Project 4 Collage

A Project ReportON

CONSUMER BEHAVIOR OF SUVS WITH SPECIAL REFERENCE TO

MAHINDRA & MAHINDRA PRODUCTS

Under the guidance of Dr.Mala Kuthiala Submitted by SHASHI BHUSHAN REG. NO. 520966390

IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE IN MASTERS OF BUSINESS ADMINISTRATION

MAY 2010 TO JAN 2011 BUSINESS INSTITUTE OF MANAGEMENT STUDIES

SHIMLA (H.P.)

1

PREAFACE

Today almost all the major co-operation is actively marketing their

product beyond their original homeland borders. So, companies must rethink

their marketing strategies instead of continuing with their existing strategy.

Today company work in a war zone of rapidly changing competitive

environment technological advances, changing govt. politics diminishing

customer loyalty and so on.

Now a day world of stiff competition, the companies with existing

marketing strategies need to be changed in a manner so as to cope up with its

rapidly changing competitive environment, technical up gradation, varying

govt. policies, rules and regulation during customer loyalty etc. in the last few

years the information need to conduct a business has grown rapidly.

So, in this context, the Mahindra and Mahindra is also facing a stiff

competition in the market from its competitors and for this the company is

gearing up themselves to face the competition and conduct a good business

taking successful business decision for more accuracy and timeliness.

As the part of the partial fulfillment of the MBA course a project has been

incorporated in the curriculum during which a study to be under taken in an

organization mainly to take out the newly acquired knowledge and skill from an

actual work situation and take book and classroom teaching give us through

back ground of different functional area devoid of practical experience to how

those area to be administered and managed respectively. This report has given

up an opportunity to gain an inside into a practical applicability of management

concept and theory, learning faster and developed better ability to analysis

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problems and in decision that contribute significantly for better use of resource

available to the management.

With this view to understand the concept, I have undertaken a project

study in Mahindra and Mahindra, which has equipped me to prepare a report

with a proper solution of the problem face by the organization.

This area of work has chosen by me as this had all the ingredient of

marketing research and other aspect of marketing as well the report offer a

Glimpse of various stage at project work in order to serve purpose of the study

in systematic manner and hope that the findings and recommendation will go

along way in helping in organization.

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Table Contents

Executive Summary: Page No.

(i) Introduction 5

(ii) Aims & objective 6

(iii) Methodology 7

(iv) Analysis 7 - 8

(v) Conclusions 8 - 9

(vi) Recommendations 9 - 10

Part : I

An Overview of the Company 11 - 45

Part : II

Project Overview

(i) Introduction 46 - 58

(ii) Objective 59 - 61

(iii) Methodology 62 - 63

(iv) Analysis 64 - 84

(v) Conclusions 85 - 86

(vi) Limitations 87

(vii) Recommendations 88 - 89

Part : III

(i) Bibliography 90

(ii) Questionnaire 91 - 95

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EXECUTIVE SUMMARY

(i) Introduction

Topic

Study on consumer behavior of SUVs with special reference to Mahindra &

Mahindra Products.

Organization

Snowview Automobiles Ltd

Authorized Dealer, Mahindra and Mahindra.

Location Of Study

Shimla (H.P.)

Organizational Guide

Mr.Jagmohan

Manager Snowview automobiles Pvt Ltd.

Duration

2 Months

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(ii) Aims and Objectives

Primary :

To make a study on consumer buying behavior of SUVs with special

reference to Mahindra and Mahindra in Shimla area.

Secondary :

1. To study their satisfaction level of customers of different four wheelers

available in Shimla.

2. To study the importance of various attribute which effect the purchasing

decision of customers in regard of SUVs.

3. To study the awareness level of different SUVs in Shimla.

4. To study the importance of dealer and their influence in marketing/sale

for SUVs in Shimla.

5. To study consumers buying behaviours.

6. To find out the expectation of the existing possessing and prospective

customers of the company.

7. To study the impact of media on the customers.

8. To study the satisfaction level of the customers on overall performance

and after sale service of their existing SUVs.

9. To study different promotional scheme they expect for purchasing a new

SUVs.

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(iii) Methodology

(i) Preliminary study.

(ii) Data collection

(iii) Questionnaire Design.

(iv) Sample size

(v) Analysis

(vi) Scope and Limitation.

(iv) Analysis

The project was undertaken to study the consumer buying behavior of

motor SUVs with special reference to Mahindra and Mahindra in Shimla.

Major findings are: -

1. Demographic profile i.e. Age, Occupation and monthly income of the

customer.

2. Regarding the awareness of different brands of motor SUVs all

respondents are well aware.

3. According to the most of the respondent the T.V. ads was the best

media in building awareness followed by the newspaper, friends,

colleague, majoring & family members.

4. Regarding importance of attribute before purchasing the motor SUVs

in over all motor SUVs most of the customer gave importance on brand

image of the company. In case of M&M motorSUVs most of the

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customer gave importance or fuel efficiency and look on style of the

SUVs.

5. Regarding source of finance most of the customers gave important on

loan and installment facility.

6. Most of the customer gave most importance on high engine power.

(v) Conclusion

This study was conducted to find out the consumer buying behaviour of SUVs

in special reference to the Mahindra and Mahindra in Shimla. The findings and

analysis revealed many advantages as well as disadvantages for the Mahindra &

Mahindra.

Though the Mahindra is the faster growing company and leading in the

market facing a stiff competition from Hyundai and Goyal motors in the

Shimla.

It has been observed that Mahindra adopted many promotional strategies

and company’s marketing channel is also satisfactory.

Now a days people are most aware about after sales service. The dealers

also expect M&M motor SUVs has overcome this problem and facilities should

be improved for meeting the after sales service requirement effectively.

The majority of customers expect loan or installment facilities. The

Mahindra and Mahindra has joined hand with State Bank Of India, and many

Private Banks to promote this facilities.

As most of the existing and prospective customers adults, Mahindra

should introduces stylish Motor SUVs which compete its competitors product.

But Mahindra to meet the expectations of new generation people who are

the prospect, or customers has recently introduce new SUVs hoping to fulfill the

demand of the new generation.

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As this study was conducted for educational purpose with the aim to give

necessary information to the organization, any mistake by the researchers

should be overlooked considering his inexperience in the field of marketing

research.

(vi) Recommendations

Based on the findings drawn from the project’s analysis, certain

recommendation need to be made as regards to the future course of action for

Mahindra and Mahindra, which can go a long way in improving the Brand

Awareness of the Company in the SUVs market. The main recommendations

are:

1. Mahindra should continue with its range of innovative products. At the

same time try to add value to its existing products so that it can cater to

the present day requirements. As the study reveals that majority of

customers are aged 20 – 40 years the needs and wants should be kept in

mind while designing new products.

2. There should be proper synchronization between order placed an

delivery. The distribution channel should be enhanced and the models

should be readily available in the market.

3. As the buying decision of the buyer has influenced by himself, company

should target them through demonstration and advertisement.

4. As the market for the financial institutions are increasing, the company


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5. Facilities should be provide to the dealers so that they can extend them to

the customers while purchasing this brand.

6. Increase in sales promotion budgets to develop a point of purchase

display and to participate to a greater extent in Trade shows and similar

kind of shows and this will motivate the non-users to try out the products.

7. The company can make charitable donation to different organizations. It

can extend their helping hand to the people hotted by natural havoc like

flood, draught, earthquake etc. to win the hearts of the mass people which

will build a good image of the Company among them.


should come up with various schemes, which will induce them to

influence the customer for the product. This includes offering various

gifts, packages and financial incentives like higher commission as

compared to other four-wheeler companies.

9. Incentives and financial benefits provided to the dealers should be

maximized to maintain their level of satisfaction and motivation.

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Part 1

An Overview of the company

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INTRODUCTION

HISTORY OF MAHINDRA & MAHINDRA AUTOMOTIVE

Mahindra & Mahindra Limited is part of the Indian Industrial Conglomerate

Mahindra group based in Mumbai. The company was set up in 1945 in

Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C.

Mahindra along with Malik Ghulam Mohammad.

After India gained independence Malik Ghulam Mohammed moved to Pakistan

where he became the nation's first Finance Minister. Now, with the Mahindra

brothers as the whole sole of the company, its name was changed to Mahindra

& Mahindra in 1948.

