Project Report Main Copy

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1 | P a g e FISAT BUSINESS SCHOOL

CHAPTER 1

INTRODUCTION


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INTRODUCTION

The organizational structure refers to the formal configuration between individuals and

the group with respect to the allocation of task, responsibilities and authorities within

organization. The frame work of an organization is the structure, where in the job of each and

every person is defined and coordinated to achieve the organizational goal. It depicts the

authority and responsibility relationship between the various positions in the organization by

showing who reports to whom. So an organizational study is essential to know and understand

the various functions, responsibilities and authorities in an organization. This study is based on

an automobile Dealer who operates across south and central parts of Kerala. The study includes

the hierarchy of different departments, their functions and other activities that the organization

undergoes.

Automobile dealers are the link between the manufacturer of the automobile and the consumer.

With their large inventories of cars, dealers provide consumers with a wide array of vehicles to

meet their needs at different price points. The automobile dealer industry sells most of the

automobiles, light trucks, and vans that operate on the road today. Sales of these vehicles aresubject to changing consumer tastes, the popularity of the manufacturer's vehicle models, and

the intensity of competition with other dealers. Along with the sale of the car, most dealers also

sell additional automobile-related services to potential buyers. These services include extended

warranties, undercoating, insurance, and financing. Aftermarket sales departments sell these

services and other merchandise after vehicle salespersons have closed a deal. Sales of these

packages greatly increase the revenue generated for each vehicle sold. Because sales of

automobiles fluctuate significantly, automotive dealers offer generous incentives, rebates, and

financing deals during slow periods to maintain high sales volumes and to reduce inventories.


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CHAPTER 2

INDUSTRY PROFILE


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INDIAN AUTOMOBILE INDUSTRY

The automobile industry in India is the seventh largest in the world with an annual

production of over 2.6 million units in 2009. In 2009 , India emerged as Asia's

fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. By

2050, the country is expected to top the world in car volumes with

approximately 611 million vehicles on the nation's roads.

Following economic liberalization in India in 1991, the Indian automotive industry has

demonstrated sustained growth as a result of increased competitiveness and relaxed

restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti

Suzuki and Mahindra and Mahindra, expanded their domestic and international

operations. India's robust economic growth led to the further expansion of its

domestic automobile market which attracted significant India-specific investment by

multinational automobile manufacturers. In February 2009 , monthly sales of passenger

cars in India exceeded 100,000 units.

Embryonic automotive industry emerged in India in the 1940s. Following

the independence, in 1947, the Government of India and the private sector launched

efforts to create an automotive component manufacturing industry to supply to the

automobile industry. However, the growth was relatively slow in the 1950s and

1960s due to nationalization and the license raj which hampered the Indian private

sector After 1970, the automotive industry started to grow, but the growth was

mainly driven by tractors, commercial vehicles and scooters. Cars were still a

major luxury. Japanese manufacturers entered the Indian market ultimately leading to

the establishment of Maruti Udyog. A number of foreign firms initiated joint

ventures with Indian companies.


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In the 1980s, a number of Japanese manufacturers launched joint-ventures for building

motorcycles and light commercial-vehicles. It was at this time that the Indian government

chose Suzuki for its joint-venture to manufacture small cars. Following the economic

liberalization in 1991 and the gradual weakening of the license raj, a number of Indian and

multi-national car companies launched operations. Since then, automotive component and

automobile manufacturing growth has accelerated to meet domestic and export demands.

India has emerged as one of the world's largest manufacturers of small cars.

According to New York Times, India's strong engineering base and expertise in the

manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing

facilities of several automobile companies like Hyundai

Motors, Nissan, Toyota, Volkswagen and Suzuki.

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to

export 250,000 vehicles manufactured in its India plant by 2011. Similarly, General Motors

announced its plans to export about 50,000 cars manufactured in India by 2011.

In September 2009, Ford Motors announced its plans to setup a plant in India with an annual

capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the Indian

market and for export. The company said that the plant was a part of its plan to make India the

hub for its global production business. Fiat Motors also announced that it would source more

than US$1 billion worth auto components from India. According to Bloomberg L.P., in 2009

India surpassed China as Asia's fourth largest exporter of cars


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Rank wise Largest Automobile Manufacturers in India by Sales

1.

Maruti Suzuki2. Hyundai3. Tata4. Mahindra5. GM Chevrolet6. Honda7. Toyota8.

Ford

9. Fiat

Suzuki Motor Corp., Hyundai Motor Co., and Nissan Motor Co. are making India a hub for

overseas sales of minicars as incentives lift demand for smaller, fuel-efficient autos. Helped by

cheaper labor and a surging local market, India this year overtook China in auto exports and is

challenging Thailand and South Korea as an alternative production center in Asia.

Hyundai, South Koreas biggest carmaker, plans to export 300,000 cars from India this year,

more than its sales in the local market, a first since setting up a plant a decade back.

THE DEALERSHIP BUSINESS

Automobile dealers are the link between the manufacturer of the automobile and the consumer.

With their large inventories of cars, dealers provide consumers with a wide array of vehicles to

meet their needs at different price points.

Goods and services. The automobile dealer industry sells most of the automobiles, light

trucks, and vans that operate on the road today. Sales of these vehicles are subject to changing

consumer tastes, the popularity of the manufacturer's vehicle models, and the intensity of

competition with other dealers. Along with the sale of the car, most dealers also sell additional

automobile-related services to potential buyers. These services include extended warranties,

undercoating, insurance, and financing. Aftermarket sales departments sell these services and


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other merchandise after vehicle salespersons have closed a deal. Sales of these packages greatly

increase the revenue generated for each vehicle sold. Because sales of automobiles fluctuate

significantly, automotive dealers offer generous incentives, rebates, and financing deals during

slow periods to maintain high sales volumes and to reduce inventories.

Performing repair work on vehicles is another profitable service provided in this industry.

Service departments at motor vehicle dealers provide repair services and sell accessories and

replacement parts. Although most service departments perform repairs only, some dealers also

have body shops to do collision repair, refinishing, and painting. The work of the service

department has a major influence on customers' satisfaction and willingness to purchase future

vehicles from the dealer.

Industry organization.The automobile dealer industry is comprised of two segments. New

car dealers, often called franchised dealers, primarily sell new cars, sport utility vehicles (SUVs),

and passenger and cargo vans. These franchised dealers sell and lease vehicles manufactured by

a particular companywhich may include several brands. Used car dealers comprise the other

segment of the industry, and are sometimes referred to as independent dealers. These dealers sell

a variety of vehicles that have been previously owned or formerly rented and leased.

Improvements in technology have increased the durability and longevity of new cars, raising the

number of high-quality used cars that are available for sale. Used car dealers by definition do not

sell new cars, but most new car dealers do sell some used cars.

