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RESEARCH PROJECT On
“COMPARATIVE ANALYSIS OF GM'S
TAVERA WITH MAHINDRA'S SCORPIO
AND TOYOTA'S INNOVA”
A Dissertation Submitted in partial fulfillment of
Master of Business Administration
Session(2009-2011)
Submitted To: Submitted By:
Fawad ali khan Mohd Mushfiq
Faculty MBA. MBA 4th sem.
Roll No : 090122093
PREFACE
In this era of tremendous competition between these cars it is not easy to survive for
existing players, then how a new company can come and survive in this segment of
luxury cars cum jeeps. Now comes the question to the mind that who is no.1 in this
segment of 7 cars? If we see from customers perspective the no.1 rank goes to
TAVERA followed by INNOVA and SCORPIO. But this is the response of just 100
customers so the result might vary if we take a sample size of 1000 customers. In
that case INNOVA€ may come 1st. so results will change according to sample size of
study.
It is not easy to change customer’s perception and dealer’s view. What the
customers think of a car? This question is really difficult to answer. I tried my level
best to get into the mind of customers but it is not easy to take true response out of a
customer’s mind. Dealer’s response was really good in this study. At some places I
found customers to be very confused. Customers also gave biased responses to
some answers because a customer thinks his or her car to the best one.
Comparatively if we see INNOVA and TAVERA both are doing well. At some places
INNOVA is no. 1 while TAVERA wins the race at some other points. SCORPIO is
also having its own place in the mind of customers. I have also included 4 other cars
in this study – QUALIS, SUMO, and SAFARI & BOLERO. QUALIS is also having
good share in the market, but the problem is that QUALIS is closed down by
TOYOTA motors. What I felt from customer’s responses that if QUALIS would have
been in the market at present, I am damn sure that it must be no.1 car. Even a
customer of TAVERA told me that if QUALIS were again launched in the market no
2
one would go for INNOVA & TAVERA. QUALIS is closed down by TOYOTA motors
so that the prospective customers of QUALIS can shift to INNOVA. INNOVA is a
substitute of QUALIS in the market. TAVERA and SCORPIO would really have to
work hard to compete with INNOVA. SUMO & BOLERO are almost out of the
market. SAFARI is on no one’s mind.
3
ACKNOWLEDGEMENT
After completing this project when I thought about the success of the project, I found
a lot of people who were behind the success of this project.
First of all, I would like to thank my parents without whose support I will be no where.
Then I would like to thank our Coordinator Fawad ali khan who gave me an
opportunity to do this project. I am also thankful to my entire faculty, who helped
me a lot in doing this project.
Then I would like to extend my thanks to my project guide Mohd Monis without
whose support I cannot do anything in this project. I am also thankful to all my
classmates who supported me a lot to complete this project.
This project is the just start of the research there are many more things which will
come later I put my full effort to do this project.
(Mohd Mushfiq)
4
DECLARATION
I hereby declare that the research project entitled ”Comparative Analysis of GM’s
Tavera with Mahindra’s Scorpio & Toyota’s Innova” submitted in partial
fulfillment of Master Degree in Business Administration is my original work and not
submitted for the award of any degree, diploma, fellowship or other similar title or
prize.
Mohd Mushfiq
5
CERTIFICATE
This is to certify that Mr. Mohd Mushfiq is a student of MBA final semester has
done his dissertation under our guidance in partial fulfillment of the requirement of
the MBA programme.
The topic of dissertation if “Comparative Analysis of GM’s Tavera with
Mahindra’s Scorpio & Toyota’s Innova”. His work is good and we wish him all the
success in future endeavors.
Prof.(Dr.) Zeeshan Amir Mr. Fawad Ali Khan
HOD Sr. Lecturer,
MBA Program MBA Program
6
Table of Content
S.No. TOPIC PAGE No.
(1) PREFACE 1
(2) ACKNOWLADGEMENT 3
(3) DECLERATION 4
(4) CERTIFICATE 5
(5) RESEARCH OBJECTIVE 7-9
(6) RESEARCH METHODOLOGY 10-14
(7) METHODOLOGY 11
(8) METHODS OF ENQUIRY 13
(9) COMPARITIVE ANALYSIS 15-105
(10) CHEVROLET TAVERA 18
(11) TOYOTA INNOVA 23
(12) MAHINDRA SCORPIO 30
(13) COMPARATIVE ANALYSIS OF CUSTOMER RESPONSE 34-84
(14) COMPARATIVE ANALYSIS OF DEALERS RESPONSE 85-105
(15) CONCLUSION 106-107
(16) RECOMMENDATIONS 108-110
(17) LIMITATIONS 111-112
(18) BIBLIOGRAPHY 113
(19) ANNEXTURE-QUESTIONNAIRE 114
7
OBJECTIVES
8
OBJECTIVES
The main objective of the study is to get the market position of GM, TOYOTA and
MAHINDRA. For this I have to do the comparative analysis of GM’s Tavera with
Mahindra’s Scorpio and Toyota’s Innova.
So marketing approaches of STP – segmentation, targeting and positioning,
distribution, advertising, advertising budget, sales, pricing, branding, potential
market, features of the product are some of the points which I have taken as the
basis of comparison.
To assess the overall market position of Tavera, Innova and Scorpio.
To conduct a survey on a sample selected from the entire population of the
customers and dealers in LUCKNOW region. Proper understanding and
analysis of dealers and customers.
To analyze the results of the survey conducted with the help of statistical
tools..
To also analyze some of the marketing activities of companies like
advertising, pricing, distribution, targeting and positioning.
9
To study the market share of all the seven cars including their competitive
strategies.
RESEARCH
METHODOLOGY
10
METHODOLOGY
Some of the steps of research methodology -
1) Defining the problem -The research objective states comparison of Tavera with
Innova and Scorpio. The objective of the research is to derive the opinion of dealers
and customers. The objective was to compare Tavera with Innova and Scorpio.
2) Research plan: Once the problem is identified, the next step is to prepare a plan
for getting the information needed for the research. Information will be derived fro
both the customers and the dealers. The present study will adopt the exploratory
approach. The project was very tedious at some places.
3) Collection and Sources of data: Market research requires two kinds of data, i.e.,
primary data and secondary data. Being a firm in the ADVERTISING industry, data
11
gathering will involve usage of both primary and secondary data though there will be
an extensive usage of primary data. Well-structured questionnaires were prepared.
4) Analyze the collected information: This involves converting raw data into useful
information. It involves tabulation of data and using statistical measures. Some of
the statistical tools like correlation, regression, and chi square method is used.
METHODS OF ENQUIRY
In this project I have divided my study in three phases –
1st phase is of dealer’s questionnaire and the 2nd phase is of customer’s
questionnaire. I had contacted 12 dealers in LUCKNOW region – 5 dealers of
TOYOTA, 4 of TAVERA and 3 of Scorpio
The dealers and customers were interviewed through questionnaires. Questionnaire
was designed in such a manner so as to get the real situation of the market.
Addresses of the dealers are taken from the websites of their respective companies
and customers were contacted on general places like malls and parking spaces.
Dealers straightly denied disclosing the database of their customers.
12
In some questions respondents have to rate, rank their responses and in some
questions respondents have to just tick the option they like. So the analysis will be
both quantitative and qualitative.
Some of the data was also collected from the net like addresses of dealers and
some other information like technical features of the car. In this way secondary data
was collected.
Responses of the customers were collected and they were separated on the vehicle
they are having. Questionnaire is having open as well as close-ended questions.
There are some questions to which customers hesitate to respond or they don’t have
any idea about the answer, these questions are given some options so that
customers can easily respond to these questions.
The customers and dealers rated technical features of the cars. Average is taken
and then they are analyzed.
So there were three phases of the study –Getting the questionnaires filled by the
customers and dealers, Taking these responses on paper, hell lot of paper work is
done, Putting this response in a presentable form, so that it becomes
understandable.
Sample size was 100 in this survey for customers. For dealers I could find 12
dealers.
