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CHAPTER:1

INTRODUCTION

1.1 BACKGROUND OF THE STUDY:

As the 21stcentury approached, marketing become more attractive at the company,

state, national, International levels, in the early days, there was no difference

between selling and marketing. But today the difference between these two

terms has been clearly made in the present dynamic world. Marketing is

recognized as the most significant activity in our society.

The importance of marketing function in business management has grown

significantly during last two decades. This development has come about as a result

of several factors such as technology expanding world markets, changing

international environment, increasing consumer sophistication, keen competition

and growing size and complexities of modern business.

Marketing is thus all around us, our daily existence our economical life and our life

styles is continuously affected by a wide range of marketing activities. The

marketing concept holds that the key to achieving organizational goals consists in

determining the needs and wants of target markets and delivering the desired

satisfaction to its customers more effectively and efficiently.


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The marketing system plays a unique role in transforming the benefits of mass

production in terms of raising the standard of living and life styles of all people.

Thus better marketing can raise living standards of all people in the country. It is

entrusted with the task of creation and raising the standard of living of the society.

the food we eat, the clothes we wear, the house we live in, the comforts and the

amentias we enjoy in our homes and at work placed, the health and welfare

activities which give us peace of mind, all these are profoundly affected each day

by the marketing system. marketing process reflects on social importance because

it has been given the responsibility of creating, raising and maintaining the

standard of living of society.

Marketing comprises of integrated system of business activates in order to plan,

price, promote and distribute goods and services to meet the customer needs within

the limits of society. In marketing, marketing strategy plays an important role in

various aspects of marketing.

The American Marketing Association defines Marketing as the performance of

business activates that direct the flow of goods and service from producer to

consumer or user.


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According to Philip Kotler Marketing is a set of human activities directed at

facilitating and consuming exchange of products and services through transaction

to satisfy human needs and wants .

Thus marketing is social and managerial process by which individuals and groups

obtain what they need and want through creating, offering and exchanging

products and services of value with each other.

Understanding of these various definitions being out the following concept of

marketing: needs, wants and demand products (goods, service & ideas) ; value,

cost and satisfaction; exchange and transaction; relationships and networks

markets; marketers and prospects.

1.2 BACKGROUND OF THE INDUSTRY

The French engineer Nicolas Joseph Cungnot is generally considered to have built

the fist self-propelled vehicle in 1789. It was heavy, three- wheeled, steam driven

carriage with a boiler that projected in from and its top speed approximately 5 km

per hour.

In 1801 the English engineer Richard Trevithick also built a three wheeled, stream

driven car. This was rear- wheel driven car. Many more vehicles were developed in

England and attempts were made to operate them on regular schedulers. However,


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they were banned from the roads and automobile development was retarded. The

speed was limited to 4 miles per hour. In accordance with the Red Flag Act, which

was in effect from 1836 to 1896 a man was required by law to walk in front of a

self propelled vehicle, carrying a red flange by day and red lantern by night.

The man who developed this crude machine into a practical and reliable

automobile was Gotlieb Daimler (1834-1900), a German engineer, who developed

an improved internal combustion engine in 1885. His improvement mad in the

made in the 1880s contributed largely to the development of the automobile

industry. In 1890, he founded the Daimler Motor company at Constant, Germany,

which is credited with having turned out the finest motorcars in automobile history.

In the United States, Charles Duryea and J. Frank Duryea Elwood Hynes, Henry

Ford, Ransom E. Olds, and Alexander Winton manufactured internal combustion

cars in 1887. The man who has distinction of bringing the motorcar to the masses

was undoubtedly Henry Ford (1863-1947) an American industrialist born in

Dearborn, Michigan. He showed mechanical aptitude at early age and left his

fathers farm in 1879 to work as an apprentice in a Detroit machine shop.

He soon returned to his home, but after considerable experimentation with power

driven vehicles, he went to Detroit again in 1890 and worked as a machinist and

engineer with the Edison Company. Ford continued working in his spare time as


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well, and in 1892 he completed his first automobile. In 1889 he resigned from the

from the Edison Company and launched the Detroit automobile company, but a

disagreement with his associates lead him to organize the Ford Motor company in

partnership with James Couzenz, the Dodge brother and others in 1903. In 1907

the purchased the stock of his associates, and thereafter the company remained in

control of the ford family. By cutting the costs of production, gaining control of

raw materials and the means of distribution, adapting the conveyor belt and

assembly line to automobile production, and by featuring an inexpensive and

standardized car, HendryFord were soon able to outdistance all his competitors

and become the largest automobile manufacturer in the worked. He came to be

regarded as the apostle of mass production. In 1908 he designed the Model, T, and

a new design, the Model A was created to meet growing competition.

