OVERVIEW OF THE INDSTRY

AUTOMOTIVE INDUSTRY IN INDIA

One of the major changes in the industry has been the opening up and growth of several emerging markets. India is one of the most important emerging car economies in the world today. The Indian automobile industry comprises of the commercial vehicles, multi-utility vehicles, passenger cars, two wheelers, three wheelers, tractors and auto components. The government of Indias new automobile policies like reduction of excise duty to 40% and import duties to 50% attracted a large number of automobile companies to India which includes General motors, Ford, Toyota, BMW, Chrysler, Honda, Hyundai, Fiat, Hindustan motors, Skoda Auto, Telco and one indo-Japanese venture, Maruti already in the passenger car market with 70% of the market share which makes it the numerous Uno player in automobile market. In the initial years after the independence Indian automobile industry was plagued by unfavorable government policies. All it had to offer in the passenger car segment was a 1940s mirrors model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. The automobile sector in India underwent a metamorphosis as a result of the liberalization policies initiated in the year 1991. Measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking policies played a vital role in turning around the Indian automobile industry. Until the mid 1990s, the Indian auto sector consisted of just a handful of local companies. However, after the sector opened to foreign direct investment in 1996, global majors moved in. Automotive industry in India also received an unintended boost from stringent government auto emission regulations over the past few years. This ensured that vehicles produced in India conformed to the standards of the developed world.

1|Page

Indian automobile industry has matured in the last few years and offers differentiated products for different segment of the society. It is currently making inroads into the rural middle class market after its inroads into the urban markets and rural rich. In the recent year Indian automobile sector has witnessed a slew of investments. India is on every major global automobile players radar. Indian automobile industry is also fast becoming an outsourcing hub for automobile companies worldwide, as indicated by the zooming automobile exports form the country. Due to rapid economic growth and higher disposable income it is believed that the success story of the Indian automobile industry is not going to end soon. Some of the major characteristics of Indian automobile sector are: Second largest two-wheeler market in the world. Forth largest commercial vehicle market in the world. Forth largest passenger vehicle in Asia and 11th largest in the world. Expected to become the worlds third largest automobile market by 2030. Behind only

china and USA. The largest three wheeler market in the world. The fifth largest commercial vehicle market in the world. The fourth largest tractor market in the world.

2|Page

BIRTH OF THE CAR

In 1769 the very first self-propelled car was built when Nicolas Cugnot, a French military engineer designed a steam powered road-vehicles The vehicle was built at the Paris Arsenal, and was used by the French Army to move cannons. It had three wheels with the engine in the front along with the boiler. While Cugnot's 'car' was capable of attaining speeds of up to 6cars/hour, it was far too heavy and slow to be of practical use.

In 1771 he again designed another steam-driven engine that ran so fast that it rammed into a wall, recording the worlds first accident. In 1807 Francois Isaac de Rivaz designed the first internal combustion engine. He to develop the worlds first vehicle to run on such an engine, one that used a mixture of hydrogen and oxygen to generate energy, subsequently used this. This spawned the birth of a number of designs based on the internal combustion engine in the early nineteenth century with little or no degree of commercial success. In 1860 thereafter, Jean Joseph Etienne Lenoir built the first successful two-stroke gas driven engine. In 1862 he again built an experimental vehicle driven by his gas-engine, which ran at a speed of 3 kms/hour. These cars became popular and by 1865 could be frequently espied on the roads. The next major leap forward occurred in 1876 when the four-stroke engine was devised. Gottileb Damlier and Nicolas Otto worked together on the mission till they fell apart. Daimler created his own engines that he used both for cars and for the first four wheel horseless carriage. In the meanwhile, unknown to them, Karl Benz, was in the process of creating his own advanced tri-cycle, which proved to be the first true car.

3|Page

After all this experiments we can say that the complete car was birth only in 1885 that the first real car rolled down on to the streets. The earlier attempts, though successful, were steampowered road-vehicles. The season of experiments continued across the seas in the United States where Henry Ford began work on a horseless carriage in 1890. He went several steps forward and in 1896, completed his first car, the Quadricycle in 1896. This was an automobile powered by a twocylinder gasoline engine. The Ford Motor Company was launched in 1903 and in 1908 he catapulted his vehicle, Model T Ford to the pinnacle of fame. Continuing with his innovations, he produced this model on a moving assembly line, thus introducing the modern mass production techniques of the automobile industry.

