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INTRODUCTION
Perhaps the most distinctive skill of professional marketers
is their ability to create, maintain, protect, and enhance brands.
Branding is the art and cornerstone of marketing. The American
Marketing Association defines a brand as: a name, term, sign,
symbol, or design, or a combination of them, intended to identify
the goods or services of one seller or group of sellers and to
differentiate them from those of competitors. Thus a brand
denitrifies the seller or maker.
“What distinguished a brand from its unbranded
commodity counterparts is the consumer’s perceptions and
feelings about the product’s commodity counterparts is the
consumer’s perceptions and feelings about the product’s
attributed and how they perform. Ultimately, a brand resides in
the minds of consumers. A brand can be better positioned by a
associating its name with desirable benefits.
A brand is much more than a name, logo, colors, a tagline,
or symbol . These are marketing tools tactics. A brand is
essentially a marketer’s promise to deliver a specific set of
feature, benefits and services consistently to the buyers. The
marketer must establish a mission for the brand and a vision of
what the brand must be and do.
Brand nodding occur when customers experience the
company as delivering on its benefit promise. The fact is that
brands are not built by advertising but by the brand experience.
Brands vary in the amount of power and value they have in the
marketplace. At one extreme are brands that are not known buy
must buyers then there are brands for which buyers have a fairly
high degree of brand awareness. Beyond this are brands with a
high degree of brand acceptability.
We define brand equity as the positive differential effect
that knowing the brand name has on customer response to the
product or service. Brand equity results in customers showing a
preference for one product over another when they are basically
identical. The extent to which customers are willing to pay more
for the particular brand is measure of brand equity.
A brand needs to be carefully managed a so that its equity
does not depreciate. This requires maintaining or improving
brand awareness, perceived quality and functionality, and
positive associations. These tasks require continuous R and D
investment, skillful advertising, and excellent trade and
consumer service.
IMPORTENCE OF THE STUDY
The motive of the any company is to generally acquire
larger market share high % of sales the Industry, This could be
only achieved by building a higher % of brand loyal customers.
Any company can survive through there is a stiff
computational the market if its has brand loyal customer. Today
many major companies in the market if its has brand loyal
customers. To day many major companies in the market try to
maintain and improve there branded equity. With out creating a
proper Brand awareness they cannot build brand image.
Strong brands help build the corporate image and also by
making it eager for the companies launch new brands. Today
brands are treated, as major enduring assets of a company-more
over brand equity are major contributor to customer equity. This
all can happen only there is proper brand awareness.
The light four wheeler industry has been expanding rapidly
are gone the day when possessing a small and mid-size cars was
seen as a luxury. Now days it is viewed s a mere necessity.
SCOPE OF THE STUDY
The overall scope of the present study considers all the
variables and factors that have major impact over the customers
in considering particular brands. This especially included how a
customer regally evaluate recognizes the brand and what
position particular brand occupies in the customer mind.
This includes how a customer gets attracted towards the
brands and what makes a brand highly significant over their
competitive brand. The study includes how hand awareness
among potential customers can be maintained and improves.
The project has been done in Visakhapatnam city only. The
survey was confined only to Hyundai customers to presently
posses only Santro. The survey was especially focused on
existing Santro owners for finding how they are influenced by the
brand and what made them aware of the brand. After the
survey was done the data was analyzed and also relevant
suggesting were made in order to improve its brand awareness
towards Santro
METHODOLOGY OF THE STUDY
The study is conducted empirically using both primary and
secondary data.
Using a well-structured Questionnaire provided by the
company collects primary data. Around 100 potential customers
were surveyed to understand the customer’s attitude in
evaluating the after soled services rendered by AYS Automobiles
Pvt. Ltd., All the persons interviewed were in the age group
above 25 years. It has been deliberately decoded to conduct the
survey among this age group because they are the people who
are generally looking ahead for the purchase of a four-wheeler
apart from the existing two-wheeler. Many of these persons
interested are either businessmen or professionals; few of them
are corporate managers also.
The secondary data is collected from AYS Hyundai ltd. By
going through their corporate records, brochures and annual
reports of the company along with their newsletters were used to
substantiate the information.
The details about the four-wheeler market are collected
from a few specialized magazines like Auto India etc.
SOURCES OF DATA:
The data has been collected from both primary and
secondary sources, to get information regarding the organization
and products.
PRIMARY DATA:
Primary data has been collected through questionnaires.
The questionnaire was mostly related to the brand awareness
towards Santro of the customers on different feature such as the
model, price, effectiveness of the brand etc. Provided by
Hyundai motors ltd.
SECONDORY DATA:
Secondary data has been taken from bellow sources:
1. Reports
2. Pamphlets
3. Advertisement
4. Customer database
5. Newspapers
6. Internet
SAMPLING:
Out of few lakes of Hyundai customers spread all over India,
the customers of Hyundai motors Ltd., Visakhapatnam city only
are taken as target population for the study.
SAMPLESIZE:
The sample size of 100 is selected from the database of the
company. The study requires on in depth survey and teen
observation in collecting data regarding the brand awareness
levels of Hyundai customers.
SAMPLING TECHINIQUE:
Only simple random sampling technique is adopted in
selection the sample. In this technique, each and every unit of
the population has on equal opportunity of being selected in the
sample
DATA COLLECTION PROCESS:
Based on need and objectives ,types of data required for
study and other sources of data are identified.
Data was collected with the help of the questionnaires
OBJECTIVES
The study has been conducted with the following objectives
in mind:
1. To know how brand awareness made customer to purchase
product (Hyundai car)
2. What factors and variables of brand influence them to
purchase.
3. To know what position does the brands has in the minds of
customers.
4. To know how they became aware of the brand (Santro)
Data
Primary Data
Obseration
Questionnaire
Secondary Data
Inside the Organization
News Letters Documents
Outside the Organization Libraries,
Magazines etc
5. To know level of satisfaction about the brand awareness
( Santro) offered by Hyundai.
6. To find out the market potential for Hyundai cars ( Santro).
7. To know how maintain and improve brand awareness build
brand loyalty.
LIMITATIONS OF THE STUDY
Even though the project has been done without most car, it
suffers from the following limitations.
1. Due to lack of time all customers, could not be contracted.
2. The study has been restricted to Visakhapatnam city only.
3. As the project is a simple sample study and is confined to
100 customers only, if may or may not pictures the entire
customer feelings.
4. The awareness levels of the customers may change from
time to time and so there is a possibility of changes in the
research results.
Few customers refused to respond or could not respond
appropriately due to Lack of time, Ignorance etc.,
INDUSTRY PROFILE
In 1769, a French engineer CAPTIN NICHOLAS built the first
load the vehicle propelled by its own power. It was a three-
wheeler, four-seatwork vehicle fitted with steam engine. It
attained a peed of about 21/2 M.P.H. for 15 minute. In 1880.
German & French efforts developed of this vehicle.
In 1885, Benz in Germany built a tricycle propelled an
internal combustion engine. In 1885-86, GOTTLEEF
DAIMLETpatented an internal combustion engine. In 1895,
CHARLES E.DURYES and ELWOOD and J.HAYNES in America
developed experimental automobile. In this year PANCHARD and
LEVAMOR in France also developed a car with minor executions
incorporated the chief features of the automobile as we know it
today. In 1890-95, the European designers were also active in
the development of automobile.
In 1900. The design of the automobile so improved that it
awakened the public to the fact that it was new form of
transportation.
In 1906, many of the great names around which the world’s
largest manufacturing industry was to be built in America had
already begin to manufacture the automobile vehicle, Packard,
Auto car –Oldsmobile, white, bulk overland, ford, cadillan-c etc.,
all these names were, motor vehicles before 1905. Pierce-arrow,
locomotive, Maxwell, franking and peerless were also important
at that time in the technical and commercial development of the
motor vehicle.
In 1920, there was a gradual change and refinement in
automobile design. It was clear by the spark ignition gasoline
engine, which was the power plant of the modern motor; vehicle
water-cooled engine was almost universal. The sliding gear
transmission had established itself as predominant. The puppet
value was used in almost every engine. Engines were all located
of the chassis.
In this period the major developments were made in every
carry features. The designers tried to produce a vehicle which
will function at all times under all conditions and which were
comfortable to ride and easy to operate. Increased life of tyres, ,
independent, front wheel suspension, four wheeler hydraulic
brakes, high compressions ratio, higher power, use of new
materials and hundreds of other changes have been made.
In recent years, the passenger car’s chassis construction
has been forced to shape itself and redesigned bodies. While in
the field of truck design , body chassis problems now get
simultaneous consideration to automatic transmission and many
other new feature are in today’s car. The diesel engine was
invented only a few years after the spark ignition engine cars
came into existence. Cars provided the facility to the owners
that are safe, easier to drive, more reliable and comfortable.