According to the National Automobile Dealers Association, new vehicle sales account for more

than half of total sales revenue at franchised new car and new truck dealers. These sales also

generate additional revenue in other departments of new car dealers, which are more profitable to

the dealer. By putting new vehicles on the road, dealers can count on new repair and service

customers and future trade-ins of used vehicles.

Independent used car dealers usually have smaller staffs than their franchised counterparts. Most

are stand-alone dealers, but increasingly nationwide companies are opening large superstores

across the country. These large used car and truck dealers typically contract out warranty and

other service-related work to other dealers or to satellite service facilities.


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Recent developments.In recent years, the sale of used cars has become a major source of

profits for many new car dealers in the wake of shrinking margins on new cars. To make them

acceptable to more customers, some dealers promote "certified pre-owned" vehicles to customers

who want a warranty on their used vehicle. This often raises the price, but in return provides

customers with peace of mind. In economic downturns, the relative demand for these and other

used cars often increases as sales of new cars decline.

In an effort to achieve greater financial and operational efficiency and flexibility, greater

emphasis is being placed on aftermarket services, such as financing and vehicle maintenance and

repair, at both new and used car dealers. These services typically provide large profit margins for

dealers, and remain less susceptible to economic downturns. They are also part of an effort to

enhance customer loyalty and overall customer service.

There has been a recent decline in the leasing of cars. With a car lease, a customer makes

monthly payments for the use of a vehicle over a period of time, after which the vehicle is

usually returned to the dealer. The major domestic car makers have cut back their leasing

programs significantly, instead focusing on new car sales. Leasing is still expected to play a role

in many new car dealers business plans in the coming years, however.

The increased use of the Internet to market new and used cars and light trucks has also had a

significant impact on automobile dealers. Through the Internet, consumers can easily access

vehicle reviews; view pictures of vehicles; and compare models, features, and prices. Many Web

sites allow consumers to research insurance, financing, leasing, and warranty options. As a

result, consumers are generally better informed and spend less time meeting with salespersons.


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CHAPTER 3

COMPANY PROFILE


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THE POPULAR GROUPThe group is promoted by Mr. Saju K. Thomas and his family members. Saju K. Thomas

belongs to the well known "Kuttukaran" family, a family having more than 60 years

experience in automobile dealership ,service, spare parts business with a strong presence in

Kerala and South India. Saju K.Thomas started his carrier in automobile dealership when

Kuttukaran group entrusted him the responsibilities of the company Popular Vehicles and

Services Ltd. which was awarded Maruti dealership during the year 1983 .

Popular Vehicles and Services Ltd. was formed during the year 1983 to carry out the

dealership of Maruti Udyog Ltd. A showroom and service centre was first established in

Trivandrum subsequently another dealership was allotted by MUL in Kochi and gradually

Popular Vehicles established Sales and Service branches all over Kerala.

Besides Maruti, Popular Vehicles got dealership for Bajaj and their Three Wheeler vehicles at

Ernakulam District and at Bangalore during the year 1995. Popular Vehicles was also thedealer for DCM Toyota for LCVs from 1984 till the company seized to operate.

Mr. Saju K.Thomas was managing the entire dealership operations of Popular Vehicles right

from its inception. Popular Vehicles established four regional marketing centers , six service

centers for Maruti vehicles and selling around 8000 vehicles and servicing 75000 vehicles

per annum. Popular Vehicles is the largest dealer for Maruti vehicles at the national level.

Maruti Udyog Ltd. has given many awards to Popular Vehicles during the course of its

existence. Popular is consistently reach either first position or runner-up for the technical

skill contest conducted by Maruti Udyog and last couple of years they are in the first

position to marketing skill competition.


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The manner in which Popular operates has been appreciated by various Marutis Managementand especially the unique service package , i.e.: Popular Unlimited Care Package, a very

unique After Sales Service Scheme which is indeed very highly appreciated by Maruti

Udyog Ltd. as well as customers and other dealership personnel .Popular can compete in all

aspects of Dealerships be it marketing or service or spare parts sales vey effectively which

enable Maruti Udyog to achieve a higher market share for its products in Kerala in

comparison to other southern states. Due this excellent performance Maruti Udyog rewarded

Popular Vehicles and Services Ltd. with another Dealership at Chennai. This unique

achievement was possible only because of dynamic and professional leadership of the

Popular team led by Mr. Saju K. Thomas , its Managing Director .

Similarly due to the excellent performance of D.C.M. Toyotas Dealership, Toyota Motor

Corporation invited Mr. Saju K. Thomas to take up a Dealership for their products when

they established a new company in India for Toyota Automobiles . Accordingly during the

year 1999 a new company by name Motor World Ltd. was established and the Dealershipbusiness was commenced from January 2000 at Bangalore.

During the year 2002 Mr. Saju K. Thomas separated from the Kuttukaran Group and

established his own business under the name Popular Group which consist of the

following Companies.

A.MOTOR WORLD LTD.This company was incorporated during the year 1999 to manage the dealership of Toyota

Kirlosker Motor Ltd. for their entire range of products in the districts of Bangalore ,Mysore

and Mandya. The company has commenced its business operations in January 2000.


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B. POPULAR MOTOR CORPORATION (PMC)

(i) Bajaj Dealership:

PMC is a partnership concern and constituted to take over the dealership business of entire

range of vehicles manufactured by Bajaj Auto Ltd. in accordance with the business separation

agreement with M/s Popular Vehicles and Services Ltd. PMC has Bajaj dealership for

Ernakulam and Alleppey district and for Bangalore city in Karnataka. Besides , PMC have

also diversified into sale of Computer Hardware, accessories and Software development.

(ii) Hyundai Dealership:

During the year 2003 Hyundai Motor India Ltd. (HMIL) offered dealership for their

products for central Kerala covering Ernakulam, Kottayam, Pathanamthita, Idukki, and

Alleppy. The dealership was also given to PMC and the first showroom and service center

was opened at Kottayam in January 2004. The Ernakulam 3S facility (Sales, Service &Spares)

is commissioned on 15th September 2004. For an exclusive Hyundai Dealership operation, the

business is changed to a Private Limited Company called Popular Motor World Pvt. Ltd. Now

HMIL offered Dealership for Sales and Service at Trivandrum and the Letter of Intent has

signed in April 22nd ,2005 and 14th December 2005 respectively. Popular Motor World Pvt.

Ltd. have again signed Letter of Intent on 2nd August 2006 for Dealership activities at

Muvattupuzha and started business on 17th October 2007.


