A

Summer tanning project report

On

“Consumer buying behavior and their post purchase behavior in the Light Commercial Vehicle segment with special reference to Mahindra &

Mahindra”

Session – 2009-11

Submitted to: submitted by:

Miss. Anshu Sharma Avadhesh Kumar Mishra

Faculty of Management Roll No. 0907070011

MBA – III SEM

College of Engineering & Rural

technology, Meerut

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DECLARATION

I, Avadhesh Kumar Mishra, student of MBA, CERT, Meerut hereby

solemnly declare that the project report titled “Consumer buying behavior and

their post purchase behavior in the Light Commercial Vehicle segment with

special reference to Mahindra & Mahindra” is the out come of my own

research and prepared by me & under the guidance of Ms. Anshu Sharma

(Faculty, Management) and the same has not been submitted to any other

university or institute for the award of any degree or diploma.

Avadhesh Kumar Mishra MBA – III SEM

Roll No. 0907070011

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Acknowledgement

We would like to avail the opportunity to express our gratitude towards Mr.

Pankaj Malik (Sales Manager) and Ms. Ranjana (Team Leader) for providing

data about the Light Commercial Vehicle with reference to Mahindra &Mahindra.

My sincere appreciation and thanks to Ms. Anshu Sharma , Faculty of

Management, CERT, Meerut, and whose guidance and encouragement has made

it possible to Complete this work.

Last but not the least; we express profound gratitude towards all the people who

have directly or indirectly contributed towards completion of the project work.

I hereby declare that this is my original piece of work.

Avadhesh Kumar Mishra MBA – III SEM

Roll No. 0907070011

3

PREFACE

Under the industrial training I was required to prepare a project on “Consumer

Buying Behaviour and their Post Purchase Behaviour to Light Commercial

Vehicle segment with reference to Mahindra & Mahindra.” It was the test of

transforming theory into a practical i.e. a real life experience.

Hence the part of challenge in preparing this report was a fact that the field of

“Consumer Behavior” regarding after purchase is dynamic and its research in

prolific. Keeping this in mind and confidence in hard, I took the initiative to

analyse.

This report is committed to the spirit of diversity.

Diversity of focus

Diversity of method

Diversity of consumer

Diversity of view points

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To make the result as accurate and comprehensive as possible, the study covered

various aspects of the ownership experience, like the sales process, after sales

service, product quality, product performance and design, cost of ownership and

brand image, while ranking the contenders.

Most researchers assume that the better commercial vehicle performs the more

satisfied to owner would be. How even that is not always the case. Satisfaction also

depends on which part of the vehicle performing well. Rate acceleration is an

example of the first type of performance, where there is a direct link between

performance and satisfaction.

The Customer is now Truly King

Starved of choice for so long, the Indian car buyer now has plenty . The spectram

of customer satisfaction efforts today was unheard of a mere five years ago. The

customer now wants immediate attention, quick service and value for money

products . A range of attractive offers awaits him , as both manufacturers and

dealers offer prise competitiveness though special schemes and incentives , in

order to maintain sales levels .These incentives rise to a crescendo during festive

seasons with overseas trips ,gold ,television sets and the like on offer ,along with a

customer ‘s new car .

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Thus , a car dealership’s present day efforts must be directed not merely at

satisfying customers, but at virtually delighting customer – to ensure both repeat

business as well as recommendations . The car salesman’s new role must be that of

a relationship manager. He must be educated on all parameters of the dealership –

product information , loan requirements , exchange deals and servicing

requirements – in order to be a one point contact between dealership and

customer , since to the latter , the person he deals with is , in essence , the entire

dealership .

Herein lies in whole new area of investment for a car dealership – customer

relationship management on an ongoing basis – to retain customers, to win new

customers, to envision what customers will want tomorrow and give it to them

today.

Once the right people are found and the right mindset is achieved, these must be

bolstered through regular training programmes. The focus must be the fact that the

customer is the sole reason for the very existence of the dealership.

In fact, the biggest challenge facing auto dealership in the new millennium is

recruiting, training , developing and retaining people with the right

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attitude .dealership must then have broad vision and look at these people as

business partners rather than as staff.

“customer service means getting to the cause of customer problems rather than

symptoms”.

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CONTENTS

1. Synopsis

2. Objective of the project

3. Introduction

a. About topicb. Company profile

4. Mahindra exclusive product

5. SWOT Analysis

6. Research objective

7. Research Methodology

8. Analysis

9. Findings

10.Suggestions

11.Limitations

12.Conclusion

13.Bibliography

14.Appendix

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Synopsis

(A Brief overview of the study)

The study was carried out at Meerut.

The projections were made on the basis of a set of assumption and policy

statement as practiced by Mahindra & Mahindra Ltd.

To suggest the most suitable media for educating the consumer about the new

product.

Understanding from customer’s satisfaction

Major problems faced by customers.

Consumer post purchase behavior.

10

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Objective of the project

To study the position of commercial vehicle in Meerut Consumers to forecast the

consumer’s requirement and study consumer’s preference by collecting the data

through questionnaire.

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THE STUDY OF CONSUMER BEHAVIOUR

The study of consumer Behaviour is the study of how individuals

made decisions to spend their available resources (time, money, effort)

on consumption related items. It includes the study of what they buy,

why they buy it, when they buy it, where they buy it, how often they

buy it, and how often they use it.

What features do they look for ? What benefits do they seek ? How

likely are they to replace their old models when new models with added

features become available.

Consumer behaviour research goes for beyond these facets of

consumer bahaviour and encompasses all of the behaviours that consumers

display in searching for, purchasing, using evaluating, and disposing of

products and services that they expect will satisfy their needs.

In addition to studying consumer uses and post purchase evaluations

of the products they buy, consumer researchers also are interested in how

individuals dispose of their once new purchase.

The term consumer is often used to describe two different kinds of

consuming entities; the personal consumer and the organizational

consumer. The personal consumer buys goods and services for his or her

own use. The goods are bought for final use by individuals, who are

referred to as end users or ultimate consumers.

The second category of consumer – the organizational consumer –

includes profit and not – for – profit businesses, government agencies

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(local, state, and national), and institutions (e.g. schools, hospitals, prison),

all of which must buy products, equipment, and services in order to run

their organizations.

End – use consumption is perhaps the most pervasive of all types of

consumer behaviour, for it involves every individual, of every age and

background, in the role of either buyer, user, or both.

The person who makes a product purchase is not always the user, or

the only user, of the product in question. Nor is the purchaser necessarily

the person who makes the product decision. Buyers are not always the

users, or the only users, of the product they buy, nor do they necessarily

make the product selection decisions themselves.

Marketers must decide at whom to direct their promotional efforts,

the buyer or the user. For some products, they must identify the person who

is most likely to influence the decision – who may be neither the buyer not

the user.

Why We Study Consumer Behaviour

Just as consumers and marketers are diverse, the reasons why people

study consumer behaviour are also diverse. The field of consumer

behaviour holds great interest for us as consumers, as marketers, and as

students of human behaviour.

As consumers, we benefit from insights into our own consumption –

related decisions what we buy, why we buy, how we buy, and the

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promotional influences that persuade us to buy. The study of consumer

behaviour enables us to become better, that is, wiser, consumers.

As markers and future marketers, it is important for us to recognize

why and how individuals make their consumption decisions, so that we can

make better strategic marketing decisions. If marketers understand

consumer behaviour, they are able to predict how consumers are likely

to react to various informational and environmental cues, and are able

to shape their marketing strategies accordingly. Without doubt,

marketers who understand consumer behaviour have great

competitive advantage in the marketplace.

As students of human behaviour, we are concerned with

understanding consumer behaviour, with gaining insights into why

individuals act in certain consumption – related ways and with learning

what inernal and external influences – related human bahaviour has led to a

diversity of theoretical approaches to its study.

Consumer behaviour was a relatively new field of study in the mid-

to-late 1960s, many early theories concerning consumer behaviour were

based on economic theory on the notion that individuals act rationally to

maximize their benefits (satisfactions) in the purchase of goods and

services.

The initial thrust of consumer research was from a managerial

perspective : marketing managers wanted to know the specific causes of

consumer behaviour. This approach has come to be known as positivism,

and consumer researchers primarily concerned with predicting consumer

behaviour are known as positivists.