Ford will always be remembered in history for introducing the commoners to the

wonder of a totally exciting and radical; mode of transportation that is being

upgraded constantly to give the man on the street the automobile of his dreams.

1.3 CURRENT TRENDS IN THE AUTOMOBILE INDUSTRY

Widespread environment concerns that stem from the rapid and irreversible

depletion of fossil energy resources coupled with serious pollution hazards, have

triggered a spate of lobbying for stricter federal norms to take necessary corrective


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actions in the fight against pollution. The maximum acceptable emission level for

all road vehicles is constantly being revised, with a view to compel the automobile

industry to increase the pace of the development of alternative fuel consumption

vehicles, and to stop almost a century of total reliance on fossil energy resources.

The garnering of immense public support has only served to convince the various

automobile titans that ecofriendly is the way to go in order to survive.

All these development have lead to the metamorphosis of a new concept, the

alternate fuel vehicles, (AFV) that run on fuels other than gasoline and diesel.

Some of the practical alternative fuels are:

1 Compressed Natural Gas (CNG)

2 Liquefied Petroleum Gas (LPG)

3 Methanol (M 85 or 100)

4 Ethanol (E 85 or E 100)

5 Bio diesel or Soy diesel

6 Electricity

7 Hydrogen (Fuel Cell Vehicles)


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The above mentioned alternative fuel vehicles are vehicles increasingly popular.

The latest statistics revel that there are well around 3.75 million AFVs worldwide.

The United States of America has 980,000 AFVs vehicles.

Contrary to popular perception Alternative Fuel vehicles are not an impractical and

short term solution in the gradual phasing out of the conventional gasoline and

diesel powered vehicles. Extensive tests have proved that, in fact the Alternative Fuel

Vehicles are in many respects more economical to maintain and have many additional

advantages over their petrol/diesel counterparts.

1.4 RECENT TRENDS IN THE INDIAN AUTOMOBILE INDUSTRY

Until recently, India has the dubious distinction of being the home of some of

oldest and least updated cars in the world. The Ambassador, from Hindustan

motors is still in production and bears the same features and styling as its first

models, which Fiat rolled out in themed 1950s these two cars initially

revolutionized the Indian roads, but failed to keep pace with the rapidly advancing

technology and gradually become blight in the history of the automobile in Indian.

Both the Ambassador and the Fiat were notorious for not even acknowledging

customer grievances and were publicly scorned for continuing to produce age old

relics for the Indian consumer.


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However, India opened up its economy and invited multinational corporations to

partake in its future. This cautious liberalization is reflected in the automobile

industry, which has seen an unprecedented growth rate in the last decade.

Undoubtedly, the firm which heralded the automobile revolution in India was

Maruti Udyog Limited and its Japanese partner Suzuki which introduced the

Maruti 800 in India in 1985. As a result after a long period of deprivation, the

Indian consumer had access to a modern car at very affordable price. The original

Maruti 800 was soon updated, and the new version became so successful that it

captured 85% of the market share, and was viewed as the car that established

Maruti Udyog Limited as a titan in the domestic passenger car segment.

This spectacular success story made global automobile giants look at India as a

vast, virtually untapped market with enormous potential. The 1990s saw a host of

multinational companies enter different segments in the Indian automobile

industry. Rover from Britain brought Montego in estate and saloon guise to replace

its standard 2000 model. Peugeot, the French car giant launched the 309 in the

mid-size car segment. Italian car manufacturer Fiat introduced the Uno in the

lucrative small car segment. The Korean giant Daewoo launched its Cielo, a luxury

saloon at an attractive price. Ford, a big name throughout the world spirited its

hugely successful Escort as its flagship model in India and launched Ikon in 2000.


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Opel from General Motors, soon followed suit and launched Astra in the fast

growing mid-size size luxury car segment. Mercedes Benz also entered India with

its luxury E230 and E250 D models.

Global players like Skoda, Volkswagon, Renault, Toyota, B.M.W. and other

automobiles heavyweights are closely monitoring the Indian market due to its

strategic importance in the Asian sector.


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In line with Daimler Chryslers corporate philosophy, Mercedes- Benz India

Limited was rechristened Daimler Chrysler India Private Ltd. It ahs long term

commitment to the Indian market and has full support of its partner company for

its future plans in India. Daimler Chrysler is well aware of the future potential of

the Indian automobile market and the tremendous economic power the country can

generate. The company is targeting 25% of the total turnover from Asia.