Initially set up to manufacture general-purpose utility vehicles, Mahindra &

Mahindra (M&M) was first known for assembly under licence of the iconic

Willys Jeeps in India. M&M introduced Jeeps to India and in no time they

established themselves as the Jeep manufacturers of India. The company later

branched out into the manufacture of Light Commercial Vehicle (LCVs) and

agricultural Tractors, rapidly growing from being a manufacturer of army

vehicles and tractors to an automobile major with a growing global market

presence. At present, M&M is the leader in the utility vehicle segment in India

with its flagship UV Scorpio.

Apart from agricultural tractors and LCVs, Mahindra & Mahindra also showed

its dexterity in manufacturing army vehicles. Soon, it started its operations

abroad, through its plants set up in China, the United Kingdom and the USA.

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M&M partnered with companies prominent in the international market,

including Renault SA, International Truck and Engine Corporation, USA, in

order to mark its global presence. M&M also started exporting its products to

several countries across the world. Subsequently, it set up its branches including

Mahindra Europe Srl (based in Italy), Mahindra USA Inc., Mahindra

South Africa and Mahindra (China) Tractor Co. Ltd.

At the same time, M&M managed to be the largest manufacturer of tractors in

India, by holding leadership in the market of the country, for around 25 years.

The company is an old hand in designing, developing, manufacturing and

marketing tractors as well as farm implements. It made its entry to the passenger

SUVs segment in India, with the manufacture of Logan (mid-size sedan) in

April 2007, under the Mahindra Renault collaboration.

Soon after the considerable success of Logan, M&M started launching a wide

range of LCVs and three wheelers as well as SUVs including Scorpio and

Bolero. In the present time, Bolero has gained immense popularity in India. It is

one of the most opted vehicles in its class.

MAHINDRA SCORPIO

Mahindra & Mahindra Limited launched Mahindra Scorpio as its first Sports Utility Vehicle in India in 2002.

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This SUV has redefined the expectations for the design of SUVs with its sturdy

looks and powerful performance, the sophisticated interior design adds to the

further glory to the appearance.

Mahindra Scorpio is also among the best fuel-efficient SUVs of India as the

manufacturer has equipped it with a 2179 cc diesel engine with5- speed

transmission.

MAHINDRA BOLERO

Mahindra Bolero is one of the most successful and popular utility vehicle of the

Mahindra and Mahindra Group. The SUVs is robust in appearance and it has

been elegantly designed, keeping in mind the conditions of the Indian roads.

Mahindra Bolero is also among the best fuel-efficient SUVs of India as the

manufacturer has equipped it with a 2500 cc diesel engine with5- speed

transmission.

MAHINDRA RENAULT LOGAN

Much awaited Mahindra-Renault Logan has been launched in India. This

compact sedan is a spacious, practical and affordable vehicle. The outlook of

Logan is impressive and the basic version is a value for money, however the

top-end versions are a bit high on price. The prominent feature of this SUVs is

its performance, interiors and economy.

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MAHINDRA XYLO

Mahindra & Mahindra Limited launched their latest Multi Utility Vehicle

(MUV) “Xylo” in India on January 13, 2009. The SUVs boasts of having all the

luxurious features that are seen in today’s sedans, with the ample space of a

utility vehicle. Xylo's muscular stance contributes to its commanding road

presence. Fully packed with the latest features, the MUV is sure to impress

Indian consumers and provide a stiff competition to the other vehicles within its

class.

Performance of Mahindra XYLO

Under the hood of Mahindra Xylo lies a 4-cylinder turbocharged, mEagle diesel

engine, which generates a power of 112bhp @ 3800 rpm at a peak torque of 24

kgm @ 1800-3000 rpm. The powerful engine is developed on the NEF CRDe

platform and is mated to 5-gears manual transmission. The SUVs accelerates

from rest to 60 km/h in just 5.8 seconds.

MILESTONE OF MAHINDRA & MAHINDRA

DUAL HONOURS FOR CHAIRMAN MR. KESHUB MAHINDRA

On August 24, 2009, Economic Times announced the Lifetime Achievement

Award 2008- 09 for our Chairman, Mr. Keshub Mahindra. The award has been

bestowed on his for ‘decades of service to Corporate India’.

SLEW OF HONOURS FOR MR. ANAND MAHINDRA

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Mr. Anand Mahindra, VC & MD, Mahindra Group, received a number of

prestigious awards including:

The Business Leader of the year Award for the Year 2008-09 by

Economic Times.

Mr Anand Mahindra has been named the Ernst & Young Entrepreneur

of the Year 2009. Mr Mahindra will represent India at the Ernst &

Young World Entrepreneur of the Year Award in Monte SUVslo,

Monaco, in May.

The ‘CEO of the Year’ award at the India Brand Summit 2006 co-

sponsored by Business Standard and ITM Business School in

association with Times Now and DNA newspaper.

The LMA Entrepreneur of the Year 2006 award, instituted by the

Ludhiana Management Association (LMA).

The Most Inspiring Corporate Leader of the Year Award by NDTV

Profit.

AWARDS FOR MAHINDRA AND MAHINDRA GROUP

Nashik Plant was awarded the prestigious CII National Award for Excellence in

Energy Management 2010 for the 3rd Consecutive Year on September 2 2010.

Mahindra & Mahindra Ltd. received the prestigious NDTV Profit Business

Leadership Award 2010 in the Automobile – Four Wheelers category.

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MAHINDRA RECEIVES AMITY HR EXCELLENCE AWARD

Mahindra & Mahindra was honored with the Amity HR Excellence Award at

the Fourth Amity Global HR Summit 2007 held at the Amity International

Business School, Noida. The Amity HR Excellence Award recognized

Mahindra as one the most admired companies across the global on account of

its innovative strategies for Human Resources Management and Development.

GLOBAL HR EXCELLENCE AWARD FOR M&M

Mahindra & Mahindra won the Global HR Excellence Award for Innovative

HR practices (Manufacturing Sector), in the Asia Pacific HRM Congress, held

in Mumbai. These awards recognize organizations and individuals who have

embraced change, encouraged constructive challenges and demonstrated

entrepreneurial skills in the corporate world.

BEST AUTOMOTIVE MANUFACTURING SUPPLY CHAIN

EXCELLENCE AWARD

Mahindra & Mahindra has been awarded as the organization with the “Best

Automotive Manufacturing Supply Chain Excellence”. The awards were

presented by India Times Mindscape (Times of India Group) along with the

Business India Group at the Express.

Logistics & Supply Chain Award held in Mumbai on September 28, 2007.

Neilson is accredited with the research for the award nominees and winners.

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HIGH RANKING FOR MAHINDRA

M&M was ranked second in the prestigious and trusted SUVs Company in

India study conducted by TNS. M&M score 127 points, just seven points below

the top ranking company according to a TNS communiqué.

M&M was ranked 14th in The Economic Times prestigious ‘ET

500’ list of top achieving companies in India. The company has

moved up four ranks from last year. To quote from the ‘ET

500’write-up “M&M’s ‘art-to-part’ strategy of diversification into

the auto parts value chain and its plans for new platforms for utility

vehicles and joint venture with Renault for Logan have led to a

gain in ranks.”

M&M was ranked 22nd in Business India’s annual survey of the country’s top companies - Super 100

M&M was ranked 31st in Business Today’s annual survey of India’s most valuable companies.

M&M was ranked 37 in the B & E Power 100 and 4th in the transport Equipment Sector as per the business & ecology magazine issues in 2007.

MILESTONES OF MAHINDRA & MAHINDRA

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YEAR ACHIVEMENTS

1947 In October, the batch of 75 Utility Vehicles (UVs) imported in CKD condition Willys overland Export Corporation.

1949 Lease of 11,071 sq. yards at Mazagaon from British India Steam navigation. The first Willys Overland Jeep built in India at the assembly plant, Maza

1954 Manufacture of vehicle undertaken in collaboration with Kaiser Jeep Corporation and American Motors Corporation

1962 Indigenous content of Jeep goes up to 70 per cent. To centralize manufacturing operations, 137 acres of land purchased at Kandivli.