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The study of consumer behaviour form the point of view of

understanding consumption behaviour and the meaning behind such

behaviour is called interpretivism (sometimes referred to as

postmodernism). Interpretivists have expanded the boundaries of study to

include many subjective aspects of consumer behaviour, such as the efforts

of modes, emotions, and types of situations on consumer behaviour, the

role of fantasy, of play, of rituals, even of the sensory pleasures that certain

products and services provide. Many interpretivists consider each purchase

experience unique because of the diverse set of variables at play at that one

particular moment in time. Because of its focus on the consumption

experience, the interpretive approach is also known as experimentalism.

The Role of Consumer Research :

Consumer research is the methodology used to study consumer

behaviour. Given the fact that there are two major theoretical perspectives

concerning the study of consumer behaviour it is not surprising to find that

there is a divergence in theoretical assumptions and to some extent, in

research methodology between the positivist approach and the interpretive

approach. Broadly speaking positivists and to be objective and empirical, to

seek causes for behaviour, and to conduct research studies that can be

generalized to larger populations. The early consumer researchers, with

their strategic management perspective, were largely positivist in their

approach.

The research done by interpretivists, on the other hand, tends to be

qualitative and based on small samples. Although they tend to view each

consumption situation as unique and nonreplicable, interpretivists seek to

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find common pattern of operative values, meanings, and behaviour across

consumption situations.

Ethics in Marketing :

The primary purpose for studying consumer behaviour as part of a

marketing curriculum is to understand why and how consumers make their

purchase decisions.

The aim of marketing is to meet and satisfy target customers needs

and wants. The field of consumer behaviour studies how individuals,

groups, and organizations select, buy, use, and dispose of goods, services,

ideas, or experiences to satisfy their needs and desires.

Understanding consumer behaviour and knowing customers is never

simple. Customers may say one thing but do another. They may not be in

touch with their deeper motivations.

Not understanding your customers motivations, needs, and

preferences can hurt. Studying customers provides clues for developing

new products, product features, prices, channels, messages, and other

marketing mix elements.

Influencing buyer behaviour :

A consumer's buying behaviour is influenced by cultural, social,

personal and psychological factors.

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Cultural factors :

Culture, subculture, and social class are particularly important in

buying behaviour. Culture is the fundamental determinate of a person's

wants and behaviour. The growing child acquires a set of values,

perceptions, preferences, and behaviours through his or her family and

other key institutions.

Each culture consists of smaller subcultures that provide more

specific identification and socialization for their members. Subcultures

include nationalities, religions, racial groups, and geographic regions.

Virtually all human societies exhibit social stratification.

Stratification sometimes takes the form of a caste system where the

members of different castes are reared for certain roles and cannot change

their caste membership. More frequently, it takes the form of social classes,

relatively homogeneous and enduring divisions in a society, which are

hierarchically ordered and whose members share similar values, interests,

and behaviour.

Social classes differ in dress, speech patterns, recreational preferences

and many other.

Social classes have several chrematics. First, those within each class

tend to behave more alike than persons from two different social classes.

Second, persons are perceived as occupying inferior or superior positions

according to social class. Third, social class is indicated by a cluster of

variables - for example, occupation, income, wealth, education, and value

orientation – rather than by single variable. Fourth, individuals can move

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up or down the social — class ladder during their lifetimes. The extent of

this mobility varies according to how rigid the social stratification is in a

given society.

Social classes show distinct product and brand preferences in many

areas, including clothing, home furnishings, leisure activities, and

automobiles.

Social Factors :

In addition to cultural factors, a consumer's behaviour is influenced

by such social factors as reference groups, family, and social roles and

statuses.

A person's reference groups consist of all the groups that have a

direct (face-to- face) or indirect on the person's attitudes or behaviour.

Groups having a direct influence on a person are called membership

groups. Some membership groups are primary groups, such as family,

friends, neighours, and co-workers, with whom the person interacts fairly

continuously and informally. People also belong to secondary groups, such

as religious, professional, and trade – union groups, which tend to more

formal and require less continuous interaction.

People are significantly influenced by their reference groups in at

least three ways. Reference groups expose an individual to new behaviours

and lifestyles and incluence attitudes and self-concept they create pressures

for conformity that may affect actual product and brand choices.

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Reference groups appear to strongly influence both product and brand

choice only in the case of automobiles and colour television.

The family is the most important consumer - buying organization kin

society, and family members constitute the most influential primary

reference group. The family has been researched extensively. We can

distinguish between two families in the buyer's life. The family or

orientation consists of parents and siblings. From parents a person acquires

an orientation toward religion, politics, and economics and a sense of

personal ambition, self-worth, and love. A more direct influence on

everyday buying behaviour is the family of procreation namely, one's

spouse and children.

A person participates in many groups – family, clubs, organizations.

The person's position in each group can be defined in terms of role and

status. A role consists of the activities a person is expected to perform.

Each role carries a status. A Supreme Court justice has more status than a

sales manager, and a sales manager has more status than an office clerk.

People choose products that communicate ;their role and status in society.

Company presidents often drive Mercedes, wear expensive suits, and drink

Chivas Regal Scotch, Marketers must be aware of the status – symbol

potential of products and brands.

People buy different goods and services over a lifetime.

Consumption is shaped by the family life cycle, nine stages of the

family life cycle are listed in along with the financial situation and typical

product interests of each group.

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Occupation also influences consumption patterns.

Product choice is greatly affected by economic circumstances : spend

able income (level, stability, and time pattern), savings and assets

(including the percentage that is liquid), debts, borrowing power, and

attitudes toward spending and saving. Marketers of income - sensitive

goods continuously monitor trends in personal income, savings and interest

rates. If economic indicators point to a recession, marketers can take steps

to redesign, reposition and re-price their products so they to offer value to

target customers.

People from the same subculture, social class, and occupation may

lead quite different lifestyles. A lifestyle is a person's pattern of living in

the world as expressed in activities, interests, and opinions. Lifestyle

portrays the "whole person" interacting with his or her environment.

VALS classifies all U.S. adults into eight primary groups based on

psychological attributes and key demographics. The segmentation system is

based on responses to a questionnaire featuring 4 demographic and 35

attitudinal questions.

Each person has personally characteristics that influence his or her

buying behaviour. By personality, we mean a set of distinguishing human

psychological traits lead to relatively consistent and enduring responses to

environmental stimuli. Personally is often described in terms of such traits

as self-confidence, dominance, autonomy, deference, sociability,

defensiveness, and adaptability. Personality can be a useful variable in

analyzing consumer brand choice. The idea is that brands also have

personalities and that consumers are likely to choose brands whose

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personalities match their own. We define brand personality as the specific

mix of human traits that may be attributed to a particular brand.

A person's buying choices are influenced by four major psychological

factors – motivation, perception, learning, and beliefs and attitudes.

Thus in conclusion I can say that consumer behaviour deals with

following questions?

What they buy ?

Why they buy it ?

When they buy it ? Where they buy it ?

How often they buy it ?

How often they use it ?

What features do they look for ?

What benefit do they seek ?

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Stage Model of the Consumer Buying Process

Problem Recognition

Information Search

Evaluation of alternatives

Purchase Decision

Postpurchase Behaviour

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The Indian Automobile Industry Growth Driver of the Economy

Globally, as well as in India, the Auotmobile Industry is one of the largest

industries. It has deep forword and backward linkages with the rest of the

economy, and hence a strong multiplier effects. Moreover it is the leader in the

product and process technologies.

The first passenger car in the India was made in early 1940's and India has one of

the oldest Automobile Industries in Asia. The Automotive Policy was inward

looking Policy, based on import subsitution, for two wheelar and light commercial

vehicles from 1940 to1990 and for passenger cars between 1940 and till the mid

1980's after the liberalisation of the Indian economy in 1991 the investment

climate in India has improved. Moreover attract by "India's burgeoning middle

class," many multinational OEMs have invested in auto manufaturing facilities in

India. The auto sector has received the maximum share, Rs.47.72 billion and

acconting for nearly 8%, of the total FDI flow into India. The 1990's have been

truly momentous yeas for the Indian Automobile industry, influenced by global

foroes of change comprising environmental imperatives, safety requirments,

customer preference and competitive pressures.

During the first of the 1990's the Indian Automobile Industry experienced fairly

rapid rates of growth. By the beginning of the second half, however, there were

clear signs of deceleration in growth. Whereas this deceleration may be related to

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overail economic slowdown characterising this period, there have been some

doubts expressed about the ability of the Auto Industry to grow at the same pace as

in the mid-1990's, in the absence of the right kind of policy framework.

Despite the Indian economy's relative resilience amidst the global financial

turmoil, its prospects remain clouded by domestic factors. Demand has failed to

fulfil expectation of the major OEMs who started making investment in India in

the mid- 1990's.