13
COMPARATIVE
ANALYSIS
14
COMPARATIVE ANALYSIS OF THE TAVERA, INNOVA AND
SCORPIO
Customer’s response
This chapter deals with the analysis TAVERA, INNOVA & SCORPIO. It consists of
the analysis of the following:
Driving force when the customers opted for their car.
Type of relation ship marketing
Important features of car according to customers.
Source of information that influenced customers to buy the car.
What are the other brands from which customers searched for information?
Psychological factors involved in buying the car.
Factors that influenced buying behavior.
Satisfaction level of customers.
Preferences of customers while making purchase decision.
Comparison of value chain of all the 7 cars.
Overall satisfaction derived by the customers.
Replacement of car.
15
Effective advertising or not.
Influencing power of advertisement.
Who is Market leader in these 7 cars according to customers?
16
NOW BEFORE STARTING THE ANALYSIS PART OF THIS STUDY IT WILL BE
WORTHWHILE TO EXPLAIN SOME THING ABOUT TAVERA, INNOVA AND
SCORPIO –
Tavera.
New Tavera. To drive your business ahead.
It makes a lot of business sense to choose the new Tavera. To start with, it gives an
amazing mileage of 14.3 kmpl* overall and a phenomenal 20.1 kmpl* on highways.
Thanks to its 'Ergomax' seating with flexible options, you can pamper your
customers by providing them unmatched space and comfort. A host of thoughtful
features like a Noise Vibration Harshness (NVH) package for silent interiors and an
advanced suspension setup for a smooth ride make every journey special. The
Tavera Elite is also easy to maintain and has economical spares. In every way, a car
that is a pleasure to own.
17
CHEVROLET TAVERA – Tavera is a new generation multi utility vehicle. It has
been localized heavily in India to keep the price down. Tavera is having a smart,
conservative looks, a blend between a SUV – special utility vehicle, an MUV – multi
utility vehicle and an MPV.
SUV – because of the pretty rear and two tone paint
MUV – because of its boxy shape
MPV – because of the short, sloping bonnet.
Sitting on 15 inch alloys, the Tavera’s smooth, rounded styling is a well balanced
design. Space and practicality is where the Tavera shines: it is very roomy, with lots
of leg room and width.
Features of Tavera –
Superior Performance
The 2.5 litre direct injection insta-torque turbo diesel engine eliminates turbo lag. It
means no power loss, no idling, and no waiting after starting and before shutting down. The
car responds in a flash, and the excellent low-end torque ensures that you won’t have to
change gears often even in city traffic. What’s more, the robust engine gives a superior
mileage of 14.3 kmpl* (overall) and 20.1 kmpl* (highway driving).
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Easy Maintenance
The Tavera Elite costs less to maintain and has economical spares. It has a long
oil period (at intervals of 10,000 km) and comes with a 5-year/1.5 lac km engine
warranty* in addition to the standard warranty 2-year/50,000 km warranty on the car.
Comfort
From flexible seating options, effective air-conditioning, easy entry and exit to more
legroom and headroom, an advanced suspension setup and silent interiors, the
Tavera leads the way in comfort.
Total Safety
Your family's safety means the world to us. At GM, we're constantly employing radical
technology to give you cars that redefine safety standards. The Tavera comes with a
reassuring line-up of features that do exactly that.
Powerful Ventilated Front Disc Brakes for better stopping power.
Load Proportioning Valve for brake force distribution.
Body-on-frame construction
Passenger Cell with Front Crumple Zones.
Side-impact Beams in all side doors.
Robust bonnet construction with reinforced webbing support
Child Safety Locks on rear Door and Power Window Locks.
19
Wider tyres add to smooth riding experience and better road grip.
Clear multi-reflector headlamps ensure better visibility at night. The wrap-around
rear combination lamps add to better visibility for other road users.
Rear defogger and wash wiper system for better visibility during rains and foggy
weather conditions.
Wider Outside Rear View Mirrors.
Large, wide-view windshield provides excellent driver visibility.
Fuel tank with metal guard & anti-chip paint protection.
Fuel spillover check valve in case of rollover
Steel Bumpers
20
Technical Specifications.
ENGINE
Engine Type 2.5L Direct Injection Turbo Diesel
Displacement (cc) 2499
Max. Output Ps/rpm 80 / 3900
Max. Torque kgm/rpm 19 / 1800
No. of Valves/OHC 8
Fuel Type Diesel
Compression Ratio 18.5 : 1
TRANSMISSION, DIMENSION, WEIGHT
21
Transmission 5-speed Manual
Length (mm) 4435
Width (mm) 1680
Height (mm) 1765
Wheel Base (mm) 2685
Track (Fr/Rr) (mm) 1445/1420
Ground Clearence (mm) 184#
Fuel Tank Capacity (litres) 55
Gross Vehicle Weight (kg) 2335-2375
Kerb Weight (kg) LS - 1585, LT - 1640 / 1660, SS - 1660
CHASSIS
Tyre 205/65 R15
Turning Radius (m) 5.6
Brakes (FRONT) Ventilated Disc & Caliper
Brakes (REAR)Drum, Leading - Trailing (Self
Adjusting)
Suspension (REAR) Semi-elliptical Leaf Spring
Suspension (FRONT)Double Wishbone with Independent
Torsion Bar Spring & Anti-roll Bar
22
TOYOTA INNOVA – the Qualis’ replacement is a multi-purpose vehicle that Toyota
hope will appeal a vast range of customers, especially those whose priority are
comfort, space and reliability. The Innova is much larger in the flesh. It is in fact 80
mm longer than a scorpio. It looks nothing like its UV (utility vehicles) rivals despite
sharing a gene pool.
Innova’s greatest strength, without doubt lies inside. Spacious, well appointed,
comfortable and well equipped, its everything you want in a car of this class.
23
The Toyota Innova. The Innova is a result of a unique process that has broken new
grounds in the way automobiles are created. The Innova brings together qualities
never before seen together in an automobile. Fantastic ride quality and luxury
coupled with versatile space; superior performance and driving pleasure with world
class safety, advanced styling with solid durability.
Design :: Innovative Design A sleek sedan with ground clearance of an MPV
The Innova successfully holds eight people inside, and the attention of all others outside.
Wherever you drive the Innova, admiring glances, faster heartbeats and envious stares are
bound to follow.
See the Design of Luxury Innova.
24
Not only sedan but also
MPV, INNOVA has higher
height, road clearance to
drive through rough road
and versatile usability. It
can also carry many
passengers comfortably.
Global Trend
Grand Style
Right Size
Wide & Low Design
Sporty and curved monoform design
Cutting edge aerodynamics
Panoramic Windows
3-dimensional front
Semi-concealed wiper
Experience new Innova's exteriors.
The 3-dimensional front
grille not only adds to the
impressive look but also
provides efficient airflow
3-dimensional front grille
Superior multi reflector headlamps
Fog Lamps
Side Protection Molding
Distinct rear combination lamp
Rear Wipers
Grip type door handle
25
to the rear. Large chrome emblem in front
Chrome rear garnish
Large tyre and alloy wheels
Towering Height
Smart Design
Better Visibility
Explore the space of the Luxury Sedan.
Surrounding Cabin
Ergonomically designed instrument panel
Tilt Steering
Power door locks
High quality seat
Advanced meter
Sunglass holder and Personal lamps
26
The cabin is not just wide.
From the front to third row
seats, they are all
designed to gently
surround the passengers,
enabling them to enjoy
the drive together.
Door bottle holder
Shift console
Rear console
Large Armrest Console Box
Mobile Charger
Glove Box
Big Cargo Space
Easy Access cabin
Two tone colour interior - Relaxing colour tone
Explore the space of the Luxury Sedan.
From the colour co-
ordination and feel to the
looks and utility aspects,
Breathtaking dashboard
Air Vents for every row
Independent Airconitioner
Wood grained instrument panel
Versatile Seating (7 Passenger)
Versatile Seating (8 Passenger)
Stretch out in total comfort (7 seater)
27
the dashboard of the
Innova is a stunner in
itself. There's a great
balance between storage
space and the
ergonomically designed
and attractive instrument
panel which makes
driving.