1965 FC 150 Petrol Trucks introduced

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SCORPIO VARIANTS

SCORPIO M2DI

Features and Specification

Make Mahindra Model Scorpio

Variant M2DI 3200TC Body Type SUV

No. of Doors 5

Fuel Efficiency

City Mileage 9.4 kmpl Highway Mileage 12.4 kmpl Fuel Capacity 60 Liters

Engine Parameter

Displacement 2523cc Power (PS@rpm) 71PS @3200rpm Torque (Nm@rpm) 200Nm @1800rpm

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Compression Ratio :1 No of Cylinders (cylinder) 4 Valve Mechanism - Bore (mm) - Stroke (mm) - Aspiration Turbo Charged

Cylinder Configuration 4 inline Valves per Cylinder (value) 2

Fuel System DI Fuel Type Diesel

Transmission

Transmission Type Manual Gears/Speeds 5Gears Clutch Type -

Suspension

Front Suspension 2WD Independent, Coil Spring, Anti Roll Bar 4WD Independent, Torsion bar

Rear Suspension Multilink, Coil Spring

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Steering

Steering Type Rack and Pinion Power Assisted Variable Ratio Minimum Turning Radius (mtrs)

5.6

Brakes

Front Brakes Disc Rear Brakes Drum

Wheel and Tyres

Wheel Tyres Tubeless Tyres Wheel Size 6.5Jx15 Tyres P 235 x70 R15

Dimension and Weights:

Overall Length (mm) 4430 Overall Width (mm) 1817 Overall Height (mm) 1975 Wheel Base (mm) 2680 Ground Clearance (mm) 180 Boot Space (liter) 460 Gross Vehicle Weight (kg) 2510 No. of Doors 5

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SCORPIO LX



Variant LX Body Type SUV

No. of Doors 5

Fuel Efficiency

City Mileage 10.5 kmpl Highway Mileage 14.8 kmpl

Fuel Capacity 60 Liters

Engine Parameter

Engine 2.2 Ltr m-Hawk Engine Displacement 2179cc

Power (PS@rpm) 122 bhp @ 4000 rpm Torque (Nm@rpm) 290 Nm @ 1800-2800 rpm Compression Ratio :1 No of Cylinders (cylinder) 4 Valve Mechanism - Bore (mm) - Stroke (mm) - Aspiration Inter Cooled Turbo Charged Cylinder Configuration 4 inline Valves per Cylinder (value) 4 Fuel System CRDE Fuel Type Diesel

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Transmission


Steering and Suspension

Steering Rack and Pinion, Power assisted Power Steering Yes Front Suspension 2 WD Independent, Coil Spring, Anti

Roll Bar 4 WD Independent, Torsion Bar

Rear Suspension Multilink, Coil Suspension

Brakes


Wheel and Tyres


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Comfort Features

Power Windows Yes Seats Fabric & Vinyl Combination Seats

Safety Features

Child lock Yes Digital Engine Immobilizer Yes

Except Power Windows and Fabric and vinyl combination seats there is no

other comfort feature present in the Scorpio LX.

In the safety Feature section Scorpio LX has Child Locking and Digital Engine

Immobilizer.

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SCORPIO SLE



Variant SLE Body Type SUV

No. of Doors 5

Fuel Efficiency



Engine Parameter


Power (PS@rpm) 122 bhp @ 4000 rpm Torque (Nm@rpm) 290 Nm @ 1800-2800 rpm Compression Ratio :1 No of Cylinders (cylinder) 4 Valve Mechanism - Bore (mm) - Stroke (mm) - Aspiration Inter Cooled Turbo Charged Cylinder Configuration 4 inline Valves per Cylinder (value) 4 Fuel System CRDE Fuel Type Diesel

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Transmission








Brakes


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Wheel and Tyres


Comfort Features

Power Windows Yes Seats Full Fabric Seats Voice Assisted System Yes Arm Rest Yes Powered ORVM Yes

Safety Features

Child lock Yes Digital Engine Immobilizer Yes

ABS Yes Central Locking System Yes Front Fog Lamps Yes

With the Power windows and child lock this model of Scorpio consist voice

assisted system and arm rest on the front row and powered ORVM (Outside

Rear View Mirror) which increases its comfort features to a great extend.

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Scorpio SLE in the safety section includes the features of M2DI and some new

features which include: - ABS (Anti-Braking System), Central Locking System

which provides keys less entry in the vehicle and Front fog lamps.

SCORPIO VLX



Variant VLX HI-END Body Type SUV

No. of Doors 5

Fuel Efficiency



Engine Parameter


Power (PS@rpm) 120 bhp (86.7 kW) @ 4000 rpm Torque (Nm@rpm) 290 Nm @ 1800-2800 rpm Compression Ratio :1 No of Cylinders (cylinder) 4 Valve Mechanism - Bore (mm) -

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Stroke (mm) - Aspiration Inter Cooled Turbo Charged Cylinder Configuration 4 inline Valves per Cylinder (value) 4 Fuel System CRDE Fuel Type Diesel

Transmission








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Brakes


Wheel and Tyres


Comfort Features

Smart Power Windows Yes Seats Full Fabric Seats Voice Assisted System Yes Arm Rest Yes Powered ORVM Yes Cruise Control Yes Audio System with USB & SD

SUVsd Compatibility Yes

Audio Control on Steering Wheel

Yes

Bluetooth Yes

Front Speakers Yes

Safety features

Intellipark Yes Rain Sensor Yes Light Sensor Yes ABS Yes Bluevision Headlamps Yes Speed Alert Audio Signal Yes

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Scorpio VLX HI-END has the all the safety and comfort features. The comfort

section includes the power windows with anti-pinch technology, Arm rest,

Voice assisted system, Powered ORVM, Cruise control to control the vehicle

speed by the buttons on the steering wheel which provides a great comfort

during the driving, Audio system with USB and SD support, audio control with

steering wheel, Bluetooth enabled and high frequency front speakers. Scorpio

VLX also has adjustable steering through driver can adjust the steering wheel

height according to his convenience.

In the safety section the Scorpio VLX the maximum safety features which

include:-

Intellipark, Rain sensor, Light sensor, ABS (Anti-Breaking System) and speed

alert audio signal.

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DEALER PROFILE

SNOWVIEW AUTO MOBILES PVT. LTD.

Snowview Automobiles is situated at the Shimla city of H.P. Snowview

Automobiles is one of the authorized dealers of M&M.

Our Distinction

This one of the largest authorized dealer for Mahindra & Mahindra Automotive

in Himachal Pradesh.

Partners in Progress:

We are the preferred partners of M&M Automotives, chiefly due to our

successful sales record and quality. Our facilities have remained unsurpassed,

as we strives everyday to better our self.

Commanding Presence:

Snowview Automobiles as a centralized air conditioned Showrooms of M&M

automotive its kind in Himachal Pradesh, spread gracefully and decorated

elegantly over a impressive10, 000 sq. ft. at Shimla, Being equipped with

affable front office staff and adept professional technicians, Provide a perfect of

quality Service and Reliability.

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Space Friendly:

The interior are aimed at making you feel completely at ease, in luxury.

Because for us the customer is the king, one who deserve a regal offering. The

setting is apt for times when you need to switch into a relaxed state of mind.

Technology to Stay Ahead:

We are equipped with the latest technology advancement in the industry, in

order to give the best of services it matters. Not just to be part of, but to build

the future, is our moto.

Ambience the Exude Relaxation:

Ours is one of the few service centers to be equipped with a fully-fledged

customer-awaiting lounge. A part from a television and pool table, it had a wed

kiosk to keep u connected all the time.

Service with Commitment:

Our dedicated team of mechanical specialty offers expert treatment for your

vehicle. We ensure consistency in performance each time, without fail.

Attention to Details:

We provide genius spare parts and accessories to ensure exceptional

performance. Every single aspect related to your vehicle is taken SUVs of at our

premises.

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Dealing Made Convenient:

It is a part of our commitment policy to give advantage to our customer at every

junction. We offer assistance of every kind of our premises itself, which makes

it a one stop facility.

Expert Guidance at Every Step:

Our sales team gives utmost priority to your satisfaction. When you need help to

make right choice, it is ensured that the result it beyond your expectations. Thus

making it a point that you get the best in both luxury and comfort always.

Models:

Mahindra & Mahindra been launching various types of MUVs and SUVs from

the year of 1945, keeping in mind the quality, design, driving, comfort, fuel

efficiency, service and resale value. These from a formidable force that gives

our customers the pride and the joy of the value forever. Which drives M&M is:

Commitment

Leadership

At an eye for appropriate technology

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At the heart of every M&M is a unique engineering and an optimal mix of

power and economy.