HISTORY OF AUTOMOBILES IN WORLD SCENARIO
In 1769, a French Engineer Captain Nicholas built the first
load vehicle propelled by its own power. It was a three-wheeler
four-seater vehicle fitted with steam engine. It attained a speed
of about 2 Y2 MPH for 15 minutes.
In 1880, German & French efforts developed an internal
combustion engine vehicle. The present day automobile is the
development of this vehicle.
In 1885, Bent in Germany built a tricycle propelled by an
internal combustion engine in Germany
In 1885-86, Gottlief Daimlet patented an internal
combustion engine in Germany.
In 1895, Charles E. Duryes and Elwood and J.Haynes in
America developed an experimental automobile. In this year pan
chard and elevator in French also developed a car with motor
execution and incorporated, the chief features of the automobile
as we know it today.
In 1890-95, The European designers were also active in
the development of the automobiles.
In 1895, European designers purchased from France had
the engine placed in front of chassis, housed on to a sliding gear
transmission and incorporated brake pedal clutch and
accelerator.
In 1900, the design of the automotive was so improved
that it awakened the public to the fact that this new form of the
transportation was really practical form.
In1906, many of the great name around which the
world’s largest manufacturing industry was to be built in America
had already begin to manufacture the automobile vehicle
Packard, autocarolds mobile, while, Bulk Overland, Ford, Cadillac-
C etc., all these names were on motor vehicles before 1905.
pierce-Arrow, Locomotive, Maxwell, Franking and peerless were
also important in that time in the technical and commercial
development of the motor vehicle.
In 1920, there was a gradual change and refinement in
automobile design It was clear by that the spark ignition gasoline
engine was the power plant of the modem motor vehicle water-
cooled engines were almost universal.
The sliding gear transmission had established itself as
predominant. The puppet value was used in almost every engine
design. Engines were also located in the chassis .
In this period the major improvements were made in very
carry feature. The designers tried to produce a vehicle which will
function at all times under all conditions and which were
comfortable to ride and easy operate.
Increased life of tires, independent front wheel suspension,
four wheel hydraulic breaks, high compression ration, higher
power, use of now materials and hundred’s of other changes
have been made.
In recent years, the passengers car chassis construction
has been forced to shape itself tore-designed bodies, while in the
field of truck design, body-chassis problems now get
simultaneous consideration to a greater than even before.
Fluid play wheels, freewheeling over drives, automatic
transmission and many other newer features are in the today’s
car.
The diesel engine was invented only a few years after the
spark ignition engine car had engine in the years had provided
the owner with cars that are afe, easier to drive, more reliable
and comfortable.
AUTOMOBILES IN INDIAN SCENARIO
One of the most visible signs of entry of automobile
multinational companies (MNC’s) into India is the hue of multi
colored cars seen on Indian roads, of courses this does not mean
that the changes effected but those MNC’s are only cosmetic.
The truth is that their entry has led to far reaching changes
in both manufacturing marketing of automobiles. The transition
has been necessitated by the entrance of international
companies accompanied by the infusion of modem technology.
These manufactures continued to maintain their monopoly
as to regulations then exist in the country did not permit any
reputable automobile manufacturer to establish company here.
While elsewhere in the world survival for automakers
depended on introduction of cars with better technology at that
time was a mute spectator to all these technological advances
were protected and monopolist regime.
The Indian automobile industry is at the threshold of a
transition that will affect all the segments from two wheelers to
tractors. This tradition has been necessitated by the entrances
of MNC’s by the infusion of modern technology.
In the coming years all segments in the industry will face
challenges on account of either over supply price was or a shifty
in consumers preferences. This is likely to be felt more
intensively in passenger car segments than in other segments in
the industry with a 25% present growth of $8 billion.
Indian automobile is one of the fastest growing industry in
the world. The major automobile industry is one of the fasted
growing world. The major auto manufacturers are well aware of
the galloping growth rate and most of them have rushed to set
up company in India to slice of the potentially gigantic market.
The automobile industry long stifled in the era of the controls,
is emerging as a driving force for the engineering sector with
almost all the global leaders in the industry setting up a company
in India.
There is an old saying” take a pan with some water, put frog
in it and start heating it, frog will never realize that with the rise
in temperature in is nearing its death but if you put the frog in a
pan of hot water, it will at once jump out.”
Indian industries are in a similar situation, before
liberalization, hey never realized that they are nearing death. It
was only after the liberalization they realized.
In the coming years all segments in the industry will face
challenges on account of either over supply price wars or a shift
in consumers preferences. This is likely to be felt more
intensively in the passenger car segments of the industry.
The trend in India is being changed by the so-called
statues, need and necessary the people who previously went on
bikes now go on cars not just one particular car but a variety of
choicer among them. So, the result is upgrade in the salad of
cars in India which was pretty low.
The automobile not only an issue of consumption. It is
regarded by the government as a sector that drives an entire
economy.
LIBERALIZATION POLICY
In 1991, the Government of India, announced an economic
policy package and initiated measures which may be said to
have brought about a qualitative change in the pattern of
government business relationship and statically altered the
character of business of environment.
With the entry of MNC’s and growth of foreign companies,
domestic product markets are being increasingly subjected to
forces of competition.
It was in July, 1991 that the liberalization of economic
policy started in real terms. India opened it’s gated to foreign
investors who were seriously looking fore untapped markets to
prop up the sagging global passenger car segment.
Most of this automobile MNC’s entered into joint ventures
with existing Indian automobiles manufacturer and simply used
up the existing facilities to assemble their cars.
So, the entry of Mac’s into the Indian protected market
created a wide range of choice for the buyers with latest models
for the ultimate satisfaction of the customers.
Very soon one can expect a multitude of years specially
designed and priced for Indians to hit the market. The new
competitors are offering product technologies that are far more
advanced than the Maruti of 80’s vintage. Many say that
competition brings out the best in the people posing challenges
for all the old and new in the automobile industry.
In1769, a French engineer CAPTIN NICHOLAS built the first
load the vehicle propelled by its own power. It was a three-
wheeler, four-seatwork vehicle fitted with steam engine. It
attained a peed of about 21/2 M.P.H. for 15 minute. In 1880.
German & French efforts developed of this vehicle.
In 1885, Benz in Germany built a tricycle propelled an
internal combustion engine. In 1885-86, GOTTLEEF
DAIMLETpatented an internal combustion engine. In 1895,
CHARLES E.DURYES and ELWOOD and J.HAYNES in America
developed experimental automobile. In this year PANCHARD and
LEVAMOR in France also developed a car with minor executions
incorporated the chief features of the automobile as we know it
today. In 1890-95, the European designers were also active in
the development of automobile.
In 1900. The design of the automobile so improved that it
awakened the public to the fact that it was new form of
transportation.
In 1906, many of the great names around which the world’s
largest manufacturing industry was to be built in America had
already begin to manufacture the automobile vehicle, Packard,
Auto car –Oldsmobile, white, bulk overland, ford, cadillan-c etc.,
all these names were, motor vehicles before 1905. Pierce-arrow,
locomotive, Maxwell, franking and peerless were also important
at that time in the technical and commercial development of the
motor vehicle.
In 1920, there was a gradual change and refinement in
automobile design. It was clear by the spark ignition gasoline
engine, which was the power plant of the modern motor; vehicle
water-cooled engine was almost universal. The sliding gear
transmission had established itself as predominant. The puppet
value was used in almost every engine. Engines were all located
of the chassis.
In this period the major developments were made in every
carry features. The designers tried to produce a vehicle which
will function at all times under all conditions and which were
comfortable to ride and easy to operate. Increased life of tyres, ,
independent, front wheel suspension, four wheeler hydraulic
brakes, high compressions ratio, higher power, use of new
materials and hundreds of other changes have been made.
In recent years, the passenger car’s chassis construction
has been forced to shape itself and redesigned bodies. While in
the field of truck design , body chassis problems now get
simultaneous consideration to automatic transmission and many
other new feature are in today’s car. The diesel engine was
invented only a few years after the spark ignition engine cars
came into existence. Cars provided the facility to the owners
that are safe, easier to drive, more reliable and comfortable.
HEAVY INDUSTRIES
With strengthened self-confidence thanks to straight
success in construction and automobiles, Honarary Chairman
Chung Ju Yong again made a challenge to the ship building
industry.
This challenge received cold reaction from developed
countries when Hyundai asked them for funds and technology
which were necessary for the construction of a dockyard. They
judged Korea to be a weak country to carry the ship building
industry. After important attempts and negotiations with some
countries, Hyundai finally borrowed loan amounting to 100
million US dollars from British and Swiss bank.
