Brand Perception of Indian Automobiles Among Corporates[1]

8/2/2019 Brand Perception of Indian Automobiles Among Corporates[1]

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N.L.DALMIA INSTITUTE OF

MANAGEMENT STUDIES AND RESEARC

PROJECT

ON

BRAND PERCEPTION OF

INDIAN AUTOMOBILES

AMONG CORPORATES

BY

PRASHANT KAMAT

PGDBM - MARKETING

PMM-116


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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND

RESEARCH

CERTIFICATE

This is to certify that the project entitled

BRAND PERCEPTION OF INDIAN AUTOMOBILES AMONG

CORPORATES

Is submitted as per the requirement for thePGDBMcourse

SpecializationMARKETING

By

PRASHANT KAMAT

is approved by N.L. Dalmia Institute and has been carried out under the

guidance of Prof. V. Wagh.

Prof P.L. ARYA DR V.WAGH

Director Mark

ACKNOWLEDGEMENT


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It was a pleasure as well as an enriching and educating experience to be exposed the world

of Automobile sector during the creation of the project BRAND PERCEPTION OF INDIAN

AUTOMOBILES AMONG CORPORATES.I wish to wholeheartedly thank our respected Prof.V. Wagh for guiding me in my project by giving me the essence of knowledge & information,

which he has derived from years of erudition & relevant experience. He was the one who

gave me the opportunity to work on this project. But for his direction, this project would have

been a distant dream. I have tried to incorporate some of the viewpoints that I have garnered

from him into this project.

I would also like to acknowledge the sincere support of Mrs. Sujata Dsouza & Mr. Yogesh of

our library for extending their co-operation to me to gather the project related information.

Last but not the least I would like to thank all my seniors and colleagues & friends who have

helped me directly or indirectly in completion of this project


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PROJECT CONTENTS

CHAPTER

No.TOPIC

I Executive Summary

II Problem Statement

III Research Objective

IV Industrial Background

VBrand Perception of B & C

Segment

VI Conclusion & Recommendations

XII

APPENDIX

Questionnaire

EXECUTIVE SUMMARY:

The survey is to find out which is the most important factor for corporate in

deciding the brand perception and buying behavior for cars. Whether


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people in the Administrative team involved in purchasing of cars for their

organization gave more priority to price than performance. The survey is

also find out whether in todays competitive situation the final purchase of

cars could boil down to the after sales service and features provided by the

manufacturer. Whether general buyers and Corporate stress on same

parameters in their purchase of cars. Based on the above findings

manufacturers can take in to account in future all such parameters which

lead to brand building.

PROBLEM STATEMENT:

Manufacturer can find it difficult to know the exact problem regarding unacceptance of

their previous brand .what could be the reasons for their sluggish sales and hence

market share.

RESEARCH OBJECTIVES:

TO MEASURE BRAND PERCEPTION OF CARS AMONG CORPORATE

Brand Image of a company is vital for the short term as well as long term success of the

company. It is therefore necessary to identify the exact Brand Image of the Company in the

corporate sector, since the image could vary between the corporate users and general users.

Also since Corporate are bulk buyers of vehicles it is obvious that Brand Equity would

command a major role in their decision making.

IMPORTANCE OF THE STUDY:

Manufacturer can take in to consideration all such parameters in the design of a car

where features would be perceived as benefits. This in turn would result in brand

building.

Give suggestions on the new product features which corporate perceive as benefits.


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RESEARCH DESIGN:

Measure the Brand Perception of cars among Corporate.

To find out the factors Corporate take into account while buying cars.