Mercedes- Benz has been associated with India for more than 50 years Presently,

Mercedes =Benz Indias engagement in India covers several domains:

1. Local production of Mercedes- Benz cars

2. Making available imported Mercedes Benz cars

3. Commercial vehicle operations

4. Global sourcing of auto components

5. Captive research and development

Mercedes Benz is also involved with social-oriented programs like:

1. Bio fuel from Jatropha

2. Road safety project for children


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3. Automotive education

2.2 PROFILE OF JAGAT AUTO:

Jagat Auto is one of the most established and known dealers of

Mercedes Benz cars, spare parts and accessories in Delhi. The company

is managed by Mr. Manav Chadha, who is the Director of sales and

Marketing in the company.

JagatAuto commenced its operations in April 1996 as an authorized

dealer of Mercedes Benz spare parts and accessories. As the company

steadily grew, it acquired the dealership of Mercedes Benz cars in

January-2000 Now Jagat Auto-Benz has crated a well respected position

of itself in Mercedes Benz India by the virtue of being one of the most

successful dealers.

Though Jagat Auto mainly operates from the showroom located in

central Delhi Khan Market, it also has numerable service centers across

the city. Jagat Auto caters to a wide range of customers and employs a

knowledgeable and well trained workforce. It also provides facilities like


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24-hour emergency services, delivery service, diagnostic analysis and

breakdown assistance.

The objective of Jagat Auto are as follows:

1.Satisfaction of the customers

2.Providing quality service to the customers

3.Response to the customers

2.3 WORK CULTURE AT DAIMLER CHRYSLER INDIA:

Products that meet such high demands also require high standards from people

producing them the staff of Daimler Chrysler. A high level of qualification,

focused motivation and the uncompromising identification of the staff with their

task are the basis of the image which Daimler Chrysler has acquired with their

products all over the world.


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Mercedes Benz has equipped the production facilities with the latest state of the

art engineering. It has also invested in the continuous training and education of the

staff in the training center. The company encourages team work, group dynamics,

responsibility and outstanding performance. All this service the purpose of creating

the optimal basis for quality.

International high tech companies have had their products developed and produced

in India for years-especially in the field of computers and computer software.

There is a large potential of highly qualified and highly motivated staff in India

from manual works to top manager

This is true for production facilities in India, as it is in any other part of the

worked. Indian workers may differ from their German counterparts, but they have

the same level of qualification a their counterparts in Germany. They also enjoy

the same facilities and level of training as their counterparts in any other Mercedes

Benz production facility. The training guidelines are identical to those in Germany,

and the examinations to be passed are of the same caliber and are awarded with the

exact same job titles as in Germany. The German colleagues who carry out senior

jobs for Daimler Chrysler in India play an important role in education, production

and quality control.


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The result of the collaboration between Indian and German colleagues is high

quality work which translate to outstanding quality products Mercedes Benz

made by Daimler Chrysler AG

2.4 SOCIAL AND ENVIRONMENTAL RESPONSIBILITY:

Mercedes- Benz India is not only a leading vehicle manufacturer, but also an

important participant in society in general. The company has a social commitment

to all the communities in which they operate. The Jatropha Biodiesel Project

address issues such as rural income and employment, indigenous and environment

friendly bodices and reclamation of wasteland. Automotive training programmes

are aimed at developing local technical competence in India. Mercedes Benz India

also have a Mobile Kids programme that runs in various schools across India that

takes internationally relevant traffic safety topics and brings them across through

information, motivation and training; the Mercedes-Benz International School


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information , motivation and train gin. The Mercedes Benz International school

meets educational requirements internationally. Social responsibility is an

important factor the long term success of the company as only then can it

contribute towards peace and prosperity in the future.

For Daimler Chrysler India environmental protection is a corporate goal that is to

be practiced with devotion. The company has been awarded the prestigious ISO

140001 Certificate for implementing the Environmental management system .

Keeping in line with Daimler Chryslers policies towards environmental

protection, DaimlerChrysler India is making every effort towards protecting the

environment.

2.5 CUSTOMER RELATIONSHIP MARKETING :

Mercedes Benz India has developed a world class dealer network across the

country with presence in 30 cities. Daimler Chrysler India has dedicated network

of Mercedes- Benz authorized dealerships comprising of 15 Mercedes- Benz


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showrooms and 17 service workshops all across India. The company implemented

the Mercedes-Benz Retail Operating System which ensures that all Mercedes-

Benz dealerships follow standardized retail operating procedures and deliver high

standards of service to the customers. The right atmosphere, aesthetic product

presentations and qualified sales personnel who know exactly what a customer is

looking for makes buying Mercedes vehicle at a Mercedes- Benz showroom a truly

unique experience.