While there is no doubt about the long-term potential of the Indian market, the

industry is plagued by uncertain policy environment, high taxes, overcapacity and

fierce competition. Several significant projects are coming on stream and crowding

almost all segments.

However, we expect recovery in 1999-2000. The commercial vehicle market

should finally emerge out of three-year recession and the passenger car demand

will get a boost from the launch of new small car models and intense competition.

The Indian Automobile industry has been characterised by a high degree of

concentration and a dismal perfomence of exports with focus mainly on the

domestic market. In response to the liberalisation and growing global challenges,

not only have a large number of firms. Both domestic and multinationals entered

the market but the industry has started focussing on exports with thrust on quality,

customer preference and technology improvements.

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The Indian Automobile industry is large with and estimated sales turnover of

Rs.37, 700 carors. The renowned consultants, A. T. Kearney’s global experience

shows that the Indian auto industry is at the threshold of the take -off stage from

where it can become a growth driver of the GDP by rapidly increasing it's growth

multiplier on the economy.

The collective turnover of the automobile and auto component industry during the

last five years gives a measure of the phenomenal growth achieved by the auto

sector and it's importance in the national economy. To give an idea, the colloective

turnover of the auto sector in 1966-97 was the order of Rs.4, 800 crores, which

accounts for about 4.5% of the GDP.

Multi- utility Vehicle Segment

The multi-utility Segment has traditionally been viewed as an intermediate

Segment between passenger cars and commercial vehicles . The recent entry of

global majors may lead to overcapacity and stiffer competition.

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The industry feels that fiscal and other forms of incentives along with a time –

bound scrappage programme would provide tremendous boost to segment .The

industry also feels that it is important to focus on export to enveloping countries.

Commercial Vehicle segment

The Commercial Vehicle segment is large in terms of volume but has relatively

lower value. Poor road infrstrastructure , unwillingness and inability (due to high

cost of financing ) of users to purchase better products are some of the factors

affecting this segment . negligible scrappage leads to high cyclicity. All these

factors have been partially responsible for the technology gap in safety and

emission with international standards .

Technology upgradadion without modernisation of Indian transportation industry

can not be achieved . there is a need to selectively mandate improved technology

standards and simpultaneously promoting scrappage. With the right structure and

policies, this sector poses tremendous potential.

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Indian Automobile Industry

An Indian car as one which has been conceived and designed in India, has at

least 85% of its components 'Made in India', by an Indian company. The Indian

passenger car industry as we see today is relatively recent in origins. Except the

ubiquitous Ambassador and the Premier Padmini there was not much moving

around with an Indian tag.

The official mascot of the Indian political system, the Triassic-era

Ambassador has little Indian-ness in it. To start with, the name isn't Indian and

that's only the tip of the iceberg. The design came from Morris Motors and the

present petrol power plant and drive train are Isuzu throwaways. The diesel version

has a BMC engine. Of course everything is made in India now, but do you call a

tree your own if its roots are in someone’s courtyard.

The other pre-Cambrian relic, the Premier Padmini, which till a few months

back was adorning showrooms throughout the country. Its in the market since my

grandpa learnt driving and at the time of its going to grave, the Padmini was a

completely made in India product. But again, there's very little Indian-ness about

the car, except maybe the name Padmini. The entry of Maruti Udyog Ltd, a GoI JV

with Suzuki of Japan, in 1983 with a so-called "peoples" car and a more favorable

policy framework resulted in a growth rate of 18.6% in car sales from FY81-FY90.

After witnessing a downturn from FY90 to FY93, car sales bounced back to

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register 17% growth rate till FY97. Since then, the economy slumped into

recession and this affected the growth of the automobile industry as a whole. As a

result car sales remained almost stagnant in the period between FY97 and FY99.

However, with the revival in the economy, FY2000 turned out to be a significant

year for the industry in which it recorded volume sales of 638,815 units as against

409,951 units in the previous year. Thus, the CAGR for the period FY96 - FY2000

stands at 16.6%.

The present day stunner from HM is the Lancer. As with HM products from

the past, the Lancer is a borrowed from abroad product. The saving grace is only

that this Lancer is a contemporary model and not some. The erstwhile Premier

Auto Ltd. no longer exists. The nearest thing to it in the present is Ind Auto Ltd.

Ind is an acronym for India or Indian, but the products are all borrowed from Italy.

The Uno came to India after the Mafiosi had their fill with it. The Siena is a very

contemporary model. It being a good car and all, but I always wonder why Fiat

doesn't launch it in their motherland. What's this 'special' car for India, Brazil,

Africa, Latin America inc.

Ford did take the pains to design an India specific car, the Ikon. So does the

quest for an Indian car end with the Ikon. No I don't think so. First thing, the

company is American. Secondly, the Ikon's platform is that of the Fiesta, nothing

else. So the only thing Indian about the car is the 'Josh' advertising gimmick.

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Starting with the official one, i.e. Maruti, the company, since its inception

has changed the automobile scene in India completely. It's has been the number

one manufacturer, churning out close to 300,000 cars last year. At last count it held

a 64% market share in the passenger car market with four out of every five cars .

on Indian roads being Marutis. Every year it rakes in multi-billion rupee profits,

and, yet the company is nothing more than Suzuki India Ltd.

Telco is a completely Indian carmaker with no major foreign collaborations.

Their Indica was much touted as 'The Indian car', but it was styled by I.D.E.A of

Italy. The engine technology had inputs from 'Moteur Modern' of France. In effect

it was the case of an Italian body being wrapped around Indian mechanicals.

Frankly I would have preferred an Indian body wrapping an Indian platform.

India is also the largest manufacturer of agricultural tractors, motor scooters

and the world's fifth largest commercial vehicle manufacturer. Each of these

sectors experienced rapid growth during the last three years Demand in these

sectors is driven by industrial, individual and agricultural consumers respectively.

The increases have resulted from improved overall economic trends in India

including large doses of foreign investment a more liberalized economy and higher

productivity.

The fortune of the Auto component industry is inextricably linked with that

of the automobile industry which in turn is influenced by the general economic

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trends of the country the country's economic growth is projected to grow at more

than six percent per annum in the coming years. The estimated growth will

automatically emphasize the need for better transport infrastructure facilities. This

means demand for automobiles and hence for auto components, is bound to grow

accordingly. Therefore, good growth prospects are assured for the automobile

industry.

World-wide, cars are segmented on the basis of their size. However, in India,

price is the main factor determining the choice of car. Hence, cars are segmented

on the basis of price into three segments :

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Segment

Price

Range

(Rs.

‘000)

Main ModelsFeatures of

the segment

Approximate

Market

Share of the

Segment

Economy < 250

M-800, Omni,

Uno,

Ambassador

Price, Fuel

Efficiency46.9%

Medium 250-500

Zen, Uno, 118-

NE,Ambassador

1800 ISZ,

Contessa,

Indica, Santro,

Matiz

Price,

Performance,

Diesel

Option

43.1%

Premium500 &

above

Lancer, Esteem,

Cielo, Accent,

City, Opel

Astra, Ikon

Status Value,

Performance,

Features.

10.1%

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Sources : various sources

Absence of adequate mass transportation system and rising income levels have

resulted in personal vehicles becoming an important mode of transportation in the

urban and semi-urban areas. By international standards however, the Indian car

volumes remain small at just over 1% of the world market with penetration rates of

approximately 3.7 cars per thousand people as against 24 in Thailand, 144 in

Malaysia, 204 in Poland and 90 in Brazil. Cars currently constitute approximately

12% of the total stock of personal vehicles in India.

Rising household income, increased urbanisation, introduction of new models and

availability of cost effective finance are the key demand drivers in the industry.

The premium segment cars are mainly targeted at corporates or businessmen and

are usually bought on consumer finance.

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Opportunities for the Automobile Industry

Global automobile companies are setting up manufacturing facilities in

India. Also, many Indian automobile manufacturers have announced their plans to

increase the export of vehicles from India. The year 2002-03 has already seen a

significant 65% increase in export volumes during the period April to March. This

trend is expected to continue with more global OEMs sourcing vehicles from their

Indian plants.

Additionally, the introduction of newer technologies such as Electronic

Diesel Control Systems to reduce emission levels, safety devices such as Air Bags,

Anti-lock Braking Systems, etc. augur well for the Company and the automotive

sector as a whole. These technologies not only offer increased safety for drivers

and passengers, but also result in greater comfort and better drivability.