The construction of the Uslan Dockyard started under the
command of Honarary Chairman Chung Ju Yong and was
completed in 2 years and 3 months. The ceremony for the
completion and the christening ceremony for the 2 ships order
were held together. This record of simultaneous ceremonies
remains as a unique event in the history of ship building industry.
Hyundai Dockyard Company Limited was later renamed as
Hyundai Heavy Industry Company Limited and has been
persistently playing the pivotal role in domestic heavy industry.
With all these achievements it has staged itself a long side world
wide business giants with its extended operations in the fields of
Hyundai Industries Companies LNG carries Hyundai precision and
industry company, a magnetic levitation trains and Hyundai
Electronics Company to name a few.
ELECTRONICS (1983):
High technology is the key to success in 21st century
business world. We have to acquire a new knowledge before
others and we have to do what others cannot do, since its
opening in 1983 it concentrated on the HITECH industry. Its
efforts were specially focused on semiconductor production
technology and development of latest technologies as a result it
has grown into the top corporation in the industry.
Hyundai Electronics Company Limited recorded over 80%
annual growth rate on average. It also founded Mabukri Research
Institutes. In this way the Hyundai Group has been active and
persistent in research activities playing the role of locomotive for
the progress of Korean Economy.
OTHER ACTIVITIES:
The top corporation is not obsessed with its growth. A
corporation can become the No.1 only when its returns its profits
to the society. The Hyundai Group has been taking the initiative
in giving the profits back to the society. Hyundai encourages the
young people who give up their dreams due to financial difficulty.
The Asian Foundation was found in 1977 for such public
undertaking Honorary Chairman Chung Ju Yong invested private
funds work of 50 billion in the foundation which was a portion in
the medical care, scholarships and cultural projects besides that
Asian Education Foundation includes Hyundai Middle School.
Hyundai High School and University of Uslan in dedicating itself
to educating young people full of dreams who will lead the
future.
Honorary Chairman Chung Ju Yong has also been the
president of Federation of Korean Industries in 1977 and held this
title for the longest period among all the other presidents,
devoting himself to the development of Korean economy.
Honorary chairman Chung Ju Gang was also appointed as the
chairman of Seoul Olympic committee in 1981 which were held in
Nagoya city in Japan. Korea held the 88 Seoul Olympics
successfully and had a chance to upgrade its position in the
world.
The Hyundai Group which has the top in Korea not being
satisfied with it made all arrangement for growing into the No.1
Corporation in the world. The new chairman of the group Chung
Mong Koo in 1996 declared value management to enhance its
value through the services reduced by the company to service in
the age of limitless competition.
It further extends its business operations to the space and
aircraft steel and Banking sectors. Hyundai group preparing to
meet the advancement of Korean economy into other countries
and to become a world corporation dedicated to human welfare
and happiness. Hyundai Group is actively investing in the
development of product and technologies, which can be used for
the societal development. Hyundai Motor India Limited is a
wholly owned subsidiary of $8.24 billion. Hyundai Motor
Company that was set up in 1967 as a part of Hyundai business
group of South Korea. With strong emphasis on performance
safety and product quality, Hyundai has a presence in 168
countries across the world. The corporate philosophy of the
company is to develop mutually beneficial relationship with
nations and communities.
Hyundai Group repeated its growth even during the age of
constructions with the indomitable Hyundai spirit of the past half-
century and it celebrated its 50th anniversary in 1997,
encouraging all directions and employees to work in concert.
GLOBAL NEWS:
Hyundai’s Accent named “ Best Value” by US Consumers.
U.K Customers give top marks to Accent’s reliability.
Hyundai shines at the Moscow motor show.
Hyundai Santro, Peak of popularity in the Indian market.
Hyundai reveals its newest concept car at the Paris Motor
show.
Santro Fe proves excellence at the Crete test drive.
HMC to expand the Hyundai name in Turkey.
Hyundai on its way to build its second plant in China.
Mighty II to serve the Indonesia market for 5 years.
OVER VIEW OF THE INDIAN CAR MARKET
Automobile industry in India is currently experiencing
demand for the vehicles of different types. This is due to volcanic
increase in the number of the vehicles of all categories and all
types of the vehicles. The reason for this is the Indian economy
which was closed till then.
This is the sectors of the economy which benefited greatly
by globalization and liberalization.
The face of the industry has changed to such an extent just
a decade age one would fail to recognize it as the Indian auto
industry. Today the Indian market does not witness just as
Ambassador Fiat competition. Rather it has become a battle field
for it is witnessing cut throat competition between the world from
this brands like FORD, HONDA, MERCEDES, HYUNDAI, DAEWOO.
Infact the leading market leader MARUTI has lost a sizable crunch
of its market share from a magical mesmerizing 80% to 66.2%
during the same period.
Hyundai plant was setup in Sriperambundur, 30km outside
Chennai in a record time. This shows a commitment to the Indian
customer and Indian auto industry. The first Hyundai Santro was
launched on October 20, 1998. Santro was set to be the best
package for the budget car buyer.
Y.S.KIM (Yang. Soo.Kim) is the Managing Director of
Hyundai Motor India. The Korea and Indian Engineers pore their
efforts for the efforts for the production Santro prototypes. The
manufacturing style of Hyundai Santro has not been the same as
Maruti Udyog, which initially imported C.K.D kits for the first
Maruti 800. The manufacturing process begins with coiled steel
arriving from South Korea. The entire auto industries in India rely
on imported steel to manufacture vehicle body structure, as
locally available steel cannot be effective.
The assemble of the car is mostly manual HMI has set up a
allimem foundry on site to produces cast components like
cylinder heads and gear box casings. The reasons for Hyundai
rapid implementation were wholly owned subsidiary HMI could
speed up the decision making process. It did not have to conduct
a local partner which might have slowed things down.
This points towards two things the market has become
competitive and dynamic
1. Even the market leader cannot take its market share and the
customers
2. The changing tastes and loyalty of the customers and
subsequently the ultra competition nature of the auto market.
The advent of the two Korean giants HYUNDAI’S SANTRO and
DAEWOO’S MATIZ marks an important turn in the Indian car
scenario. The success rate of the former teaches us what good
marketing and advertising of a good product can achieve. Santro
is just in months has become prime competitive for the car
segment.
HYUNDAI MOTOR COMPANY
A number of players have come in the car industry in few
years, many new models, new services and benefits according to
the customer taste and preference.
A new category continuous to be dominated by the leader
like Maruti Udyog, Hyundai, Daewoo, Fiat, Suzuki, Tata etc., but
the consumers may soon be able to pick up the models of
different companies.
In recent years passenger’s car chassis construction has
been forced to shape itself redesigned bodies. While in the field
of truck design, body chassis problem now get simultaneous
consideration to a greater extent than ever before. Cars provided
the facility to the owners that are safe, easier to drive, more
reliable and comfortable.
HISTORY OF PASSENGER CARS IN INDIA:
The passenger car in India has been considered as luxury
item. Only a rich and the super rich could afford a car. In the 50’s
and 60’s owning a car was the ultimate statement of having
made it in life. There were just 3 major players namely Hindustan
motors, Premier Automobiles and Standard Motors.
The models they offered were the Baby Hindustan, its later
version called the Ambassador, the Fiat 1100 and the Standard
Herald, which fought for market share in a fairly stagnant
market. The Ambassador and the Fiat were the front-runners
with the coming of the third.
There were other players in other segments like the Wily
Jeep and Mahindra & Mahindra offerings. The late 70’s saw a
movement to produce a people car an attempt to bring the less
rich into the fold of the more fortunate ones. And so a seed was
sown called the Maruti 800.
DIFFERENT CARS SEGMENT
There has evidently been a major shift in focus, world wide,
to small cars offers the most logically and cost effective means to
combat traffic congestion and air pollution in metropolitan cities.
The global vehicle giants are seriously contemplating entry into
the big way.
For instance world class leaders like Mercedes Benz and
Ford feel confident about making mid size and luxury cars. The
newly floated joint ventures started producing luxury cars,
completely ignoring the past vast multitude of average buyers
whose purchasing power in an inflation ridden economy is very
limited. All the three companies Telco, Hyundai and Daewoo
Matiz are confident enough of successfully marketing their
respective vehicle in the market that is sure to hot up in the
coming and later years.
The entry of the manufacturers has posed a big threat to
MUL whose monopoly in the car segment has remained
unchallenged so far. Well altered MUL is busy remodeling its
Maruti 800 and may introduce a new model Maruti 900 a cross
between Maruti 800 and Zen in order to meet the competition.
When the MNC rushed to the Indian market and started
producing high technology vehicle, the prediction among the
automobile experts was that the Indian market wont have that
much capacity to absorb the entire production. A similar situation
may arise if the market is crowded with small cars. Also to be
considered the fact that the road infrastructure facilities and
emission control regulation are most inadequate.