The exemplary engineering qualities of a Mercedes-Benz car only be matched by

first-class after-sales service and each Mercedes- Benz Authorized service station

is equipped with the state-of-the-art infrastructure to handle the most critical

service needs. Needless to mention, modern equipment requires skilled personnel

and the Mercedes-Benz service center employs a team of dedicated and well-

trained service processionals

And in the endeavor to provide total customer satisfaction, nothing is left to

chance. Daimler Chrysler India has equipped its entire dealer network with 24-

hours service to provide round the clock service to it valuable customers. The

Mercedes- Benz service vans are equipped with the latest automatic diagnostic

instruments and offer breakdown assistance even in remote places.


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The company has lunched the Mercedes-Benz Club, which brings together like-

minded Mercedes-Benz owners and caters to their special interests and needs. The

philosophy of Mercedes-Benz Club is to bring Mercedes customers closer through

activities they would like to identify with and get them further associated with the

Mercedes- Benz brand.

Another medium for interaction with the customers in through the companys

website www.Mercedes-benz.com the website provides a unique Mercedes- Benz

car configuration, first of its kind amongst India car manufacturers, which makes it

possible to virtually build, select the color, upholstery and options and view that

desired Mercedes car. There is also a pre- owned car search facility and the facility

to book service appointments on the website and the customers can send their

requests online to the nearest Merced- Benz dealer.

2.6 PRODUCT PROFILE:


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In the last two years, Daimler Chrysler India has extended the product range to the

maximum possible, offering the exclusive customers a variety of Mercedes- Benz

products. The company has been a main contributor to the expansion of the luxury

vehicle segment in the Indian market. In January 2000, the company introduced

Mercedes-Benz E-Class (W 210) petrol and E 220CDI Diesels versions with a

number of unique additional features.

In addition to the companys own manufactured range the Mercedes-Benz S-Class,

E-Class and C-Class, Daimler Chrysler India has further expanded the product

range to make variety of imported vehicles like Mercedes-Benz S-Class, M-Class,

SLK, etc. available to discerning Mercedes Benz customers.

The market trend in India in the last couple to years reflects a clear shift in

customer preference to words the latest technology, safely, comfort and

environmental compatibility. Keeping this is mind; Daimler Chrysler India has

been following the product extension stringy with total commitment and offering

the latest and most sophisticated technology

Model/class:


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CLS-Class:

The CLS-Class is a dream coupe

with four doors, the elegant curves of

its sleek roofline stretching between

the long front and rear overhangs.

The CLS- Class is a 8unique

synthesis of design and driving

pleasure.

E-Class:

The E-Class is a byword for comfort,

safety and elegance. Comfort of the

highest order is a defining attribute

of the E-Class.

M-Class:

For the M-Class, comfort is more

than just an opulent interior, the 7 G-

TRONIC automatic transmission,


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with seven forward gears the

transmission delivers excellent a

acceleration and low fuel

consumption.

S-Class:

The S-Class is an attitude, an

aspiration, a way of seeing things, in

terms of innovative technology, the

S-Class has always played a

SAFE(R)- the S-Class has set trends

which the rest of the car industry has

followed

SLK-Class:

The SLK- Class shows a great deal

of respect for the legendary racing

car. The SLK is the worlds best

selling roadster in its class. The

unique AIRSCARF ensures that SLK


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drivers can enjoy the top -down

sensation. And its arrow =Shaped

body just oozes classic sports car

design.

A Class:

The A-Class is a ground breaking car

and after seven years in production,

Mercedes Benz sold over 1.1-

million units of the model. The all-

new A-Class is available with a

choice of six engines (3 petrol and 3

diesel and in Classic, Classic SE,

Elegance Se and Avant- Garde SE

trim levels.


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CHAPTER:3

RESEARCH METHEDOLOGY

3.1TITLE OF THE STUDY:

A study of Customer satisfaction on Mercedes- Benz.

3.2 STATEMENT OF PROBLEM:

In the automobile sector, four wheelers play a vital role and contribute to the

economic growth of the country. The characteristics and nature of the India are

very difficult to understand and the defined population of the country has been

divided in to different social classes, namely high class, middle class, and lower

class, As four wheelers are owned by the upper middle class and higher- class

people, the present study tries to analyze the opinions of the customer, why they

prefer particular service center for getting their car serviced repaired.