Use of EXCEL package for analysis

EXECUTIVE SUMMARY OF INDIAN AUTOMOBILE INDUSTRY:

The Indian Passenger Car market has undergone interesting transformation in the past fifty

years. In the forty years since Independence the Indian passenger car Industry had seen very

little activity and the consumer choice was restricted to only very few models. The

government took a major initiative to introduce a new player to the Indian customers when it

entered in to a joint venture with Suzuki Motors of Japan in 1983. Even then, the government

ensured that it had the majority stake of 76 percent in the company, lest its control over the

passenger car market would decrease. Maruti was a success story in India and people, who

had been bored of the two bland models of Ambassador and Padmini, readily opted for the

new model at a lower cost. Thus, Maruti emerged as the t rue peoples car. From 1984 to

1998, Maruti Udyog limited enjoyed a dominant position in the Car market with a market

share of 82 percent. The government decided to deli censes the Passenger Car sector in

1993. Thus the market again underwent a major upheaval when the Korean, German,

Japanese, American MNCs started flooding the market with various models in all possible

price segments. All of a sudden, the market was flooded with models of various size and

prices. This greatly enhanced the choice of the consumers. But the large number of models

did not lead to a corresponding increase in the demand for cars, and hence in the present


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situation the Indian Car market is afflicted with overcapacity. This is not hindering the MNCs

from entering the Indian manufacturing unit as their Export base.

It will really be interesting to closely watch the changes that are going to take place In this

sector in the next 10 years. The future looks as if there will be major shakeouts in thePassenger Car market.

PRESENT SITUATION:

CATEGORY MODELS

A SEGMENT MARUTI 800

B SEGMENT PALIO, SANTRO, INDICA, ZEN, ALTO

C SEGMENT ESTEEM, SIENA, ACCENT, IKON, ASTRA,

CORSA, BALENO, CITY,

PREMIUM SEGMENT LANCER, OCTAVIA

LUXURY SEGMENT SONATA, ACCORD, BENZ, MONDEO,

INDUSTRY STRUCTURE:

The Indian car Industry can be classified based on the price of the car, which is shown below

in the table. One of the things to note here is that the models shown below have many

variants, which can result in overlapping across segments.

This Segmentation is done according to Prices of basic models.

POLICY ON PETROLEUM PRODUCTS, AUTO EMISSION AND DEPRECIATION:

The price of Petrol and Diesel was regulated until recently by the government as part of its

policy on petroleum products management. This dismantling of the Administered price

Mechanism (APM) of petroleum products will reduce the cost disadvantage of Petrol driven

Cars.

On the vehicle Emission front, judicial activism has goaded the government to take certain

policy measures in the recent past, which has led to stricter Emission norms for Automobiles.

As a result, all existing players and new entrants have started introducing models with Fuel

Injection system to meet Euro2 norms. This development has led to an increase in the Prices

of Cars, which by an estimate, could be anywhere between 10-15%.


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The Depreciation norms have effect on demand for cars as corporate purchase cars for use

by managerial staff and claim depreciation in their books. With this the companies are

benefited from tax shelter provided by depreciation.

HISTORICAL INDUSTRY DEVELOPMENT:

The Beginning:

The Car Industrys history dates as back as late nineteenth century but we can say that Henry

ford founded the Real car Industry when he started Ford Motor Co. in 1903. Before that,

cars were fussy, unreliable, costly novelties. Fords genius was to make them simple, solid

and inexpensive necessities took place in 1913 when ford built an Assembly line, which was

the first example of Mass Production. The second honorable mention in shaping the

Car industry is of Alfred P Slogan Jr. the chairman of General Motors from 1923-1946

AN OVERVIEW OF THE CORPORATE PERCEPTION OF THE B AND C CLASS

SEGMENT CARS.

METHODOLOGY ADOPTED: The respondent was asked to give scores out

of 10 (10 being the highest) to different parameters like price, performance,


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features, safety, esteem and serviceability. After the entire survey, an average

was carried out to arrive as to how cars scored in the above parameters.

A] ON A SCALE OF 1-10, SCORE THE FOLLOWING PARAMETERS- C SEGMENT

Vehicle

Parameters

Ford

Ikon

Fiat Siena Hyundai

Accent

Maruti

Esteem

Performance

Features

Price

Esteem

Serviceability

Safety

FINDINGS OF THE CORPORATE PERCEPTION FOR C CLASS SEGMENT CARS.