THE NEW ENTRANTS
The economic reforms of 1991-92 began to dismantle the
policies that had isolated and pushed the country’s growth rate
from 4% to 7%. India is now being routed as the new Asian tiger
and this could be the order of the day. The first multinational car
to enter the Indian market was the South Korea major DAEWOO.
Its Cielo was in a direct competition with the just launched
Esteem. This was followed by Peugeot 309, manufactured by the
Premium Automobiles in collaboration with Peugeot of France.
The industry truly took of as in a flurry of activity, nearly all
the major players announced plans to enter the market.
Mercedes tied up with Telco to produce E-220 and D-250.
General Motors tied up with Hindustan Motors to
manufacture the Opel Astra. Ford tied up with Mahindra &
Mahindra and established Mahindra Ford. Hyundai entered India
through 100% owned subsidiary to manufacture Santro followed
by Mitsubishi Lancer. Honda recently tied up with Hero Honda
launched its own indigenous car the Indica.
ENTRY OF PREMIUM CARS
The premium car segment was chosen by the new entrants
as a market entrant as part of a market entrance strategy to
create brand awareness. Today we have the unusual spectacle of
too many cars chasing too few Indians for a country, which used
to manufacture 1.81 lakh cars per annum in 1991. India today
produces over 4 lakh cars per annum. The Indian market has now
changed from sellers market to buyers market.
The first MNC car to enter into the Indian market was South
Korean major DAEWOO. The premium car segment was chosen
by the new entrants as part of the market entrance to create
brand awareness. Customers tend to hold back their purchase
decisions in anticipation of new car launches, price cuts, the
glamour of millennium car and other factors.
For the average Indian car buyer the entry on MNC’s is
definitely a big boom. The customer is getting the best
technology on a part with other developed countries.
COMPANY PROFILE
Hyundai Business Group is a South Korean company, which
entered into business activities way back in 1947 seeing the
rapid industrialization and modernization-taking place around the
world. It brought an international recognition to its country
through its operations round the world and paved its way to
modern economic growth.
Hyundai group is composed of 50 subsidiaries like Ship
Building, Engineering & Construction, Heavy Industries,
Machinery, Iron and Steel, Electronics, Aerospace,
Telecommunications, Information and Technology, as well as
Financing petrochemicals energy trade and service sectors.
In 1960’s it involved in the construction industry. In 1970, it
concentrated on shipbuilding, automobile, steel and machine
industries and laid a foundation for Korean heavy industry. In
1980, it launched high tech industries such as electronics robot
petroleum, space and aircraft. In 1990, developed new
technologies reformed management and stressed training
human resources, with the aim to become the No.1 Corporation
in the world.
AYS Automobiles Pvt, Ltd., started the dealership of
Hyundai cars at Rajahmundry for West Godavari Districts April,
1999. So far, AYS sold about 309 Santro’s and 100 Accents and 2
Sonato’s. The company’s turnover till date is around 16 crores.
The company has earned an amount of Rs. 72 lakhs by way
of dealer margins and sale of spares & accessories; by earning
profit in the first two years of operations.
The workshop is equipped with the latest technology
equipments as per Hyundai specifications and is contributing Rs.
25 lakhs of revenue to the company. The total value of
Machinery & Equipment is worth Rs. 25 lakhs. The workshop also
has an emergency road service to attend complaints 24 hours a
day anywhere in the territory. The show room is on the NH-5 and
is designed as per the Hyundai Motor India’s standard pattern
and is well lit to display the cars.
HISTORY IN CONSTRUCTION FIELD
Hyundai group started from a small construction company
named Hyundai Land and Construction in 1947 has a growth
under difficult conditions. Hyundai Engineering & Construction
Company Limited enjoyed continued business growth after it was
renamed from Hyundai Land And Construction. The repair of
Koryong Bridge in particular, put financial status of Hyundai
Group in a deep trouble owing to a severe inflation in addition to
its infant equipment and skills. However Honorary Chairman
Chung Ju Yong of Hyundai Group and employees of Hyundai
Engineering & Construction Company Limited willingly submitted
to a deficit and completed the bridge construction work
successfully. This success has left a vivid impression of Hyundai
Group all over the industry thereafter. Hyundai Engineering &
Construction Company Limited conducted the restoration work of
the Hans River Bridge then it undertook lots of construction
works for the US army stationed in Korea. Hyundai Construction
Group later achieved an outstanding improvement of technology
by adopting mechanized construction methods and advanced
techniques and accumulated know-how in the management of
human resources.
Later in 1995 it became the very first construction company
in Korean to advanced into overseas sites. This has taken place
when Korea economy was in a depressed state, when Korea was
under such circumstances, a small company with a short history
of a little over 10 years made its first entry into giant overseas
market, any way Hyundai Engineering & Construction Company
Limited, let its challenge it a success. In a led for a highway
construction in Thailand in 1965, it defeated developed countries
with long experience in construction and won the bid, which was
a victory for a small country from the east. Thereafter, Hyundai
Engineering & Construction Company Limited stepped into the
Vietnamese market and earned reputation as a construction
company. It further marched to Alaska Guam, Australia,
Indonesia and many more countries.
Hyundai Engineering & Construction Company Limited
constructed the Juveil Industrial Port in Saudi Arabia, the largest
scale in the world and surprised everyone. Their entry into the
Middle East was decisive in revitalizing Korean economy, which
was depressed due to shortage of foreign currency at that time.
Moreover advancement into Iraq and Libya paved the way for
establishing diplomatic relations with those nations. Hyundai
Engineering & Construction Company Limited, continued seeking
overseas market and stepped into regions of North America and
South East, the name and fame of technology of Hyundai were
known worldwide.
HYUNDAI SPORTS
Hyundai World Rally team, best ever in the Australia Rally
Hyundai Motor Company joins in the Fun of the Fustal 2000
promoting the Hyundai name through South American Qualifying
Games for the World Cup 2002.
Hyundai operates overseas road service vehicle program
Hyundai Motor Company (HMC) has started its operations of
the world wide Overseas Service Program for its customers as
part of the Company’s commitment to provide the very best
vehicle maintenance service to its global customers.
HMC made its first shipment of 300 overseas service
vehicles to 30 countries including Japan, Australia, New Zealand,
Mexico etc and will increase its shipment to dealers in 160
countries the following year.
As technology, quality, and reliability, improve amongst all
cars makers, this program can help difference Hyundai amongst
existing and potential customers, enabling to further raise
Hyundai’s brand awareness as well as boost the image of
Hyundai Motor Company in the global markets.
Santa Fe wins the good design product award
Hyundai’s Santa Fe received the prestigious Presidential
Award at the 2000 Good Design Products Exhibition held by the
Korea Institute of Industrial Design Promotion by the Ministry of
Commerce Industrial and Energy.
Out of 985 products from 292 companies exhibited, 320
products were selected as “Good Design Products” and only 39
products were awarded prizes during the annual competition.
Hyundai’s Santro Fe won the most covered and honored award,
the Presidential Award in the Automotive section. By winning
such a glorious award as thus once, it has indefinitely proven
Hyundai’s constant pursuit of excellence and dedication to the
development of beautiful styled cars for its potential customers.
HMC tops list in customer satisfaction survey, 7 years
straight
For the seventh consecutive year in 2000, HMC topped the
list of customer satisfaction in a survey conducted by Korea
Management Association Consultants, Korea’s largest
management consulting company.
According to the KCSI (Korea Customer Satisfaction Index),
HMC won first place in the passenger car manufacturing field for
giving the most satisfaction to its customers for the seven
straight years. Hyundai vehicles were praised for low NVH,
stability-driving comfort, engine and transmission performance,
fit and finest and design of the exterior and interior, maintenance
service and the market reliability.
To heighten the awareness of Hyundai to world wise
customers HMC has come up with a brand new 2000 Corporate
Image Campaign, a long term strategy; in brand image
development to steadily build up Hyundai’s brand image and
corporate image throughout the world market.
Diesel Engine to penetrate the export market
HMC has successfully developed a common rail direct
injection 2.0 diesel engine for passenger cars, becoming the first
Korean car maker to be applying his technology.
Hyundai develops large commercial diesel engine:
Using the latest technology, power tech engine increases
the output while attains maximum fuel efficiency, marking it a
low consumption engine. The power-tech engine has been
developed with the design targets improving the performance,
reducing fuel consumption, lowering noise and vibrations and
reducing emissions. It has passed over 1 million kilometers of
various durability tests successfully providing its low noise and
vibration levels vastly improved compared to the previous large
sized commercial vehicle and bust engines.
Hyundai Accent named “ Best Value” by US Consumers
Hyundai Motor’s subcompact Accent was proudly named as
the best value car in the small car category in a survey of US
consumers. The survey was conducted by strategic vision a
renowned consulting and market research organization based in
San Diego California.