3.3 NEED OF THE STUDY:

There are many players in the market namely Jagat Auto and Mercedes Auto

Hence customers have many choices. The need of the study was to determine the

consumers mindset towards present MercedesBenz care and its service.


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1. It is necessary to know the responses of the consumers regarding the service

expenses, quality of work, performance etc. of the service center which they

prefer.

2. It is important to know the trend awareness of customers towards the service

center, which they prefer.

3. It is necessary to know the present competition to Jagat Auto so that

company can upgrade its product and marketing strategies.

4. It is necessary to know the desire of the customer, what they expect from the

service center and what steps should be taken by the service center to fulfill

the expectations of it customers.

3.4 OBJECTIVES OF THE STUDY:

The following are the objectives of the study:

1. To find the popularity of Mercedes Benz.

2. To analyze the customers preferences to Mercedes- Benz cars in particular.

3. To analyze the factors which in influence their decisions.


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4. To analyze the performance, service cost, quality of the service rendered by

Mercedes-Benz.

5. To analyze the category of people who visit the showroom.

3.5 SCOPE OF THE STUDY:

The study is based on the market survey conducted for Jagat Auto in Delhi city.

The study provides an area to find whether Mercedes Benz is providing

professional service to the satisfaction of the customers.

3.6 RESEARCH METHODOLOGY OF THE STUDY:

DESCRIPTION OF RESEARCH AND DESIGN

The Encyclopedia of social science defines research as the manipulation of

generalizing to extend, correct or verify knowledge. This definition highlights the

primary purpose of research; arriving at generalization and the method of

manipulation, which is an aspect of experimentation adopted for the purpose.

Sampling size: The study is conducted on a sample size of 50 respondents who are

owners of Mercedes-Benz cars.

1. Sampling Frame: The target population for the study consists of customer of

Jagat Auto.


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2. Research instruments: An interview schedule was used to conduct the study .

SOURCE OF DATA:

1. PRIMARY DATA:

Primary data are original source from which theresearcher directly collect

data that have not been previously collected from the structured

questionnaire. For the purpose of collecting the same, fifty respondents have

been selected. In this study primary data plays a vital role for analysis,

interpretation, conclusion and suggestion.

2. SECONDARY DATA:

These are source- containing data, which have been collected and

complied for another purpose. The secondary sources consist of readily

available media and already compiled statistical statements and reports whose

data may be used by the researcher for the

Secondary data have been collected from the following.

1. Various Newspapers


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2. Company Brochures

3. Company Reports

4. Information From Internet

5. Car Magazines

3. DATA COLLECTION INSTRUMENTS

The instrument used for his study is structure interview schedule. Questions related

to objectives of the study from the major portion of the interview schedule. It

mainly consists of multiple choice questions where the respondents can make one

or more of the several choice of answers.

4. FIELD WORK

The project involved fieldwork of 30 days, where in the survey was carried out and

respondents who are customers of Jagat Auto Mercedes service center were

questioned to know why they prefer Jagat Auto for servicing their Mercedes Benz

car.

3.7REFERENCE PERIOD:


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The data for the study has been collected the year 2007-08. The reference period

of the study is from 1stJune 2008 to 3

rdJuly 2008.

3.8 LIMITATION OF THE STUDY:

Despite all possible efforts to make analysis more compressive and scientific, a

study of the present kind is bound to have certain limitations. The present study is

an empirical work presented in a descriptive manner.

Since the objective to the study will meet this kind of analysis, no attempt has been

made to provide a conceptual analysis. However the role of automobile in the

development of the economy and future prospects have been rightly understood

and explained.

There are always certain limitations of interview method, observation technique

and questionnaire method. Due to time constraints and other supporting factors the

study has been limited only to the customers of Jagat Auto (Mercedes benz)

service center, Further it is inevitable in a study of this kind that time analysis has

to be done based on the opinion and attitudes of the dealers. In such cases the

results at best re near to truth. However an honest attempt has been made to report

and analyze the opinions of the dealer.


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3.9 CHAPTER SCHEME:

1. The first chapter deals with introduction, definitions and principles of

Marketing as well as other related activities. It also focuses attention on the

background of the automotive industry in general, as well as the recent

trends in the global and the Indian markets.

2. The second chapter focuses attention on the research methodology which

gives information about the selection of the problem, need and importance

of the study, the objectives of the study, scope of the study, sampling, tools

of data collection and limitations of the study.