While there exist many opportunities for growth in business, there are also

quite a few factors, which act as an impediment.

In my last year’s speech I mentioned about the need for a well thought out

and clearly defined policy on emission norms. It is now fairly certain that Bharat

Stage II norms (equivalent of Euro II norms) will be implemented countrywide

starting 2005. It is important that this plan is implemented in time in the interest of

a cleaner environment. Technology is available to meet the advanced emission

norms using gasoline and diesel fuel; Bosch and many other companies have

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proved this worldwide. There is no need for the authorities to specify the type of

technical solution required for this purpose as long as the end objectives are met.

The spurious and reconditioned goods market, which I also dealt with in

detail in my speech last year, continues to be a worrying factor as it directly affects

our market share. The Company on its part has intensified the anti-spurious

operations by conducting several raids across the country with the help of local

regulatory authorities. Large quantities of spurious and fake products have been

seized and legal action has been taken against those indulging in such activities.

The Company believes that continued focus and concerted action against spurious

activities would improve safety and fuel efficiency of the vehicles and at the same

time help in expanding our market share in the Aftermarket. The Company is also

continuously educating the users about the benefits of using genuine spares in

place of spurious and reconditioned spares.

The lack of any significant change in the labor law reforms also continues to

be a matter of concern. It is essential that legal reforms be put in place at the

earliest to provide more flexibility in manufacturing operations and enable the

industry to quickly adjust the work force in line with fluctuating market conditions.

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Challenges for the Indian automobile industry

As we move into the new millennium, the Indian Automobile Industry faces

some tremendous opportunities and also great challenges. The growth in

automobile sales has been impressive for the past ten years since liberalization

began. However, with liberalization, the Indian customer has been presented with a

wide range of choices in automobiles, to suit every requirement and budget. The

market has turned into a buyers market where the customer is being wooed by the

manufacturers and the dealers with a range of freebies unheard of before in India.

Financing has become so easy that an automobile is within every aspirant's reach.

Competition has meant that manufacturers' margins have been squeezed

severely and they are all under pressure to cut costs to be profitable and

competitive. Some of the older manufacturers like Premier Automobiles

(manufacturers of Premier cars), Automobile products of India (manufacturers of

Lambretta scooters) and Ideal Jawa (manufacturers of Jawa and Yezdi

motorcycles) have closed shop. Hindustan Motors (manufacturers of Ambassador

and Contessa cars) is in trouble due to the declining sales of its car’s, as most

customers prefer the newer models available in the market. Even the dominant

player Maruti has seen its market share decline rapidly due to its models being old

and jaded and is in addition facing labour problems in its plant.

37

To add to the problems, come April 2001, under the WTO agreement, India

will have to permit import of fully built automobiles, which hitherto was not

permitted. The foreign manufacturers such as GM, Ford and Daimler Chrysler will

almost certainly import vehicles from their large portfolio of models and makes,

further segmenting the market into niches, although how competitive they are in

terms of price remains to be seen.

The challenge before the industry is to figure out the strategy for survival

and growth. It is clear from the picture painted above that the industry will have to

increase volumes in each segment to achieve lower cost of manufacture. One way

to achieve this will be to go for exports in a big way. Maruti is already exporting

vehicles, as are Mahindra, Telco, Daimler Chrysler and more recently Daewoo.

The overseas markets will have to be exploited more aggressively, but this will

mean the companies will have to invest more in Research and Development of new

models with better features.

The second opportunity is to become contract manufacturers for overseas

companies. A number of Japanese and Korean companies have been following this

strategy very successfully. Hindustan Motors is said to be considering this option.

The third opportunity is to overcome the vulnerability of the automobile market to

oil prices by designing vehicles, which can offer lower fuel consumption. Recent

reports suggest the government is exploring the possibility of introducing Gasohol,

38

which is a mixture of Petrol and Alcohol. Gasohol has been very successful in

Brazil. Since Alcohol is a by-product of the Sugar industry (of which India has the

worlds largest), this is a very logical step that should have been taken many years

ago. Even a small percentage reduction in the consumption of petroleum per

vehicle can make a big difference to the balance of payments.

The industry must focus its R&D efforts in line with the global trends, which

is to build vehicles that are considerably more fuel efficient and less polluting.

With growing awareness among the public about pollution and the effective

campaigns carried out by the NGO's, this will increasingly become an important

selling feature. It was surprising to see how the industry kept stalling the

introduction of pollution norms for vehicles on the pretext that they needed more

time to get the technology. Even Maruti despite its foreign affiliation was caught

off guard when the Supreme Court finally ruled that all new vehicles should

strictly adhere to the Euro II norms.

The inadequacy of road infrastructure in India is well known. This is

compounded by the fact that traffic management is very poor or non-existent and

the drivers are mostly ill trained and in disciplined. As more vehicles come on the

road, this will become a major bottleneck. The industry will need take initiatives

firstly to train all drivers in safe driving and proper road discipline and manners.

They will also need to assist government agencies in better road design and in

39

building of multilevel parking lots. Training of police personnel in better traffic

management and advising them on better equipping themselves to deal with

various problems will also have to be done.

In terms of the world averages, India's vehicle density is very low and if we

have to achieve those density levels, the industry can look forward to a bright

future. However in the industry's interest care must be taken to see that we also

achieve the safety and convenience levels of using automobiles.

40

41

COMPANY PROFILE

Mahindra and Mahindra, a market leader in utility vehicles segment

has virtually entered the roads and hearts of millions of Indian. The

company was founded in 1945, two years before independence and has

grown to be one of the largest and respected business houses in India.

Mahindra entered the utility vehicle market in India by introducing

the Jeep. The first batch of seventy five vehicles were imported in C.K.D.

condition from Willys Overland Export Corporation in 1947. This was

followed by the CL 340 - a more sophisticated vehicle adept on both

urband and rural tracks. Much later came the CL-500 with a direct injection

diesel engine developed with Austrian technology.

Today Mahindra and Mahindra has more than 11 lack vehicle running

successfully on all Indian roads and cater to various applications and satisfy

needs of various types of customers.

The soft tops comprising of CL 500 and the Commander 650

contribute to the backbone on Indian rural transport system. The hard tops

such as the Marshal, MaXX, Savari and LCV's also cater to the

transportation needs of people in both the urban and rural areas.

The stylish Scorpio and the Bolero are image and status symbols of

personal transportation in the cities. The LCV's, Pick ups and the three

wheelers play a pivotal role in the goods transportation segment and are

becoming extremely popular in both the captive user and the fleet operator

segments.

42

Mahindra and Mahindra are the undisputed market leaders in Rural

and semi urban transportation and also enjoy similar status when it comes

to the pick-up segment. The entire new product development activity is

aimed consolidate Mahindra's leadership in the utility market segment.

There are tremendous effort to gain market shares in the contract

commercial segment, the LCV segment and the three wheeler auto

segment.

At the juncture when there is a fierce competition in all the different

market segments there is a need to combat this competition by introducing

newer and better products which provide more value than the competitive

models. It is more important that these advantages are properly

communicated on the ground level to the customers. It is a must of all of us

who are engaged in the sales of Mahindra and Mahindra utility products to

understand the product portfolio and also the various advantages and

strength of our products Vis-a-Vis the competitive products. It is also

imperative that each and every salesperson understands the needs and

requirements of every customer and satisfy the customer by recommending

the right product for the right application.

The objective of the tool kit is to provide complete information the

various products in terms of not only the specifications but also the

advantages and the main selling points of our products as compared to the

competition. There is a comparative analysis which highlight the various

advantages of our product against the different competitive products. The

tool kit explains the various features of the products, the potential

application and the customer who are to be targeted. The toolkit also

explains the various feature led emotional and the rational benefits which

43

need to be effectively communicated to the customers. The toolkit also

included the sales stories of every product which should be the final

weapon to convince the customer to buy our product. The toolkit also

contains the leaflets for all models thus making it the complete tool for all

salespersons in the field.

The toolkit has been designed specifically with a provision for

continuous updating and incorporation of new leaflets, comparative

analysis and to include any information which is useful for sales.

The toolkit has various chapters starting with the hard top range

which is led by the Scropio. The hard top range is followed by the soft tops

range, the pici-up range, the three wheeler Champion range and lastly the

LCV range.

We are confident that this toolkit will provide you with all the

necessary ammunition to fight and keep winning the battle against the

competition.

Good morning/afternoon/evening.

Thank you for visiting the Mahindra Showroom and showing interest

in the Scorpio.