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FISAT BUSINESS SCHOOL

CORPO

Fig

ATE ORGANISATI

STRUCTURE

ure 1:Corporate Organizational structure

13 | P a g e

NAL


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THE HMIL PROFILEHyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor

Company (HMC), South Korea and is the largest passenger car exporter and the second

largest car manufacturer in India. HMIL presently markets 6 models of passenger cars

across segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment includes

the Accent and the Verna, the A5 segment includes the Sonata Transform.

HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most

advanced production, quality and testing capabilities in the country. To cater to rising demand,

HMIL commissioned its second plant in February 2008, which produces an additional

300,000 units per annum, raising HMILs total production capacity to 600,000 units per annum.

In continuation with its commitment to providing Indian customers with cutting-edge

global technology, HMIL has set up a modern multi-million dollar research and

development facility in the cyber city of Hyderabad. It aims to become a centre of

excellence for automobile engineering and ensure quick turnaround time to changing

consumer needs.

As HMCs global export hub for compact cars, HMIL is the first automotive company in

India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports

cars to more than 110 countries across EU, Africa, Middle East, Latin America, Asia and

Australia. It has been the number one exporter of passenger car of the country for the sixth year

in a row.To support its growth and expansion plans, HMIL currently has a 290 strong dealer


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network and 540 strong service points across India, which will see further expansion in

2010.

POPULAR MOTOR WORLD PVT. LTD.

One of the Elite Hyundai Dealerships in the country operating across central and south Kerala

covering the districts of Ernakulam, Idukki, Kottayam, Alapuzha, Kollam and

Thiruvananthapuram.Objective of Popular Hyundai is to be a single window solution for all carbuyers, be it buying, selling or servicing cars, or catering to customer needs of finance,

insurance, accessories etc., with the ultimate aim of providing the best car ownership

experience for one and all.

PRODUCT PROFILE

MODEL VARIANTAccent Hyundai Accent Executive

Hyundai Accent Executive LPG

Getz Prime 1.3 GLS

i10 i10 Delite

i10 Era

i10 Magna

i10 Magna 1.2

i10 Sportz 1.2

i10 Magna 1.2 AT

i10 Sportz 1.2 AT

i10 Asta 1.2

i10 Asta 1.2 with Sunroof

i20 Magna 1.2


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Sportz

Era DSL 1.4

Asta

1.4 Magna DSL with ABS

Asta with Sunroof

Sportz DSL 1.4

1.4 Asta with ABS

1.4 Asta DSL with Sunroof

1.4 Asta AT

Santro Santro Non A/C

Santro GL

Santro GLS

Santro GL LPG

Santro GLS AUDIO

Santro GLS LPG

Santro GLS LPG AUDIO

Sonata Sonata 2.4 MT 6AB

Sonata CRDi MT 6AB

Sonata CRDi AT 6AB

Tucson Hyundai Tucson CRDi


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Verna Hyundai Verna VTVT

Hyundai Verna VTVT SX 1.6

Hyundai Verna CRDi VGT 1.5

CRDi VGT SX 1.5

CRDi VGT SX AT 1.5

Table 1:Product Profile

3S Facility (Showroom, Service and Spares)

The elegant and exclusive show rooms of Popular Hyundai are indented to meet the rising

expectations of the customers. There we hold a fleet of fabulous models and their variants for

your perusal. Most of our showrooms are located in the heart of the city and provide

better access to both the proud owners as well as prospective buyers. Our Sales Team is

made up of dedicated showroom and field executives who are professionally trained

by Hyundai Motors India Limited. They are adept at guiding the customer through the entire

sales process right from assisting in choice of model, colour and features up to lending a

helping hand in arranging finance at competitive rates.

Our Service Centre is outfitted with the state-of-the art equipment and is update with

Hyundai's challenging world standards. Our qualified and trained technical team, with an

extensive storage of Hyundai genuine spares, is capable of providing constant support to

maintain your dream machines

VISION

To be the most admired fastest growing innovative corporate house

committed to

Customers, Employees, Shareholders and Society.


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Philosophy

We are not in the business of selling and servicing carsWe are in the business of

Acquiring, Retaining and Building "Relationship"


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CHAPTER 4

RESEARCH METHODOLOGY


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RESEARCH METHODOLOGY

1. OBJECTIVES

1. To expose ourselves to the working of an organization and know how it is

managed

2.To relate the concept learnt in the classroom to the working of the organization.

3.Understand the process flow in the company.

4.Understand the hierarchical structure of various departments.

2. METHODOLOGY

Both primary and secondary data are used and analyzed for the study.

Data collection: This study is conducted by collecting data from both primary

and secondary sources. The primary data are collected through personal interview

and observation methods. The secondary data are collected from different articles,

journals, books and internet

3. PERIOD OF STUDY

The study has been conducted at POPULAR MOTOR WORLD PVT LTD,

VYTILLA during the period May 05, 2010 to June 05 , 2010.

4. SCOPE OF STUDYThe study is confined to gain some knowledge about the culture and structure of

the organization and the functions of various departments of POPULAR MOTOR

WORLD PVT. LTD.,VYTILLA which is the head office for various branches.


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5. LIMITATIONS

The main constraints or limitations for the study were:

Limited time available for the study Authorities of all the departments had a busy schedule and hence there

was no scope for detailed interviews with them.


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CHAPTER 5

DEPARTMENTAL ANALYSIS


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FINANCE AND ACCOUNTS DEPARTMENT.

Finance and Accounts Department deals with the matters like raising of funds, fundsmanagement, finalization of the quarterly accounts, preparation of the profit and loss account and

balance sheet of the company etc.

The finance department is headed by head-finance and consists of 15 staff member including

deputy manager and assistant manager. The main function of the finance department is arranging

working capital finance and long term loans. Working capital is used for purchasing vehicles,

spare parts and accessories while term loan care used for expanding the infrastructure. The

working capital is borrowed from different banks. Short term borrowing is also there in the form

of inventory funding from various finance companies. Presently the total working capital is more

than 100 crores. The term loans are generally taken for 5 year periods.

Every branch is a separate profit centre and maintains separate accounts. There are separate

staffs for accounting in each branch. The department prepares monthly performance report which

is sent to head office for analyzing the operational results. There will be a performance review

meeting every month to evaluate branch performance. The monthly reports from branches are

consolidated at the head office to know the overall result of the company.

There is a separate department under Finance and Accounts department which deals with

matters like ordering vehicles and spares. A separate person is appointed for this purpose. It is

his duty to do the branch wise stock analysis and place the order. The Sales and Spares

Departments send their inventory status to the Finance Department .All the procurement is done

by the Finance Department depending on the present need and the funds available. Hyundai has

made a policy not to sell cars on credit. Cars are sold only on payment being made by dealer. As

a result they have tie ups with different banks. ICICI provides a credit up to 350 lakhs. When

the dealer makes purchase of cars, it is known as placing the indent. Finance is raised through

banks, who give credit. These banks transfer the specific amount to the company's account on


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behalf of the dealer. This is known as mailing the indent. Similarly banks provide credit while

purchasing spare parts.