3. The third chapter deals with the profile of the organization which includes

the history, work culture, product profile and organizational structure of the

organization.

4. The fourth chapter deals with the analysis and interpretation of the data.

5. The fifth chapter deals with the findings of data analysis and interpretation.

6. The sixth chapter deals with suggestions and recommendation.

7. The seventh chapter states the conclusion of the study.


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8. The eighth chapter refers to questionnaires prepared for data analysis and

interpretation.

9. The ninth and the final chapter refers to the bibliography of the study.


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CHAPTER:4

DATA ANALYSIS AND INTERPRETATIONS

Question 1 Showing the age group of Mercedes-Benz Car owners in Delhi

Sample size Below 30 31-40 41-50 Above 51

No. of

Respondents

2 15 26 7

Percentage 4 30 52 14

Source: Primary Data

Graph No.1 : Distribution showing the age group of respondents

4%

30%

52%

14%

Below 30

31-40

41-50

Above 51


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Interpretations

52% of Mercedes-Benz owners in Delhi are in the 41-50 age group followed by

30% in the 31-40 age group, 14% in the above 51 age group and only 4% below 30

years. It is found that middle age group people are more attracted to Mercedes

Benz Cars. MBIL should target this group as its primary market segment.


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Question 2 Showing the occupation of Mercedes-Benz Car owners in Delhi

Sample size Professional Producers Export

&

import

Service Agriculture

No. of

Respondents

4 23 14 7 2

Percentage 8 46 28 14 4



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Graph No2 : Distribution showing the occupation of respondents

46% of the Mercedes-Benz car owners are in the manufacturing business, followed

by export/import business at 28%. 14% of the car owners are in the service sector,

8% are professionals and only 4% are in agricultural business. It is observed that

Businessmen in manufacturing and export/.import are interested in purchasing

Mercedes Benz cars.

0

5

10

15

20

25

Professional Producers Export & import Service Agriculture


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Question 3 Showing the customer satisfaction score by region

City Score

Bangalore 108

Delhi 106

Mumbai 103

Chennai 99

Kolkata 82

Total

Industry

100



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Graph No. 3 : Distribution showing customer satisfaction as per the Region

Interpretations

At 22% Bangalore has the highest level of customer satisfaction among all the

cities, followed by New Delhi and Mumbai at 21%, Chennai at 20% and Kolkata at

16%.

22%

21%

21%

20%

16%

Bangalore Delhi Mumbai Chennai Kolkata


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Question 4 showing the factors influencing the respondents decision while

purchasing the car

Sample size Self Spouse Children Friends /

Relatives

No. of

Respondents

22 11 0 17




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Graph No. 4: Distribution showing factors influencing the purchase decision

Most of the Mercedes Benz car owners took their own decision to buy the car

themselves (44%). Some of them are influenced by their friends and relatives

(34%). And only 22% of them are influenced by their family to buy a car.

0

5

10

15

20

25

Self Spouse Children Friends / Relatives


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Question 5 Showing the method of payment

Sample size Cash Finance Lease

No. of

Respondents

3 34 13

Percentage 6 68 26



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Graph No. 5: Distribution showing the Method of Payment

Interpretations

Most of the owners brought the car through finance (68%) followed by taking lease

(26%) and cash purchase (6%). MBIL should arrange a more convenient method

for obtaining finance for its car in order to increase the sales.

6%

68%

26%

Cash Finance Lease


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Question 6 Showing the source of information about Mercedes-Benz Car

Sample Size Print Media Visual Media Outdoor Others

No. of

Respondents

18 0 5 27



Graph No. 6: Distribution showing the sources of information

0

5

10

15

20

25

30

Print Media Visual Media Outdoor Others


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Interpretations:

The first source of information for Mercedes-Benz car owners is through friends,

relatives and other sources (54%), followed by print media (36%) and outdoor

media (10%) MBIL should give more importance to visual media to communicate

with its customers by focusing on the advertising media.


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Question 7 Showing the efficiency of delivery

Sample size Yes No

No. of

Respondents

1 49

Percentage 2 98


Graph No. 7: Distribution showing the efficiency of Delivery

2%

98%

Yes

No


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Interpretations:

98% of the respondents are satisfied with the delivery performance of the

company. Only 2% of the respondents are dissatisfied with the delivery.


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Question 8 Showing the availability of spare spars for Mercedes-Benz Delhi

Sample size Excellent Good Average Poor

No. of

Respondents

23 17 7 3




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Graph No 8: Distribution showing availability of spare parts

Interpretations:

Most of the owners expressed the term excellent regarding the availability of spare

parts for Mercedes-Benz (46%), followed by good (34%) and average (14%).