All this is supported by M&M nation-wide dealership network and automated

workshop that provides excellent after sale service.

The technology has constantly exploring new opportunity to define the shape to

tomorrow’s driving technology.

Promotional Activities:

The promotional activities adopted by Snowview Automobiles are

1. Test Driving

2. Free Driving

3. Hoarding

4. Discount

5. Advertisement in Newspaper and Magazine

6. Gift Scheme

7. Free Services

8. Mileage Contents

Promotional expenses have been borne by both Snowview Automobiles and

M&M, shares in advertisement cost.

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Service Offered

Service offered by the Snowview Automobiles after the sale of the SUVs

Free checkups campaigns

Finance through bank

Demonstration for new products

Acceptance of warranty claims

Working Time in Snowview Automobiles:

Working hours Snowview Automobiles are 10 hours per day starting from

9:30am to 7:30pm with one hour break for lunch and 15 minutes for evening tea

and coffee.

PRODUCTS AVAILABLE AT SNOWVIEW AUTOMOBILES

Snowview Automobiles is a authorized dealer of M&M Company. M&M

Company manufacture various types of MUVs and LCVs.

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These are:

MAHINDRA “SCORPIO”

SCORPIO VARIANTS EX-SHOWROOM PRICE

SCORPIO M2DI 7,42,500

SCORPIO Lx mHawk 7,92,000

SCORPIO Sle mHawk 9,11,000

SCORPIO Vlx mHawk 10,30,500

SCORPIO Vlx (4X4) HI-END 11,30,000

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MAHINDRA “XYLO”

XYLO VARIANTS EX-SHOWROOM PRICE

D2 (BASE VERSION)

7,16,000

E4 (LOWER VERSION)

7,81,100

E6 (SPORTZ VERSION)

8,37,500

E8 (TOP VERSION)

8,91,500

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MAHINDRA “BOLERO”

BOLERO VARIANTS EX-SHOWROOM PRICE

BOLERO DI 5,48,000

BOLERO PLUS 5,71,000

BOLERR SLE 6,07,200

BOLERO SLX 6,54,200

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MAHINDRA RENAULT “LOGAN”

LOGAN VARIANTS EX SHOWROOM PRICE

LOGAN GLE 1.4 4,84,000

LOGAN GLX 1.6 5,47,000

LOGAN GLS 1.6 5,75,000

LOGAN GLSX 1.6 5,95,000

LOGAN DLE 1.5 5,98,000

LOGAN DLX 1.5 6,40,000

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Part : II

Project Overview

44

CONSUMER BEHAVIOUR

Our society is a land of diversity. We see diversity at all level exist

among consumers, among nation, culture, food and taste among marketers and

even among consumers behavior theoretically perspective. However, despite

prevailing diversity in our society.

The term consumers behavior refers to the behavior that consumers

display in searching for purchasing, using, evaluating a disposing of product

and service that they expect will satisfy their needs. To study consumers

behavior to spend their available resource to understand and predict behavior in

the market place, it also promote understanding of the role that consumption

play in the lines of individuals.

Consumer behaviour study include the study what they buy, why they

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

they use it. Consumer research takes place at every phases of the consumption

process, before the purchase, during the purchase and after the purchase,

consumer behaviour research goes far beyond these facts of consumer

behaviour and considered the uses of consumers make of the good they buy and

their subsequent evaluation.

Consumer behaviour is inter disciplinary, that it is based on concept and

theories about people that have been involved by scientist in such diverse

disciplines as psychology, sociology, social psychology, cultural anthropology

and economics.

Consumer behaviour has been an integral part of strategic market

planning. The belief that ethics and social responsibility should also be Integral

component of every marketing decision is a revised market concept.

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

consuming entitles the personal consumer and the organizational consumers.

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The personal consumers buys goods and service for his/her own use for the

organizational encompasses for profit and non profit business, govt. agencies

and institution all of which must buy product, equipment and service in order to

run their organization.

Introduction to buying motives Consumer or buyer is the central figure of all

marketing activities. It is the consumer who determines the growth, prosperity

and even existence of a business enterprise. Hence the marketer should always

feel the pulse of customers. In order to understand the pulse of the customers,

the marketer needs to understand fully the working of buyers mind. It helps him

to plan his production and distribution to suit to the needs and convenience of

customers‘ .It also helps him to plan suitable marketing strategies. Thus it is

very essential for every marketer to know his customers buying motives.

Buying motives Motive is a strong feeling, instinct, desire or emotion that

makes a person to do something. When a motive makes a person to buy a

product, then it becomes a buying motive. Thus buying motive means the

influence and considerations which makes a customer to buy a particular

product. According to D.J.Duncan, ―buying motives are those influences or

considerations which provide the impulse to buy, induce action or determine

choice in the purchase of goods and services‖. Buying motives are mainly two

types, manifest motives and latent motives. Manifest motives are those motives

which are known to the customer and also ready to admit them.

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Consumer Behaviour: Turning to the Web and New C2C Tools

Consumers today have a multitude of sources from which to gather information

during the vehicle buying process, but the Internet tops the list. The web has

become a standard resource in the shopping process for eight out of 10

consumers when researching SUVs purchases. However, the way they use it is

changing. As the web matures, vehicle buyers are visiting fewer sites and

focussing more on manufacturer and C2C websites and less on third-party

information sites and independent e-tailer sties.

Manufacturer Sites a Key Information Source

Just two years ago, information websites were identified as the number one

information source by web users responding to the SUVs Online survey (tied

with family and friends and manufacturer specific dealer), named by 55% of

consumers. This year, they dropped to the number four source, named by 41%

of web users. In comparison, manufacturer sites are now the top source for

consumers who use the web when researching vehicles, named by 70% of

respondents. Two years ago manufacturer sites held the number three position,

named by 43% of web users. The use of dealer websites has remained steady,

with about half of web users turning to these sites.

Key Factors in Vehicle Choice

When it comes to making their final decision about which vehicle to buy,

consumers focus on factors such as reliability, safety, price and fuel economy.

At the bottom of the list are cash-back incentives, named by fewer than half of

consumers. The importance of incentives as a deciding factor has declined for

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the past several years, indicating that consumers today seem less interested in

gimmicks when it comes to their SUVs purchases. Where consumers are in the

buying cycle can make a difference in how they rank the factors that influence

their vehicle choice. For example, additional warranty coverage is important to

consumers who are furthest away from the point of purchase; it was named by

69% of respondents who were 13 to 18 months from purchase. However, the

number declines as consumers get closer to actually buying the SUVs: 55% of

respondents who were within three months of purchase said extra warranty

coverage was important. This reflects the fact that consumers will narrow down

the factors that really matter to them as they get closer to the point of purchase.

Demographic factors such as age and gender accounted for some variances. For

example, older consumers tend to put more emphasis on reliability and safety

than do younger respondents. Those in the 50-plus age group were also more

concerned with environmental issues and fuel economy. The youngest

respondents were most likely to rate the ability to research information on the

Internet as an important factor in their vehicle decision. Women tend to rate

most of the factors as more important than do men. The difference was most

pronounced for cash-back incentives, low financing, safety, environmental

issues, fuel economy and additional warranty coverage.

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Going ‘Green’: Fuel Efficiency Takes Centre Stage

Fuel efficiency and environmental issues have moved to the forefront in

consumers’ minds and in automotive industry forums thanks to factors

including global warming, fluctuating gasoline prices, and proposed legislation

to increase fuel efficiency and reduce CO2 emissions. This growing interest in

so-called green vehicles was evident in this year’s SUVs Online research.

More than one-quarter of respondents said they currently own or lease a fuel-

efficient vehicle while almost half said they are planning to buy or thinking

seriously about buying a fuel-efficient vehicle. Not surprisingly, the numbers

for alternative-fuel vehicles were lower. Just 2% of respondents currently own

an alternative-fuel vehicle and 11% are planning to buy or thinking seriously

about buying one. The most common type of alternative-fuel vehicle

represented in the survey were gas/ electric hybrids, named by about half of

current alternative-fuel SUVs owners.

