multijet diesel engine, according to disclosed details right now. The new Swift has been codenamed as YP8 which is being developed to compete in the Indian market with new entrants like Chevrolet Beat, Ford Figo, Volkswagen Polo, Nissan Micra and the upcoming Toyota Etios Liva and Honda Brio.
-SWOT ANALYSISStrengths Brand Image Reliable and cheap. Established brand in Indian market. Great service and nationwide penetration. Experience in Indian market Very old player in Indian market. First major player. Established distribution & after sales networks
Weaknesses Diseconomies to scale No online presence Not diversified
Opportunities Acquisitions Innovation Online Product and services expansion Takeovers Targeting Higher Middle Class requirements
Threats
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Competition Cheaper technology External changes (government, politics, taxes, etc) Lower cost competitors or imports Price wars Product Substitution.
-HISTORY OF HYUNDAI i20-
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The Hyundai i20 was designed in a Hyundai Designing Centre in Germany by a BMW designer: Thomas Buerkle. The Hyundai i20 is a supermini/subcompact car, made its debut at the Paris Motor Show in October 2008 and went on sale in December 2008 in India to fit between the i10 and i30. It is a Front wheel drive car. The car is mostly European because of its design and designer. Three and five door versions are available (Both have different sleek window shapes). The i20 replaces the Getz in most markets but in the UK and India, the Getz will still be available for the time being. The i20 is assembled in Turkey (Kozyatağı plant) for the European market[1] and in India for sale in Asia and Oceania. The i20 has recently replaced the Getz in Australia. The i20 is not sold in Korea, as the similar, Korea-built Click (Which is also known as the Hyundai Getz in the UK) sold there. In Indian market, Hyundai i20 comes with Hyundai i20 is powered by an 1.2L kappa engine developing 80 PS (59 kW; 79 hp) of max power at 5200 rpm and 114 N·m (84 lb·ft) of peak torque at 4000rpm.i20 also gets 1.4L gamma gasoline generates 100 PS (74 kW; 99 hp) of power at 5500 rpm and 139 N·m (103 lb·ft) at 4200 rpm i20 CRDi the diesel i20 comes with a powerful oil burner generating 90 PS (66 kW; 89 hp) of peak power at 4000 rpm and 224 N·m (165 lb·ft) of peak torque between 1750–2750 rpm.
Statistics: Overview Model
i20
Body Type
Hatchback
Number Of Doors
5
Seating Capacity
5
Fuel Capacity
45
Dimensions: Length
3940 mm
Width
1710 mm
Height
1505 mm
Wheelbase
2525 mm
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Ground Clearance
N/A
Minimum Turning Radius
N/A
Weight: Kerb Weight
1066 kg
Engine: Type
1.4-L diesel 1.2L petrol
Number Of Cylinders
4
Displacement
N/A
Transmission
5 Speed, Manual
Max. Power
90 bhp – Diesel 58 kW - petrol
Max. Torque
N/A
Suspension: Front Suspension
Mc Pherson Strut with Coil Spring
Rear Suspension
Coupled Torsion Beam Axle with Coil Spring
Brake: Front
Disc
Rear
Drum
Steering Type
Rack & Pinion, Power Assisted
Tyre Size
175/70 R14
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-MARKETING STRATEGIES-
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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To promote their product they organized quiz contests on radio and the person who wins was offered special discounts, gift vouchers, coupons, etc. They also advertise in Newspapers. In this companies advertise about the car in various newspapers and they give detail explanation about the feature of the cars, keeping customer’s requirement. They also provide various dealers addresses and contact numbers for reference.
Free checkups
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Hyundai arranges free checkups from time to time in which they check for any problem and advice to visit the nearest service center for servicing. This helps in maintaining good relationship with customers and tries to keep good image in market.
Exchange offers As Hyundai deals in second hand cars also. They offer exchange offers to customers. And by paying adjusted amount customer can get brand new car in exchange of old once. Exchange offer makes customer happy as they don’t have to pay full amount also, they get new car also and their old car gets replaced also with new one.