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Accounts Staff Hierarchy

Figure 2: Accounts Staff Hierarchy

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SALES AND MARKETING DEPARTMENT

This department is the most important department in PMW, as it is a sales oriented company. All

the other departments depend on it. The entire sales force can be divided into two , the Direct

Marketing Team and the Showroom Sales Team.

Sales Team

Direct Marketing Team Showroom Sales Team

Figure 3: Division of Sales Team

Direct Marketing Team

The Direct Marketing Team consist of 5-6 team leaders. Each of these team leaders have 3

assistants. They are given monthly targets. It is the duty of these team leaders to assign and allot

the work on their assistants and to check their performances. The main functions of the direct

marketing team consists of closing the telephone enquiries by meeting the customer at their

home, give test drive to distant customers ,settling all finance and exchange related issues if anyand close the sale, to conduct some bank related activities outside the showroom , source

enquires and convert them into sale, to take referral sales from old customers. The direct

marketing team has to report to the showroom manager.


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Showroom Sales Team

The showroom sales team consists of a showroom in-charge and 6 staffs below him. In addition

to this there is three more staff for the accessories sales in the showroom. The showroom team

also have monthly targets. The showroom team has to report to an assistant manager of

showrooms also called as the showroom manager. Showroom manager reports to the Hyundai

Business Head. All the branches reports to the Business Head. And this Business Head reports to

the Vice President Hyundai.

Annual meetings are held in the presence of MD. The performance of each showroom is

evaluated in this meeting. Targets for the next one year will set in this meeting. This targets arethen allotted to each branch. Monthly targets for each Showroom is then set by the Showroom

Managers depending on the resources available to him.

Showroom enquiries:-

All customer enquiries coming to the showroom will be attended by the Front Office Executives.

Lobby executive receives the customer and offers him a seat and also ensue refreshments. The

front office staff then meets the customer tries to understand his requirements and accordingly

gives him a preliminary information sheet that contains the price details of the requested model.

If necessary, finance executives will be called upon to explain about loan details. Customer

details will be noted down in the enquiry book and passed on to respective supervisor who in

turn allocates it to the concerned Sales Officer.

Customer requesting for Performa Invoice will be provided with Performa Invoice and details of

finance scheme options. Performa invoice is raised in three copies. Two copies will be given to

the customer and one copy is retained in the file. The lobby executive is responsible for

arranging posters and flowers in the showroom. The neatness of the cars displayed in the

showroom is also the responsibility of the lobby executive.


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Booking & retail:-

If the vehicle preferred by the customer is available in the stock then the same can be delivered

to him within two days, which is the time required for registration and accessories installation.

But prior to registration the entire booking amount has to be paid.

The customer can show his intent to purchase a car by paying a token amount called the part

payment. The customer will get priority only when he pays the booking amount. Once the

customer furnishes the booking amount a receipt and order booking form is issued and support

activities are initiated. This order booking form is to be duly filled by the customer for booking

the vehicle. The OBF along with the receipt for booking amount is filed. A unique customeraccount code is created at the time of payment. This account code is used for all further

transaction involving the customer.

Indenting, i.e. placing an order in the HMIL is done against customers booking. Once the indent

is served by HMIL, vehicle reaches the dealer through truck or trailer after a month. Pre-delivery

inspection of the vehicle is carried out on the vehicle on its arrival. The vehicles are allotted to

the customer based on the priority list in the allotment section. The customer is intimated about

the arrival of his vehicle and informed to pay the balance amount and to bring the documentsrequired for registration. The customer orders for the required accessories at the Hyundai

Genuine Accessories department and can take the vehicle home after he signs some important

documents like invoice, delivery note etc. in the delivery section.

Allotment:

The PDI section receives the vehicles arriving from the HMIL and a vehicle status report is sent

to the allotment section on a daily basis. The customers are informed as per the priority list

regarding the date of delivery of the vehicle. In case of customers who fail to turn up the

specified date the allotment section initiates a follow up action. Any vehicle, which is to be

delivered ahead of schedule, is to be intimated to the PDI department by the allotment section. A

daily report of vehicle delivery and customer details is to be maintained.


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Vehicle delivery

Intimation is sent to customers whose vehicles are ready for delivery. The customers are

informed of the balance payment position and information on documents needed for registration

of the vehicle. PDI section is intimated the delivery schedule in advance in a specified format.

It is the PDI department that receives the lot of vehicles dispatched by HMIL in accordance with

the indents placed. The transportation documents (goods receipt, HMIL invoice from 22 initial

certificate of compliance with pollution standards, safety standards of components and road

worthiness to be issued by manufacturer) are collected and filed from the transporters. The

vehicles after inspection for transit damage are either accepted or returned to HMIL dependingon the status of the vehicle.

A Vehicle Status Register to record the whole process is maintained. Small transits damages are

worked upon at the PDI yard itself, while for serious jobs, the vehicle is sent to the service

station. A job card is opened to estimate the maintenance costs of the vehicles sent to the service

station to correct slight damage that occurred in transit and it is to be claimed from HMIL. PDI is

primarily done on a first-come-first serve basis. Any change in this order can be brought about

only in accordance with a request from the allotment department.

The PDI is carried out on the basis of an inspection car, which in effect functions as a checklist

for assessing the vehicle status. A daily vehicle status report is given to the allotment section,

which in turn schedules the allotment on the basis of this report. A PDI report consisting of the

vehicle condition on receiving, work done upon it and projected delivery time is recorded.

The vehicle status report from the PDI activates the allotment section, payment section,

accessory section and the registration section in an orderly manner. The claims for transit

damages are sent to HMIL with necessary proofs. Supervisory staffs carries on a final inspection

of the vehicle after the registration procedure and before the delivery.

Accordingly vehicles are dispatched to the showroom by the PDI section after ensuring that the

vehicles are fit for delivery in all respects. At the time of delivery, every customer is briefed on

the features/operation of the vehicle and after sale service facilities of the dealership. Documents


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like the invoices terms of understanding of Unlimited Care Package (UCP) delivery not

containing list of items that are there in the vehicle as and when dispatched from HMIL, delivery

register, and insurance proposal for are signed by the customer.

The sales satisfaction index (SSI) card is handed over to the customer along with the owners

manual.

The registration documents are also handed over to the customer. In case, the registration is

temporary, the documents required for permanent registration are handed over the customer.

In case of hypothecation, a copy of the invoice and a key should be given to the finance

company.