FORD IKON:

6.2

6.4

6.6

6.8

7

7.2

7.4

7.6

7.8

8

Performance Features Price Esteem Service Safety

7.95

7.35

6.9

7.65

7.4

7.6

FORD IKON


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Ford Ikon was perceived very well on all parameters considered by the corporate. Though it

did not finish first in this category, loosing very slimly to Hyundai Accent, it did manage to get

an edge over its rival on the most important Performance parameter. On a score of 10 Ford

Ikon crossed the 7-figure mark on all parameters, which is good. On the Price parameter too it

was perceived as a good car to go in for bulk Purchases. Ford Ikon was thus a good bet forcorporate car purchases.

FIAT SIENA:

Fiat Siena was perceived badly on almost all parameters considered important by thecorporate. Except the safety parameter where it managed to just touch the 7 level mark, its

perception was average and bad if compared with its rivals. Price perception was also poor

and it was perceived as MoreMoney Less Value. Amongst all the parameters, the worst

perception was that of serviceability thus reflecting the low CSI of FIAT. Overall, Fiat Siena

was the last choice among all the cars considered in the C class segment.

However, the good news for FIAT is that majority of the respondents gave scores keeping

the old Siena in mind. With the new Siena being launched, backed by heavy marketing

initiatives and reduced prices things could just change for FIAT.

HYUNDAI ACCENT:

6

6.25

6.5

6.75

7

7.25

7.5

7.75

8


6.55 6.6

6.356.25

5.85

6.9

FIAT SIENA


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Hyundai accent emerged as the clear leader in this survey. It bagged the top preference on

almost all parameters considered important for the survey. In price too it was the most

preferred car for the C class segment cars. This is extremely good considering the fact that

corporate purchases give the most importance to this parameter. In all parameters, it crossed

the 7 level mark. In the Esteem parameter, it managed to cross the impressive 8 level mark

indicating that executives who give importance to this parameter would most likely select this

car.

Overall, the Hyundai Accent was the best-preferred car in this segment for corporatepurchases.

MARUTI ESTEEM:

Maruti Esteem had a decent perception in the corporate world. Though it did not cross the 7

level mark in all parameters, loosing out in features and esteem parameters, it did manage to

6.4

6.6

6.8

7

7.2

7.4

7.6

7.8

8

8.2

Performance Price Service

8.1

7.75

7

8.2

7.5

7.85

HYUNDAI ACCENT

6

6.2

6.4

6.6

6.8

7

7.27.4

7.6

7.8

8


7.1

6.65

7.45

6.8

7.95

7.05

MARUTI ESTEEM


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out beat all its rivals in the price and service features. The high CSI was thus reflected when

corporate give more scores to the service parameter.

Overall Maruti Esteem was a black horse where none of its rivals could afford to ignore it.

FINDINGS OF THE CORPORATE PERCEPTION FOR B CLASS

SEGMENT CARS.

TATA INDICA:

Tata Indica had a bad perception in the corporate world in comparison to its rivals. Except

the price, parameter where it managed to cross the 7 level mark it lost out in all otherparameters. In the esteem parameter, it was the least preferred car compared to its rivals. It

finished out with an average score of 6.31.

Thus, its only silver lining was its good perception in the price parameter.

FIAT PALIO:

0

1

2

3

4

5

6

7

8


6.25 6.25

7.25

5.86.1 6.25

TATA INDICA


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Fiat Palio had a very good perception in the corporate world. Except the service parameter, it

managed to comfortably cross the 7 level mark in all parameters. Though it scored badly in

the service parameter, there was something very interesting to note for FIAT. Fiat Siena had

scored merely 5.8 in service parameter whereas Fiat Palio scored 6.2 in the same parameter.

That indicates that the same people gave higher scores to the service parameter of Fiat palio

compared to Siena when both of these cars were of the same manufacturer. This can thus be

taken as an indication that Palio is increasing the brand equity of FIAT. It also was the first

preference in features and safety parameters.

Fiat Palio managed to close with an average score of 7.16, which is extremely good

considering the fact that it was the last entrant in the B class segment.