BEGINING OF CAR IN INDIA

From the singsong rhythm of the bullock cart to the jet-age, India has traveled a long way. An average Indians dream car may not be the design Honda or the stately limousine, but he sure can dream, and afford, the Maruti now. It was in 1898 that the first motorcar rode down Indias roads. From then till the First World War, about 4,000 cars were directly imported to India from foreign manufacturers. The growing demand for these cars established the inherent requirements of the Indian market that these merchants were quick to pounce upon. The Hindustan Motors (HM) was set up in 1942 and in 1944; Premier Autobackmobile (PAL) was established to manufacture automobiles in India. However, it was PAL who produced the first car in India in 1946, as HM concentrated on auto components and could produce their first car only in 1949.

4|Page

It was left to another company, Mahindra and Mahindra (M&M) to manufacture utility vehicles, namely the American Jeep. In the 50s, the Government of India granted approval to only 7 car dealers to operate in India - HM, API, ALL, SMPIL, PAL, M&M and Telco. he protectionist policies continued to remain in place. The 60s witnessed the establishment of the two-three wheeler industry in India and in the 70s, things remained much the same.

5|Page

ECONOMIC INDUSTRY ANALYSIS

BACKGROUND
India is considered as a back office of world, but in the last few years we have seen a tremendous growth in manufacturing sector as well. India ranks 3rd in GDP as per PPP (purchasing power parity) in world, India is a member of all the major groups of world like G-20, BRICS, and one of the founder member of WTO, as per current data of IMF Indias per capita income is 3694$. Since India has adopted the LPG policy in 1990 it has grown tremendously, Since than it has recorded continuous high greet rate and have attracted the investors from all over the world to become a prime investment destination. Innovation and efficiency are the two keys of India which is helping them to be competitive among the world. India due to its huge talent pool is attracting all the major companies from the world who are investing in India for its R&D, realizing the same, US giant GE in 2000 set up a center for developing products for global market. But in last few months India has been facing various problems due to which global rating agency Standard and Poors downgraded Indias long-term sovereign rating from stable to negative, which will affect the way foreign investors see India. This down grading may lead to: Lower down of Business and Investment sentiment Cost of borrowing of Indian companies may go up Foreign money in stock market may slow down Rupee and bonds may be hit

Contribution in Indias GDP:

6|Page

Sectors Contribution
18% Agriculture Industry 55.60% 26% Services

Data Source: Wikipedia

Indian GDP growth is being almost consistent; RBI has adopted various monetary policies so as to maintain a steady growth in the country and to support the Indian economy.

7|Page

As we can see that even though there is a decrease in the growth of GDP it is still among one of the highest growing country of the world. If we will compare Indias GDP with world GDP than its still growing at much higher rate than the
12 10 9.32 8 6 4.93 4 2 0 2005 -2 -4 2006 2007 2008 2009 -2.33 2010 3.55 4.06 3.96 4.21 World GDP growth India GDP growth 1.49 9.27 9.82 9.1 8.81

worl d GDP .

As per World Bank Data (2011 data not given)

One of the biggest problems faced by India is the continuously rising Inflation rate in the country.

8|Page

Inflation stands out to be at a level of 7.23 in the month of April 2012 which is very high compared to other growing economies. The average inflation rate in India was 7.99 percent reaching an historical high of 34.68 percent in September of 1974 and a record low of -11.31 percent in May of 1976. The Automobile Industry designs, develops, manufactures, markets, and sells vehicles, and is one of the world's most important economic sectors by revenue. Automobile Industry, in whole world, as well as in India, is one of the most important sectors of the economy. As Automobile industry has a very deep forward and backward linkage with many key segment of economy, it has a very strong effect on Indian economic growth. The first Motor Car in India was imported in 1898. Later on, the British and wealthy Indians imported completely-built cars and commercial vehicles. By the end of WW1, 4000 vehicles were being imported into India per year. Following an encouraging demand forecast, GM and Ford set up their assembly plants in the early 1920s and 1930s respectively. The number of automobiles

9|Page

INDIAN AUTOMOBILE HISTORY

Indian Automobile History can be divided in 4 parts: Pre 1984 period: In this era cars were considered a luxury product, government had full control over the production, Manufacturers were given the license to produce a predetermined quantity, and expansion was restricted by government. In this period market was dominated by six licensed manufacturers: TELCO, Ashok Leyland, Mahindra & Mahindra, Bajaj Auto, Hindustan Motors, and Premier Automobiles.