Biodiesel vehicles were the second most common, named by 15%. The

alternative-fuel market remains in transition and it’s still too early to tell how it

will ultimately shake out, although sales are expected to continue to grow. For

example, J.D. Power and Associates predicts that U.S. sales of hybrid vehicles

will increase by 35% in 2007, compared with 2006.

Current ownership of fuel-efficient and alternative-fuel vehicles tended to be

quite consistent across gender and age groups, although the oldest consumers

were somewhat more likely to be seriously thinking about buying an

alternative-fuel SUVs.

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CONSUMER BUYING vs. ORGANIZATIONAL BUYING

Final (or ultimate) consumers purchase for:

personal,

family, or

household use

Organizational consumers purchase for:

further production,

usage in operating the organization, and/or

resale to other consumers

Consumer Buying Behavior

The decision processes and acts of final household consumers associated with

evaluating, buying, consuming, and SUVs products for personal consumption

Consider the purchase an automobile. You generally will not consider different

options until some event triggers a need, such as a problem needing potentially

expensive repair. Once this need has put you "on the market", you begin to ask

your friends for recommendations regarding dealerships and SUVs models.

After visiting several dealerships, you test drive several models and finally

decide on a particular model. After picking up your new SUVs, you have doubts

on the way home, wondering if you can afford the monthly payments, but then

begin to wonder if instead you should have purchased a more expensive but

potentially more reliable model. Over the next five years, the SUVs has several

unexpected breakdowns that lead you to want to purchase a different brand, but

you have been very happy with the services of the local dealership and decide to

again purchase your next SUVs there.

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In this particular case, the following generic model of consumer decision

making appears to hold:

=====>need recognition

=====>information search

=====>evaluation of alternatives

=====>purchase decision

=====>postpurchase behavior

Now consider the purchase of a quart of orange juice. You purchase this product

when you do your grocery shopping once per week. You have a favorite brand

of orange juice and usually do your grocery shopping at the same store. When

you buy orange juice, you always go to the same place in the store to pick it up,

and never notice what other brands are on the shelf or what are the prices of

other brands. How is it that the generic model above works differently in this

second scenario? Why does it work differently? Why would we generally need

the ministrations of a sales person in the sale of a SUVs, but we generally do

not need the help of a salesperson in the purchase of orange juice?

How can the marketer of orange juice get a consumer like you to exert more

effort into information search or to consider alternative products? How is it that

the marketer of your brand got you to ignore alternative competing brands?

What is the involvement of salespeople in sales promotions that might be

associated with products such as orange juice?

Consumer behavior researchers are not so interested in studying the validity of

the above generic model, but are more interested in various factors that

influence how such a model might work.

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GROUP INFLUENCES ON CONSUMER BEHAVIOR

Culture

the set of basic values, beliefs, norms, and associated behaviors that are learned

by a member of society

Note that culture is something that is learned and that it has a relatively long

lasting effect on the behaviors of an individual. As an example of cultural

influences, consider how the salesperson in an appliance store in the U.S. must

react to different couples who are considering the purchase of a refrigerator. In

some subcultures, the husband will play a dominant role in the purchase

decision; in others, the wife will play a more dominant role.

Social Class

A group of individuals with similar social rank, based on such factors as

occupation, education, and wealth

Reference Groups

Groups, often temporary, that affect a person's values, attitude, or behaviors

E.g., your behaviors around colleagues at work or friends at school are

probably different from your behaviors around your parents, no matter

your age or stage in the family life cycle. If you were a used SUVs

salesperson, how might you respond differently to a nineteen year old

prospect accompanied by her boyfriend from one accompanied by two

girlfriends?

Opinion leader

A person within a reference group who exerts influence on others because

of special skills, knowledge, personality, etc.

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o You might ask the webmaster at work for an opinion about a

particular software application. Software manufacturers often give

away free beta copies of software to potential opinion leaders with

the hope that they will in turn influence many others to purchase

the product.

Family

A group of people related by blood, marriage, or other socially approved

relationship

ENVIRONMENTAL / SITUATIONAL INFLUENCES ON CONSUMER

BEHAVIOR

Circumstances, time, location, etc.

Do you like grapes? Do you like peas?

You might like grapes as a snack after lunch, but probably not as a dessert after

a fancy meal in a restaurant. You might like peas, but probably not as a topping

on your pancakes. Everyday situations cause an interaction between various

factors which influence our behaviors. If you work for tips (a form of incentive

related to commission) as a waiter or waitress, you must certainly be aware of

such interactions which can increase or decrease your sales.

If you are doing your Saturday grocery shopping and are looking for orange

juice, you are probably much more sensitive to price than if you stop at the

quick store late at night, when you are tired and cranky, after a late meeting at

the office. A prospect shopping for a new automobile while debating the

wisdom of a necessary expensive repair to his SUVs might be more interested

in what SUVs are on the lot than in shopping for the best deal that might

involve a special order.

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INTERNAL INFLUENCES ON CONSUMER BEHAVIOR

Personality

A person's distinguishing psychological characteristics that lead to relatively

consistent and lasting responses to stimuli in the environment

We are each unique as individuals, and we each respond differently as

consumers. For example, some people are "optimizers" who will keep shopping

until they are certain that they have found the best price for a particular item,

while other people are "satisfiers" who will stop shopping when they believe

that they have found something that is "good enough." If you are a salesperson

in a retail shoe store, how might you work differently with these two

personalities?

Lifestyle and Psychographics

lifestyle is a pattern of living expressed through a person's activities,

interests, and opinions

psychographics is a technique for measuring personality and lifestyles to

developing lifestyle classifications.

Motivation: Multiple motives

Consumers usually have multiple motives for particular behaviors. These can be

a combination of:

manifest

known to the person and freely admitted

latent

unknown to the person or the person is very reluctant to admit

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Note: different motives can lead to the same behavior; observing behavior is not

sufficient to determine motives.

TYPES OF CONSUMER PROBLEM-SOLVING PROCESSES

Routinized

used when buying frequently purchased, low cost items

used when little search/decision effort is needed

e.g., buying a quart of orange juice once per week

Limited Problem Solving

used when products are occasionally purchased

used when information is needed about an unfamiliar product in a

familiar product category.

Extended problem solving

used when product is unfamiliar, expensive, or infrequently purchased

e.g., buying a new SUVs once every five years

Under what sorts of conditions would the assistance of a salesperson be needed?

Not needed?

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POST-PURCHASE CONSUMER BEHAVIOR

Satisfaction

After the sale, the buyer will likely feel either satisfied or dissatisfied. If the

buyer beleives that s/he received more in the exchange than what was paid, s/he

might feel satisfied. If s/he believes that s/he received less in the exchange than

what was paid, then s/he might feel dissatisfied. Dissatisfied buyers are not

likely to return as customers and are not likely to send friends, relatives, and

acquaintences. They are also more likely to be unhappy or even abusive when

the product requires post-sale servicing, as when an automobile needs warranty

maintenance.

Cognitive dissonance

It has to do with the doubt that a person has about the wisdom of a recent

purchase

It is very common for people to experience some anxiety after the purchase of a

product that is very expensive or that will require a long term commitment. Jane

and Fred, for example, signed a one year lease on an apartment, committing

themselves to payments of $1500 per month. A week later, they are wondering

if they should have instead leased a smaller $900 apartment in a more rough

part of town; they are not sure if they really can afford this much of a monthly

obligation. Dick and Sally, on the other hand, ultimately rented the $900

apartment, and now are wondering if the savings in rent will be offset by noisy

and sometimes unsafe conditions in this neighborhood.

Perhaps neither couple would be experiencing this anxiety if their landlords had

given them just the smallest of assurances that they had made a good decision.

After a close on products that are expensive or that require a long term

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commitment, the salesperson should provide the prospect with some reasons to

be happy with the decision. Allow the SUVs buyer to reinforce her own positive

feelings by calling her a week after the purchase to ask how things are going.

Call the new life insurance policy holder after two months to see if there are any

questions; a lack of questions can only help the buyer to convince himself that

he did the right thing.

The four-wheeler Market is even expanding and ever changing showing

new trends. Almost every day, we get to know about the launch of new model

by different company Sales. Their market strategy and also their selling policy.

But as the competitors gets intensified between the domestic and the

multinational brands. The company producing better product enjoy the benefit.