Scorpio is not just a car, it's much more. It is car plus.

The Scorpio comes in two version, Diesel, and for the die-hard petrol

customers we have the Scorpio Rev 116 with the Renault Petrol state of the

art 116 bhp engine, with MPFI, 16 valves and 32-bit microprocessor.

44

Let me show you how the Scorpio is car plus.

The Scorpio has power that will excite you. It is the most powerful

vehicle in its category. Its powerful engine transports you from 0-60 km/h

in 9 seconds in the Petrol. It is not just power that the Scropio is all about, it

is also about the extra comfort.

Its Independent front suspension and easy to handle steering ensures

that you ride is gentle, smooth and comfortable.

Scorpio stands for luxury. We have moulded interiors, in the form of

injection moulded instrument panel, moulded interior package with

moulded roof lining (unlike most other vehicles in this category), moulded

carpets and door trim. We also have a state of the art Kenwood audio

system, the A/C, which even cools the rear of the car and the Lear designed

seats which made you feel that you are sitting in the lap of luxury.

Safety, extra safety, that is what we aim at. The Scorpio is concerned

about your loved ones. Just for that, we have features like crumple zones,

side intrusion beams, anti locking LSPV brakes, child locks and yes even

fire resistant upholstery. Also we have features like seat belts on all rows of

seats and extra thick sheet metal for the vehicle.

The Scorpio is one of the best-designed vehicles around. It is classy

looking and modern with an aerodynamic shape and superior exterior

styling, with features like ski racks, claddings and wrap around lamps.

The spacious Scorpio can also accommodate upto 9 people

comfortably.

45

All this and the Scorpio doesn't compromise on fuel efficiency. It

gives you 10-13 kmpl for the Diesel and 8-10 kmpl for the Petrol.

So the Scorpio is not just like any other car but it is a car with an

attitude. An attitude, which says, "Nothing else will do".

46

COMPANY PROFILE

Name : MAHINDRA & MAHINDRA LIMITED

Business : Manufacturing of four wheelers of different

Models viz. Scorpio, Bolero DI Pet,

Bolero,DJ A.C., Max pick up,

Max-IV Seater, Camper,

Mahindra Champion (Three Wheeler),

Loadking Pride, Loadking DI 3200,

Tourister School and Stuff bus.

Registered office : Gateway Building, Apollo Bunder,

Mumbai - 400001

Plant Address : Automobile Sector, Akurli Road,

Kandivli (East) Mumbai – 422007

Plant Address 2 : Automobile sector, Nasic Plant No. 1,

89, M.I.D.C., Satpur

Nashik – 422007

47

Regional Office : Worli Road No. 13, Worli,

Mumbai – 400018

Range – E/Division : Jande Park Takli Road,

Nasik – 422011

Models : Scorpio, Bolero DI Ref., Bolero XL DI.

A.C., Pick up, Camper, Mahindra Champion

(Three wheeler), Loadking Super, Loadking DI

3200, Tourister school and stuff bus.

Manufacturing of L.C.V.’ : Automobile Sector, Bidar, T . Junction,

Zaheerabad

48

Objective of Mahindra

We aim to be a leading player and offer Quality and reliable software product

and IT solutions to meet the client is ever changing business needs.

OUR STRENGTHS

Dealership software solutions for Automobile industry

Inventory management solutions and spare part distributors.

System consultancy

System study , Analysis design & development.

System integration

Turkey solutions offered in

(a)Customer relationship management

(b)Supply chain management

(c) Client / server applications with distributed data

management.

(d)Web technologies.

49

HISTORY OF MAHINDRA &MAHINDRA

From small tentative beginnings in the 1940s, the organization that you see and

perceive today has transformed into one of the giants of the automotive world. And

the men behind it all were two brothers: J.C. Mahindra & Mahindra.

J.C. Mahindra, the elder of the two, was a qualified mechanical engineer from

VJTI, Mumbai. He was appointed the country’s first iron and steel controller by

the government of India. While K.C. Mahindra, a Cambridge education economist,

was a partner with Martin Burn, London, agents to IISCO. The Government of

India requisitioned his services too, and he took over as the chairman of India

supply Mission to Washington, USA.

In 1945 , inspired by Pandit Jawaharlal Nehru’s vision of building a strong,

independent India, they sit out to manufacture an Indian vehicle that would be

rugged, tough and capable of tackling the Indian terrain.

They teamed up with the Mohammed brothers and acquired a franchise for jeeps

from Willy’s USA. Post independence, in1947, they got involved Steel Trading in

association with suppliers in UK. By then, the company was renamed Mahindra &

50

Mahindra Ltd. After Ghulam Mohammed left fir Pakistan to become Pakistan’s

first Finance Minister.

Mahindra & Mahindra went on from strength to strength. The company started

assembling jeeps in 1949, and the year after, received its first order from

Mitsubishi Corporation for Wagon building plates, in 1954 got a technical and

financial collaboration with Willy’s Overland Corporation, in 1956 the company

went Public, un 1962 Mahindra Ugine Steel was formed in a joint venture with

Ugine Kuhalmann, france, then after a period of consolidation, in 1982 Tractors

were,a manufactured under the brand name ‘Mahindra’ and within a year M&M

went on to become the market leader in India.

New forays into other lines of business saw a spurt of joint ventures and

acquisitions. The foremost among them being Mahindra British Telecom (MTB) in

1986. In 1989 an Automotive Pressing Unit was acquired, and in 1994, Mahindra

Realty & infrastructure Developers Ltd. Was formed, the group was reorganized

into 6 subs and Mahindra USA Inc was formed to distribute tractors in the USA.

51

In 1999, the Trading Division was spun off as a separate company, called

Mahindra Intertrade Ltd., and Mahindra Export Ltd. was merged with it. In the

year 2000, preparation to meet the future head-on have been made, with the

launch of Project Scorpio, a completely new indigenously designed vehicle project

at Nasik. Scorpio is slated for production in 2001.

The millennium also brought forth another change, in the form of the new

Mahindra & Mahindra identity. A logo that symbolizes the road ahead, linking the

company’s past with its future.

Its also symbolizes the road through which the company’s thought, ideas, designs,

and products will travel, making it into a forward-looking organization, moving

towards new horizons with innovation and dynamisms.

52

The Mahindra brand in utility vehicles has come to signify high quality,

ruggedness, durability, reliability, and ease-of-maintenance and operational

economy for its user groups. This has been a result of the division's relentless

pursuit of delivering to the customer value for money. As a result the division's

products have a commanding market share in the category it operates in.Besides

state-of-the-art manufacturing facilities, a dealer network of over 275 dealers

supervised by 20 sales offices drives the divisions marketing efforts. After sales

service is provided by a network of authorized service stations across the country,

which meet customer needs for servicing and genuine spare parts.The Mahindra

brand in utility vehicles has come to signify high quality, ruggedness, durability,

reliability, ease-of-maintenance and operational economy for its user groups. This

has been a result of the division's relentless pursuit of delivering to the customer

value for money. As a result the division's products have a commanding market

share in the category it operates in.Besides state-of-the-art manufacturing facilities,

the divisions marketing efforts are driven by a dealer network of over 150 dealers

supervised by 18 sales offices. After sales service is provided by a network of over

53

100 authorised service stations across the country, which meet customer needs for

servicing and genuine spare parts.

Profile

Mahindra Defence Systems (MDS) a division of Mahindra & Mahindra Ltd. has an

unbroken track record of doing business with the defence sector in India for over

fifty years. MDS is located in New Delhi, oversees the requirements of the

Defence Sector. In a short span MDS has incorporated state-of-the-art technology

into its products at a reasonable cost and has emerged as the largest private sector

company for supplying bulletproof vehicles.

Main objective of MDS is to:

1) Provide total solutions for entire range of light combat / armoured vehicles and

their derivatives for Defence/ Security Forces.

2) Address specific segments of governments import substitution/indigenization

program like Small Arms, Sea Mines.

Govt of India has awarded MDS following industrial licenses:

1 LIGHT ARMOURED MULTI ROLE VEHICLE

2 SIMULATORS FOR WEAPONS & WEAPON SYSTEMS

3 MOBILE SURVEILLANCE PLATFORMS

4 SEA MINES

54

5 SMALL ARMS, VARIANTS & ASSOCIATED AMMUNITION

A major area of expertise of MDS is providing world class armouring solutions for

light combat vehicles, MUVs and SUVs. These up-armoured vehicles are already

in service with Indian Army, Indian Air Force, Paramilitary & State Police Forces

in India & many of these have been exported to other nations under the auspices of

Ministries of Home and External Affairs. Special Projects on the anvil include state

of the art training simulators for the land forces, mobile surveillance platforms for

Army and BSF and weapons and munitions for the Army and Navy respectively.