Enough Space for passengers and luggage for a
weekend trip
High quality 2 din Audio System with CD, and MP3
Surround Sound with 6-Speakers
Adjustable driver's seat
Adjustable passengers seat
Saddle type headrests
Chrome Plated door inside handle
Electric Outer Mirror
View Innova's safety equipment
The unique Global
Outstanding Assessment
(GOA) body was
developed to Toyota's
GOA Body
SRS Airbags (Driver & Passenger side)
Large Disc Brakes (Front only)
ABS
LSPV (Load Sensing Proportion Valve)
Collapsible steering column
High Rigidity Frame
Soft upper interior
28
own safety standards,
which exceed those of
most countries of the
world. The crumple zone
and high integrity cabin,
reinforced with energy
absorbing materials, help
to minimize injury to
passengers.
3 point seatbelts for every rows
Passenger Cabin Protection
Side door impact beams
Seat Belt warning light
Rear window defogger
Theft Deterrent System (Immobilizer)
Wireless door-lock integrated key
Child protector locks
See why Innova has build in performance from start.
The newly developed
engine uses the latest
common-rail technology
for superior performance
D-4D common-rail diesel engine
VVT-I Petrol (gasoline) engine
Cutting edge aerodynamics
Coil spring double wishbone front suspension
The newly designed rear 4-link suspension
Impactful Wheels
High minimum ground clearance
Lower Turning Radius
29
and exceptional fuel
efficiency. This 2.5 L
(2494 cm3/cc) engine
specially tuned for Indian
conditions, generates
75kW(102PS)/3600 rpm
of power and
200Nm/1400-rpm
MAHINDRA SCORPIO – “TO MAKE A CAR BETTER THAN MOST CARS, WE
DECIDED NOT TO MAKE A CAR”
The idea of this world class vehicle was born in 1996. Scorpio was designed
completely in house by Mahindra, has been one of the major success stories in the
last two years. It has the looks and rugged appeal of a proper SUV – special utility
vehicle, with a distinctly MUV like price tag, a decent interior a good pair of engines.
30
Technical specifications -
Engine & Transmission Choices Turbo
2.6
Turbo
2.6
DX
Sportz Turbo
2.6
SLX
SZ 2600 Plus Turbocharged Intercooled Diesel
Engine(BS II)
• • •
2.6 Litre Turbocharged Intercooled ,Common
Rail Diesel Engine (BS III)
• • • •
Optional : Borg-Warner Electric 4WD System(7
Seater,BS II only)
•
Safety Turbo
2.6
Turbo
2.6
DX
Sportz Turbo
2.6
SLX
Collapsible Steering column & side intrusion
beams
• • • •
Crash protecting crumple zones & child locks • • • •
Fire resistant upholstery • • • •
31
Rear Wash & Wipe • • •
Protective side cladding • •
Rear demister •
Adjustable intermittent wipers •
Voice assist function, vehicle security system &
remote locking / unlocking
Luxury Turbo 2.6 Turbo
2.6
DX
Sportz Turbo
2.6
SLX
Heating , Ventilation & AC with Rear
Vents
• • • •
Fabric & Vinyl combination seats • • •
Black Leather seats •
Full Fabric seats •
ORVM manual remocon , power
windows & swivel interior lamp
• • •
centre arm rests : 2nd row seats • • •
cassette Player ,AM /FM Radio , Stereo
with 4 Speakers.
•
Individual arm rests on 1st row seats • •
'Follow Me Home' headlamps &
illuminated footboards
•
32
Theatre Style interior illumination with lit
front footwells
•
Appearance Turbo
2.6
Turbo 2.6
DX
Sportz Turbo
2.6
SLX
Styled steel wheels • • •
Roof -top ski Racks • •
Side decals , bonnets stripes & side
- window blackout
•
Two tone dashboard in Grey •
Fully colour keyed two -tone
interiors & exteriors
•
ConvenienceTurbo
2.6
Turbo 2.6
DX
Sportz Turbo 2.6
SLX
Power steering , fuel lid opener &
side step
• • • •
Power windows & central locking • • •
Seating Turbo
2.6
Turbo
2.6
DX
Sportz Turbo
2.6
SLX
9 Seater • •
8 Seater • • • •
7 Seater • • •
33
34
Analysis of customer’s response
I have surveyed 100 people randomly, and out of 100 I found –
Table 1 – customers of various cars –
Serial no. Cars No. of
customers
Percentage of
customers
1 Tavera 20 20%
2 Innova 27 27%
3 Scorpio 18 18%
4 Quails 22 22%
5 Safari 5 5%
6 Bolero 6 6%
7 Sumo 2 2%
Total 100
0
5
10
15
20
25
30
No. of customers
Tavera
Innova
Scorpio
Quails
Safari
Bolero
Sumo
35
Table 2 – driving force that influenced customers to opt for the car –
Car Sporty
look and
interior
Mileage Utility of
the vehicle
New
trends in
cars
segment
Any other
reason
Tavera 5 5 18 3 -
Innova 10 12 17 5 -
Scorpio 10 4 10 4 -
Quails 10 1 19 - -
Safari 2 - 3 - -
Bolero 1 - 5 - -
Sumo 1 - 2 - -
total 39 22 74 12 0
We can see in the table that customers are attracted mostly by the utility of these 7
vehicles. 74 times utility of the vehicle is selected by the customer and it is that one
customer has selected more than one option like he is influenced by the utility and
sporty look of the vehicle.
36
0
2
4
6
8
10
frequency of response
Sporty look and interior
sporty look and interior
Tavera
Innova
Scorpio
Quails
Safari
Bolero
Sumo
Inference – Innova, Scorpio and Quails customers responded equally 10 times to
sporty look and interior. So look and interior of these three cars is equally
attractive.
0
2
4
6
8
10
12
no. of resonses
total
mileage as a driving force
tavera
innova
scorpio
qualis
safari
bolero
sumo
Innova is appealing most to customers when it comes to mileage compared to
Tavera and Scorpio.
37
0
5
10
15
20
frequency of response
total
utlity of the vehicle
tavera
innova
scorpio
qualis
safari
bolero
sumo
Inference – according to response of customer’s quails is having utility influence
followed by Tavera and Innova. So Quails is the winner when it comes to utility
of the vehicle compared to other cars in the same segment.
0
1
2
3
4
5
frequency of response
total
new trends in cars segment.
tavera
innova
scorpio
qualis
safari
bolero
sumo
Inference – out of 12 responses for this feature 5 Innova customers said that they
are influenced by new trend of jeeps cum car followed by 3 responses to tavera and
38
4 to scorpio. Rest did not respond to this feature. So innova is the winner when it
comes to new trend of jeeps cum luxury cars.
Relationship marketing and satisfaction level given by customer -
We assumed 1 to 5 ranking for type of marketing adopted by the particular car co. 1
highest and 5 lowest for ranking. Then total of each marketing for each vehicle is
done. Then avg. is calculated.
Total of each marketing
Avg. of marketing ranks = ---------------------------------------
No. of responses (5)
If avg. of marketing ranks is 1 then customer perceives that company is doing
that type of marketing highly.
If avg. of marketing ranks is 2 then customer perceives that company is doing
that type of marketing not very highly.
If avg. of marketing ranks is 3 then customer perceives that company is doing
that type of marketing not so highly.
If avg. of marketing ranks is 4 then customer perceives that company is not
doing that type of marketing highly.
If avg. of marketing ranks is 5 then customer perceives that company is not
doing that type of marketing at all.
39
Total satisfaction is calculated by taking ratings on 6 parameters - features,
convenience, after sales, expectation completion, mileage and quality.
Customers did rating from 1 to 10 – 1highest and 10 lowest. So total satisfaction
level of each customer is calculated and then avg. of each customer’s ratings is
taken by dividing total satisfaction rating by 6.