Hyundai Santro, peak popularity in the Indian market
Hyundai is on a roll in the Indian market, emerging as top
selling import and posting sales of 75,843 units for the first 10
months of 2000.the Santro proudly proved its success at being
the top selling model for five consecutive months since June. It
has distinguished itself with a total sales figure of 60,516 units
between January and October. Also the Accent has been the top
selling model in the premium segment for 5 months altogether
where its sales reached a total of 15,327 units for the first 10
months. Thanks to the strong performance of both the Santro
and Accent. Hyundai has set higher goal for the future in the
Indian market.
Hyundai Accent award Australia’s Best Small Car
The Accent was selected as Australia’s best small car for
2000 by mix leading automotive consumer organizations in
Australia.
Hyundai Motor Company joins in the fun for Futsal 2000
Hyundai Motor Company has proudly become the exclusive
automotive sponsor of the 4th FIFA Futsal World Championship
Guatemala 2000, held between November 18 to December 3.
Hyundai took this golden opportunity to leap into another area of
the world market and promote its brand name through various
marketing activities and advertisement.
Hyundai Motor India Limited is a wholly owned subsidiary of
the Hyundai Motor Company (HMC), Korea, a part of the Hyundai
Motor Group comprising Hyundai Motor Company, Kia Motors,
Hyundai Mobis and other affiliated companies, with a combined
turnover of over US$ 50 Billion. Hyundai motor vehicles are sold
in 166 countries through 4,504 dealerships and showrooms,
Hyundai has a combined annuals sales of over 3 million units and
is one of the fastest growing auto manufacturers in the world.
Hyundai and Kia together have R&D centers in the United
States, Europe, and Japan apart from the global R&D
headquarters at Ulsan, Korea.
The Hyundai Motor Group has recently dedicated an annual
R&D spend of close to US$ 2 Billion, up from US$ 1.2 Billion to
enhance its thrust on new product development and achieve
global quality benchmarks by year 2005. This includes the $30
mn Hyundai-Kia Design and Technical Center in Irvive, California.
Focus
The R&D team focuses on the development of new products
and technologies that include interior and exterior design
changes, development of new generation engines and alternate
fuel systems, concept vehicles and advanced passenger safety
and comfort systems, in line with evolving customer preferences
across the globe. Recent successes of the team include the
development of the Hyundai patented Common Rail Direct
Injection (CRDi) engine in association with Detroit Diesel and the
award winning Fuel Cell Santa FE.
Efforts
Some of the ongoing projects that the Hyundai R&D team is
involved in include the development of the ‘World Engine’ in
association with Daimler Chrysler and Mitsubishi and the
development of Automotive Telematics in association with IBM.
That the efforts of the Hyundai R&D team has paid great
dividends to the company is evident from the fact that the
company’s newly engineered products like the Santa Fe and the
Getz have made waves in the global automotive markets and the
‘US Consumer Reports’ magazine has ranked Hyundai cars in
level with that of Honda in its recent quality rankings
Hyundai Motor India has been awarded the benchmark ISO
14001 certification for its sustainable environment management
practices. Living up to is commitment of providing global
standards of quality and process management in India, Hyundai
had put in place an Environment Management System (EMS) at
its manufacturing plant in Chennai right from its project stage.
The certification process was completed in a record time of 10
months with ‘Zero NCRs’. The assessment was done by TUV
SUDDEUTSCHLAND and covered areas like Awareness Training,
Technology Upgradation, Recycling, Waste Management
and fulfilling Government Regulations.
HMI is also working on a backward integration strategy that
will support vendors of the company in implementing EMS.
Hyundai Motor Company, S. Korea, the parent of HMI, has
been doing considerable work on sustainable Environment
Management. The company has a well defined framework in
place for developing products that reduce pollutant emissions
and processes for preservation of natural resources and energy
along all the stages of the product lifecycle from production,
sales, use to disposal. The company has also been in the
forefront development of environment friendly technologies like
Hybrid Electric Vehicles (HEV’s), and Fuel Cell Electric Vehicles
(FCEVs) and has been awarded the ISO 14001 certification for all
its three major plants in ULSAN, Asan and Jeonju in S. Korea.
Social Responsibility
Hyundai, as a responsible corporate citizen is committed to
sustainable social development and the preservation of the
environment. All the company’s key manufacturing units,
including the Indian plant have the ISO 14001 certification for its
Environment management practices. As a part of its social
responsibility programs, the company conducts various
campaigns to spread awareness of in-car safety and safe driving
practices, particularly targeted against drunken driving,
speeding, etc.
As a part of its community development projects, the
company has adopted a few villages around its factory in
TamilNadu and has been working towards the social and
economic development of these villages, assisting them in the
areas of primary health care, education, basic amenities and
employment opportunities
The production management process at Hyundai Motor
India are overlaid with an organization-wide implementation of
manufacturing best practices like Just-in-time inventory
management, Kaizen, TPM and TQM, that help us in making the
world’s best cars, right here in India.
HYUNDAI MOTOR INDIA LIMITED
Hyundai Motor India Limited (HMIL) is a wholly owned
subsidiary of Hyundai Motor Company, S. Korea and is the
second largest and the fastest growing car manufacturer in India.
HMIL presently markets over 18 variants of passenger cars
across four models, the Santro in the B segment, the Accent in
the C segment, the Sonata in the E segment and the Terracan in
the SUV segment. The company recorded combined sales of
150,741 units during calendar year 2003 with both Accent &
Santro emerging leaders in their respective segments.
HMIL’s fully integrated state-of-the-art manufacturing
plant near Chennai boasts some of the most advanced
production, quality and testing capabilities in the country. The
company is investing an additional US$ 220 Mn to expand
capacity at this plant to 250,000 units a year in line with its
recent designation as HMC’s global export hub for small cars and
to cater to its upcoming product launches India.
HMIL has sold over 500,000 cars in a record time of just
over 5 years since commencement of commercial production in
September 1998 and is all set to emerge as one of largest
exporters of passenger cars and components out of India. HMIL
was recently awarded the benchmark ISO 14001
certification for its sustainable environment management
practices.
Hyundai’s fully integrated manufacturing capabilities
include:
The Press Shop
A computer controlled line that converts sheet metal to
body panels of high dimensional accuracy and consistency.
The Body Shop
A hi-tech line that builds full body shells from panels.
Automated robotic arms are used for intricate welding operations
that ensure superior and consistent build quality.
The Paint Shop
This is one of the most modern paint shops in the country
and uses the environment friendly water based process for
superior and lasting exterior. A unique process management
system followed here helps us deliver the most extensive colour
range, independent of minimum batch requirements, helping
customers get their preferred colour anytime.
The Aluminum Fondry
Forges the engine cylinder blocks for our cars to exacting
design specifications.
The Engine and Transmission Shop
One of the biggest engine shops in the country, this unit is
equipped with the most modern tooling and testing facilities to
make a wide range of engines in house.
The Plastic Extrusion Unit
Moulds the dashes, bumpers and other plastic components
to perfect fit and finish.
The Plastic Paint Shop
One of the very few manufacturing units in India to have
this facility in-house, Hyundai’s plastic paint shop delivers a high
grade finish on exterior plastic components.
The Test Track
With comprehensive performance testing facilities like
rattle testing and ABS brake testing, this track is designed to
meet pre-delivery (PDI) certification standards to exacting Euro
specifications.
AYS AUTOMOBILE PVT. LTD.
The liberalization of Indian Economic Policy in the Finance
Budget has opened gates for renowned international carmakers
to establish their business/manufacturing units in our country
and thereby created opportunities in all spheres.
Hyundai Motor India Limited, a Korean Car Giant, has
utilized the above opportunity and started its manufacturing
operations in Chennai with an initial production capacity of
50000 cars/annum and increased its capacity to 200000
cars/annum.
Hyundai Motor India Limited is the pioneer in introducing to
Indian customers the “first-of-its-kind” concepts like Hyundai
Finance, Contemporary Technology, Tall-boy Design etc. Through
their “leadership through listening” strategy, have been
upgrading their products to suite customer requirements. They
believe in value addition to their cars rather than selling on
discounts. All their three cars viz., SANTRO, ACCENT & SONATA
are No. 1 in their respective segments, in terms of quality and
volumes.
This liberalization has helped the salaried and upper middle
class to opt for a car which was hitherto a luxury. The low rates
of interest and easy processing procedures also helped these
segment customers to buy cars for their family needs.
AYS Automobiles Pvt Ltd., is the dealer for Hyundai Motor
India Limited, in the five north coastal districts viz., Srikakulam,
Vizianagaram, Visakhapatnam, East and West Godavari Districts
and started serving the customers of these districts since
October’ 1998.