HYUNDAI SANTRO:

5.65.8

66.26.46.66.8

77.27.47.67.8

88.28.48.68.8

9


7.2

7.6

7

7.55

6.2

7.45

FIAT PALIO


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Hyundai Santro had a decent perception in the corporate world. Though it failed to create any

charm in the esteem and service parameter, it managed to cross the 7 level mark on all other

parameters. It also was perceived very well when it came to performance, next only to its rival

Zen. It also was perceived very well in the features parameters. It finished with an average

score of 7.04.

In spite of all these positives it could bag only the Third position in all the B class segment

cars considered for the survey.

MARUTI ZEN:

Maruti Zen was perceived the best in all the B class segment cars. In the top parameters

considered by the corporate like Performance and Price, it was the voted as the best choice.

In the service parameter it touched the prestigious 8 level mark reflecting Marutis high CSI. It

6

6.2

6.4

6.6

6.8

7

7.2

7.4

7.6


7.45

7.25

6.85

6.6

7.3

6.8

HYUNDAI SANTRO

6

6.2

6.4

6.6

6.8

7

7.2

7.4

7.6

7.8

8


7.85

7

7.35

6.7

8

7.1

MARUTI ZEN


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finished with an average score of 7.33. In spite of being an old entrant in this segment, it has

maintained the charm in the corporate world.

There is no doubt that Zen would stand as the best chance for corporate purchases of cars.

BRAND IMAGE OF B & C SEGMENT CARS AMONG CORPORATES

METHODOLOGY: To measure the brand equity of Automobile companies three different

questions was designed. Each question was designed to sub consciously take out from the

respondent the brand image that he thinks of various Automobile companies.

The first question was based on relating the Automobile Company to a particular animal. The

respondent was given a choice of seven different animals namely Dog, Fox, Lion, Camel,

Elephant, Cheetah and Tortoise. Each animal represented a particular characteristic of a

company. Where lion was the leader, Cheetah was taken as a high growth company.

Similarly, tortoise was a company with low growth perspective. Respondents who marked dog

had high respect for service given by the company (Faithful) whereas people who marked

elephant thought the company to have a large product mix but were still not the leader. Fox

represented cunning and creative and camel represented a good company in only a particular

segment or type of cars. Needless to say, that this was not a thumb rule for people marking a

particular animal to a company; a second question was designed to clarify the respondents

perception of a particular company.

The second question was based on relating a company to a particular characteristic of human

beings. The respondent was given a choice of four different characteristics namely Old

person, Settled Person, Young and dynamic, and Eager to please. An old person was related

to a dying company or a company with a very low market share. A settled person represented

company with a good share in the market but at the same time with low prospects for its

market share to increase. Respondents marking young & dynamic held high image for the

models produced by the

Company. Similarly, eager to please represented good after sales service of the company.

In the third question, the respondent was asked that if given the chance to be a brand

ambassador of a particular company which one would he opt for. It was thus obvious that the

company marked by the respondent would have a high respect for the company.


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3] If you were asked to describe the Automobile Companies which of the following Animals

would you often choose? [A]

VEHICLE

ANIMAL

HONDA FIAT MARUTI HYUNDAI FORD TELCO

DOG

FOX

LION

CAMEL

ELEPHANT

CHEETAH

TORTOISE

WHICH

COMPANY IS

LIKE


OLD MAN

SETTLED

PERSON

YOUNG &

DYNAMIC

EAGER TO

PLEASE

BRAND EQUITY OF HONDA

A]


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B]

C] Percentage of People preferring to be Brand Ambassadors for Honda

motors: 20%.

REMARKS FOR BRAND EQUITY PERCEPTION OF HONDA MOTORS: Looking at the

above graphs it become clear that Honda Motors holds a high Brand equity perception in the

corporate world. More then 60% marked it as a lion or a cheetah thereby referring it as a

leader with high growth company.

Respondents were quick to mark it as a company, which comes out with young and dynamic

models. Others perceived the company as the best for providing after sales service. Also 20%

of the respondents preferred to be Brand Ambassadors for this company thereby solidifying

the conclusion that Honda has a high Brand Equity in the corporate world. Since it commands

a high goodwill in the corporate world, newer and less competitive models would, work more

easily compared to its rivals.