Total of satisfaction rating
Avg. of total satisfaction = --------------------------------
No. Of features (6)
If avg. is given then satisfaction level –
If Avg. is 1 – 3.5 then satisfaction level is high
If avg. is 3.6 – 7 then satisfaction level is medium
If avg. is 7 – 10 then satisfaction level is low.
Table 3 – relationship marketing and avg. satisfaction given by each customer – (for
bolero)
40
So in the above table 5 customers of TATA Safari are shown with their avg.
satisfaction rating and avg. marketing rankings.
Inference – two inferences can be drawn from the above table -
Avg. satisfaction of safari is ok. It is around 5.5 so not too good not too bad;
customers of safari have given medium satisfaction. So customers are driving
midium satisfaction from the company.
Highest avg. ranking is of reactive marketing so customers are perceiving that
company is doing reactive marketing mostly than other marketings.
If we combine the above two inferences we can say that customers of bolero are
getting medium satisfaction level from the car and these medium satisfied
customers are getting reactive marketing from the company.
Reactive marketing is that marketing in which co. encourages customer to call if he
has any problem.
41
Table 4 – relationship marketing and avg. satisfaction given by each customer – (for
Tavera)
Inference – two inferences can be drawn from the above table -
Avg. satisfaction of tavera is ok. 15 customers of tavera have given
medium and 5 given high satisfaction.
Medium satisfied customers think they are getting reactive marketing while
highly satisfied customers think they are getting accountable marketing.
Reactive marketing is that marketing in which co. encourages customer to call if he
has any problem.
Accountable marketing is that marketing in which company calls customer to know
that he is satisfied.
42
Table 5 – relationship marketing and avg. satisfaction given by each customer (for
innova
43
Inference –
Medium satisfied customers think that Toyota is doing accountable
marketing.
Highly satisfied customers think that Toyota is doing basic & accountable
both types of marketing.
Low satisfied customers think that Toyota is doing reactive & accountable
marketing.
Table 6 – relationship marketing and avg. satisfaction given by each customer (for
Scorpio)
44
Inference –
Medium satisfied customers think that Mahindra is doing accountable
marketing.
Highly satisfied customers think that Mahindra is doing reactive marketing.
single Low satisfied customers think that Mahindra is doing proactive followed
by partnership & basic marketing.
Table 7 – relationship marketing and avg. satisfaction given by each customer – (for
Qualis)
Inference –
Medium satisfied customers think that Toyota is doing basic marketing for
quails, followed by reactive & accountable.
45
Highly satisfied customers think that Toyota is doing reactive marketing,
followed by basic & accountable.
Table 8 – relationship marketing and avg. satisfaction given by each customer – (for
bolero) –
Inference –
Medium satisfied customers think that Mahindra is doing basic marketing for
quails, followed by reactive & proactive.
Proactive marketing is that marketing in which company calls customer from time to
time with suggestion about product usage.
46
Table 9 – relationship marketing and avg. satisfaction given by each customer – (for
TATA Sumo)
Inference –
Medium satisfied customers think that TATA is doing basic marketing for
Sumo, followed by reactive & partnership.
Features rankings given by the customers -
There are 8 features to which customers of all the cars have to rank. Average
of each feature for each car is calculated-
Ranking is to be done by the customers from 1 to 8.
1 for highest ranking and 8 for lowest ranking.
If the average of a particular feature is low means that feature is liked by the
customers and if it is lowest means that feature is liked most by the
customers because 1 is the highest ranking & 8 is the lowest ranking in this
case.
47
Table 10 for features of safari, sumo & bolero –
Inference –
In safari people are mostly attracted by its appearance, followed by safety
and luxury.
In sumo customers like convenience, seating and design, engineering and
interior equally followed by safety and luxury.
Bolero attracts its 6 customers on engine and transmission feature followed
by luxury & design engineering and interior.
48
Table 11 for features of tavera -
Inference –
In Tavera customers found appearance most attractive followed by engine,
transmission and luxury and convenience. Then come safety, design engineering &
interior, seating and performance.
49
Table 12 for features of innova –
Inference –
Convenience is the most appealing feature of innova according to customer’s
follwed by engine and luxury. Then comes appearance and seating followed by
design, safety & performance.
50
Table 13 for features of Scorpio –
Inference –
Scorpio attracts its 18 customers on design, engineering and interior followed by
appearance & engine features. Then come convenience, luxury, seating,
performance fuel economy and handling and safety.
51
Table 14 for quails –
Inference –
22 customer of quails liked safety most, then comes engine and transmission feature
followed by design engineering & interiors. After that customers prefer luxury &
appearance equally 2.91 to each. Then comes performance followed by seating and
convenience.
52
Table 15 – source of information that influenced customers to buy the car –
Car References Friends
&
relatives
Commercial
ads – TV
Internet Newspaper Showroom Anything
else
Safari - - - - - 5 -
Sumo 1 6 - - - - -
Bolero 1 - - 1 1 3 -
Innova 3 5 19 3 18 17 -
Scorpio 1 4 4 2 9 14 -
Qualis 3 6 1 5 10 18 -
Tavera 1 5 4 5 11 16 -
total 10 26 28 16 49 73 -
Inference – so we can say that innova and Qualis customers said that their source
of information for their cars is references. Out of 10 people who voted for references
as an influencing factor, 3 innova and 3 quails people selected reference as
influencing source.
53
Inference - 6 sumo and quails people gave their response to friends and relatives
as source of information, followed by Innova & Tavera. Only 4 in Scorpio opted for
friends as reference.
Inference - Innova is having commercial ads as influencing factor for customers and
it is having influencing power also to pursue people to opt for the car. Other cars are
not doing well in their commercial ads in fact most of the car companies are not even
doing advertisement on TV. But innova’s response has disclosed that their TV
advertising campaign is good.
Inference – only Qualis and Tavera are influencing customers through Internet as
source of information other companies are not doing good Internet advertising.
54
Inferences – Innova is attracting customers through newspapers followed by
Tavera, Qualis and Scorpio. Innova’s print media advertising is good.
Inferences – Qualis is attracting customers through its showroom. Toyota is
attracting customers by way of their Showrooms located in NOR region. There are 5
showrooms of Toyota in LUCKNOW region, all doing well.
Innova is no. 2 in attracting its customers through its showroom followed by tavera
and Scorpio.
55
This is the response of each customer when I asked that from which other brand
they have searched for information –
Suppose a person is having Tavera then I asked him that from which other brands
they have searched for more information, because it might be the case that the
Tavera person would have gone to Toyota showroom also. So I tried to find out the
other alternative brand in the mind of general customer -
Table 16 for other brands -
Cars TOYOTA GM MAHINDRA TATA
Safari 2 - 3 -
Sumo 1 - 1 -
Bolero - - - 6
Innova 2 16 4 5
Scorpio 6 4 4 4
Qualis 2 8 6 6
Tavera 14 2 4 -
Inference –
2 safari customers searched information from Toyota and 3 safari customers
searched information from mahindra – so TATA’S competitor in market are
Toyota and Mahindra.
1 sumo customer searched information from Toyota and 1 from Mahindra.
All the 6 customers of bolero searched information from TATA. So Mahindra
bolero’s major competitor is TATA.
56
2 Innova persons searched information from Toyota itself. 16 innova
customers searched information from GM’s cars, 4 from Mahindra and 5 from
TATA. So Toyota innova is having good competition with Tavera.
6 Scorpio persons searched information from Toyota and 4 each searched
from GM, Mahindra and TATA.
Qualis biggest competitor is GM followed by Mahindra and TATA.
GM’s Tavera is having good competiton with Toyota innova. And this is fact
also innova is having good competition with Tavera in the market also, though
Innova is all above in luxury cars but Tavera is at least competing with them,
where other cars are not able to touch Toyota’s innova sales figure. Innova is
really doing well in the market but Tavera is also on no 2 followed by Innova.