AYS Automobiles Pvt Ltd., has 3300sft state-of-the-art
showroom located in Siripura, the heart of Visakhapatnam City
and a customer care center in Industrial Estate, 104 Area, with
trained man power and latest equipments to cater to the after-
sales service of its customers.
AYS Automobiles Pvt Ltd., had sold nearly 2000 cars,
through their two outlets in Visakhapatnam and Rajahmundry till
July’2003. In view of the increasing sales and service volumes,
they have opened a new sales & service outlet in Bhimavaram
and Kakinada. They have also opened another customer care
center at HPCL Millenium Auto Care in Siripuram. This customer
care center is opened exclusively to meet the growing customer
base and also to facilitate the customers living in Beach Road,
Pandurangapuram, Daspalla Hills, Kirlampudi Layout, CBM
Compound, MVP Colony etc., who will have paucity of time.
The customer care centers of AYS Automobiles Pvt Ltd., at
HPCL Auto Care and Industrial Estate has the facilities like Wheel
Balancers, Wheel Aligners, Thermax Paint Booths, Dent Sucking
Machine, Emission Control Equipment etc.,
AYS Automobiles Pvt Ltd., had won several awards during
2000 and 2003 namely, No-1 Dealer in AP for Customer
Satisfaction, Top Performer in South Region for Hyundai Finance,
No.1 Dealer for Sales Satisfaction etc.,
The growth of AYS Automobiles Pvt., Ltd., shouldn’t have
been possible without the support of its associates, who have
been extending all their help ever since its inception and the
success is attributed to their dedicated, loyal and customer
friendly staff.
We sincerely thank all the customers, who had
patronized us.
THEORETICAL FRAMEWORK
What is a Brand?
A Brand is a name, term, sign, symbol or design, or a
combination of them, intended to identify the goods or services
of one sellers or group of sellers and to differentiate them from
those of competitors.
Most of the marketers say that “ Branding is the art and
cornerstone of marketing”.
In essence, a brand identifies the seller or maker. It can be
a name, trademark, logo or other symbol. Under trademark law,
the seller is granted exclusive rights to the use of the brand
name in perpetuity. Brands differ from other assets such as
patents and copyrights, which have expiration dates.
A brand is essentially a seller’s promise to deliver a specific
set of features, benefits and services consistently to the buyers.
The best brands convey a warranty of quality. But a brand is an
even more complex symbol. It can convey up to six levels of
meaning.
Attributes:
A brand brings to mind certain attributes. By its well built,
well engineered, expensive, durable, high-prestige automobiles.
Benefits :
Attributes must be translated into functional and emotional
benefits. For example, the attribute “ durable” could translate
into the functional benefit. The people says that “I won’t have to
buy another car for several years”. The attribute “expensive”
translates into the emotional benefit “the car makes me fell
important and admired”.
Values:
The brand also says something about the producer’s
values. Mercedes stands for high performance, safety and
prestige.
Culture:
The brand may represent a certain culture.
Personality:
The brand can also project a certain personality.
User:
The suggests the kind of consumer who buys or uses the
product.
If a company treats a brand only as a name, it misses the
point. The branding challenge is to develop the deep set of
positive associations for the brand. Marketers must decide at
which levels to anchor the brand identity.
Promoting the brand only on one benefit can also be risky.
Suppose Mercedes touts its main benefit as “high performance”,
then several competitive brands emerge with high or higher
performance. Or suppose the car buyers start placing less
importance on high performance as compared to other benefits.
The most enduring meanings of a brand are its values,
culture and personality. The Mercedes stands for high
technology, performance and success. Mercedes must project
this in its brand strategy. Mercedes must resist marketing an
inexpensive car bearing the name; doing so would dilute the
value and personality Mercedes has built up over the years.
Brand Equity:
Brands vary in the amount of power and value they have in
the market place. At one extreme are brands that are not known
by most buyers. Then there are brands for which buyers have a
fairly high degree of brand awareness. Beyond this are brands
with a high degree of brand acceptability. Then there are brand
that enjoy a high degree of brand preference. Finally there are
brands that command an high degree of brand loyalty.
The following are the 5 levels of customer attitudes toward
his/her brand from lowest to highest:
Customer will change brands, especially for price reasons, not
brand loyalty
Customer is satisfied. No reason to change the brand.
Customer is satisfied and would incur costs by changing
brand.
Customer values the brand and sees it as a friend.
Customer is devoted to the brand.
Brand equity is related to how many customers are in
classes 3,4 or5. It is also related to the degree of brand-name
recognition, perceived brand equity, strong mental and
emotional associations and other assets such as patents,
trademarks and channel relationships. Companies do not
normally list brand equity on their balance sheet because of the
arbitrariness of the estimate. But clearly brand equity relates to
the premium the brand commands times the extra volume it
moves over an average brand.
The world’s 10 most valuable brands in 1997 in rank order
were coca-cola, Marlboro, IBM, McDonald’s, Disney, Sony, Kodak,
Intel, Gillette and Budweiser.
High brand equity provides a number of competitive
advantage:
The Company will enjoy reduced marketing costs because of
consumer brand awareness and loyalty.
The Company will have more trade leverage in bargaining with
distributors and retailers because customers expect them to
carry the brand.
The Company can charge a higher price than its competitors
because the brand has higher perceived quality.
The Company can more easily launch extensions because the
brand name carries high credibility.
The brand offers the company some defense against price
competition.
A brand name needs to be carefully managed so that its
equity doesn’t depreciate. This requires maintaining or improving
brand awareness perceived quality and functionality, and
positive associations. These tasks require continuous research
and development investment, skillful advertising and excellent
trade and consumer service.
AN OVERVIEW OF BRANDING DECISIONS
Branding Brand Sponsor Brand Name
Decisions Decisions
Brand Strategy Decisions Brand-Repositioning
Decisions
Brand No Brand
Manufacturers Brand
Distributors (Pvt) Brand
Individual Names Blanket Family Name Separate Family Company Individual
Names
Line Extension Brand Extension Multi-Brands New Brands Co-Brands
Repositioning No Repositioning
Branding Decisions:
The first decision is whether the company should develop a
brand name for its products. In the past, most products went
unbranded, producers and intermediaries sold their goods out of
barrels, bins and cases without any supplier identification. Buyers
depended on the sellers integrity.
Today branding is such a strong force that hardly anything
goes unbranded.
In some cases, there has been a return to “ no branding” of
certain staple consumer goods and pharmaceuticals. Generics
are unbranded, plainly packaged, less expensive versions of
common products such as spaghetti, paper towels and canned
peaches. They offer standard or lower quality at a price that may
be as much as 20% to 40% lower than nationally advertised
brands and 10% to 20% lower than retail private label brands.
The lower price is made possible by lower quality ingredients,
lower cost labeling and packaging and minimal advertising.
Why do sellers brand their products when doing so clearly
involves costs?
Branding gives the seller several advantages:
The brand name makes it easier for the seller to process
orders and track down problems.
The sellers brand name and trademark provide legal
protection of unique product features.
Branding gives the seller the opportunity to attract a loyal and
profitable set of customers. Brand loyalty gives sellers some
protection from competition.
Branding helps the seller segment markets.
Strong brands help build the corporate image, making it easier
to launch new brands and gain acceptance by distributors and
consumers.
Distributors and retailers want brand names because
brands make the product easier to handle, hold protection to
certain quality standards, strengthen buyer preferences, and
make it easier to identify suppliers. Consumers want brand
names to help them identify quality differences and shop more
efficiently.
Brand-Sponsor Decision:
A manufacturer has several options with respect to brand
sponsorship. The product may be launched as a manufacturer
brand (sometimes called as National Brand), a distributor brand
(also called reseller, store, house or private brand), or a licensed
brand name. Another alternative is for the manufacturer to
produce some output under its own name and some under
reseller labels. Manufacturers brands dominate, large retailers
and wholesalers have been developing their own brands by
contracting production from willing manufacturers.
The private brands offer two advantages. First, they are
more profitable. Intermediaries search for manufacturer with
excess capacity who will produce the private labels at a low cost.
Other costs, such as research and development, advertising,
sales production and physical distribution are much lower. This
means that the private brands can charge a lower price and yet
make a higher profit margin. Second, retailers develop exclusive
store brands to differentiate themselves from competitors.
Brand Name Decisions:
Manufacturer and service companies who brand their
products must choose which brand names to use. Four strategies
are available:
1. Individual Names:
A major advantage of an individual names strategy is that the
company does not tie its reputation to the product. If the product
fails or appears to have low quality, the company’s name or
image is not hurt. The strategy permits the firm to search for the
best name for each new product.
2. Blanket Family Names:
A blanket family name also had advantage. Development cost
is less because there is no need for “name” research or heavy
advertising expenditure to create brand name recognition.