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Objectives

Shimla is the most developed town in Northen India and a capital of Himachal

Pradesh and to capture this market and establish themselves as a leader is the

prime aim of all the companies so as to have an psychological impact on the

people and to have an edge over other four wheeler companies were not doing

great business in This region from the very beginning. It was so because the

prices of the product were high and the customer were not fully aware of proper

advertisement facility, which is key factor in influencing a consumer. Earlier

M&M product was almost enjoying the monopoly market but now Hyundai,

Maruti and TATA entered the market with various promotional schemes and

changing the market scenario.

Nowadays with the advent of financial scheme by the commercial Bank

and Hire purchase companies, the four-wheeler company has been given new

dimension. But with the introduction of new models, the greater market opened

up for all the SUVs companies, which ultimately led to a stiff competition

between the brands.

Today all the companies namely Hyundai, Toyota, Hyundai, TATA,

Skoda, Chevrolet, Ford, Mahindra etc. are trying to grab the market. M&M is

enjoying good reputation in SUVs segment in Shimla market for its after sales

service. According to research, M&M is the largest SUVs manufacture in

India.

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1. To study their satisfaction level of customers of different SUVs available

in Shimla.

2. To study the importance of various attribute which effect the purchasing

decision of customers in regard of SUVs.

3. To study the awareness level of different SUVs in Shimla.

4. To study the importance of dealer and their influence in marketing/sale

for SUVs in Shimla.

5. To study consumers buying behaviours.

6. To find out the expectation of the existing possessing and prospective

customers of the company.

7. To study the impact of media on the customers.

8. To study the satisfaction level of the customers on overall performance

and after sale service of their existing SUVs.

9. To study different promotional scheme they expect for purchasing a new

SUV.

Various segments of Mahindra are:

Mahindra & Mahindra Limited is part of the Indian Industrial Conglomerate

Mahindra group based in Mumbai. The company was set up in 1945 in

Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C.

Mahindra along with Malik Ghulam Mohammad.

After India gained independence Malik Ghulam Mohammed moved to Pakistan

where he became the nation's first Finance Minister. Now, with the Mahindra

brothers as the whole sole of the company, its name was changed to Mahindra

& Mahindra in 1948.

Initially set up to manufacture general-purpose utility vehicles, Mahindra &

Mahindra (M&M) was first known for assembly under licence of the iconic

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Willys Jeeps in India. M&M introduced Jeeps to India and in no time they

established themselves as the Jeep manufacturers of India. The company later

branched out into the manufacture of Light Commercial Vehicle (LCVs) and

agricultural Tractors, rapidly growing from being a manufacturer of army

vehicles and tractors to an automobile major with a growing global market

presence. At present, M&M is the leader in the utility vehicle segment in India

with its flagship UV Scorpio.

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METHODOLOGY

(1) Preliminary Survey: - The project study was undertaken general

discussion and informal interview with the customer both possessing and

prospective. The objective were set mainly to gain an idea about

consumers buying behaviors of SUVs.

(2) Data Collection: - The data were collected from primary sources. The

primary data were collected from the customer both possessing and

prospective. Surveying method through personal or direct interviews with

the help of questionnaire-designed specification for the purpose did this.

(3) Questionnaire Design:- Primary data was collected through well framed

questionnaire. The questionnaire had two parts, one part for possessing

customers and other part for prospective customer. Question was framed

keeping mind. The various information required as per the objectives.

Each question was directed towards getting information regarding M&M

as well as other competitors. The questionnaire contained both open

ended and close ended question. Also question with multiple-choice

answers, degree of importance scale etc. were included. All effort were

made to that the questionnaire was simple and precise and also adequate

SUVse was taken about the language, structure and format of

questionnaires.

(4) Sample Size: The sample was selected on the basis of simple random

sampling. A total 50 customer surveyed where 44 were processing and 6

were prospective customers.

The total sample size in segmented under the following zones:

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Zones:

1. Snowview Automobiles.

2. Main Road, Kachi Ghati.

3. NH22.

4. Various business establishments in Shimla.

(5) Analysis: The data collected from the customer were analysed using

different standard statistical tools and techniques each of the question

were analyzed to find out the purchasing behaviour of different SUVs

with reference to M&M.

(6) Scope: The scope of the project is define by the objective of the study it

self. If the study was basically for the fulfillment at its objectives. This

means that scope of this project study is restricted to consumers buying

behaviours of M&M SUVs among the other brand in the market.

Scope of this project is also restricted to the area of field survey in

Shimla. The study does not include any other area like finance personnel

product etc.

(7) Limitations: With many point the study of this project suffered from

many limitation also, likewise as the sample is low I cannot analyze

many respondent, as the survey may also suffer from bais results.

(8) Recommendation: Recommendation were made or the based of finding

drawn from the project analysis.

(9) Conclusion: Conclusion were made on the finding and analysis of the

survey.

62

DATA ANALYSIS

AND

INTERPRETATIONS

OF THE

QUESTIONNAIRE

As the consumers play a key role in the today’s market; their preferences,

attitude and perceptions are of utmost value to the marketers keeping all the

objectives of the study in mind and to give a proper dimension to the study

undertaken, a comprehensive consumer survey was undertaken with the aid of a

well-framed questionnaire. The detail of the findings have been fragmented as:

Demographic profile segment: The analysis on demographic profile has been

done on the basis of Age group, Occupation and Monthly income:

63

Q. No 1. Occupation Considered

This question was put forwarded to extract a profile factor of the respondent.

The prime objective of this question was to know the occupation of the

respondent. Though this it can be analysed that which segment of people have

like for which brands. This question helped to extract the background of the

customers owning and not owning SUVs.

Table No. 1.1

Occupation Percentage People

Service 30% 15

Business 40% 20

Students 20% 10

Others 10% 5

Diagram 1.1

From the responses obtained, it was found that the most of the Businessman

seemed to score high followed by service holder in possession of SUVs.

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Q. No 2. AGE GROUP

The age group, which is one of the important roles in the buying behaviour of

the customer, was extracted through this question. It was attempted to cover

most of the age groups in various slabs.

Table No. 1.2

Age groups Percentage

20-25 2%

26-30 8%

31-35 24%

36-40 40%

Above 40 years 26%

Diagram 1.2

Age Group

The responses revealed that maximum number of SUVs possessed by respondents in the age group of 36 – 40. Age group above 40 years followed it. The least was found to be in the age group of 20-25 years.

65

Q. No 3. INCOME PROFILE OF THE RESPONDENTS

Since the income of a respondent is also important in making decision to buy a

SUVs, therefore, this question was framed to extract their level of income. The

slabs of income considered for the purpose were ranging from Rs.15,000/-

(minimum) and above Rs.45,000/-.

Table No. 1.3

Income slab Percentage

Rs.15,000 – Rs.25,000/- 44%

Rs.25,000 – Rs.35,000/- 30%

Rs.35,000 – Rs.45,000/- 18%

Above Rs.45,000/- 8%

Diagram 1.3

Out of the total respondents, most of them were found to be in the income slab of Rs.15,000 – Rs.25,000/- followed by respondents in the age group of Rs.25,000 – Rs.35,000/-.

66

Q.NO. 4. AWARENESS ON BRANDS OF SUVs

The respondents in response to this question revealed the awareness about the

existing brands of SUVs in the market. To reveal it, they were given options of

various brands that are playing in the market of Shimla.

Table No. 1.4

Brands Percentage

Hyundai 100%

Maruti 100%

Chevrolet 76%

Toyota 100%

Skoda 70%

Ford 100%

TATA 100%

Mahindra 100%

Diagram 1.4

It is seemed that almost every brand is well aware by thr respondent.

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Q. No. 5. MEDIA OF AWARENESSAn endeavor was made to know the source of information or the awareness of

different brands of existing SUVs in the market of Shimla, to the customers. To

respond to this query, respondents were opted with various sources of media.

Table No. 1.5

Media Percentage

Newspapers 82%

Magazines 64%

T.V. Advertisement 100%

Trade Fairs 20%

Friends 80%

Family Members 64%

Others 46%

Diagram 1.5

Of the different media, TV Advertisement ranked top in creating brand

awareness among the perceptual mindset of the customers, which in turn effects

the buying behaviour of a customer.

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Q. No. 6. Do You Own a SUV

Ownership of SUVs was the chief extraction of this question. To this question

only

88% of the respondents were found positive whereas the remaining 12% were

not in possession of a SUVs of their own.