BRAND EQUITY OF FIAT PALIO:

15%

10%

45%

0%

10%

20% 0%

COMPANY-ANIMAL PERCEPTION

Dog

Fox

Lion

Camel

Elephant

Cheetah

Tortoise

0% 20%

55%

25%

HUMAN-COMPANY PERCEPTION

Old man

Settled Person

Young & Dynamic

Eager to please


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A]

B]

C]Percentage of People preferring to be Brand Ambassadors for FIAT: 15%

REMARKS ABOUT BRAND EQUITY PERCEPTION OF FIAT AUTOMOBILES.

FIAT has a low brand equity perception in this survey. Though there was a

mixed response from the respondents as far as describing the company to an

animal was concerned, but there were actually very few respondents marking

it as a lion or a cheetah. There were respondents who marked the company

as a tortoise indicating that they perceived the company as a low growth

company. A significant chunk of respondents marked it as an old company.Others gave the benefit of doubt by marking it as a settled person. In spite of

5%10%

5%

30%

20%

15%

15%

ANIMAL-COMPANY PERCEPTION

Dog

Fox

Lion

Camel

Elephant

Cheetah

Tortoise

45%

35%

10%10%


Old man

Settled Person

Young & Dynamic

Eager to please


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a low brand equity perception people in the survey gave good scores to Palio;

an indication that Palios success is not because of FIAT but because it is an

excellent product.

However in spite of all this, there were a few positive aspects for FIAT. All the

existing customers had high respect for FIAT. 15% respondents preferred to

be brand ambassadors for FIAT and all of them owned a Palio. One

respondent even said After a long time FIAT seems to be in the business of

selling cars.

With the new Siena being launched and new marketing initiatives taken by the

company, things should change for FIAT in this front.

BRAND EQUITY OF MARUTI SUZUKI.

A]


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B]

C] Percentage of People preferring to be Brand Ambassadors for MARUTI

SUZUKI: 25%

REMARKS ABOUT BRAND EQUITY PERCEPTION OF MARUTI SUZUKI:

The survey brought out mixed response from the respondents as they were

unclear as to which animal should they mark this company to. This was

obvious since it has a large product mix in different categories; each modelperforming differently than the other. Whereas Maruti 800 and Maruti Zen

somewhat rule their respective segments, Maruti versa and Maruti Baleno

have been a clear flop.

Even when it came to perceiving the company as a particular characteristic of human beings,

a huge chunk of respondents was happy marking it as a settled person. However, 25% of the

respondents preferred to be brand ambassadors for Maruti Suzuki, indicating that there were

still many fans for this largest automobile manufacturer of India.

28%

19%19%

19%

5% 5% 5%


Dog

Fox

Lion

Camel

Elephant

Cheetah

Tortoise

10%

70%

15% 5%


Old man

Settled Person

Young & Dynamic

Eager to please


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Overall, the company had a decent image in the corporate world. However, the company

would need more initiatives from its side to improve the Brand Equity of it.

BRAND EQUITY OF HYUNDAI MOTORS:

A]

B]

C] Percentage of People preferring to be Brand Ambassadors for Hyundai

Motors: 25%

REMARKS ABOUT BRAND EQUITY OF HYUNDAI MOTORS:

Hyundai Motors commanded a decent image in the corporate world.

Respondents indicated the good response of the company by marking it

young and dynamic. The remaining was happy with the service provided by

the company. This was the only company where not even a single respondent

indicated as an old company or a settled company. It is thus clear they

20%

25%

15%5%

10%

20%5%


Dog

Fox

Lion

Camel

Elephant

Cheetah

Tortoise

0%0%

62%

38%


Old man

Settled Person

Young & Dynamic

Eager to please


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perceived the company to make cars that suite the likes of newer generations.

25% of the respondents preferred to be Brand Ambassadors for Hyundai

Motors.

People were aware that it was a newer company in the world scenario compared to its rivals

but it easily could give jolts to the top 7s automobile manufacturers of the world. Newer

models introduced by this company would be easily considered for the corporate purchases.

BRAND EQUITY OF TELCO MOTORS.