Cold callings In this type of strategies old customers are given a relationship call just to know some other references. This gives a boost to sales and customers also feel a sense of involvement. Hyundai gets maximum sale through such type of cold callings only.
Events at Corporate Office and Banks
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Hyundai tries to attract customers by conducting camps, events at corporate offices and bank as most of the customers are of middle-age group and corporate offices are good source for company to attract such customers.
Display
Hyundai keeps attractive display so that maximum number of people gets noticed. And they even keep their own accessories related to cars at special accessories counter. For attractive display they decorate their showroom as well as all the cars which are displayed.
Objectives First year Objectives: We are aiming for 5% market share of the Indian market through unit sale volume of 100000.Second year Objectives: We are aiming for 10% market share of the Indian market. An important objective will be to establish a well-regarded brand name linked to a meaningful positioning. We will have to invest heavily in marketing to create a memorable and distinctive brand image projecting innovation, quality and value. We also must measure awareness and response so we can adjust our marketing efforts if necessary.
Target Markets Hyundai i20's marketing strategy is differentiated marketing. Our primary consumer target is middle to upper income professionals who need true value for their money and comfortable ride in city conditions. Our secondary consumer target is college students who need style and speed. Our primary business target is mid sized to large sized corporates that want to help their managers and employees by providing them a car for ease of transport. Our secondary business target is entrepreneurs and small business owners who want to provide discounts to managers buying a new car. Each of the four marketing strategies conveys Hyundai i20's differentiation to the target marketing segments identified above.
Positioning Using product differentiation we are positioning the Hyundai i20 as the most versatile, convenient, value added car model for above target market used. The marketing strategy will be focused on promoting the car as economic car for the next generation.
Strategies Product Hyundai i20 is fully loaded and will be sold with 3 year warranty. We will also introduce a CNG/LPG version of Hyundai i20 in the near future. Also the high end model has an option of GPS system.
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Price Hyundai i20's base model is at ex-showroom price of 4.5 lakhs. This price reflects a strategy of 1) attracting desirable channel partners 2) Taking market share from Maruti.
Distribution • The Stockist will represent 3 to 4 districts in a State. • The Dealer will represent a district or main City. • The Sub-Dealer shall represent a particular area or taluka. • The booking agents will be individuals working on freelance basis.
Marketing Communications By integrating all messages in all media we will reinforce the brand name & main points of product differentiation. Research about media consumption, pattern will help our advertising agency to choose appropriate media and timing to reach prospects before & during the product introduction. Thereafter, advertising will appeared on a pulsing basis to maintain brand awareness and communicate various differentiation messages. The agency will also co-ordinate public relation efforts to build Hyundai brand & support the differentiation message. To attract market attention & encourage purchasing, we will offer a limited time, registration & insurance. To attract, retain & motivate channel partners for a push strategy, we will use trade sales promotions and personal selling to channel partner. Various Marketing Strategies enables a firm to expand business activities for market reputation, to satisfy human wants , to lead to specialisation and efficient performance of production function climaxing in econimic stability. After liberalization automobile Industry is growing at very high rate and many new companies have also entered into market. With offering variety of cars in all segments for everyone. So it is important to know which company is providing us good quality cars at fair prices and providing better after sales services. And how they are trying to reach customers. The most obvious objective marketers have for promotional activities is to convince customers to make a decision that benefits the marketer (of course the marketer believes the decision will also benefit the customer). For most forprofit marketers this means getting customers to buy an organization’s product and, in most cases, to remain a loyal long-term customer.
-CAR PROFILE-
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Founder and Chairman
Mr. H.W. Park
Year of Establishment
2008
Sector
Light Motor Vehicle (4 Wheeler)
Business Group
Hyundai Motors India Ltd.
Presence
Produced and Distributed over several countries like Australia, Turkey, Oceania and India etc.
Manufacturing Unit in India
Sriperumbudur, Tamil Nadu
Head Office in India
Chennai, India.
Joint Venture
None
Contact No.