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SERVICE DEPARTMENT

Service centre operations are as follows:

After Sales Support for new cars: Free service, Warranty Claims..etc Provide periodic maintenance for vehicles: Paid Service Allied Services: Protective Coating, Carbon Cleaning..etc Accidental repairs Hyundai Insurance: Policy renewal, New Policy Issue 24 hour break down assistance Quick repair services Hyundai Genuine Accessories and Hyundai Genuine Spare Post service follow-up and customer feed back Handling of customer complaints Handling of warranty Service Marketing

Floor operation

There are basically eight teams for carrying out the service/repair of vehicles. They are:

Three teams for paid servicing of vehicles. Two teams for special customers one for free service and the other for quick repair. Three teams for accident repair: one for non-claim and the other for claim cases.

Each team consists of a service advisor, a floor supervisor and a group of mechanic. The service

advisor is responsible for vehicle acceptance; allied service sales, job monitoring, vehicle

delivery and post service follow up. An ideal service advisor should possess good

communication skills, technical knowledge and analytical ability. The service advisor holds a


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key position in the service centre operation since he forms the link between the customer and

service centre.

Security personnel for parking guide customers bringing their vehicles. The customer is given a

job slip in which he fills in the vehicle details and the type of service he requires. This job slip

along with the owners manual is handed over to the reception staffs, which opens a job order

and hands over the job order to a particular service advisor for accepting the vehicle from

customers. The allotment to service advisor is on a rotation basis such that a balance is

maintained among the teams in each section.

The service advisor asks the customer what service the vehicle requires, he test drives the vehicleto find out any other defects/repairs he may notice and enter it on the job order, he then notes the

damages, shortages and accessories if any. Service advisor shall discuss and explain to the

customer regarding service/repairs are also entered in the job order. Service advisor then issues a

copy of the job order to the customer after getting signature from customer agreeing for the

conditions on the job order.

An entry is made into the supervisors register regarding the vehicle details and the job to be

done. Service advisor hands over the job order to the floor supervisor. The floor supervisor isbriefed about the repairs the customer has requested. The floor supervisor has the responsibility

to manage the work according to the availability of lifts and mechanics. After allotting the job to

mechanic the allotment time and name of mechanic is entered into the register.

A team of three lifts, servicing and repairs shall be carried out as per job order by a mechanic

under the respective supervisor according to the maintenance schedule, service manuals, service

circulars of HMIL. spare parts that are required are obtained from the store on producing a parts

requisition slip and the job card. Service advisor contacts customers for carrying out any extra

work noticed during repairs for obtaining consent and for informing the extra cost/time involved

and records it on the job order.

After completion of work, the service advisor enters the labor amount in the computer the job

order is handed over to the final inspector who carries out final inspection as per the procedure.


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Final inspection procedure:

The following procedure is followed for final inspection.

1. Check all repairs as per job attended.2. Check engine tuning i.e. dwell, rpm and timing in sequence.3. Check carbon monoxide level and adjust if required.4. Check functioning of :

a. All lights, wiperb. Blower and A/Cc. Sun visor and Inside/Outside mirror.d. Door operation

5. Cleanliness of service vehicles and road test.6. If the points 1-5 are ok mark OK7. Enter in register8. If any defect is observed send back vehicle for rework to the supervisor concerned9. If repair is due after point 8 checks again and sign.

After Final Inspection Done is stamped on the job order, the job order is signed by the FinalInspector and given back to the Supervisor. Non-conformities if any observed during final

inspections are noted on the job order and the vehicle is returned to the same supervisor for

rectification. The vehicle is again handed over for Final inspection after the work is done who in

turn hands it over to the front office after necessary verification.


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Front office prepares an invoice against the job order. The concerned service advisor explains the

job done and spare replaced to the customer. Defective spares replaced are handed over to the

customer. If necessary a road test is carried out along with the customer. The signature of the

customer is taken on the job order and a token of satisfaction and gate pass us issued to him after

necessary payments.

Accident repair and insurance claims:

Customers bringing their vehicles are guided by security for parking. Receptionist in front office

opens a job order in duplicate and hands over the job order to service advisors in charge of

accident repair for accepting the vehicle from customers.

The service advisor does a complete inspection of the vehicle subjected to accident. He informs

the customer about the condition of the vehicle and also about the required replacement and

repair work. The service advisor prepares an estimated cost of repairs that includes cost of parts

to be replaced and labor charges after consulting with the mechanic. The customer is required to

claim for insurance for which he has to fill a motor insurance claim form. He should also submitone copy each of driving license, R.C. book and insurance certificate that are the documents

required for insurance claim.

The surveyor of the concerned insurance company inspects the vehicle for damage and gives the

actual cost for damage rectification. The claim is settled within two to three days and the

accident repair section will start the repair work of the vehicle.

Complaints related to servicing repairs and spare parts

On receipt of a customer complaint either directly from the customer or through HMIL or

otherwise the same shall be entered in a register by giving a control number. The customer shall

be contacted over telephone or through written communications and date shall be fixed for

rectifying the complaints with him. After receiving the vehicle the complaints shall be attended

as per laid down procedures. The complaints shall be closed only after the customer is


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completely satisfied. A satisfaction note shall be obtained from the customer. Based on the

analysis of customers, counter measures are to be initiated to prevent recurrence of such

complaints in future.


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Service Staff Hierarchy

Figure 5: Service Staff Hierarchy

38 | P a g e


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SPARES DEPARTMENT

The spare parts department is a key segment and profit centre of the dealershipoperation. There are certain prime reasons which attribute to such identification:

The dealership has 100% equity in paid for spare parts. Investment in parts inventory represents about one third of the dealership's working

capital.

25 to 30% of the dealership's gross profit comes from parts and accessories sales. Spare parts segment plays a very important part in the customer's acceptance of the

dealership as a place to buy not only spare parts but the product itself.

The company have had personal experience in managing their spare parts department.

Many have not and rely on managers/supervisors for this important activity of dealership

operation. Either way, a productive spare parts operation requires leadership.

Wherever no such leader is available or guidance is provided, the dealership can often

find problems due to:

Build-up of parts in inventory Insufficient working capital Low turnover Excessive obsolescence High rate of expenses Lost sales Profit objectives not achieved Conflict between parts, service and sales personnel


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Spares Staff Hierarchy

Figure 6: Spares Staff Hierarchy

40 | P a g e


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HUMAN RESOURCE DEPARTMENT

MISSION:

It aim to contribute to the growth and profitability of PWM by enabling High performance

management empowerment of employees and knowledge management while maintaining the

highest level of customer satisfaction, both internal and external.