MDS has established numerous alliances with foreign partners for their products in

service, and those under development. These alliances will only help strengthen the

technological base and provide customized, and state of the art, products for the

satisfaction of the customer.

55

M & M - our Legacy MAHINDRA & MAHINDRA LIMITED

From small tentative beginnings in the 1940s, the organization that you see and

perceive today has transformed into one of the giants of the automotive world. And

the men behind it all were two brothers: J.C. Mahindra and K.C. Mahindra.

J.C. Mahindra, the elder of the two, was a qualified mechanical engineer from

VJTI, Mumbai. He was appointed the country's first Iron and Steel Controller by

the Government of India. While K.C. Mahindra, a Cambridge educated economist,

was a partner with Martin Burn, London, agents to IISCO. The Government of

India requisitioned his services too, and he took over as the Chairman of India

Supply Mission to Washington, USA.

In 1945, inspired by Pandit Jawaharlal Nehru's vision of building a strong,

independent India, they set out to manufacture an Indian vehicle that would be

rugged, tough and capable of tackling the Indian terrain.

They teamed up with the Mohammed brothers and acquired a franchise for Jeeps

from Willy's, USA.

Post independence, in 1947, they got involved Steel Trading in association with

suppliers in UK. By then, the company was renamed Mahindra & Mahindra Ltd

56

after Ghulam Mohammed left for Pakistan to become Pakistan's first Finance

Minister.

Mahindra & Mahindra went on from strength to strength. The company started

assembling Jeeps in 1949, and the year after, received its first order from

Mitsubishi Corporation for wagon building plates, in 1954 got into a technical

and financial collaboration with Willy's Overland Corporation, in 1956 the

company went public, in 1962 Mahindra Ugine Steel was formed in a joint venture

with Ugine Kuhlmann, France, then after a period of consolidation, in 1978, the

International Tractor Company of India was merged with M&M, in 1982 tractors

were manufactured under the brand name 'Mahindra' and within a year M&M went

on to become the market leader in India.

New forays into other lines of business saw a spurt of joint ventures and

acquisitions. The foremost among them being Mahindra British Telecom (MBT) in

1986. In 1989 an Automotive Pressing Unit was acquired, and in 1994, Mahindra

Realty & Infrastructure Developers Ltd. was formed, the group was reorganized

into 6 SBUs and Mahindra USA Inc. was formed to distribute tractors in the USA.

In 1999, the Trading Division was spun off as a separate company, called

Mahindra Intertrade Ltd., and Mahindra Export Ltd. was merged with it. In the

57

year 2000, preparations to meet the future head-on have been made, with the

launch of Project Scorpio, a completely new, indigenously designed vehicle project

at Nasik. Scorpio is slated for production in 2001.

The millennium also brought forth another change, in the form of the new

Mahindra & Mahindra identity. A logo that symbolizes the road ahead, linking the

company's past with its future.

It also symbolizes the road through which the company's thoughts, ideas, designs

and products will travel, making it into a forward-looking organization, moving

towards new horizons with innovation and dynamism.

Employee Development

The company's long-term success depends on developing, motivating and

maintaining a work force possessing the skills required for supporting key

processes such as human resources

Team Work

Personal Effectiveness

Change Leadership

58

The Competency Framework and its application is in a stage of evolution and

Human Resources Function would be finalizing its application in a more definite

manner in due course.

59

Procedure

All employees are required to receive training identified as general training

and any required Job Specific Training to enhance their performance.

Managers and Supervisors with the assistance from the Corporate Training

Department must determine what training is required for successful

performance and ensure smooth implementation.

The Corporate Training Department will develop the training strategy for the

organization and will develop appropriate sectoral training resources.

Production Personnel must be retrained and/or re-certified on a scheduled

basis, to assure that skills and performance meet production and quality

standards.

Training records must be maintained for all employees.

Program Consultation:

Prior to approval of any training and development course-work, whether internal,

external, or towards a degree program, the Sectoral HR training co-ordinators must

be consulted. They will provides guidance regarding selection criteria such as cost,

quality and match between the development need or plan and the course content.

60

Assistance for Self-Development

With an objective to help officers undertake further study and improve their

performance, assistance for self-development will be governed by the loan policy.

It is therefore important to note that:

a) The course for which financial assistance is sought must be such that it would

help the officer in his day-to-day work, and is useful to the company.

b) The Departmental Head, while recommending financial assistance will be

expected to specify the manner in which

the course will help the officer in his day- to-day work.

c) Assistance for correspondence or postal courses leading to a University Degree

will be given.

d) Assistance may be given at the discretion of the Management if it is relevant to

the officer's current or future job role.

e) The officer seeking financial assistance is required to have at least two year's

service with the company to his credit, at the time of admission.

61

f) Before seeking admission in colleges or other such institutions, the officer is

expected to invariably obtain the permission of his Departmental Head, in writing,

and copy send to the Corporate HRD.

g) For applications for financial assistance, information pertaining to the duration

of the course, tuition fees, etc. payable, is required to be communicated to the

Corporate HRD.

h) Financial assistance would be subject to the officer clearing the examination in

the first attempt.

g) For financial assistance, refer the self-education loan policy.

62

Corporate Governance

The goal of any system of governance would be to achieve the best performance

within the overall content of the prevalent economic environment so as to secure

the maximum benefit for all the stakeholders. For this to be achieved, governance

has to be an integral part of the beliefs, values, culture and ethics of an

organisation, an interplay between individual aspirations and corporate goals,

ultimately leading to the cornerstones of transparency and accountability, which is

what good governance is all about.

In the recent past, corporate India has been flooded with several prescriptive

principles of governance, the result of intense deliberations of eminent

commissions. Ironically, the corporate failures in developed countries regulated by

highly disciplined capital markets have only brought home the stark reality that

good governance can never acquire a lustre of its own if it is mandated by

legislation - it might only turn into a farce.

Our shareholders are aware that Mahindra companies have been associated with

good governance even before corporates were faced with legislation and a set of

regulations. The Company has recently formally enunciated its own governance

practices by way of a Code of Corporate Governance. This Code seeks to serve as

a reminder of the underlying principles governing the conduct of our businesses.

63

They are a reiteration of the fundamental precept that good Corporate Governance

must and will always remain an integral part of the fabric tThe 1990s saw India

embrace liberalisation and globalisation, and infrastructure development was the

key to spurring domestic and foreign direct investments. This generated

employment, gave free reign to domestic entrepreneurial talent, and accelerated the

country's GDP growth to unprecedented levels.

The Mahindra Group is playing its part in driving the nation's infrastructure

development, with a host of companies operating in real estate, project consultancy

and design, engineering consultancy, the hospitality industry and other core

segments hat makes up our ethos.

64

The Great Eastern Shipping Co Ltd., diversified into real estate activities with the

formulation of its property division in 1992 and over a period of time spread its

operations in Mumbai, Navi Mumbai, Gurgaon, Pune and Bangalore.

The Property Division of The Great Eastern Shipping Co Ltd., subsequently

demerged from the parent Company in February 2000 to become an independent

entity as GESCO Corporation Ltd., with focus on its core business activities of

projects management services, business centers and development of residential and

commercial complexes Mahindra Realty & Infrastructure Developers Ltd.,

(MRIDL) was incorporated in August 1994 to give shape to the diversification

plans of the Mahindra Group into real estate and infrastructure business, as a

wholly owned subsidiary of Mahindra & Mahindra Ltd.

To synergise towards becoming the largest corporate developers in the country

GESCO Corporation Limited and MRIDL combined their operations from

December 01. The resultant Company being Mahindra Gesco Developers Ltd

imbibes the very same qualities of its parent companies. The professional expertise

and teamwork of the organisation joining together will go a long way in achieving

the shared vision.

65

The Company has a joint venture with Semb Corp of Singapore, who is leading

international Constructions Company dealing with infrastructure and project

management in the Far East. The Company also has a joint venture with Knight

Frank of UK, who are international property consultants and property management

providers.