1985 1990: In this period Maruti Udyog was formed with the joint venture between GOI and Japanese major Suzuki. This led to give a better choice to the consumers in India. 1991 2000: Economic liberalization started in 1991 in India which later on helped to delicense the passenger car segment in 1993. Hero Honda emerged as a major player in two wheeler segment. In this era a much sophisticated and unregulated automobile market started growing with the help of new foreign technology and huge investment made by international player, as the competition increases advanced technology was introduced to be competitive in market. A large chunk of money was spent on increasing
10 | P a g e

the service presence so as to support on road vehicles. Auto finance also started as a key factor to affect the demand for the vehicle. Post 2000: As the competition increases the government also helps the industry by removing quantitative restriction and allowing 100 % FDI in Automobile industry. It also gave helping hand to various Local manufacturers who initiated production of Vehicle. Manufacturers focused on improving the output keeping in mind Quality and environment prospects.

Automobile industry is one of the fastest growing Industries in India, Currently India is ranked as:

11 | P a g e

 6th in Commercial and Passenger vehicle manufacturing. Asias 3rd largest exporter of Passenger cars. One of the fastest growing market One of the highest contributor in Indian GDP. The Indian auto industry grew at 13 per cent in last five years.

12 | P a g e

MARKET OVERVIEW

The Automobile industry revenue is projected to reach US$ 145 billion by 2016. Automobile production increased from 8.5 million units in 200405 to 14.1 million units in 20092010 at CAGR of 10.7 per cent. Domestic vehicle sales improved at 26.8 per cent y-o-y, from 9.7 million units in 200809 to 12.3 million units in 20092010. Amongst April 2000 and August 2010, increasing foreign direct investment (FDI) inflow to the automotive sector, including individually automobile and auto components, totaled US$ 4,710 million. Inflow of FDI in 20092010 for the auto components sector was recorded at US$ 1.2 billion, which was 4 per cent of the total FDI inflow in the country in the same period.

13 | P a g e

This chart shows the % change in production on YOY basis of India and the rest of the world, its clearly visible that even at the time of downturn of world economy Indias automobile production was steady due to high demand in local market.

14 | P a g e

CURRENT STATISTICS

Mainly Automobile Industry includes: Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers As per latest data of SIAM the automobile industries market is divided as:

(as per SIAM - Society for Indian Automobile Manufacturers)

15 | P a g e

Passenger Vehicles:

Maruti Suzuki is the leader in Passenger Vehicle segment with a huge 38% market share while the Challenger Hyundai is far behind it.

16 | P a g e

SWOT ANALYSIS OF THE AUTOMOBILE INDUSTRY

STRENGTHS 1. Low labor cost advantage 2. Government subsidies for manufacturing plants 3. Strong designing skills etc. WEAKNESS 1. Low productivity of labor. 2. High interest and overheads costs make the production less competitive 3. Different forms of taxes increase the overall cost of production 4. Low investment in R&D. 5. Less Infrastructural development. OPPORTUNITIES 1. Commercial vehicles: as Supreme Court ban on overloading. 2. Rapidly growing mining and construction activity. 3. Reduction in excise duties. 4. Continuous increasing rural demand. 5. Increase in the per capita income of people. THREATS 1. A continuous increase in input costs 2. Increasing interest rates 3. High competition
17 | P a g e

REASON FOR HIGH GROWTH

The Indian automobile industrys growth is driven by various factors which include:

Low cost Labor

Large local demand

Economic Growth

Reason for High growth of Automobile Industry in India

Rural Economy

Infrastructure Development

Disposable Income

18 | P a g e

All these things are helping India so as to become a global hub for automobile industry

19 | P a g e

UNION BUDGET 2012-13 IMPACT

Union Budget 2012-13 Impact on Automobile sector can be seen as: Finance minister Mr.Pranab Mukherjee while announcing Union Budget has made following provision for Automobile industry: Excise duty increased from 22 to 24% No extra tax for diesel vehicles, which is a big relief to the auto sector. Basic Excise duty hiked to 12 per cent from 10 per cent Budget 2012 to add additional revenue of Rs 18,650 crore Large cars will entitled to up to 27 per cent duty, MUVs, SUVs enhanced Cars to attract ad valorem rate of 27 per cent Standard excise duty rate raised from 10 per cent to 12 per cent, LNG not entitled for customs duty.

Post budget Some of the Companies announced an increase in price of their vehicle and said that its not a good news for industry though government has not announced extra tax on diesel vehicle which was considered as a good signal apart from that a much speculated thing of deregulating diesel prices was also missing from the budget, may be it is due to our excess amount of dependence on diesel for transportation which will lead to increase in price of necessary goods.