A]

B]

C] Percentage of People preferring to be brand Ambassadors for Telco motors: 0%

REMARKS ABOUT BRAND EQUITY OF TELCO:

20%

10%

10%5%

40%

5%10%


Dog

Fox

Lion

Camel

Elephant

Cheetah

Tortoise

40%

45%

10% 5%


Old ManSettled Person

Young & dynamic

Eager to please


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Telco Motors had a poor perception in the corporate world. Though there was

a mixed response from the respondents as far as perceiving the company to

an animal was concerned, respondents indicated the poor perception by

marking it is an old person. None of the respondents preferred to be Brand

Ambassador for this company, which is a proof of poor perception of the

company.

CONCLUSIONS & RECOMMENDED FUTURE MARKETING PLAN

CONCLUSIONS

: It is thus clear from the survey that Brand Equity of FIAT & TELCO is

low as compared to its other competitors. Though Palio has brought a

new rhythm to the companys image, still much needs to be done by

the company to improve its Brand Equity. There are a few suggestions

on this account.

1. CONCENTRATION ON ITS EXISTING MODELS.

The Company should first concentrate on its existing models. Since

each model of the Company requires a huge investment where the

gestation period is very high. Although introduction of new models isgood for the company to remain ahead in the competition but the


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company should first take more measures to improve its financial

position. Considering the Indian economy and the current scenario of

recession the company should be careful in introducing further new

Models in the market for the time being. The Company should increase

the sales of its existing models efficient promotional schemes

2. INCREASE ITS DEALER BASE AND AUTHORISED SERVICE

STATIONS.

Fiat should increase its dealer base. Currently the Company has only

62 Dealers throughout India which is very low. Also the Company has

only 95 Authorized service stations in India. Today in the scenario of

increasing Competition; Service and ease of buying has become one of

the important distinctions which a customer considers while buying a

car. The Company can only achieve this if it increases its dealer base

and service stations.

3. SPONSOR HIGH PROFILE EVENTS:

The Company should actively organize and sponsor events where High

Profile People are involved. Say the Company could be the main

sponsorer in The BEST CEO AWARD or THE FILM FARE

AWARDS to name a few. This would further enhance the Brand image

of the company and since High Profile people would be involved this

could also help to increase sales and effectively introduce new models

in the market.


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4. INVOLVE ITSELF IN INCREASING SOCIETY WELFARE

The company should increase its commitment towards society to

increase public image. The company can involve itself for maintenance

of major highways and publicize this effectively. Owners of FIAT&

TELCO would as a result feel more proud to be in possession of a car

that helps the society in large. This would enhance the Brand Image.

QUESTIONNAIRE MEASURING THE CORPORATE PERCEPTION OF AUTOMOBILE

MANUFACTURERS IN INDIA.

RESPONDENT DETAILS

Name of the Person:-______________________________________AGE________

Company Name:-__________________________________Designation_____________

Phone Number:-_______________________

5] Do you own a Car A]Yes B]No [B]

Make_____________________Model________________________Year of

Purchase_______

1] On a Scale of 1-10, score the following Parameters: C SEGMENT


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Vehicle

Parameters

Ford

Ikon

Fiat Siena Hyundai

Accent

Maruti

Esteem

Performance

Features

Price

Esteem

Serviceability

Safety

Vehicle

Parameters

Tata

Indica

Fiat

Palio

Maruti

Zen

Hyundai

Santro

Performance

Features

Price

Esteem

Serviceability

Safety

3]If you were asked to describe the automobile Companies which of the following Animals

would you often choose? [A]

Vehicle

Animal


DOG

FOX

LION

CAMEL

ELEPHANT

CHEETAH

TORTOISE


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WHICH

COMPANY IS

LIKE


OLD MAN

SETTLED

PERSON

YOUNG &

DYNAMIC

EAGER TO

PLEASE

8] If you were given the chance to be a Brand Ambassador of an Automobile Company in B-

class Segment, Which Car company would you choose and why? [A]----------------------------------------------------------------------------------------------------------------------------

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Documents

Brand Perception of Indian Automobiles Among Corporates[1]