However 6% of the respondents/owners expressed the term poor. Mercedes-Benz

needs to rectify this by providing spare parts promptly to its customers at fair

prices.

0

5

10

15

20

25

Excellent Good Average Poor


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Question 9 Showing the cost of spare parts of Mercedes-Benz

Sample size High Reasonable

No. of

Respondents

20 30

Percentage 40 60


Graph No. 9: Distribution showing the cost of spare parts

40%

60%

High Reasonable


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Interpretations:

Most of the owners expressed their satisfaction regarding the cost of spare parts for

the car (60%). However some of the respondents felt that the cost of spare parts is

high (40%). MBIL should communicate the quality of its spare parts to eliminate

the conception of high price among its customers.


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Question 10 Showing the Comparison between a Mercedes-Benz car and an

imported luxury car

Sample size Excellent Better Good Poor

No. of

Respondents

17 23 10 0



Graph No. 10: Distribution showing the comparison between Mercedes Benz Car

and an imported luxury car

0

5

10

15

20

25

Excellent Better Good Poor


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Interpretations

34% of the respondents felt that Mercedes Benz car was excellent, followed by

46% who expressed that Mercedes Benz car was better. 20% of the respondents

felt although the Mercedes Benz car was good it was at part with the imported

luxury car. None of the respondents felt that Mercedes Benz car was poor.

Qestion 11 Showing the promotion strategy of Mercedes-Benz in Delhi

Sample size Excellent Better Good Poor

No. of

Respondents

4 10 22 14




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Graph No. 11: Distribution showing the promotion strategy

Interpretations:

8% of the respondents felt that the promotion that the promotion strategy of

Mercedes Benz was excellent, followed by 20% who felt it was good and 44% felt

that the promotion strategy was average. Whoever 28% felt that the promotion

strategy was average. However 28% felt that the promotion strategy was poor.

0

5

10

15

20

25

Excellent Better Good Poor


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CHAPTER :5

FINDINGS AND CONCLUSIONS

FINDINGS

1. 52% of Mercedes-Benz owners in Delhi are in the 41-50 age group followed

by 30% in the 31-40 age group, 14% in the above 51 age group and only 4

% below 30 years.

2. 46% of the Mercedes- Benz cars owners are tin the manufacturing business,

followed by export/import business at 28 % 14% of the car owners are in the

service sector, 8 % are professionals and only 4 % are in agricultural

business.

3. At 22% Delhi has the highest level of customer satisfaction among all the

cities. Followed by new Delhi and Mumbai at 21 %, Chennai at 20 % and

Kolkata at 16%.

4. Most of the Mercedes-Benz car owners took their own decision to buy the

car themselves (44%). Some of them are influenced by their friends and

relatives (34%). And only 22% of them are influenced by their family to buy

a car.


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5. Most of the owners brought the car through finance (68%) followed by

taking tease (26%) and cash purchase (6%). MBIL should arrange and more

convenient method for obtaining finance for its car in order to increase the

sales.

6. The source of information for Mercedes-Benz car owners is through friends,

relatives an other sources (54%) followed by print media (36%) and outdoor

media (10%).

7. 98% of the respondents are satisfied with the delivery performance of the

company. Only 2% of the respondents are dissatisfied with the delivery.

8. Most of the owners expressed the term excellent regarding the availability of

spare parts for Mercedes-Benz (46%), followed by good (34%) and average

(14%). However 6% of the respondents /owners expressed the term

poor.

9. Most of the owners expressed their satisfaction regarding the cost of spare parts for the

car (60). However some of the respondents felt that the cost of spare parts is high

(40%).

10. 34% of the respondents felt that Mercedes Benz car was excellent, followed by 46% who

expressed that Mercedes Benz car was better. 20% of the respondents felt although the

Mercedes Benz car was good it was at par with the imported luxury car. None of the

respondents felt that Mercedes Benz car was poor.


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c) Automotive education

4. The product quality of the company is of the highest standard in the

industry. It follows the stringiest quality control measures.

5. Its safety measures and technical performance are benchmarks in the

industry.

Although Mercedes Benz is a leading car manufacturer, the company faces certain

challenges and problems in terms of its pricing and promotion strategy. The

company needs to overcome these challenges in order to be even more successful

in target market segment. Some of the challenges faced by the Co are:

1. Lack of indigenization level leads to high price of its products. Mercedes

Benz needs to considerably reduce the costs at all levels of production and

distribution.