66

67

BOARD OF DIRECTORS

  1. Mr. Keshub Mahindra  

Chairman

2. Mr. Anand G. Mahindra Vice Chairman and Managing Director

  3. Deepak Shantilal Parekh

Director   4. Nadir Burjorji Godrej

Director   5. M. M. Murugappan

Director    6. Bharat Narotam Doshi

Executive Director & Group Chief Financial Officer (Group CFO)     7. Arun Kumar Nanda

Executive Director & Secretary   8. Narayanan Vaghul

Director   9. Dr. Ashok Sekhar Ganguly

Director   10. R. K. Kulkarni

Director   11. Anupam Pradip Puri

Director   12. Thomas Mathew T.

Nominee of LIC

68

PRODUCTS PROFILE

Mahindra DI 3200

If a big LCV proves to be uneconomical and a small one can’t handle your

payload, then Mahindra DI 3200 is just the right truck for you. It’s an ideal city

delivery vehicle that assures more loading area, more mileage and more profits.  

5.25 sq. mt. of loading area

Smallest TCD

More mileage

Easy to operate

Easy to load and unload

Low maintenance cost

 

69

Mahindra Loadking Pride

Discover a truck designed to give you more. Profit with its better loading capacity

and greater pulling power. Load it with whatever and go wherever. It’s your

chance to ride high on success. With great Pride.

Low price

4 years unlimited warranty

Better mileage

Easy maneuverability

Small turning radius

Attractive cabin

 

70

Mahindra Loadking Long Wheel Base

 Don’t buy a long heavy load vehicle to deliver voluminous goods. Get the

Loadking Long Wheel Base instead. It’s a vehicle that helps you to cut down your

operating costs drastically. A truck low on maintenance and high on business.  

Longest in its class

More loading area

Lowest turning circle radius of 6.48m

6 wide tyres to provide greater stability at high speed

Faster turnaround time

Superior mileage

71

Mahindra Loadking CRDe

 It’s a truck that comes with an amazing feature. It’s got the cutting-edge, CRDe

engine fitted beneath its hood. Generates More Power, More Speed, More Pickup

and More Mileage. Along with more revenues!  

Wider cargo box

Heavy duty rear axle

High torque

Extra payload

Bharat Stage III certification

72

Mahindra Loadking LCV Tipper

The all new Loadking LCV Tipper makes anything possible. From dumping sand

and cement to delivering stone chips and boulders. The biggest advantage is its

small size. Be it a lane or a steep ascend, nothing can stop a Loadking. From

reaching its destination. From getting more business.  

Smallest turning circle diameter

Faster turnaround

Better maneuverability

Attractive price

Superior mileage

Heavy duty rear axle

Stranger chassis frame

 

73

MAHINDRA TOURISTER I REGULAR BUS

(Avaliable 16, 25, 32 & 40 seating capacity.) Comfort, style and economy in a

new range

The Mahindra Tourister i range is an improved version of the existing Tourister

range. The ‘i’ signifies the 32 improvements which have been incorporated in the

existing bus to further enhance safety, comfort and aesthetics.

So now, let your passengers travel in the lap of luxury. It’s got plush cushion seats

and more space for extra comfort. Its huge windows make every journey a pleasant

memory. And its low maintenance, more mileage and a powerful engine keeps

your pocket full, always.

74

Superior Comfort for unmatched convenience

Bright airy interiors

Greater leg room

Bottle holder for driver

Economical for bigger savings

Superior mileage

Low operating costs

 Greater Safety for a worry free drive

Emergency exit

JK door lock

Three piece window  

Contemporary Styling for better looks

Attractive front façade

Modern front Grille

 

75

MAHINDRA TOURISTER I SCHOOL BUS

(Available in 16, 25, 32 & 40 seating capacity)

The No.1 school bus range in India

The Mahindra Tourister school bus enjoys the faith of hundreds of schools,

parents, kids and bus owners across India. And it is this faith that has made

Tourister the No. 1 school bus, in its segment.

 Over the years, the brand Tourister has consistently delivered incredible value to

its customers. Coming from the Mahindra stable, each school bus is engineered to

deliver on its promise of total safety, but without any compromise on comfort and

efficiency.

76

In keeping with the customer centric philosophy of the organistion, the Tourister

range has been upgraded several times over the years to meet the ever-changing

customer requirements.

This year Mahindra is proud to introduce an improved version of the existing

Tourister range, Tourister i. The ‘i’ signifies the 32 improvements which have been

incorporated in the existing bus to further enhance safety, comfort and aesthetics.

With the launch of Tourister i,, all school buses henceforth will be sold under the

Tourister i brand.

Given the company's commitment to customer’s satisfaction, its bound to become

India's most preferred school bus. After all the best just got better.

  Greater Safety for a worry free drive

Fire Extinguisher

Emergency exit

Specially designed tooth and chin guards

STOP sign indicator at the door

First-aid kit

Anti skid vinyl flooring

Double bar rail on windows

Superior Comfort for unmatched convenience

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Bright airy interiors

Large cushioned seats

Water bottle holders

Special rack for school bags

Economical for bigger savings

Superior mileage

Powerful pickup

Low operating costs

Higher torque

Contemporary Styling for better looks

Attractive front façade

Modern front Grille

Swanky notice board

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MAHINDRA TOURISTER I CRDE BUS

(Available in 25 seater capacity)

 It’s a bus better than any other bus. Presenting the 25-seater Mahindra Tourister i

with the revolutionary CRDe technology. It’s the first in its category and it’s

designed to make every journey really smooth. And really quiet too.

 

Available in school and regular variants

Powerful pickup

Remarkably low N.V.H

Greater mileage

Conforms to BS III norms

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STRENGTH

1. Mahindra & Mahindra Automotive division collaborated with willy overland

corporation (nowpart of Daimler Chrysler group)

2. Tech Mahindra is also a joint venture between Mahindra & Mahindra

Limited and Indian British Telecommunication plc.United Kingdom.

3. With over 17 years of experience, Tech Mahindra has proven track record in

outsourcing and off shoring bysiness in critical system.

4. Wide range of commercial vehicle and jeeps and Luxuries and comforts.

5. Extensive research and development both in house development both in

house development facility and interface with other independent engineering

units.

6. Large and competitive work force.

7. Producing always – challenging products in competitive market.

8. Best balance vehicle while riding.

9. Best style and durable products.

10.Great performance.

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Weakness

1. Mechanics have no proper knowledge if Mahindra & Mahindra Commercial

vehicle.

2. There are not much space between cabin (Where driver sits) and dala

(where the goods are loaded).

3. There are not regular visit of engineers to the dealer point for grievance

handling.

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OPPORTUNITY

1. Boast up production to fully utilize the installed capacity.

2. A great opportunity in light commercial vehicle segment where the

competition is much increased.

3. There are attractive finance facilities provided by Mahindra finance Ltd.

At a very low interest rate than others.

4. Opportunity in rural sector.

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THREATS

1. Sever competition by light motor faced from the side of Tata motors

and Eicher motors.

2. Stiff competition with Tata motors, which has a relatively high market

active performance in whole Indian market.

3. Threats from much performed commercial vehicle in India.

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Research objective

To study the consumer behavior regarding Mahindra & Mahindra in Meerut.

To find out the major problem faced by the Mahindra consumer in their

respective .

To do SWOT analysis according to my consumer interaction.

To tirel out the relations for visit at service centre.

To observe the level at service centre.

To find out the time taken by the service centre in servicing the vehicle.

To find out the behavior of management staff of service centre.

To find out the customer satisfaction level regarding after sales service at the

service centre.

Finally ti draws results on the basis of analysis and brding and give

suggestion regarding my findings.

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RESEARCH METHODOLOGY

Research Type : Descriptive Research

Universe : Meerut city

Sample Unit : Customers

Sample Size : 200

Type of Data : Primary Data

Questionnaire

Secondary Data

Mahindra & Mahindra .com

Mahindra & Mahindra world.com

Tools : Personal Interview

Through Survey

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DATA ANALYSIS

1. Brand awareness among the consumer based on 1st response

No. of respondents = 200

Brand Name No. of Customers %age

Tata Motors 80 40%

Mahindra &

Mahindra50 35%

Others 70 25%

25%

35%40%

Tata Motors Mahindra & Mahindra Others

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2. Various motivating factors in making purchase decision :

No. of respondents : 200

Factors No. of Customers %age

Family 80 40%

Friends 60 30%

Relatives 20 10%

Yourself 40 20%

40%

30%

10%

20%

Family Friends Relatives Yourself

By above graph it is very clear that family influences lot in

purchasing of Mahindra & Mahindra commercial vehicles.