1800 11 4645
Email ID:
[email protected]
Official Website:
www.hyundai.com
-PRODUCER’S PROFILE-
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Hyundai Motor India Limited
Type
Subsidiary
Industry
Automotive
Founded
6th May 1996
Headquarters
Chennai, India
Key people
Mr. H.W. Park, MD
Products
Automobiles
Parent
Hyundai Motor Company
Website
www.hyundai.co.in
Other Car Models produced by Hyundai Motor India:
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1. Hyundai Accent (Launched 1999) 2. Hyundai Santro Xing (Launched 2003) 3. Hyundai i10 (Launched 2007) 4. Hyundai Verna fluidic (Launched 2010) 5. Hyundai Santa Fe (Launched 2010) 6. Hyundai grand i10 (Launched 2013) 7. Hyundai Eon (Launched 2010) 8. Hyundai Fluidic Elantra (launched 2011) 9. Hyundai I20 (Launched 2012) 10. Hyundai Sonata (launched 2012) 11. Hyundai xcent (Launced 2014)
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-TIMELINE OF GENERATIONS-
First generation (2008–2011)
Hyundai i20 in production
In Indian market, Hyundai i20 comes with Hyundai i20 is powered by an 1.2L kappa engine developing 80 PS (59 kW; 79 hp) of max power at 5200 rpm and 114 N·m (84 lb·ft) of peak torque at 4000rpm.i20 also gets 1.4L gamma gasoline generates 100 PS (74 kW; 99 hp) of power at 5500 rpm and 139 N·m (103 lb·ft) at 4200 rpm i20 CRDi the diesel i20 comes with a powerful oil burner generating 90 PS (66 kW; 89 hp) of peak power at 4000 rpm and 224 N·m (165 lb·ft) of peak torque between 1750–2750 rpm.
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A picture of the 1st generation of Hyundai i20 produced in India
Second gemeration (2012-till present) A slightly upgraded version of the i20, called the i-Gen i20, went on sale in India in March 2012 onward with tweaked Headlamp, new Front Grill, Tail-lamp and Fog Lamps. It follows the Fluidic design philosophy with slightly re-tuned engines
The i20 will debut in Europe with a total of seven engine options, all with four cylinders. Three are petrol, including the recently designed 1248 cc dohc 16 valve "Kappa" engine, while the rest are diesel engines. Two of the diesel engines are 1396 cc units, one with 75 PS (55 kW; 74 hp) and 220 N·m (160 lb·ft) and the other a 90 PS (66 kW; 89 hp ) and 220 N·m (160 lb·ft) high power unit They are joined by two 1582 cc engines having the same dohc and 16-valve top end architecture but delivering either 115 PS (85 kW; 113 hp) and 156 N·m (115 lb·ft) of torque or 128 PS (94 kW; 126 hp) and 157 N·m (116 lb·ft) of torque. Hyundai claims that 115 PS (85 kW; 113 hp) diesel unit can return a class leading 115g/km of CO2 while sipping just one litre of HSD to go 23.25 km/L (65.7 mpg-imp; 54.7 mpg-US) (4.3L/100 km) in the European combined driving cycle. All diesel engines and 1.2 and 1.4 petrol engines come mated to five-speed manual transmission, there is an option of a fourspeed automatic for some 1.4 petrol engined models, the 1.6 is mated to a six-speed manual transmission.
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-SWOT ANALYSIS-
Strengths The Quality Advantage A Buying Experience Like No Other Widespread
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Weaknesses Commodity Price Risks Exchange Rate Risk Poor Maintenance
Opportunities Leading Growth
Threats Risk Factors Business Risks Threats from Competitors Maruti Udyog Limited Tata Motors Limited Chevrolet India Limited.
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Chapter No. 3
ANALYSIS AND INTERPRETATION
52
FACTORS INFLUENCING SALES OF CARS:
FEATURES: It plays major role in sale on any cars. Today people are more attracted towards the features of cars and are ready to spend huge amount of money on buying a handset having huge numbers of features. E.g. Maruti Swift ZXi, Hyundai i20 Asta (O) etc.