Further more, sales of the new product are likely to the strong if
the manufacturers name is good.
3. Separate Family Names for all Products:
Where a company produces quite different products, it is not
desirable to use one blanket family name. Companies often
invent different family names for different quality lines within the
same product class.
1. Company trade name combined with individual product
names:
Some manufacturers tie their company name to an individual brand
name for each product.
Once a company decides on its brand name strategy, it
faces the task of choosing a specific brand name. The company
could choose the name of a person, location, quality, life style or
an artificial name.
Among the desirable qualities for a brand name are the
following:
It should suggest something about the product’s benefits.
It should suggest product qualities. Such as action or color.
It should be easy to pronounce, recognize and remember. In
this case short names help mostly.
It should be distinctive.
It should carry poor meanings in other countries and
languages.
Brand-Strategy Decisions:
A company has five choices when it comes to brand
strategy. There are line extensions, brand extensions, multi-
brands, new brands and co-brands.
1. Line Extension:
Line Extensions consist of introducing additional items in the
same product category under the same brand name, such as
new flavors, forms, colors, added ingredients and package sizes.
2. Brand Extensions:
A company may use its existing brand name to launch new
products in other categories.
3. Multi-Brands:
A Company will often introduce additional brands in the same product category.
Sometimes the company is trying to establish different features or appeal to different
buying motives.
4. New Brands:
When a Company launches products in a new category, it
may find that none of its current brand names are appropriate.
5. Co-Brands:
Co-Brands are also called as dual branding, in which two
or more well known brands are combined in an offer. Co-
branding takes a variety of forms. One is ingredient co-branding,
Second one is same company co-branding, Third one is joint
venture co-branding. And finally there is multiple-sponsor co-
branding.
Brand Repositioning:
However well a brand is currently positioned, the company
may have to reposition it later when facing new competitors or
changing customer preferences.
Brand Awareness: Nine Brand Strengtheners:
As Companies become more aware of the importance of
brand power, they wonder how they can strengthen their brands.
Most managers think the answer lies in increasing the advertising
budget. But advertising is expensive and it is not always
effective. Advertising is only one of nine ways to build more
brand awareness and brand preference.
Develop creative advertising.
Sponsor well-regarded events.
Invite your customers to join a club .
Invite the public to visit your factory or office
Create your own retail units.
Provide well-appreciated public services.
Give visible support to some social causes.
Be known as a value leader.
Develop a strong spokesperson or symbol to represent the
Company.
AGE GROUP
TABLE: - 6.1
Total Number of Customers Surveyed: 100
AGE GROUP NO.OF CUSTOMERS
PERCENTAGE
25-45 52 52%
45-65 40 40%
65 And Above 8 8%
Total 100 100%
Interpretation:
From the above table, we can observe that 52% of the
people belongs to 25 – 45 age group, 40% of the people belongs
to 45 - 65 age group and 8% of the people belongs to 65 and
above. The analysis shows that most of the people belongs to 25
– 45 age.
TABLE:-6.2
Total number of Customers surveyed: 100
GENDER NO. OF CUSTOMERS
PERCENTAGE
Male 87 87%
Female 13 13%
Total 100 100%
Interpretation:
From the above table we can observe that among 200
customers 87% are Males and 13% are Females.
Occupation
TABLE: - 6.3
Total Number of Customers Surveyed: 100
OCCUPATION NO.OF CUSTOMERS
PERCENTAGE
Business 38 38%
Professional 30 30%
Student 7 7%
Employee 25 25%
Total 100 100%
Interpretation:
From the above table, we see that 38% of the people
belongs to Business, 30% of the people from Professionals, 7% of
the people from students and 25% of the People belongs to
Employees. The analysis shows that major part of the people
belongs to Business category.
INCOME STATUS (PER ANNUM)
TABLE:- 6.4
Total number of Customers surveyed: 100
INCOME NO. OF CUSTOMERS
PERCENTAGE
< 20,000 34 34%
20,000-40,000 52 52%
40,000 & above
14 14%
Total 100 100%
Interpretation:
The income status reveals that 34% of them are having less
than 20,000 and 52% of them were between 20,000-40,000 and
the remaining 14% were above 40,000. The analysis shows that
the people who having income per annum in between 20,000-
40,000 are more.
FAMILY SIZE
TABLE:-6.5:
Total number of Customers surveyed: 100
FAMILY SIZE NO. OF CUSTOMERS
PERCENTAGE
1-2 10 10%
3-5 78 78%
5 & above 12 12%
Total 100 100%
Interpretation:
Family size reveals that 10% of the people are having 1-2
family size, 78% of the people are having 3-5 family size and
12% of the people are having above 5 family size. The analysis
shows that the family size having 3-5 are using more.
PURPOSE OF PURCHASE
TABLE:-6.6
Total number of Customers surveyed: 100
PURPOSE NO. OF CUSTOMERS
PERCENTAGE
Utility 45 45%
Necessity 51 51%
Status 4 4%
Total 100 100%
Interpretation:
From the table, we can observe that 45% of the people
purchase the car for the purpose of utility, 51% of the people
purchase for necessity and 4% people purchase for status. The
analysis shows that most of the people that is 51% purchase for
necessity.
WHAT FACTORS INFLUENCE TO BUY SANTRO
TABLE: - 6.7
Total Number of Customers Surveyed: 100
FACTORS NO.OF CUSTOMERS
PERCENTAGE
Style 14 14%
Price 18 18%
Brand image 30 30%
Performance 20 20%
Publicity 18 18%
Total 100 100%
Interpretation:
From the table, we can examine that 14% of the people
prefer style, 18% of the people prefer price, 30% of the people
opt for Brand image, 20% of the people have a preference on
Performance and 18% of the people opt for Publicity for buying
the Santro Car. The analysis shows most of them consider Brand
image while buying.
WHO INFLUECNE TO PURCHASE THE CAR
TABLE:-6.8
Total Number of Customers Surveyed: 100
FACTORS NO.OF CUSTOMERS
PERCENTAGE
Myself 20 30%
Family Members 15 15%
Friends 22 22%
Relatives 5 5%
Advertisements 34 34%
Others 4 4%
Total 100 100%
Interpretation:
From the table, we can observe that 20% of the people are
decided to purchase the car on themselves, 15% of the people
are influenced by family members, 22% of the people are
influenced by relatives, 34% of the people are influenced by
advertisements and rest of the people are influenced by other
factors. The analysis shows that major portion of the people are
influenced by advertisements.
IMPACT OF SHAHRUKH KHAN ON SALES
TABLE: -6.9
Total number of Customers surveyed: 100
IMPACT NO. OF CUSTOMERS
PERCENTAGE
Yes 56 56%
No 44 44%
Total 100 100%
Interpretation:
From the table, we see that 56% of the people say that
Sharukh Khan has the impact of increase in sales whereas 44%
of the people say that Sharukh Khan has no impact of increase in
sales.
GOOD VALUE
TABLE:- 6.10
Total number of Customers surveyed: 100
GOOD VALUE NO. OF CUSTOMERS
PERCENTAGE
Yes 92 92%
No 8 8%
Total 100 100%
Interpretation:
From the table, we observe that 92% of the people feel that
Hyundai products give Good Value for money whereas 8% of the
people feel that Hyundai products do not give Good Value for
money.
PRICING OF THE CAR
TABLE:- 6.11
Total number of Customers surveyed: 100
PRICING LEVEL NO. OF CUSTOMERS
PERCENTAGE
Excellent 5 5%
Good 64 64%
Satisfactory 31 31%
Not satisfied - -
Total 100 100%
Interpretation:
From the table, we observe that 5% of the people feel that
the Price of the car is Excellent, 64% of the people feel that it is
Good, 31% feel it is satisfactory and none of them are
dissatisfied with the Price of the product. The Highest % of the
people feel that the Price of the car is Good.
SUPERIOR TO COMPETITORS CARS
TABLE:-6.12
Total number of Customers surveyed: 100
SUPERIOR CUSTOMERS PERCENTAGE
Yes 89 89%
No 11 11%
Total 100 100%
Interpretation:
From the table, we can observe that 89% of the people say
that Santro car is superior to competitors cars and 11% says that
it is not.
SUMMARY
The market of Hyundai cars (Santro, Accent and Sonata) is
growing at rapid speed. Hyundai being one of the dominating
and leading players in passenger car market is expected to
attract significant attention among the investors.
In this Automobile segment there has been heightened
competition with other leading players like Maruti, Honda, Ford
and many others.
As there was competition in small car industry, there was
reduction in prices of the cars and modifications done with the
existing product (e.g., Santro to Santro Xing) and were
introduced in the market. Hyundai small car segment has
occupied second position in the market share.
Majority of the people have informed Brand Awareness
toward Santro. Most of the customers are very much satisfied
with the services offered by the company while few of them are
not satisfied due to minor problems of the car.