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3. Chances of buying Mahindra & Mahindra Commercial Vehicle

Sample size 200

Possibilities No. of Respondents (%)

Definitely buy 30%

Very likely will buy 20%

Probably will buy 10%

Might or might not buy 10%

Definitely not buy 20%

Can't Say 10%

30%

20%10%10%

20%

10%

Definitely buy Very likely w ill buy Probably w ill buy

Might or might not buy Definitely not buy Can't Say

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4. Strength Of Mahindra & Mahindra Commercial Vehicle

StrengthPercentage of

Customer

Performance 40

Balance 20

Fuel Efficiency 25

Price 15

40%

20%

25%

15%

Performance Balance Fuel Efficiency Price

Percentage of Customers

Above graph shows that 40% of customers are rating performance as

Mahindra major strength.

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5. How customers rate Mahindra offering :

Sample Size : 200

Customer RatePercentage of

Customer

Good 40

Average 30

Excellent 25

Poor 5

40%

30%

25%

5%

Good Average Excellent Poor

Percentage of Customers

By above graph it is very clear that Mahindra offering is liked by

major portion of Meerut population.

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6. Quality provided by the Service Center

QualityPercentage of

Customer

Good 50

Average 30

Below Average 15

No Response 5

50%

30%

15%5%

Good Average Below Average No Response

According to 50% of customer quality of service provided by Service

Center is Good.

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7. Major problem faced by consumer in Mahindra & Mahindra

Commercial Vehicle

Sample Size 200

Major ProblemPercentage of

Customer

Spare Parts 60

Gear Box 20

Average 15

Suspension 5

60%20%

15%5%

Spare Parts Gear Box Average Suspension

Percentage of Customers

By above graph it is clear that spare parts in engine is the major

problem faced by Mahindra & Mahindra commercial vehicle Consumer.

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8. Price charged by the service Center for servicing and spare parts :

PricesPercentage of

Customer

Very High 25

Competitive 55

Low 10

No Response 10

25%

55%

10%

10%

Very High Competitive Low No Response

Percentage of Customers

According to 55% of the customer prize charged by the service center

is average or competitive but 25% customers say that the charges are very

high.

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9. What customer see at the time of purchase of vehicle :

Reason of PurchasePercentage of

Customer

Brand 40

Features 30

Advertisement 10

After Sales Service 20

40%

30%

10%

20%

Brand Features Advertisement After Sales Service

Percentage of Customers

The above bar chart shows that the major influences on buyr is of

Brand and features.

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10. Behaviour of Management & Staff :

Behaviour ofManagement & Staff

Percentage of Customer

Cooperative 55

Indifferent 15

Ignorant 17

No Response 13

55%

15%

17%

13%

Cooperative Indifferent Ignorant No Response

Percentage of Customers

According to 55% of customer the behaviour of management and

staff of service center is cooperative but according to 17% of customer

behaviour of management & staff of service center is ignorant.

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11. Level of Customer Satisfaction :

Customer SatisfactionPercentage of

Customer

Satisfied 67

Dis-satisfied 26

No response 7

67%

26%

7%

Satisfied Dis-satisfied No response

Percentage of Customers

From above graph, we see that major customers are satisfied with

service provided by the authorized service center of Mahindra & Mahindra

at Dealer Point, Jain Motors. But percentage of dissatisfied is not ignorable.

It indicates there is necessity of further improvement in after sales service.

The reason behind it customers wait in service centre due to lot of work in

service centre.

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Statement of findings

The result that I get through analyzing and evaluating the data drawn from the

schedule and expressed in the form of percentage of sample size and their results

can better explain the level of customer’s satisfaction on after sales service

provided by the Mahindra.

During my study what I find is described below.

1. The working condition inside the service centre is good.

2. The workers are well trained as they send to the service camp organized by

Mahindra one or two times in a month from where they trained skillfully.

3. Washing facility in the service center.

4. The break down service is available.

5. A separate section for servicing.

6. A separate customer lodge with full facilities.

7. The Businessman group figures out to be very much aware regarding

commercial vehicle.

8. Availability of spare part must consider being most important.

9. Mileage was given to priority.

10. Style and power considered most purchasing power point today.

11. Tata motors came out to be most familiar leaving others far behind.

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SUGGESTION

I would like to offer some suggestion if implemented would increase the

satisfaction of the customer. These are follows.

1. There should be more transparency in the servicing procedure

2. The company should offer some free check up camp, which leads the

consumers toward the company, and make them brand loyal.

3. The company should provide the feedback forms to get the response

of the vehicle owners at the service center.

4. Before the launch an aggressive advertising must be carried out in

order to inform the customer about the new vehicle.

5. Continuous innovation in production process and services too are

recommended to get the competitive edge.

6. The company should upgrade the workers of service center to work

with new technology equipments and enhance the quality of service.

7. The servicing speed should be enhanced so that the consumer get their

vehicles as quick possible by keeping the quality of service.

8. The price of spare parts should be more competitive rather than at

premium.

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9. The company should operate some wariness programs regarding

servicing schedule and vehicles maintenance.

10. Easily available spare parts at reasonable price backed by efficient

sales as competition.

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Limitations

1. The consumers were not amicable in giving their views.

2. Illiteracy was the biggest problem with the consumers to give

answers Of open –ended questions.

3. The time for training was limited so it was not possible to contact all

the Consumers.

4. The management & staff were uncooperative.

5. There was no response from subdealers.

6. Consumers are asking a lot of irrelevant questions.

7. No guidance in the fieldwork.

8. Consumers are not well aware of the summer training concept and

take a lot of time to explain them things properly.

9. Auto center mechanics are not able to explain things properly.

10. Money virtually fall short of what ideal field work would cost and

may requires short cost for the validity of findi

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CONCLUSION

On evaluating and analyzing the data I draw inferences that some of the

factors are satisfying the customers and some are not

During the study through the interviews of the customers and discussion

with the staff of after sales service center. I find that company is to provide.

Better facilities to the customers. A large group of customers was satisfied

with after sales provided by Mahindra & Mahindra but some customer

are not satisfied. The major problem faced by Mahindra & Mahindra is

that there is a lot of competition with Tata Motors.

As per the problem faced by the customer, I have notice that Mahindra &

Mahindra commercial vehicle consumers, I have noticed that Mahindra

consumers are complaining a lot about spare parts and there are the shortage

of skilled workers of that commercial vehicle therefore they are not satisfied.

Mahindra consumer appreciate there vehicle on performance basis and their

attractive designed they have chosen.

In conclusion I am in position to say that performance of Mahindra &

Mahindra is not in a very good position, therefore some steps are required

to raise the sale of Mahindra & Mahindra in Meerut.

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Appendix

The appendix combined of the questionnaire, which was administrator to the

response and dealers.

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QUESTIONNAIRE

1. Name of the brand you are familiar with in the commercial vehicle segment.

2. What you see at the time of purpose of the vehicle?

(a) company’s name (b) advertisement

(c) feature (d) after sales service

3. Who influenced your decision to purchase commercial vehicle?

(a) Family (b) advertisement (c) Friends (d) yourself

4.What are the chances of your buying Mahindra & Mahindra commercial vehicle,

Or the next time you purchase any other commercial vehicle.

(a) Definitely buy (b) very likely will buy

(c) Probably will buy (d) might or might not buy

5. Reasons for the arrival at service center?

(a) Free service (b) major problem (c) Service on regular basis (d) any other problem

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6. Major problem faced by you in Mahindra & Mahindra commercial banking is

(a) Gear box (b) average

(c) Suspension problem (d) spare parts

7. The level of service provided by the service center

(a) Good (b) Average

(c) Below average (d)No response

8. Price charged for service and spare part – is

(a) Very high (b) competitive

(c) Low (d) can’t say

9. According to you, the availability of spare parts at service center is

(a) After (b) occasionally

(c) Seldom (d) can’t say

10. The behavior of management and staff is:

(a) Co-operative (b) ignorant (c) Indifferent (d) no-response

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11. How do you rate the speed of servicing:

(a) Fast (b) moderate

(c) Slow (d) no-response

12. Are you satisfied with the service provided by the service center

(a) Satisfied (b) dis- satisfied

(c) No-response

13.How do you find Mahindra & Mahindra offering

(a) Excellent (b) good

(c) Average (d) can’t say

14.In your opinion the no’s of service centre in the city are sufficient

(a) Yes (b) No

(c) Other statement

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Bibliography

Kothri c.r. Research methodology India.

Kotler, Philip, marketing management, India.

Schittman, l.g and Meerut l.l. Consumerbehaviour, India

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