Their functions include:

1. Recruitment and Selection2. Performance Management systems3. Administration4. Training

1.Recruitment and Selection

The recruitment programme starts with the approval of Manpower requisition form by the Head

of the Department. Before actually going in for recruitment, options such as resource sharing,

inter-departmental transfers, job rotation etc will be explored by the Department head in

consultation with the Human Resources Department. Human Resources Department will source

the candidate by any one of the following options:-

a) In-house Data bank: The Human Resources Department maintains a data bank of all

received applications. Whenever there is a requirement for a new recruitment, Human

Resources will first scrutinize the in-house data bank to find suitable candidates.

Shortlisted candidates will be called for an interview.

b) Newspaper Advertisement: Based on the business requirement and after an analysis

of the costs involved, an advertisement will be released in the leading Newspapers.

c) Recruitment Consultants: Human Resources Department will empanel recruitment

consultants to identify and short list suitable candidates.


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d) Employee Referrals: Some of the opportunities will be internally advertised in the

company and employees are encouraged to refer candidates known to them for the

position.

e) Campus Recruitment: Company will go in for campus selection for entry-level

positions such as Engineers and MBAs, from select Engg./Mgt institutions

f ) Web Recruitment: Company will recruit through the company website and other

job sites.

The Human Resources Department will interview the short listed candidates. The interview

panel will consist of the Department Head, Profit Centre Head and Human Resources Head. The

Human Resources Head in consultation with the Dept. Head / Profit Centre Head will be

responsible for fixation of salary.

Joining Formalities

Along with the Human Resources Department, the new employee needs to complete all the

joining formalities. When a new employee joins the organization the following forms need to be

filled and submitted:-

Joining Report

Provident Fund transfer form

Provident Fund Nomination and Declaration form

Gratuity Nomination form

ESI Declaration form

Medical Insurance form

Personal Accident Insurance form

Tax Saving form - For the personal file of the employee, the following documents

should be submitted on the day of joining :-


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Two passport size photographs

Two stamp size photographs

Proof of date of birth

Copy of Academic Qualifications - SSLC / Plus Two / Graduation / Post Graduation

/ any other

Relieving letter from the previous employer, for employed category.

Proof of last drawn salary.

Medical examination record

In case of any change in personal records, the employee must inform the Human Resources

Department, in writing so that his records can be updated. Such changes in the personal data

would include:-

Residential address and telephone nos.

Change in marital status

Birth of children

Additional qualification obtained.

2.Performance Management System

This looks into the annual performance appraisal, career development. They also do annual

appraisal to see pitfalls in employees performace.Thus provide right direction to employees

growth. In career development, the executive and the manager are considered for improving

skills. Programs like test, group discussion to find the Employee caliber.

3.Administration

Their main duty is to maintain records for future reference. It also includes the Leave policy,

Transfer policy and Separation policy.


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Leave Policy

The leave policy in PMW is as follows:-

Leave Entitlement

1. Regular employees will be eligible for 12 days casual leave, 12 days sick leave and 12 days

privilege leave. These days of leave can be utilized by them in the year in which the leave

entitlement occurred.

2. In the case of employees on probation, during the period of probation, they will be entitled to

12 days casual leave and 12 days sick leave only. On completion of the probationary period andin the event of their confirmation, they will be entitled to privilege leave of 12 days which they

can utilize during the period of service following such confirmation (This means that if an

employee has one year probationary period and he is confirmed in his service, on confirmation

12 days privilege leave will be added in his credit. If the probation is for two years, 24 days leave

will be accumulated in his credit on confirmation).

Accumulation and carry forward of leave

In the case of regular employees, no distinction is made between the different classes of leave.

From the 36 days of total leave, whatever be the leave availed, will be deducted and remaining

days of leave can be carried forward and accumulated up to a maximum of 66 days.

Public Holidays

The company will provide 13 National and festival holidays in a calendar year. The list of

holidays will be declared at the beginning of the calendar year. Alternatively the company may

substitute another day in the same calendar year to be observed as a holiday in place of an

official public holiday.


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Unauthorized Leave

If an employee is absent from work for a period of 6 consecutive working days without

permission, or if the company determines that the absence of the employee for six consecutively

scheduled working days is not due to legitimate illness or injury, the employee will be

considered as having voluntarily quit the employment of the company.

Transfer Policy

The company reserves the right to transfer an employee considering the various organizational

requirements. The employee will be informed in writing regarding the transfer and other relevant

information like reporting authority, responsibilities etc.

Separation Policy

If an employee feels like leaving the organization, we expect him to come and discuss the areas

of concerns with his superior. This provides the management an opportunity to remedy the

situation, clear up any communication gap and exhaust all possible solutions before concluding

that resignation is in the best interest of both the parties.

The employee is required to submit a resignation in writing. The employee must inform the

Human Resources Department of his new address for communicating with and sending of

relieving letter. The employee is required to submit a No Due Certificate signed by the Profit

Centre Head to Human Resources Department for settling the full and final settlement of dues.

4.Training

The Human Resource department consists of 2 Asst.Managers for the training process. One

Asst.Manager is for Sales Department and the other for Service department .The duty of these

trainers include give training to the new employees and also to the existing employees when new

technology and models comes into the market. The training process helps the sales as well as the

service departments in gaining confidence to achieve their targets. Classes are conducted to help

the employees to handle the stress while working.


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The functions of ELECTORO

1. Monitoring and troubland Registered Office.

2. Month-end consolidati3. Maintenance of data b4. E-mail internet facilit

EDP DEPARTMENT

NIC DATA PROCESSING Department incl

e shooting of computer package which is in

on of data of all branches.

ackup, disaster recovery system etc.

etc.

SR.MANAGER IT

MANAGER

ASST.MNGR

ASST.MNGR

Figure 7: EDP Department Hierarchy

46 | P a g e

ude:

operation in branches


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EDP Manager plan and direct the operation of the electronic data processing equipment, and

select, train, supervise and evaluate the work of the computer operations staff. In planning the

work of the department, EDP Manager evaluate the relative importance of various projects and

determine job priorities. He review the requirements of each project, assign machine time and

personnel to complete it, and coordinate all projects to produce a continuous work flow and meet

deadlines established by management of user departments. Since idle machines are expensive to

the organization, one of the prime responsibilities of the EDP Manager is the effective utilization

of all data processing equipment through scheduling.

EDP Manager generally review and approve all systems charts and programs prior to their

implementation. He may also spend much time with the analysts

working out the requirements of a proposed job, defining the problem and developing the

program. If the Manager is not directly responsible for new programs, he is usually consulted

about the data operations or other aspects of a new program, and may confer with programmers

and analysts regarding program problems that arise during a machine run.