57
Table 17 – for disclosing the psychological factors involved in buying the car (from
customers perspective) –
Car Motivation Perception Beliefs and
attitudes
Safari 0 3 2
Sumo 0 2 0
Bolero 0 5 1
Innova 5 21 1
Scorpio 5 12 1
Qualis 2 16 4
Tavera 4 15 1
Total 16 74 10
Inference –
All the 5 safari customers are influenced by perception as psychological factor
involved in buying the car.
Both sumo customers are influenced by perception as psychological factor
involved in buying the car.
58
Bolero - 5 bolero customers are influenced by perception and 1 customer is
influenced by belief and attitude as psychological factor involved in buying the
car.
Innova - 5 Innova customers are influenced by motivation and 21 customers
are influenced by perception and only 1 customer is influenced by beliefs and
attitude as psychological factor involved in buying the car.
Scorpio - 5 scorpio customers are influenced by motivation and 12 customers
are influenced by perception and only 1 customer is influenced by beliefs and
attitude as psychological factor involved in buying the car.
Quails – 2 quails customers are influenced by motivation and 16 customers
are influenced by perception and only 4 customers are influenced by beliefs
and attitude as psychological factor involved in buying the car.
Tavera – 4 tavera customers are influenced by motivation and 15 customers
are influenced by perception and only 1 customer is influenced by beliefs and
attitude as psychological factor involved in buying the car.
59
So perception is the highest psychological factor involved in buying of these 100
cars.
Perception - it is how a prospective customer perceives the particular product or
a company. It is what he understands company to be, like a general person
thinks Toyota to be a very good brand name. For GM I found customers think
that GM is a foreign brand of cars but it is not very effective on Indian minds. Like
Maruti Suzuki is having good influence on Indian customer but not on a customer
in some other country. So the perception varies from person to person.
Table 18 for some other factors that influenced buying behavior of a customer -
60
CarCultural factors Social factors Personal
factors
Safari0 0 5
Sumo0 0 2
Bolero0 2 4
Innova1 6 20
Scorpio2 3 13
Qualis1 8 13
Tavera0 5 15
Total 4 24 72
Inference –
All the 100 car owners are influenced by personal factors while making final decision
for purchasing the car. This is followed by social and cultural factors.
Personal factors are those factors, which are backed by these parameters – age &
life cycle stage, occupation & financial status, life style.
Social factors are backed by – reference group and family.
61
Cultural factors are backed by – rules, values, beliefs, behavior & concept.
Personal factors are most important influencing factor out of 3 factors.
62
Table 18 for disclosing preferences of customers while making purchase of cars –
because whoever the customer is, he must have some preferences while
making purchase decision for a product – so this is tried to find out –
customers are given some choices like color, look, cost, mileage and luxury
as preferences -
Cars Color Look &
style
Cost
efficient
Mileage luxury
Safari 0 5 0 0 0
Sumo 0 2 0 0 0
Bolero 0 4 2 0 0
Innova 1 16 12 14 10
Scorpio 0 14 2 9 5
Qualis 0 20 2 1 1
Tavera 0 14 8 10 10
Total 1 75 28 34 26
Inference -Color is not a preference for customers while making a purchase
decision because I think all the companies offer a wide range of colors in the cars so
customers don’t even have to think of the colors.
63
Inference – Qualis is having good appeal when it comes to look and style follwed by
innova, sumo and tavera. Qualis is no1 in looks and qualis people had a preference
of look in their mind and that was the reason also they purchased qualis only, out of
other cars.
64
Inference – so here is innova’s cost efficiency, yes it is true that innova’s best
model is having a price tag of rs.10, 77,055 according to a showroom of Toyota. But
I think the service, the look, and the benefits a customer will derive after purchase of
this car will be much higher than the price tag of rs.10, 77,055. so he will get full
value for the amount he will pay for this luxurious car.
Even a sales manager in UTTAM TOYOTA told me that a customer would not get
any other car in INDIA on this price tag of 10 lakh Rs.
65
So innova customers are having a thought of mileage in their minds and this though
only pursued them to go for innova. Tavera customers are also having mileage
thought in their minds, followed by Scorpio customers.
66
Inference - both innova and tavera customers thought for luxury before opting for
their cars so these 2 cars having equal luxury appeal followed by luxury appeal of
sumo and quails.
VALUE CHAIN OF THE COMPANY –
Value chain of all the companies are compared so as to know which car company is
doing what type of value chain –
Value chain consist of activities ranging from procurement of raw material to the
after sales of the product –
Now the rating on some parameters is taken from the customers, these ratings are
From 1 to 10 – I for highest and 10 for lowest – then total of each parameter of value
chain for each car is done and then its avg. is taken, lower the avg. highest will be
the level of value chain o f the company.
Table 19 for value chain of safari -
67
CAR & FORM NO.
EASY
PROCUREMENT
AFTER
SALES
SPARE
PARTS
SALES
PERSONS
CUSTOMER
HANDLING
OVERALL
SATISFACTION
FROM VALUE
CHAIN
SAFARI 1 2 2 3 3 4 3
SAFARI 2 4 4 3 3 3 4
SAFARI 3 2 3 3 4 4 4
SAFARI 4 1 2 2 2 3 3
SAFARI 5 1 1 3 3 4 4
TOTAL 10 12 14 15 18 18
AVG. 2 2.4 2.8 3 3.6 3.6
Inference - we can see in the above table that minimum avg. is of easy procurement
TATA Safari scored high on easy procurement parameter of value chain. Overall
avg. rating for each parameter is not more than 4, so good rating.
Table 20 - for value chain of sumo and bolero, Table 21 for value chain of quails -
Inference – after sales of sumo is good because sumo scored well on after sales
parameter of value chain. Avg. rating of sumo is better than bolero.
68
Inference – quails scored high on easy procurement followed by after sales and
spare parts. Qualis scored around 3 on each parameter of value chain so good
rating.
Table 22 for value chain of Tavera –
69
Inference - Tavera scored highly on easy procurement followed by spare parts, after
sales and sales person, then come customer handling. Tavera’s value chain
parameters not even crossed avg. of 2.5 so good rating for value chain of tavera
also.
Table 23 for value chain of Scorpio -
Inference – Scorpio also scored highly on easy procurement followed by after sales
and overall satisfaction from value chain. Then come sales persons, spare parts and
customer handling. Scorpio crossed avg. rating for 2.5 so Scorpio’s value chain is
not better than tavera’s value chain.
70
Table 24 for value chain of innova –
Inference – innova also made an impact through easy procurement followed by after
sales, customer handling and overall satisfaction from the value chain. Then come
spare parts and sales persons. Any parameter of value chain not even crossed 2.3
figure so the best value chain goes to innova.
Now comes the overall satisfaction from the car, it is tried to find out that what is the
overall satisfaction level of the customers from all the 7 cars. This satisfaction is
71
measured on some parameters like easy procurement of car, after sales provided,
customer care, availability of car and relation ship marketing of the car company.
Table 25 for overall satisfaction of safari, sumo and bolero –
Inference – TATA safari scored lowest 12.2 while sumo 12.5 and bolero 18.33.
1 highest and 10 lowest in our ratings so safari is the winner in the above table.
72
Table 26 for overall satisfaction of Qualis –
Quails did well by scoring 12.73 on all the parameters of satisfaction.
73
Table 27 for Tavera’s satisfaction level –
Tavera scored just 9.95. Tavera won when it comes to overall satisfaction from the
car. Customers are very much satisfied with Tavera.
74
Table 28 for Scorpio –
After Tavera here comes the Scorpio with 11.39 preceded by tavera’s 9.95.
75
Table 29 for innova –
Now comes Innova with 10.07 so scene is changed – when we talk of satisfaction –
No. 1 goes to Tavera
No. 2 goes to Innova
No. 3 goes to Scorpio
76
Table 30 showing ranking of all the 7 cars (satisfaction level give by customers) –
Because we have assumed 1 to be highest and 10 to be lowest rating so least the
total, highest the car –
SORRY FOR BOLERO WHO LOST THE BATTLE?