2. The promotional strategy is not aggressive enough as compared to the

competitors. Mercedes Benz has no advertisements on the T.V. or the radio.

3. The company as only a limited number of dealers and service stations in the

country. As a result the company is at disadvantage as compared to some of


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its competitor, who have a widespread network of dealers and service

stations across the country.


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CHAPTER:6

SUGGESTIONS AND RECOMMENDATIONS

After collecting the data from various sources and analysis of the

findings, the suggestions and recommendations are given below:

1. The service augmentation and service quality play an extremely important

and pivotal role in overall customer satisfaction For this purpose the

company can adopt the following measures:

(a) To take reasonable time of servicing.

(b) To keep an inventory of spare parts to serve the customer promptly.

(c) To give free wash every time the customer comes in for a service.

(d) To arrange a test drive for new customer.

(e) To give free maintenance suggestions periodically.

(f) To arrange free emission check in the service station.


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2. The company should adopt an aggressive promotional strategy its market

segment to keep ahead of the competitors. The company can undertake the

following activities

(a) To arrange the grand Mercedes-Benz rally; this will get massive

coverage in all leading newspapers and car magazines.

(b) To advertise in all leading newspapers, car magazines and auto.

(c) To sponsor a Golf Tournament at the Delhi Golf club.

(d) To make a giant Mercedes-Benz model on the road to th airport and

other important landmark.

(e) To sponsor a cultural program or fashion show in a five star hotel..

(f) To telecast T.V advertisements.

3. The company can launch a number of new products and create a new

segment for the product in the market.

4. The company can enhance its indigenization level to cut costs.

5. The company can provide a finance counter in the showroom to ensure easy

availability of finance to the customers.


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6. The company can organize a Mercedes-Benz club. For this purpose the

company can do the following things:

(a) To arrange rallies, among owners and enthusiasts.

(b) Arrange various cultural and fashion programs.

(c) To send a greeting card and flowers on the customers birthday and

anniversary.

(d) To arrange an annual meeting of all Mercedes-Benz owners as this

will enhance interaction among them.

7. Although the price of a Mercedes Benz Car is very high, the company is

planning of launch other categories/models with lower price targeted at a

younger market segment.


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ANNEXURE

QUESTIONNAIRE

A STUDY ON CUSTOMER SATISFACTION AMONG MERCEDES

BENZ CAR OWNERS IN DELHI

NAME:

CONTACT NO:

OCCUPATION:

1.)AGE GROUP:

Below-30 ( )

31-40 ( )

41-50 ( )

Above 51 ( )

2) OCCUPATION :

PROFFESIONALS ( )


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Manufacturing business: ( )

Service business: ( )

Export import business: ( )

3) How do you measure your overall experience with Mercedes-Benz car?

DELIGHTED ( )

SATISFACTORY ( )

DISSATISFACTORY ( )

4) Whose decision influenced you most while purchasing the car?

Won ( ) Spouse ( )

Children ( ) Friends/relatives ( )

5) The mode of payment for purchase of the car:

Cash ( ) Finance ( ) Leasing ( )

6) Which is your first source of information for Mercedes-Benz?

PRINT MEDIA ( ) Visual Media ( )

HOARDINGS ( ) OTHERS ( )


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7) Did you face any difficulty in the delivery of the car from the showroom?

Yes ( ) No ( )

If yes, please specify

8)AVAILABILITY OF SPARES:

Excellent ( ) Good ( )

Average ( ) Poor ( )

9)COST OF SPARES:

HIGH ( ) REASONABLE ( )

10)How do you compare a Mercedes Benz car with an imported car?

EXCELLENT ( ) GOOD ( )

AVERAGE ( )

11) What Do You Think About The Promotion Of Mercedes-Benz In Delhi.

Excellent ( ) GOOD ( )

AVERAGE ( ) NOT UPTO MARK ( )


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BIBLIOGRAPHY

BOOKS REFFERED:

Principle of Marketing by Philip Kotler and Gray Armstrong. Edition: publisher:

prenticeHall of India

Consumer behavior by Leon G. Schiff man and Lazar Kanuk. Edition: sixth;

publisher: prentice- Hal of India

Element of marketing management by Pradeep Kumar. Edition: Sixth; Publisher;

Kedhar Nath Ram Nath & Co.

MAGAZINES, NEWSPAPERS AND JOURNALS:

Business today

Motor India

Overdrive

Auto car

The Times Of India

The Economic Time

The Asian Age

WEBSITES:

www.mercedesbenz.com

www.google.com

www.yahoo.com


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