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CHAPTER 6

CASE ANALYSIS


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LOST SALES ANALYSIS

Background of the case

The main objective behind this study is to find out the reasons why the sale of Hyundai i10 was

lost to the competitors. The competitors here are other brands or other dealers of Hyundai

vehicles. If we observe carefully we can find out that the conversion ratio is often very low

compared to the number of enquires made. This means that the customers of your product is

diverted to other brands. This is a greater issue to most of the dealers, as low conversion ratio

means low sales , which may affect the existence of the company.

The competition in this segment is very high compared to other segments. A wide variety of

options are available in front of the customer when he thinks of buying a new car. The Hyundai

i10 comes under the compact car segment or otherwise called as the hatchback segment. The

major players in this segment are Maruti Suzuki, Hyundai and Tata. The table below shows the

Market Share in compact cars.

Table 2: Market Share

In April-November 2009, the overall market has grown more than 21 per cent, according to

SIAM (Society of Indian Automobile Manufacturers). And the hatchback segment propelled bynew launches such as Marutis Ritz, Hyundais i20, Hondas Jazz and Fiats Grande Punto, has

grown about 27 per cent. That seems the perfect setting for the newcomers, which are also

coming in with sizeable production capacities and distribution networks, and with an eye out

for greater share of local parts. The incumbents, meanwhile, are not yielding an inch, making for

a grand face-off.

MARUTISUZUKI

HYUNDAI TATA

57.17% 23.93% 11.92%


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director of GM India. The company has also increased its sales and service points to 195 since

early 2008, and is targeting 250 by March 2010. It can produce 250,000 cars annually.

Ford India , meanwhile , has put $500 million into a new 100,000 units-a-year line in Chennai

.Figo will be offered bang in the middle of the small car market with an attractive cost of

ownership,.

Total cost of ownership(TCO), in fact ,has become a watchword.Ticket price was more

important earlier, says Jagidish Khattar, former head of Maruti Suzuki, who now runs Carnation

Auto ,a car servicing company .TCO is coming now .Maturing Indian consumers are not

willing to fall for an attractive price alone ,and consider service and spare parts expenses, aswell as resale values, before buying a car.

Localization o f content is another area that all the companies are working on. It is here

relatively new entrants such as Skoda Auto have struggled. Skodas Fabia, one of the best

hatchbacks around , has suffered low sales largely because servicing and replacing of spares is

expensive.

Companies such as Ford and GM have an advantage in this area, as they have been around in

India for long and have had time to develop long-term supplier relationships. Fords Figo will

have local content of 85 per cent, enough to give it significant pricing leverage. GMs Beat is

starting with 60 per cent local content, with the company shooting for 80 per cent in about six

months. Volkswagens Polo will come to the market with 50 per cent local content. These big

firms will need all their resources ,pluck and some luck to break the fort of Indian autos holy

triad , Maruti, Hyundai and Tata Motors.

Factors affecting sales

Consumer behavior is dependent on few factors that need to be considered in any industry. In the

Automotive industry, there are several intertwining factors known. The Internet as one knows

well has its importance in nearly every form of trade. Trade is directly dependent on

communication, and these days the Internet is considered to be the most important and reliable

means of communications for trade. In view of the Internet being an important medium through


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which customers may be communicated with, customer behavior becomes an important subject.

Observing customer behavior in the recent past, it is observed that there is immense scope for

expanding the automotive industry. This is because there appears to be a better response from

customers through the Internet. Purchases of parts are easily made and are believed to be

considerably reliable. For purchasing vehicles, advertising through the Internet is the first step

towards pulling in customers. Indeed, this step is believed to be effective as there are a number

of individuals who first see adds online, and then decide to physically check a promotion out.

With the Internet growing more and more it is expected that there will be much more activity on

the part of consumers, which means that the automotive industry is going to do even better than

it has in the past.

Consumer behavior is considerably dependent on promotion of products; the manner in which

products are promoted directly influences customer behavior. Each medium used for promotion

has its own impact, and the one that is believed to have a tremendous impact is the Internet.It is

believed to boost promotions and sales greatly, and it helps customers in their first step before

actually checking a car out. It is through the advertisements on line that they may be attracted

and then move towards checking a vehicle out physically at a show room. It is this behavior that

has helped boost the automotive industry significantly.

Price plays an important role . Price along with after sales service are factors on which the

customer take his purchase decision .It is this price and the after sales service which helps Maruti

Suzuki to continue on its first position in market share. The success of Maruti Suzuki is that they

can provide the customer with all those features the customer demand in an affordable price.

Tata Motors is also competent to Maruti Suzuki in the matter of pricing .But their low customer

satisfaction , resale value and comfort takes them down the line. Hyundai Motor delivers good

quality vehicles which helps them to stand on the second position even though its price is a little

high compared to Tata. The low number of authorized service outlets and the slightly higher

price compared to Maruti Suzuki may be the factors which kept them in the second position in

case of market share. The table below shows the ex-showroom price of different models in the

compact car segment.


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Grande

Punto

Petrol 436233.00 607648.00

Diesel 519888.00 653582.00

Ex-SHOWROOM PRICES

MODEL BASE MODEL(Rs) HIGH END(Rs)

WagonR

Petrol 358373.10 413166.34

Diesel Nil nil

Ritz

Petrol 398368.63 492855.42

Diesel 475429.18 528920.54

Swift

Petrol 416042.09 530608.38

Diesel 483617.28 540256.47

i10

Petrol 344159.00 556753.00

Diesel Nil Nil

Figo

Petrol 354000.00 447000.00

Diesel 452000.00 531000.00

Indica

Petrol 272,634.00 299,308.00

Diesel 357,140.00 378,854.00


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Chevrolet

Beat

Petrol 344807.00 (on road) 405598.00(on road)

Diesel Nil Nil

Polo Petrol 442491.00 700000.00(1.6l)

Diesel 542602.00 683258.00

Table 3: Ex-showroom Prices

Showroom courtesy is one of the main factors which affect the present day sales. A bad

showroom courtesy may affect the present sale and the future sales badly. Because a costumer

who purchases a vehicle from a showroom can act as a brand promoter. He may refer the dealer

to his friends and relatives or can prefer the same dealer when he wants to upgrade his vehicle at

a latter point of time. For all the above things to happen the dealers should maintain a good level

of showroom courtesy. A great number of sales may be lost due bad showroom courtesy. The

subject of customer retention, loyalty, and churn is receiving attention in many industries. This is

important in the customer lifetime value context. A company will have a sense of how much is

really being lost because of the customer churn and the scale of the efforts that would be

appropriate for retention campaign. The mass marketing approach cannot succeed in the

diversity of consumer business today. Customer value analysis along with customer churn

predictions will help marketing programs target more specific groups of customers. The

showroom staffs must be well trained to attend the customer.