77
NOW WE HAVE TRIED TO FIND OUT WHETHER REPLACEMENT OF CAR IS
BASED ON SATISFACTION LEVEL OR NOT. FOR THIS I HAVE TAKEN A
ASSUMPTION (HYPOTHESIS) –
THIS HYPOTHESIS IS CHECKED WITH THE HELP OF CHI SQUARE TEST
HYPOTHESIS – REPLACEMENT IS DEPENDENT ON SATISFACTION LEVEL OF
CUSTOMERS – MEANS IF A CUSTOMER IS SATISFIED HE WOULD NOT LIKE
TO CHANGE THE CAR AND IF HE IS NOT SATISFIED HE WOULD LIKE TO
REPLACE HIS CAR.
Table 31 showing relation between replacements of cars vs. satisfaction level of
customers –
RESPONSE
OF
CUSTOMERS
HIGH MEDIUM LOW TOTAL
YES 13 47 4 64
NO 9 24 3 36
TOTAL 22 71 7
SO 13 CUSTOMERS WHO ARE HIGHLY SATISFIED SAID YES THEY
WOULD LIKE TO REPLACE THEIR CAR.
47 CUSTOMERS WHO ARE MEDIUM SATISFIED SAID YES THEY
WOULD LIKE TO REPLACE THEIR CAR.
78
4 CUSTOMERS WHO ARE LOW SATISFIED SAID YES THEY WOULD
LIKE TO REPLACE THEIR CAR.
9 CUSTOMERS WHO ARE HIGHLY SATISFIED SAID THEY WOULD NOT
LIKE TO REPLACE THEIR CAR.
24 CUSTOMERS WHO ARE MEDIUM SATISFIED SAID NO, THEY WOULD
NOT LIKE TO REPLACE THEIR CAR.
3 CUSTOMERS WHO ARE LOW SATISFIED SAID NO THEY WOULD NOT
LIKE TO REPLACE THEIR CAR.
E(13)=64*20/100=14.08 E(9)=36*22/100=7.92
E(47)=64*71/100=45.44 E(24)=36*71/100=25.56
E(4)=64*7/100=4.48 E(3)=36*7/100=2.52
DEGREE OF FREEDOM = (3-1)(2-1)
= 2
5% DEGREE OF FREEDOM - TABULATED VALUE 5.991
.52<5.991
79
MEANS CALCULATED VALUE IS LESS THAN TABULATED VALUE HENCE
HYPOTHESIS IS ACCEPTED. REPLACEMENT OF CARS IS DEPENDENT ON
SATISFACTION LEVEL OF CUSTOMERS.
When I asked these 100 customers that would they like to replace their car
with some other car in the same category of cars – the answer was –
YES NO
64 36
80
Table 32-
Effectiveness of advertisements vs. influencing power of advertisement –
High Medium Low Total
Yes 18 24 4 46
No. 0 1 3 4
Total 18 25 7
HYPOTHESIS – it is assumed in the above test of Chi Square that effectiveness of
advertisements is dependent on influencing power of advertisement –
E(18)=46*18/100=8.28 E(0)=4*18/100=.72
E(24)=46*25/100=11.50 E(1)=4*25/100=0
E(4)=46*7/100=3.22 E(3)=4*7/100=.28
DEGREE OF FREEDOM = (3-1)(2-1)
= 2
5% DEGREE OF FREEDOM - TABULATED VALUE 5.991
52.33>5.991
81
MEANS CALCULATED VALUE IS GREATER THAN TABULATED VALUE HENCE
HYPOTHESIS IS REJECTED. So effectiveness of advertisements is not dependent
on influencing power of advertisement – means it might be the case that influencing
power of ad is not good still it is effective and vice versa.
82
Inference -
Total 50 persons out of 100 said that yes they have seen advertisement (print ad or
TV commercial) before buying the car – out of these 50 persons 46 persons said
that ad was effective and 4 said ad was not effective enough to convert their thought
of purchase in to final purchase.
Inference – out of 50 persons who saw any advertisement 46 said advertisement
was effective. Advertising of all the companies is effective.
Persons who said ad was effective, had to answer one more question that what was
the influencing power of advertisement –
Table 33 for ad ratings of cars -
Responses
Effective 46
Not effective4
83
Rating is to be done from 1 to 10 – 1 for highest and 10 for lowest.
Innova is having good influence when it comes to advertising followed by Qualis,
Scorpio, Sumo and Tavera.
It is also find while talking to 21 customers of innova that the recent advertising of
Aamir khan influences them a lot. A lot of ads in print media are also influencing
customers.
Tavera is not having good advertising campaign either in print or electronic media.
I have also asked customers and tried to find out that who is the market leader out
of these 7 cars according to them –
Out of 5 safari customers 4 said that innova is the market leader and 1 said
qualis is the market leader.
Both the sumo customers said that innova is the market leader.
Out of 6 bolero customers 5 said innova is the market leader and I said that
qualis is the market leader.
Out of 20 Tavera 5 said innova and 15 said that tavera is the market leader.
Out of 22 Qualis customers 21 said that Qualis is the market leader.
Out of 18 Scorpio customers 17 said that scorpio is the market leader.
All the 27 innova customers said that only innova is leading the market.
84
85
COMPARATIVE ANALYSIS OF THE TAVERA, INNOVA AND SCORPIO
Dealer’s response
I went to 12 dealers – 5 of Toyota, 3 of Mahindra and 4 of GM and got their
response on their company’s car. I tried to put their responses in a comparative
form.
This section deals with the analysis TAVERA, INNOVA & SCORPIO from dealer’s
point of view. It consists of the analysis of the following:
Most selling car according to dealers.
Ranking or competitor’s car.
Actual sales of car.
Marketing approach of the company.
Target customer.
Punch line of the company.
How powerful id the brand name of the company.
Price list of all the dealers.
Distribution strategy of the company.
Integrated brand promotion of the company.
Advertising budget of these companies.
Incentives and benefits offered to the employees (sales force) by the
companies.
86
Most selling car –
All the 4 dealers of Tavera said that Tavera is the most selling car.
All the 5 Innova dealers said that Innova is the most selling car.
All the 3 Toyota dealers said that Mahindra and bolero is doing well in the
market.
Then I asked these dealers to rank their car and competitor’s car on some
parameters of technical features of car so as to get a comparative view of these
three cars –
Ranking is to be done from 1 to 6 because 6 cars are there – Innova, Tavera,
Scorpio , Bolero, Sumo and Safari. Qualis is not coming in the market because it
is closed down by Toyota motors so 6 cars comparative ranking is as follows –
1 is the highest rank and 6 is lowest.
Table 34 showing ranking of features of innova by the dealers –
Inference – 13.67 is the total of all the features of avg. dealers are very much
convinced design engineering and interior followed by luxury and convenience. Then
come engine & transmission, performance fuel economy and handling, safety,
seating and appearance.
87
Table 35 showing ranking of features of Scorpio by the dealers –
Inference – 18.83 is the avg. total of Scorpio. All the dealers ranked Scorpio;
convenience is no1, followed by appearance and safety.
Table 36 for Tavera –
Inference – Tavera is no.3 with total of 19.67, dealers ranked convenience no. 1.
Then come safety, luxury, and appearance having equal rankings. Seating and
performance is no.3 followed by design engineering and interior, engine &
transmission.
88
Table 37 for TATA Safari –
Inference – safari is no.4 with total of 20.50 luxuries and convenience is good
followed by appearance, seating and design engineering and interior.
Table 38 for Bolero –
Inference – bolero is no.5 with total of 27.25. Dealers ranked seating as the best
feature followed by convenience and safety.
89
Table 39 for TATA Sumo –
Inference – bolero here also lost the battle with total of 28.67.
So Innova is no.1 in features ranking by Dealers, Scorpio no.2 followed by Tavera,
Safari, and Bolero And Sumo.
Car
Total of
avg. of
features
Innova no.1 13.67
Scorpio no.2 18.83
Tavera no.3 19.67
Safari no. 4 20.5
Bolero no. 5 27.25
Sumo no. 6 28.67
90
Table 40 sales of Innova –
Car Showroom No. Of cars selling per
month (approx figures)
Tavera T & T motors ltd.