PRICE: Price also plays a major role. Companies need to place their products in such a way that it can differentiate itself from others by its price. If price of car is kept low and more features are provided to customers than company can create market for itself.
AVAILABILITY: Products need to be available easily. Customers don’t like to travel much to buy cars. They prefer to get their cars from nearest showrooms so in order to be market leader companies should make sure that there products are easily and conveniently available to customers.
AFTER SALES SERVICE: Companies should make sure that they provide good after sale service to their customers and there problems are rectified as soon as possible. The turn around time should be very less that customers don’t have to wait too long for their problems so to be solved.
QUALITY: The quality of products should be very good. Today’s customers want value for money if that is not provided than company will find it difficult to position itself in
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the market.
-ANALYSIS-
Q1: Which Car brand do you have ? Maruti Suzuki
39
Hyundai
34
Chevrolet
15
Others
12
54
Maruti Hyundai Chevrolet Others
Q2: Which Car do you prefer out of Swift and i20 and which model?
Maruti Suzuki Swift
67
Highest Model
11
Middle Model
38
Lowest Model
18
Hyundai i20
33 Highest Model
7
Middle Model
16
Lowest Model
10
55
100 90 80 70 60 No. of Persons
50
Highest Model
40
Middle Model Lowest Model
30 20 10 0 Swift i20
Q3: Which family Income level do you Fall in? 250000 – 350000
22
350000 – 450000
37
450000 – 550000
31
Above 550000
10
56
40 35 30 25
250000 - 350000 350000 - 450000
20
450000 - 550000 Above 550000
15 10 5 0 Income Level
Q4: While purchasing a car, what features influence you ? Price
25 %
Product Feature
20 %
Brand
30 %
Service
10 %
Durability
15 %
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Price Product Feature Brand Service Durability
Q5: How frequently you change your car? In 1-3 years
25 %
In 3-5 years
20 %
In 5-10 years
30 %
In More than 10 years
10 %
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30% 25%
1-3 Years
20%
3-5 Years
15% 5-10 Years
10%
More than 10 Years
5% 0%
No. of Persons
Q6: For what purpose do you use your car?
Official Purpose Personal Purpose Joy Purpose Others
Maruti Suzuki Swift 15 12 18 6
Hyundai i20 11 14 9 3
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20 18 16 14 12 10 8 6 4 2 0
Swift i20
Official Personal Joy Other Purpose Purpose Purpose Purpose
Q7: How did you come to know about this Car?
Newspaper Television Magazine Friends and Relatives
Maruti Suzuki Swift 4 21 3 19
Hyundai i20 2 18 2 16
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25 20 15
Swift i20
10 5 0 Newspaper Television Magazine
Friends and Relatives
Q8: Did Advertisement influence your choice, while you chose your car? Yes No Can’t say
85% 5% 10%
61
Yes No Can't Say
Q9: Did you have full knowledge before buying your car? Yes No
Maruti Suzuki Swift 26 19
Hyundai i20 23 15
30 25 20
Sw ift
15
i20
10 5 0 Yes
No
Q10: Which Factors below influenced your decision? Price Mileage Quality Resale Value
Maruti Suzuki Swift 79% 68% 70% 41%
Hyundai i20 80% 61% 48% 29% 62
Status Symbol
16%
11%
90% 80% 70% 60% 50%
Price Mileage Quality Resale Value Status Symbol
40% 30% 20% 10% 0% Swift
i20
Q11: How would you rate the following factors of Cars with respect to different company?
Mileage Price Pick Up Maintenance Look and Shape Brand Image
Maruti Suzuki Swift 78% 67% 81% 63% 68% 58%
Hyundai i20 71% 63% 79% 59% 71% 51%
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90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Mileage Price Pick Up Maintenance Look and Shape Brand Image
Swift
i20
Q12: If a new Car with good features comes in, then would you like to change your existing car ?