Many of the students rated the Brand Awareness as
excellent very few of them have rated as satisfactory.
All the respondents are very happy with the warranty
period given for the cars by the company but many of them have
complaints with the mileage and seating comfort of the car.
Many of the respondents have stated that the prices
charged on services are high when compare to other company’s
services (e.g. Maruti)
Finally the customers are very happy about Brand
Awareness toward Santro.
FINDINGS
The following details can be inferred after analysis with a
simple size of 100, which included customers, by questionnaire
method to find out the brand awareness towards Santro with
reference to AY S HYUNDAI.
Most of the customers relating to Hyundai belong to the
category of employees as they occupy 30% of the entire
customers. The next to them comes industrialists as they
occupy 24% of the customers.
Most of the customers have bought the car 2 years back.
The promotional strategy of Hyundai is advertisement of
which electronic media and by press media are playing a vital
role.
Out of the models of Hyundai the most popular brand is Santro
because it is possessed by 45% of the customers.
Most of the customers are aware of educational programs that
are being conducted by Hyundai to the maintenance of the
car.
Though the customers are having good awareness levels
regarding the programs being conducted by Hyundai, they are
not attending the programs because of various reasons.
The customers find some problem’s regarding the mileage of
Santro while comparing with the remaining models.
SUGGESTIONS
Basing on the survey findings and analyzing the attitudes of
respondents, the following suggestions can be given regarding
the Brand Awareness towards Santro.
The company has to pursue the complaints of the respondents
about the performance of the car’s engine. This suggestions
has been given basing on the complaints of customers
regarding its problems like low mileage.
Transaction and value based loyalty programs can be
conducted.
Making the Driving seat and Passenger seat more comfortable
so that the driver and passengers could have a comfortable
drive.
Analyzing the complaints given by many customers regarding
uncomfortable seats has made its suggestion.
QUESTIONNAIRE
(With Reference to Hyundai Santro)
1. NAME OF THE RESPONDENT:
2. ADDRESS OF THE RESPONDENT:
3. PHONE NO:
4. AGE GROUP:
(a) 25-45 (b) 45-65 (c) 65 & above
5. GENDER:
(a) Male (b) Female
6. RESPONDENTS QUALIFICATION: _________________________
7. OCCUPATION:
(a) Business b) Professional (c) Student (d)
Employee
8. INCOME PER ANNUM:
(a) < Rs. 2,00,000/- b) Rs. 2,00,000/- to Rs. 4,00,000/-
(c) Rs. 4,00,000 and above
9. FAMILY SIZE:
(a) 1-2 b) 3-5 c) 5& above
10. PURPOSE OF PURCHASE OF THIS CAR:
(a) Utility (b) Necessity (c) Status
11. WHAT INFLUENCED TO BUY SANTRO
a) Styling b) Pricing (c) Brand Image
(d) Performance (e) Publicity
12. WHO INFLUENCED YOU TO PURCHASE THE CAR?
(a) Myself (b) Family Members c) Friends
(d) Relatives (e) Advertisements (f) Others
13. WHY DID YOU PURCHASE ONLY SANTRO INSTEAD OF ANY
OTHER SMALL CAR?
(a) Quality b) East to drive
(c) Comfort d) Technically good
14. DO YOU FEEL THAT BRAND AMBASSADOR SHARUKH KHAN
HAS AN IMPACT ON THE INCREASE IN SALES?
(a) Yes (b) No
15. DO YOU FEEL THAT HYUNDAI PRODUCTS GIVE GOOD VALUE
FOR MONEY?
(a) Yes (b) No
16. HOW DO YOU FEEL THE PRICING OF THE CAR?
(a) Excellent b) Good
(c) Satisfactory (d) Unsatisfactory
17. DO YOU FEEL THAT SANTRO IS SUPERIOR TO COMPETITORS
CARS IN THIS SEGMENT?
(a) Yes (b) No
18. DO YOU RECOMMEND SANTRO TO YOUR FRIENDS AND
RELATIVES?
(a) Yes (b) No
19. YOUR COMMENTS/SUGGESTIONS IF ANY?
__________________________________________________________________
__________________________________________________________________
BIBLIOGRAPHY
MARKETING MANAGEMENT
PHILIP KOTLER
COMPANY BROUCHERS & MANUALS
MAGAZINES:
OVERDRIVE
BUSINESS TODAY
CONTENTS
Page No.
CHAPTER – 1 1-10
Introduction Importance Scope Research Methodology Object Limitations
CHAPTER – 2 11-32
INDUSTRY PROFILE History of the Automobiles Automobiles History in World Scenario Automobiles History in Indian Scenario Automobiles History 1967
CHAPTER – 3 33-50
COMPANY PROFILE History in construction field Hyundai motor India Limited
CHAPTER – 4 51-63
Theoretical Frame Work
CHAPTER – 5 64-87
Data Analysis and Interpretation
CHAPTER – 6 88-91
Summary, Findings & Suggestions
CHAPTER – 7 92-94
Annexure
CHAPTER – 8 95
Bibliography
CHAPTER – 1 o Introductiono Importanceo Scopeo Research
Methodologyo Objecto Limitations
CHAPTER – 2INDUSTRY PROFILE
History of the Automobiles Automobiles History in World
Scenario Automobiles History in Indian
Scenario Automobiles History 1967
CHAPTER – 3 COMPANY PROFILE
History in construction field
Hyundai motor India Limited
CHAPTER – 4 o Theoretical Frame
Work
CHAPTER – 5 Data Analysis and
Interpretation
CHAPTER – 6
Summary, Findings & Suggestions
CHAPTER – 7
Annexure
CHAPTER – 8
Bibliography
ACKNOWLEDGEMENT
At the outset, I would like to express my gratitude to
Dr. S. SARABANDHI, Director, Pydah college (P.G.courses),
for permitting me to take up this project at AYS HYUNDAI
AUTOMOBILE PVT. LTD.
I owe my special thanks to Mr. RAMA RAO, Sales
Manager, for providing all the facilities and guiding me
where every necessary.
My sincere thanks to my guide Mrs. LUBZA NIHAR,
Faculty Member, for her invaluable co-operation and
suggestions at every stage of this project without whom this
would not have been completed.
I am grateful to my parents and all my friends for their help
and co-operation.
(S.
SRINIVASA RAO)
DECLARATION
I hereby declare that this project work entitled
“BRAND AWARENESS TOWARDS SANTRO with
Reference to AYS HYUNDAI AUTOMOBILES PVT. LTD.,
VISAKHAPATNAM” written & submitted me towards partial
fulfillment of my Masters Degree in Business Administration
under the guidance of Mrs. LUBZA NIHAR is a
original work done by me. This work has not been
previously submitted by any one else for the award of any
other degree or diploma in any other Institute or University.
(S. SRINIVASA RAO)
BRAND AWARENESS TOWARDS SANTRO
With special reference toAYS HYUNDAI AUTOMOBILE PVT. LTD.,
VISAKHAPATNAM
A Project Report Submitted to Andhra University,Visakhapatnam, in Partial fulfillment for the Award of
Degree of
MASTER OF BUSINESS ADMINISTRATION
ByMr. S. SRINIVASA RAO
Under the guidance of
Mrs. LUBZA NIHAR. M.Com.M.Phil.,
FACULTY MEMBER
DEPARTMENT OF MANAGEMENT STUDIES PYDAH COLLEGE (P.G.COURSES)(Affiliated to Andhra University)
VISAKHAPATNAM2003-2005
CERTIFICATE
This is to certify that the project entitled “BRAND
AWARENESS TOWARDS SANTRO with Reference to AYS
HYUNDAI AUTOMOBILES PVT. LTD., VISAKHAPATNAM”
is a bonafide work done by Mr. S. SRINIVASA RAO in
partial fulfillment of her MASTER OF BUSINESS
ADMINISTRATION, Department of Management Studies,
Pydah College of P.G. Courses, Affiliated to Andhra
University.
Place : Visakhapatnam
Date : Mrs. LUBZA NIHAR Faculty Member
CONTENTS
Page No.
CHAPTER – 1 1-10
Introduction Importance Scope Research Methodology Object Limitations
CHAPTER – 2 11-36
INDUSTRY PROFILE History of the Automobiles Automobiles History in World Scenario Automobiles History in Indian Scenario Automobiles History 1967
CHAPTER – 3 37-54
COMPANY PROFILE History in construction field Hyundai motor India Limited
CHAPTER – 4 55-67
Theoretical Frame Work
CHAPTER – 5 68-91
Data Analysis and Interpretation
CHAPTER – 6 92-95
Summary, Findings & Suggestions
CHAPTER – 7 96-98
Annexure
CHAPTER – 8 99
Bibliography