A2/5, Safdarjung
Enclave, New Lucknow
110 029.
350
Tavera AUTOVIKAS
12-A, Shivaji Marg,
New Lucknow 110015.
60 – 70
Tavera APEX AUTO
64-65, Udyog Vihar,
Phase –4, Gurgaon,
Haryana.
125
Tavera REGENT
AUTOMOBILES LTD.
B1/H1, Mohan Co-
operative Industrial
Estate, Mathura Road,
New Lucknow - 110044
350+
Total sales of Tavera
885 approx figure.
91
Table 41 sales of Innova –
Innova UTTAM TOYOTA
95, Patparganj Industrial
Area, Lucknow – 110092
1000
Innova GALAXY TOYOTA
Tsg complex, 69/1-A,
Najafgarh Road, Moti
Nagar, New Lucknow -
110015
500 approx
Innova MGF TOYOTA
SALES AND SERVICE
Plot No. 48, Phase 4,
Sector 18, Udoyg Vihar,
Gurgaon.
70
Innova SOUTH DELH TOYOTA
A-22, Mohan Co
operative Industrial
Estate,Mathura Road,
New Lucknow - 110044
100
Innova UTTAM TOYOTA A11,
Meerut Road, Industrial
Area, Ghaziabad.
100
Total sales of innova 1770
Approx figure
92
93
Table 42 sales of mahindra and bolero -
Car Showroom No. Of cars selling per
month (approx figures)
Mahindra BHASIN MOTORS
(INDIA) PVT. LTD. N 12
South Ex. Part 1, New
Lucknow
110049
125
Mahindra SKY LINE
AUTOMOBILIES
1E/11, Swami Ram Tirath
Nagar, Jhandewalan
Extension, New Lucknow
110055
15-20
Mahindra SRI DURGA
AUTOMOBILIES
55, Rama Road, New
Lucknow 110015
150
Total sales of BOLERO &
SCORPIO
295
APPROX FIGURES
94
INNOVA IS HAVING HIGHEST SALES IN LUCKNOW REGION.
Marketing approach adopted by the companies –
Inference -
Out of 4 GM showrooms 2 said that their company is doing segment
marketing while rest 2 dealers said their company is doing individual and local
marketing respectively.
Out of 3 dealers of Mahindra 2 said that their company is doing segment
marketing while one dealer said that they are doing local marketing.
Out of 5 dealers of Toyota 3 said their company is doing segment marketing
while one dealer said that they are doing individual marketing and the last
dealer said that they are doing local marketing.
95
Use of car –
Inference –
Out of 4 GM dealers 3 said that their car is used for both personal as
well as commercial purpose.
All the 5 Toyota dealers said that their car is used for both personal as
well as commercial purpose.
All 3 Mahindra dealers said that their car is used for personal use only.
Purpose of usage –
Inference – Toyota innova is used for commercial purpose, out of 5 dealers of
Toyota said 4 said that it is used for transportation purpose while all the 5 dealers
said it is used for top management and BPO sector.
GM Tavera is used mostly for BPO sector according to 4 dealers of GM. Only 2
dealers out of 4 said that Tavera is used for top management and transportation
purpose.
96
Personal usage -
Inference –
4 GM dealers said that Tavera is mostly used by personals for official use.
All the three dealers said that it is used for office and family use.
All the 5 Toyota dealers said that families use it. So Innova is proving itself to
be a good family rider.
Punch line correlation –
All these 12 dealers said that yes consumers correlate the punch line of
advertisement while sensing the brand name of the company.
Power of brand name in attracting customers –
97
Inference –
Out of 4 dealers of Tavera 3 said that that Brand Name of CHEVROLET is
having medium power in attracting customer only one dealer said that it is
having high brand power.
All the 5 dealers of Toyota said that Toyota is having high brand image in
attracting customers.
All the three dealers of Mahindra said that mahindra’s brand name is high in
attracting customers.
Distribution strategy –
All the 12 dealers said that their showrooms are dealership under guidance of their
respective companies. So distribution strategy of these 3 companies is company to
dealers.
98
Sales promotion –
Inference -
Out of 4 dealers of GM 2 said that they offer discounts, 3 said that they give
offers, 3 said that they give festival offers, 3 said that they offer free gifts and
only 1 dealers said that they provide free accessories to their customers.
Out of 3dealers of Mahindra 1 said that they offer discounts, 1said that they
offer festival offers to customers.
Out of 5 dealers of Toyota 3 said that they offer discounts, 2 said that they
give offers, 4 said that they give festival offers, and only 1 dealer said that
they provide free accessories to their customers.
So Innova is having best sales promotion out of its competitors (GM and
Mahindra).
Advertising in print media
99
Inference -
Out of 4 dealers of GM 4 dealers said that they advertise their product in
news paper, 4 said that they advertise in magazines, 1 said that they
advertise in journals, 3 said that they advertise in mailers, 3 said that they
advertise through pamphlets and 2 said that they advertise through yellow
pages.
Out of 3 dealers of Mahindra 3 dealers said that they advertise their
product in newspaper, 1 said that they advertise in magazines. They don’t
do advertising through other modes.
Out of 5 dealers of Toyota, all the dealers said that they advertise their
product in news paper, 4 said that they advertise in magazines, 2 said that
they advertise in journals, 4 said that they advertise in mailers, 2 said that
they advertise through pamphlets and 1 said that they advertise through
yellow pages.
So Toyota is having advertisement in all modes of print media, GM is ok, but
Mahindra is not having ads in all modes of print media. They should also
advertise through other modes of advertising also.
Advertising in electronic media
100
Inference -
Each GM dealer said that they are having advertisement in TV, radio,
websites and cinemas.
Two dealers of Mahindra said they are having advertisements on TV
channels.
Toyota is having advertisements on TV (the Aamir Khan ad), 2 dealers
also said that their companies are having ads on various websites.
I don’t know why these companies are not having ads on radio because
radio is the medium that reaches to lower class of society also though
lower class is not the target customer for these companies but if these
companies will advertise through ads on radio then even the lower class
will know about the company and the product and these lower class
people can tell their view on company’s product to their friends and
relatives who belong to upper middle class or higher class of society.
So these lower class & middle class customers can recommend products
to other people or their friends.
Advertising budgets of these showrooms – dealers did not tell me the exact
figure of advertising budget but when I requested them to tell approx budget
of advertising they told me some avg. figurers.
101
So Toyota is having highest budget of advertising per month GM is no.2 and
Mahindra should iLucknowease their advertising budget so as to iLucknowease the
sales of Scorpio and Bolero.
102
Incentives offered by these 12 dealers to their sales force –
1800/3 = 600 MAHINDRA
4000/4= 1000 GM
5000/5= 1000 TOYOTA
So Toyota wins the race by offering 5000 as incentive to its sales force.
GM offers 4000 and mahindra 1800. The problem is that Toyota is having 5 dealers
while mahindra is having 3 and GM having 4 dealers, but if we take the average of
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these incentive amounts then Toyota and GM both are doing well to motivate their
sales force.
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Table 43 Correlation between sales and advertising budget –
So X is was sales and Y is budget –
Budget was in 1000 like 50000, 100000 in total budget was 700000 and it was
divided by 1000 then further calculation is done on this 700 amount.
Mean of x = 2060 / 12 = 171.66
Mean of y = 700 / 12 = 58.33 or 700000/12 = 5833.33
15496.60
Nor r = --------------------------- = 15496.66/28146.63 = .5505
| 235316.67*33.66.67
(x-mean of x)*(y-mean of y)
----------------------------------
235316.67*3366.67 = 792233573.388
Then under wood of 792233573.388 is calculated. That is 28146.63
High degree of positive correlation if found out - .5505
So if advertising expenditure will go up sales will also go up.