Yes No Can’t Say
Maruti Suzuki Swift 17 16 11
Hyundai i20 20 14 4
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25 20 15
Swift i20
10 5 0 Yes
No
Can't Say
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Chapter No. 4
CONCLUSIONS AND RECOMMENDATIONS
66
-CONCLUSIONS-
1. Maruti Suzuki Swift is considered to be most fuel-efficient car on Indian roads,& has better quality, higher resale as compared to Hyundai i20. 2. Maruti Suzuki Service & Spare parts are available throughout India and in local markets also, & Swift has comparatively low maintenance cost in contrast to Hyundai i20. 3. While buying a car, economy is the main consideration in form of price, maintenance cost, fuel efficiency. 4. Majority of the respondents had bought changed their cars within 5 – 10 years of purchase of their older cars. 5. Maruti Suzuki Swift has been rated better than Hyundai i20 by the people in terms of mileage, price, pick up, maintenance and brand image, while Hyundai i20 has only been rated better in terms of looks and shape. 6. The middle model in both Maruti Suzuki Swift and Hyundai i20 is preferred more than the highest and lowest models respectively, by the people. 7. Maruti Suzuki Swift is more preferred than Hyundai i20 by people in terms of Office and Joy purposes, while Hyundai i20 is more preferred for Personal Purposes. 8. Owners of Hyundai i20 are interested in changing their cars if a new model is out, more than the owners of Maruti Suzuki Swift.
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-RECOMMENDATIONS-
1. Hyundai should focus on improving the fuel efficiency of its i20 model, the quality and reliability needs to be worked upon too, on which the resale value of car depends. 2. Hyundai needs to tap the export market more efficiently as there is a huge potential to make India as the world's 4-wheelers production base. For this, it needs to look for joint ventures abroad. 3. More service centers should be opened for Hyundai Motors, so that its Service & Spare parts are available throughout India and in local markets also. 4. They should also introduce some good finance/discount schemes for students, so that more of the young generation is attracted.
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-BIBLIOGRAPHY-
1. www.marutisuzukiswift.com 2. www.hyundai.com 3. www.google.com 4. www.wikipedia.org 5. www.authorstream.com 6. www.india-server.com 7. www.wiki.answers.com 8. www.cardekho.com 9. www.profilefacts.blogspot.com
-QUESTIONNAIRE-
69
Name: __________________________________ Contact No.: ______________________________
Age:
a) 15-20
b) 20-25
c) 30-40
d) Above 40
Occupation: a) Businessman
b) Employee
c) Student
d) Other
Q1: Which car brand do you have? a) Maruti Suzuki
b) Hyundai
c) Chevrolet
d) Others
Q2: Which Car do you prefer out of Swift and i20 and which model? a) Maruti Suzuki Swift
b) Hyundai i20
-Lowest -Middle -Highest
-Lowest -Middle -Highest
Q3: Which family Income level do you fall in? a) 250000-350000
b) 350000-450000
c) 450000-550000
d) Above 550000
70
Q4: While purchasing a car, what features influence you ? a) Price
b) Product Feature
c) Brand
d) Service
e) Durability
Q5: How frequently you change your car? a) In 1-3 Years
b) In 3-5 Years
c) In 5-10 Years
d) In more than 10 years
Q6: For what purpose do you use your car? a) Official Purpose
b) Personal Purpose
c) Joy Purpose
d) Others
Q7: How did you come to know about this Car? a) Newspaper
b) Television
c) Magazine
d) Friends and Relatives
Q8: Did Advertisement influence your choice, while you chose your car? a) Yes
b) No
c) Can’t Say
Q9: Did you have full knowledge before buying your car? a) Yes
b) No
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Q10: Which Factors below influenced your decision? a) Price
b) Mileage
c) Quality
d) Resale Value
e) Status Symbol
Q11: How would you rate the following factors of Cars with respect to different company? a) Mileage
b) Price
c) Pick Up
d) Maintenance
e) Look and Shape
f) Brand Image
Q12: If a new Car with good features comes in, then would you like to change your existing car ? a) Yes
b) No
c) Can’t Say
Q13: Any Suggestions for the company ? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________
Date: __ / __ / ____
(Signature)
72