As the competition rises offers and discounts started playing a greater role in sales. Companies

started giving certain offers and also discounts for their products. In earlier times a customer who

purchases vehicle might get some free service schemes along with his vehicle. At present

everything has changed, the first question which the customer asks you must be Do you have


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any offers? or What all things I get along with my vehicle?.Which means the additional

benefits that the customer can bag, from purchasing a vehicle from you. So additional benefits

plays an important role in driving a customer to your showroom. Often we have seen ads from

Maruti Suzuki, like Rs 20000 or Rs 30000 off on selected models for a limited period. This

again pulls the customer .The customers are ready to wait even if there is a huge delay in getting

the vehicle.

Factors like availability of model and colour ,then exchange value ,finance options ,friends

and relatives referral ,and better performance like style, mileage ,comfort ,space etc.

Customers used to visit more than one showroom before purchasing a vehicle. So the above

mentioned factors can make an impact on sale. If he find a particular model or color which he

prefer to buy is not available he may move to another dealer where he can get the preferred

things. Finance and exchange value too have the similar impact in creating sales. Friend and

relatives referral comes under the customer retention.

DATA COLLECTION

A sample survey was conducted. The survey was conducted among 200 customers who had

made an enquiry for Hyundai i10 at Popular Hyundai during the last 3 months. A questionnaire

was formulated showing some of the common reasons which the customer say(see Annexure ).

Data collection was through the telephone. Customers who made enquiries for Hyundai i10 were

called. As the data collection is via telephone I made the conversation informal , which helps me

in gathering more information.

The table below shows the number of customers which were converted to other brands. Out of

this 200 customers 45 customers purchased the vehicle from other dealers of Hyundai.


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Table 4: Number of customers shift to other brand.

CHART SHOWING THE NUMBER OF CUSTOMERS LOST TO

COMPETITORS

Figure 8: Number of customers lost to competitors

0

5

10

15

20

25

30

3540

45

50

MODEL NUMBER OF CUSTOMERS

MARUTI SWIFT 42MARUTI WagonR 24MARUTI RITZ 32

TATA INDICA 17

FORD FIGO 15

CHEVERLOT BEAT 04

FIAT GRANDE PUNTO 09

HONDA JAZZVOLKSWAGEN POLO

0309


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From the above chart it can be seen that most of the customers were lost to Maruti Suzuki. Total

98 customers bought vehicles from Maruti Suzuki .Swift is the most accepted vehicle in this

segment 42 customers bought Swift .The reasons which the customers put forward were price ,

after sales service , style , visibility on road etc. Out of these factors price is one of the common

factor which the customers told. The brand shifting occurred mainly due the variation in price.

If we check the ex-showroom prices (Table 3) we can see that vehicles of Maruti Suzuki is

having comparatively low price than other brands. The chart below shows the reasons different

cusutomers told due to which they change their decision to purchase a Hyundai i10

CHART SHOWING THE REASONS FOR CHANGING THE BRAND

Figure 9: Reasons for the Brand Shifting

From Chart 1 we can find that out of the 200 customers 45 customers choose other dealers of

Hyundai for purchasing vehicle. This is one of the case which can cause damage to the business

.All this customers were willing to buy i10 or they can be called as the true customers. These

enquires could be converted into sales if little more care was given. If we check chart 3 we can

0

10

20

30

40

50

60

70

80


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see that one the main reason which the customers told was friends and relatives reference. It is

clear from this statement that a lot of reference sales are happening. It is quiet common among

keralites that we ask our friends and relatives several times before reaching the final decision .

This problem can be cleared by conducting more promotion activities and creating an influence

in the mind of people, so that the next time when someone ask for advice the name of Popular

Hyundai comes out of their mouth .

CHART SHOWING THE REASONS FOR CUSTOMERS TO BUY i10

FROM OTHER DEALERS

Figure 10: Reasons for purchasing from other dealer

The other main reasons which the customers told were availability of model and colour and

discounts and offers . Sometimes it may not be possible for a dealer to keep all the colours with

him. The dealers always prefer to keep the colours which have more number of enquires. The

0

5

10

15

20

25

30


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customer must have preferred some rare colours . In most of the cases the dealer try to arrange

the vehicle preferred by the customer , in some cases it may not be possible due to the delay

happened in getting the stock. Other dealers might have the preferred vehicle with them .

Another reason is the discounts and offers .As we have seen in chart 1 that price is an important

factor in making sales. The customer always purchase from the place from where he gets the

product at a low price. And if he finds that there are certain more benefits which he may get

along with the product, he definitely purchase from the dealer who gives him offers. So if a little

attention is given to these factors the sales can be maximized to a greater extend.


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CHAPTER 7

SWOT ANALYSIS


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SWOT ANALYSIS

STRENGTHS

Unified activity Competent work team Good management policies Good relations with the suppliers Good co-ordination among the departments and employees Strong working capital . Highest number of Dealerships. Good customer relations

WEAKNESS

Shortage of parking space for customers.OPPORTUNITIES

Increasing demand for cars in India. Peoples changing attitude from two-wheeler to a car. High demand for small cars. Good infrastructure

THREATS

Increasing competition from other brands and dealers.


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CONCLUSION

The Company is the authorized dealer for HYUNDAI MOTORS for South and CentralKerala. The activities of the Company range over interests in Automobile Trading, Servicing,

Hire Purchase, Leasing and Allied Activities. Dealership has its branches in South and

Central Kerala. Its an ISO 9001:2008 company.

It was really a great experience learning all the functions of the various departments over

there. The main benefit of the study was that I could learn the basic customer transactions

that are related to passenger vehicle sales. It was a wonderful experience being a part of an

organization and to work along with them. There is high competition from Maruti Suzuki and

other dealers of Hyundai Motors, but because of the strong business strategies followed by

Popular Motor World , they are at the top. The main issue which the company is facing is

regarding the conversion of enquires into sales, a certain per cent of the enquiry is lost to its

competitors which I have reported in detail in the report above. Inspite of these issues

company is moving forwarding smoothly.


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BIBILOGRAPHY

Kamala, T.N. & Doreswamy, A.G. (2007). Strategies for Enhancing Competitiveness of Indian

Auto Component Industries. Indian Institute of Management Kozhikode

Business World (11 Jan 2010)

URL

www.knowthis.com/principles-of-marketing-tutorials/consumer-buying-behavior/.May 20,2010.

www.bloomberg.com/apps/news?pid=newsarchive&sid=aO9LxvSmKTzE.May 20,2010.

www.dealerbusinessjournal.com. June 10 ,2010.

www.popularhyundai.com/.May 7, 2010

www.hyundai.com/in/en/main/.May 7,2010.

www.marutisuzuki.com/May 15,2010.