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Regression analysis –
Regression line of y on x:
Byx = sum of (x-mean of x)*(y-mean of y)
-------------------------------------------
Sum of (x-mean of x)^2
= 15496 .60/235316.67 = .065
(Y-mean of y) = Byx (X- mean of x)
= Y- 5833.33 = .065X - .065*171.66
= Y – 5833.33 = .065 X – 11.1579
Y = .065X – 11.1579 +5833.33
Y = .065X + 5822.17 ------------------------------------ equation 1
Regression line of x on y:
Bxy = sum of (x-mean of x)*(y-mean of y)
----------------------------------------------------
Sum of (y-mean of y)^2
= 15496.60/3366.67 = 4.602
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(X-mean of x) = Bxy (Y- mean of y)
X-171.66 = 4.602 (Y- 5833.33)
X-171.66 = 4.602 y – 26844.98
X = 4.602y – 26844.98 + 171.66
X = 4.602 Y- 26673.32-------------------------------equation 2
In the 1st equation we can find out that what should be the advertising budget
if sales is given. And from equation 2 we can find out that what should be the
sales amount if advertising budget is given.
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CONCLUSION
In this era of tremendous competition between these cars it is not easy to survive for
existing players, then how a new company can come and survive in this segment of
luxury cars cum jeeps. Now comes the question to the mind that who is no.1 in this
segment of 7 cars? If we see from customers perspective the no.1 rank goes to
TAVERA followed by INNOVA and SCORPIO. But this is the response of just 100
customers so the result might vary if we take a sample size of 1000 customers. In
that case INNOVA may come 1st. so results will change according to sample size of
study.
Now if we take response of 12 dealers of these 3 cars in our mind then INNOVA is
no. 1 followed by SCORPIO and TAVERA. Now if we increase the size of dealers
then result may change. It might be the case that TAVERA may come first if we
change the sample size of dealers. So the thing is that result may change according
to change in the sample size. It is not easy to change customer’s perception and
dealer’s view. What the customers think of a car? This question is really difficult to
answer. I tried my level best to get into the mind of customers but it is not easy to
take true response out of a customer’s mind. Dealer’s response was really good in
this study. At some places I found customers to be very confused. Customers also
gave biased responses to some answers because a customer thinks his or her car
to the best one. Comparatively if we see INNOVA and TAVERA both are doing well.
At some places INNOVA is no. 1 while TAVERA wins the race at some other points.
SCORPIO is also having its own place in the mind of customers. I have also
included 4 other cars in this study – QUALIS, SUMO, and SAFARI & BOLERO.
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QUALIS is also having good share in the market, but the problem is that QUALIS is
closed down by TOYOTA motors. What I felt from customer’s responses that if
QUALIS would have been in the market at present, I am damn sure that it must be
no.1 car. Even a customer of TAVERA told me that if QUALIS were again launched
in the market no one would go for INNOVA & TAVERA. QUALIS is closed down by
TOYOTA motors so that the prospective customers of QUALIS can shift to INNOVA.
INNOVA is a substitute of QUALIS in the market. TAVERA and SCORPIO would
really have to work hard to compete with INNOVA. SUMO & BOLERO are almost
out of the market. SAFARI is on no one’s mind.
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RECOMMENDATIONS
INNOVA is doing well in market. But the only thing that TOYOTA should keep in
mind that it is easy to reach at no.1 position than to remain at no.1 position. It might
be the case that INNOVA is no.1 today but tomorrow some other company can
come to no.1 position. So there are some points, which not only should TOYOTA
keep in mind, but other companies should also focus on these points –
Constant updation of their product.
Competitor’s product and their strategy to win INNOVA’S customers.
Constant work on brand promotion and market integration.
Always try to be on top.
Always have a feeling of their major competitor especially CHEVROLET
TAVERA.
Advertising should be for all the periods, all the seasons and for all the
prospective customers.
Always try to attract new customer by hook or by crook.
Toyota motors should try and built brand loyalty in the mind of a general
customer.
Company’s aim should be not only to sell their product but to also give
customer full satisfaction with full value for their money.
Customer’s choice depends on their perception, their standard of living and
their life style. Companies should try to influence prospective customers by
the way they think. First get into the mind of customer then push him or her to
make the final decision of purchase. This is possible only if advertising is
effective. Advertising is the important link between a prospective customer
and the company, so it should be influencing.
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I have seen a very good advertisement of INNOVA on TV. Even the
customers of SCORPIO & TAVERA have seen the ad and they are very
much impressed with advertisement, so it is a good point that customers of
TAVERA and SCORPIO enjoyed advertisement of INNOVA. This is exactly
what TAVERA AND SCORPIO should do.
For effective advertising proper planning of brand promotion is required.
SCORPIO and TAVERA can also hire some celebrities like Aamir Khan is the
brand ambassador of INNOVA.
Recently TAVERA hired Zaheer Khan and speed star Irfan Pathan. So
TAVERA is working on brand promotion.
SCORPIO is having a very good brand name of MAHINDRA & MAHINDRA
but they are playing in the market haphazardly.
What I found at MAHINDRA showrooms that their sales force is not very
convincing, dealers should try and prepare a decent work force for so that
they can impress their customers and sell their product.
MAHINDRA SCORPIO can also hire for some actor or a sports star so as to
promote their car. Other wise SCORPIO is also having good look and
appealing feature.
SCORPIO is not very much used for commercial purpose like that of INNOVA
& TAVERA, so MAHINDRA should try to promote their brand as a commercial
vehicle. People think that SCORPIO is a jeep for personal purposes.
BOLERO is really suffering a lot, and how to compete with brands like
INNOVA, I think MAHINDRA again has to work a lot on BOLERO’S
advertising part and they should reposition their product into the mind of
customers. STP approach segmentation, targeting and positioning should be
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revised by MAHINDRA. Price of MAHINDRA’S cars is very competitive, it’s a
good point for MAHINDRA.
TATA again a huge brand name but SUMO & SAFARI are not performing
well. I think TATA having a lot of impression on INDIAN minds have to just
make their customers remember their brand name. TATA can do very well if
they re launch SUMO & SAFARI with a different approach. SAFARI is having
good name and features but when INNOVA is a competitor it is really difficult
to survive.
TOYOTA is very innovative and that is what TATA should do. TATA is very
old brand name but the problem is that they stick to their old marketing
strategies; TATA should re innovate their product and should come with solid
& competitive marketing strategies.
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LIMITATIONS
Though the present study aimed to achieve the above-mentioned objectives in full
earnest and accuracy, it was hampered due to certain limitations. Some of the
limitations of this study may be summarized as follows: -
Locating the target customers of the cars were very time consuming.
100 were the sample size in this study. So I had to contact 100 customers
and when asked from the dealers for their customer’s database they
straightly denied me. So I had to catch the customers of Tavera, Innova and
Scorpio on the general places shopping malls, car parking and hotels.
The selection of customers to cover the various strata of the society was
tedious and time consuming.
Getting accurate responses from the respondents due to their inherent
problems were difficult. They were partial, and refused to cooperate.
Some respondents were not at home so had to be re-contacted, and some
others responded by proxy. Some gave their business cards and I had to
contact them through phone.
I had to travel a lot to get the responses from the dealers and the customers.
Dealers were located all over LUCKNOW I got their address from Internet.
The survey was costly and tedious.
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The questionnaire is a long one so not easy to get it filled. I had to make the
questions understandable to the respondents if they could not get the
questions.
Dealers also were difficult to tackle with; some of the dealers asked me what
they would get if they fill up the questionnaire. So I had to convince them a
lot by saying that I can also give a copy of analysis to them.
It was not easy to take out response from the customers, because customers
were not ready to respond. I had to convince them a lot. I think that
questionnaire is really a boring job from a customer’s point of view. So I had
to suffer a lot while getting the questionnaires filled from the customers.
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Bibliography
Books -
Marketing Management by ICFAI publication
Advertising and Integrated Brand Promotion
Quantitative methods by ICFAI publication
Principles of advertising
Web sites visited –
www.rediffusiondyr.com
www.google.com
www.altavista.com
www.dogpile.com
www.toyota.com
www.gm.com
www.mahindra.com
www.tata.com
www.advertising.com
www.jwt.com
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