Table No. 1.6

Media Percentage

Yes 88%

No 12%

Diagram 1.6

The question revealed that, of the 50 respondents only 44 of them owns a SUVs

whereas rest 6 do not possess SUV.

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PART A

Questions of Part A were targeted to those respondents who own a SUV.

These questions were put forwarded to know the brand of possessed by them,

attributes they look for, payment patterns etc. The deliberation of each questions

are discussed below separately below:

Q No. 1. Most of the brands of SUVs existing in the market of Shimla were

given to choose from by the respondents. Accordingly, respondents made their

responses favoring mostly for Mahindra followed by Hyundai.

Table 2.1

Brands Percentage

Hyundai 27.27%

Fiat 0%

Mahindra 40.90%

Chevrolet 4.5%

Toyota 0%

TATA 20.45%

Maruti 4.5%

Skoda 0%

Ford 2.27%

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Diagram 2.1

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Q.No. 2. This question was attempted to extract the factors, which plays a

major role in the buying behaviour of the customers. It was attempted to cover

most of the factors to make this extract more effective and productive.

Table No. 2.2

Sl. No.

Attributes Very Important

Important Not so important

a) Price 39 5

b) Financial assistance / credit facility 40 4

c) Fuel efficiency 44

d) Style / looks 35 5 4

e) Comfort and convenience 38 6

f) Durability 37 6 1

g) Brand image 20 18 6

h) Advertising 6 19 19

i) After sales service 44

In response to this question, as revealed by respondents, the attribute “fuel

efficiency” and “after sales service” ranked top followed by “financial

assistance

Diagram2.2

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Q. No. 3. A major factor “Influence”, which induces a person to buy

anything (herein referred to as SUVs) was revealed by the respondents through

their response to this question.

Table No. 2.3

Source of Influence Percentage

Self 48%

Family 28%

Friends 10%

Colleague 2%

Others 0%

Don’t own a SUVs 12%

Diagram No. 2.3

From the responses obtained, it is found that self-motivation is the major role in purchasing a SUVs. Of the 50 considered respondents

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Q. No. 4 The price factor and payment mode also plays a pivotal role in the

buying behaviour of a customer. Respondents, being customers to respective

companies, also looks for the most convenient mode of payment. Therefore, this

question was designed to know their preferred mode of payment.

In response to this query with four different options like (a) Cash

(b) Bank finance (c) Private finance (d) Others, respondents numbering 21

opted to go for Bank Finance, for the purpose of low and reducing balancing

method of charging interest, whereas 19 respondents opted to go for private

finance for their lesser paper work despite interest being flat. Of the rest 1 opted

for cash and remaining 3 opted for other modes of purchase.

Table No.2.4

Options No of respondents

Cash 1

Bank finance 21

Private finance 19

Others 3

Diagram 2.4

Q. No. 5 This question was designed to know the overall performances that

were being experienced by the respondents from their SUVs. Also, an open-

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ended part in question was offered to reveal the exact kind of problem that they

have experienced from their SUVs.

80% of respondents were satisfied with the overall performance of the SUVs whereas remaining 20% were partially or were not satisfied with their SUVs’s performance.

Table No. 2.5

Options Percentage

Yes 80%

No 20%

Diagram No. 2.5

Q. No. 6 Another major factor playing the role in decision making of buying or

buying behaviour of respondents was “After sales service”. So, this question

was designed to know the satisfaction level on the after Sales service of

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respective brands, received by the respondents, which in other words are

considered as the customers of respective brands.

Table No. 2.6

Options Percentage

Yes 100%

No 0%

Diagram No. 2.6

Q. No. 7 This question was designed to know the next option, if any respondent

is willing to go for a new one. To this query, 27.27% respondents were

willing to go for latest model of SUVs whereas the remaining were

happy to be contended with what they have.

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Table No. 2.7

Options Percentage

Yes 27.27%

No 82.73%

Diagram No. 2.7

Q. No.8 In terms of technical feature expectation of the respondents, it was

found that all the technical feature are expected by the customers.

Table No. 2.8

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Sl. No. Technical featuresYes

No

1. High engine power 100% 0%

2. High fuel efficiency 95% 5%

3. Brakes 100% 0%

4. Tyres & Wheels 80% 20%

5. Power Steering 98% 2%

6. Suspension 100% 0%

7. Power window 80% 20%

Diagram 2.8

Q.No.9. This question was targeted to extract if they recommend M&M to

others. To this response 10 respondents out 12 (possessing Mahindra

brands of SUVs) are recommending whereas remaining 2 are not doing

so.

Table No. 2.9

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Yes 10

No 2

Diagram No. 2.9

PA

RT – B

This part was intended for those respondents who were not possession of a four-wheeler SUVs. To this part only 6 respondents responded.

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Q.No.1 The never-ending choosy human beings were asked to extract their

preference of brands when they go for their new SUVs. To this question

only two respondents preferred to go for Hyundai brand of SUVs

whereas 3 opted for Mahindra and remaining 1 opted for TATA.

Table No. 3.1

Brands No of respondents

Hyundai 2

Fiat 0

Mahindra 3

Chevrolet 0

Toyota 0

TATA 1

Skoda 0

Ford 0

Diagram 3.1

Q.NO.2 To know the specific model of SUVs that the respondents would like to

go for in near future are presented herein below in tabular form. The responses

were obtained in the form of an open-ended response.

Table No. 3.2

Models No of respondents

Hyundai’s Santro l 2

Mahindra Xylo 1

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Maruti’s 800 2

TATA’s Indica 1

Diagram No. 3.2

Q. No.3: This question was attempted to extract the factors, which plays a

major role in the buying behaviour of the customers. All the factors were found

to be important for the respondents.

Table No. – 3.3

Sl. No.



a) Price 6b) Financial assistance / credit

facility6

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c) Fuel efficiency 6d) Style / looks 6e) Comfort and convenience 6f) Durability 6g) Brand image 6h) Advertising 6i) After sales service 6

Diagram 3.3

Q. No. 4: The price factor and payment mode also plays a pivotal role in the

buying behaviour of a customer. Respondents, being customers to respective

companies, also looks for the most convenient mode of payment. Therefore, this

question was designed to know their preferred mode of payment.

In response to this query with four different options like (a) Cash (b) Bank

finance (c) Private finance (d) Others, Out of a total of six respondents, one

respondent preferred cash, two respondents preferred Bank finance and three

respondents preferred private finance.

Table No. 3.4


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Cash 1

Bank finance 2

Private finance 3

Others 0

Diagram – 3.4

Q. No. – 5 : This question was framed to know about the respondents interest

on the various promotional schemes, and was found that out of 6 respondents

100% were interested for the different promotional schemes which is shown in

the following table.

Table – 3.5 (a)


Yes 6

No 0

Table 3.5 (b)

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Sl.No. Scheme Very

Important


1 Price discount 6 -- --

2 Exchange offer -- 4 2

3 Free gift -- 3 3

4 Installment facility 4 2 --

5 Interest free

installments

6 -- --

Diagram No. 3.5 (b)

CONCLUSION

Since Indian Automobile market is continuously in the prowl of surging as a

major SUVs manufacturer, people are purchasing SUV as there is increase of

income of common people as well as change in tastes and preferences of

consumers. It is important for the SUVs manufacturers and SUVs dealers to be

able to understand the different factors affecting the extent in SUVs purchasing

behaviour. People are more conscious about the on spot information provided

about various SUVs who serves according to the needs and wants of the

customer. The type of technology used and the wider reach of the service

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stations also affect the most on SUVs purchasing decision. While government

obligations and various policies like import duties, custom exemptions is seen

as second most affecting driver of purchase of SUVs. Factor 3 includes family

needs; brand image; income level; special family programs/events like

Anniversary, Birthday; insurance facility; credit SUVs acceptance; SUVs

accessories affects customers SUVs purchase decision causing a variance of

3.080.This shows that importance of family decisions, special occasions in

family and the various services provided by SUVs dealers. includes installment

payment facility; location of the SUVs dealer shop; looks; availability of

service station showing customers accessibility to the service provided. Factor 5

shows the impact of various promotional activities and extra SUVs taken by

SUVs dealers. Factors 6 shows the impact of suggestion provided by family

members and peers as well as price and after sales service provided. includes

the infrastructural benefits of the shop and the variety of SUVs it stores .The

last but not the least ones shows the impact of factors of technical specifications

of the SUVs and the festivel season offersThis study was conducted to find out

the consumer buying behaviour of SUVs in special reference to the Mahindra

brand in Shimla. The findings and analysis revealed many advantages as well as

disadvantages for the Mahindra and Mahindra Pvt Ltd.

Though the M&M is the faster growing company and leading in the

market facing a stiff competition from Hyundai and Tata motors in the Shimla.

It has been observed that Mahindra adopted many promotional strategies

and company’s marketing channel is also satisfactory.

Now a days people are most aware about after sales service. The dealers

also expect M&M has over come this problem and facilities should be improved

for meeting the after sales service requirement effectively.

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The majority of customers expect loan or installment facilities. The

M&M has joined hand with State Bank Of India and many private bank to

promote this facilities.

As most of the existing and prospective customers adults, M&M should

introduces stylish Motor SUVs which compete its competitors product.

But M&M to meet the expectations of new generation people who are the

prospect, or customers has recently introduce SUV hoping to fulfill the demand

of the new generation.

As this study was conducted for educational purpose with the aim to give

necessary information to the organization, any mistake by the researchers

should be overlooked considering his inexperience in the field of marketing

research.

LIMITATION

The study suffers from many limitations of this report are enumerated as the

following:

Firstly, being the whole project dependent on primary data, the study has gained

vulnerability.

Secondly, the survey was restricted only 50 respondents in whole Shimla and as

such may not be true representative of the entire Shimla.

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Thirdly, the major constrain was the time factor, as the study have to be finished

within the stipulated time period.

Fourthly, lack of interest and unenthusiastic response may have allowed

biasness to creep this report.

Finally, lack of conclusions, which have been drawn, are subject to criticism at

any stages of its analysis and presentation. This report may not provide the best

possible market scenario and the efforts can always be made to have this project

report more effective and useful.

RECOMMENDATIONS

Based on the findings drawn from the project’s analysis, certain

recommendation need to be made as regards to the future course of action

M&M Pvt Ltd., which can go a long way in improving the Brand Awareness of

the Company in the SUVs market. The main recommendations are:

1. M&M should continue with its range of innovative products. At the same

time try to add value to its existing products so that it can cater to the

present day requirements. As the study reveals that majority of customers

are aged 20 – 40 years the needs and wants should be kept in mind while

designing new products.

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2. There should be proper synchronization between order placed an delivery.

The distribution channel should be enhanced and the models should be

readily available in the market.

3. As the buying decision of the buyer has influenced by himself, company




5. Facilities should be provide to the dealers so that they can extend them to

the customers while purchasing this brand.

6. Increase in sales promotion budgets to develop a point of purchase display

and to participate to a greater extent in Trade shows and similar kind of

shows and this will motivate the non-users to try out the products.

7. The company can sponsor local cultural programmes like Bihu festival of

Assam holding Bihu competition at least once in a year and for attracting

the youth it may sponsor sports events also.

8. The company can make charitable donation to different organizations. It can

extend their helping hand to the people hotted by natural havoc like flood,

draught, earthquake etc. to win the hearts of the mass people which will

build a good image of the Company among them.

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should come up with various schemes, which will induce them to influence

the customer for the product. This includes offering various gifts, packages

and financial incentives like higher commission as compared to other four-

wheeler companies.

10. Incentives and financial benefits provided to the dealers should be

maximized to maintain their level of satisfaction and motivation.

Annexure

Bibliography

Name of the Author/Publisher Year of Publication Name of the Books

1. Kotler Philip Eighth Edition (1994) Marketing Management

2. RSN Pillai Bhagavathi Thirteenth

Edition(2003)

Modern Marketing

Principle and Practices

3 C.R. Kothari Second Edition (1990) Research Methodology

89

Websites:-

http://www.wikipedia.org

http://www.mahindra.com

http://www.google.com

Questionnaire

Respected sir/madam,

I am Management (MBA) student at Sikkim Manipal University. I have been assigned a project in the context of which I am conducting a study on “Customer’s buying Behavior” on Mahindra and Mahindra in Solan, I would like to request you kindly to spare a few minutes for answering some questions. Your answers will be kept strictly confidential and will be used for academic purpose only.

1.Name of the respondent:………………………………………………………

2. Address: ………………………………………… Phone no: ………………

3. Occupation: (a) Service (b) Business (c) Students

(d) Others

4. Age group.

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http://www.google.com/

http://www.mahindra.com/

(a) 20 to 25 years (b) 26 to 30 years (c) 31 to 35 years

(d) 36 to 40 years (e) above 40 years.

5. Monthly income:

(a) Rs. 15,000 to 25,000/-

(b) Rs 25,000 to 35,000/-

(c) Rs. 35,000 to 45,000/-

(d) Above 45,000/-

6. What are the different brands of SUVs you are aware of?

(a) Hyundai (b) Maruti (c) Chevrolet

(d) Toyota (e ) Skoda (f) Ford

(g) TATA (h) Mahindra

7. How did you aware of different brands of SUVs?

(a) News papers (b) Magazines

(c) T.V. add (d) Trade fairs

(e) Friends (f) Family members

(g) others please specify………………………………………………..

8. Do you own a SUVs?

(a) Yes (b) No.

If yes please respond to Part A.If no please respond to Part B.

PART A

(1) Which Brand of SUVs do you posses ?

(a) Hundai (b) Fiat (c) Maruti

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(d) Chevrolet (e) Toyota. (f) TATA

(g) Mahindra. (h) Skoda (i) Ford

(2) How important were the following attributes before you decide to buy the existing SUVs?

Sl.

No.

Attributes Very

Important

Important Not so

important

a) Price

b) Financial assistance / credit facility

c) Fuel efficiency

d) Style / looks

e) Comfort and convenience

f) Durability

g) Brand image

h) Advertising

i) After sales service

j) Millage

(3) Who influence your decision in purchasing SUVs?

(a) Self (b) Family

(c) Friends (d) colleague

(e) Others. (f) Don’t own a SUVs

4) What was your mode of payment while purchasing the SUVs ?

(a) Cash (b) Bank finance (c) Private finance (d) Others

Please Specify ………………………………………………………….

5) Are you satisfied with the overall performance of your existing SUVs?

(a) Yes (b) No

If No, Kindly specify the problem ……………………………………………………

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…………………………………………………………………………………………

6) Are you satisfied with the after sales service of your SUVs ?

(a) Yes (b) No

If No, Kindly specify the problem ………………………………………………………………………………………………………………………………………………

7) Are you planning to purchase a latest model of SUVs ?

(a) Yes (b) No

If Yes, Kindly specify the Brand ……………………………………………………

8) Which of the following technical features do you accept from your new SUVs that dose not exist in the old SUVs? Sl. No. Technical features Yes No

1. High engine power

2. High fuel efficiency

3. Breaks

4. Tyres & Wheels

5. Power Steering

6. Suspension

7. Power window

9) For the possessing customers of Hyundai SUVs, do you recommend others to purchase Hyundai SUVs?

(a) Yes (b) No.

PART B1) Which brand of SUVs would you like to purchase in near future?

(a) Hyundai (b) Fiat (c) Maruti

(d) Chevrolet (e) Toyota. (f) TATA

(g) Mahindra. (h) Skoda (i) Ford

2) Which model of SUVs would you like to purchase in near future ?

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Model Name ………………………………………………………

3) Please indicate relative importance of the following factors, which you will consider before purchasing your new SUVs?

Sl. No.



a) Priceb) Financial assistance / credit facilityc) Fuel efficiencyd) Style / lookse) Comfort and conveniencef) Durabilityg) Brand imageh) Advertisingi) After sales service

4) What mode of finance will you prefer for purchasing a new SUVs ?

(a) Cash (b) Bank finance (c) Private finance (d) Others

5) Do you want avail any promotional scheme while purchasing the new SUVs ?

(a) Yes (b) No

If yes please indicate the relative importance of the following promotional scheme.

(Please put a tick in each row)

Sl No. Scheme Very important


a) Price discountb) Exchange offerc) Free giftd) Installment facilitye) Interest free installment

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Thanking you,

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Project 4 Collage

Documents

Transcript of Project 4 Collage