20 | P a g e

PROBLEMS OF AUTOMOBILE INDUSTRY

Inflationary trends

Rising fuel prices

Current problems of Automobile Industry

Swelling interest rates

Lower growth rate

As customers feared a rise in price of vehicle they rushed to buy vehicle due to which car sales in India increases 13.11 percent. 50 basis point cut in repo rate announced by RBI will be good for auto sector as 85% of the vehicle purchased in India are being financed, so deduction will help the sector Market Reaction: All auto companies shares prices in fear of increase in tax had come down but after the announcement of budget share prices showed a good growth as investors got confidence in the auto industry.

21 | P a g e

MICHAEL PORTERS 5 FORCE ANALYSIS

(Michael Porter five force analysis of Automobile Industry)

22 | P a g e

Some Important points about Automobile industry:

Supply: Overall Indian Automobile industry has a marginal excess capacity. Demand: Its largely cyclical and dependent on various socio economic factors eg: per capita income, disposable income, Seasonality etc. Entry Restriction: Due to high amount of capital involved, Distribution network, Availability of auto components and higher technological advancement. Bargaining power of suppliers: Low, due to stiff competition among rivals. Bargaining power of customers: Very high, due to high availability of options. Competition: High competition as technological advancement takes very less time, large no. of manufacturers. Even after high growth of industry, India is very less penetrated. As per a survey India has only 10 passenger vehicles, 4 commercial vehicles and 43 two wheelers per 1000 people. while Globally, these figures are very high. For instance, Germany has 565 cars Korea has 238 cars and Thailand 57 cars per 1000 population. So there is a huge scope for Automobile Industry.

23 | P a g e

OVERVEIW OF THE COMPANY

HISTORY
Skoda works was established as an arms manufacturer in 1859, but did not develop automobiles. The origin of what became Skoda auto goes back to early 1890s where, like many longestablished car Manufacturers Company started out manufacturing bicycles. It was 1894, and 26year old Vaclav klement, who was a bookseller in Mlada Boleslav, in todays Czech Republic, which was then part of Austria-Hungary, was unable to obtain spare parts to repair his German bicycle. Klement returned his bicycle to the manufacturers, Seidel and Naumann, with a letter, in Czech, asking them to carry out repairs, only to receive a reply, in German, stating: If you would like an answer to your inquiry, you should try writing in a language we can understand. A disgusted Klement, despite not having technical experience, decided to start a bicycle repair shop, which he and Vaclav Laurin opened in 1895 in Mlada Boleslav. Before going into business partnership with Klement, Laurin was established as a bicycle manufacturer in the nearby town of turnover. In 1898, after moving to their newly-built factory, the pair bought a Werner motorcyclist, which was produced by French manufacturer Werner brothers. Laurin & Klements first motorcyclist, powered by an engine mounted on the handlebars driving the front wheels, proved dangerous and unreliable-an early incident on its cost Laurin a front tooth. To design a safer machine with its structure around the engine, the pair wrote to ignition specialist Robert Bosch for advice on a different electromagnetic system. The pairs new slavia motorcycle made its debut in 1899. In1900, when the company had a workforce of 32, slavia exports begun, with 150 machines shipped for London for the Hewston firm. Shortly afterwards, the press credited them as makers of the first motorcycle, the first model, voiturette A, was a success and the company was

24 | P a g e

established both within Austria-Hungary and internationally. By 1905 the firm was manufacturing automobiles. After WW1 the Laurin-Klement company began producing trucks, but in 1924, after running into problems and being hit by a fire, the company sought a partner, and was acquired by Skoda Works, an arms manufacturer which had become a multi-sector concern and the biggest industrial enterprise in Czechoslovakia. Later production was under the Skoda name. After a decline during the economic depression, Skoda was again successful with models such as popular in the late 1930s. Skoda auto is a part of international Volkswagen group, one of the premium automobile manufacturers In Europe. Skoda entered the Indian market in November16, 2001. The company invested in a plant at shendra, outskirts of Aurangabad, the only manufacturing facility of the company outside Europe. The brand Skoda Auto is known for its stylish looks, well built exterior and its constant endeavour to introduce modern technologies. Till date Skoda Auto introduced twelve luxury models in the Indian market including Skoda Superb and Skoda Laura. In 2005 the company achieved more than 25% market in the luxury 1segment. In the same year It had set up a network of 41 dealership equipped with 35 facilities spread across the country. The total sale was close to 27,000.

25 | P a g e

COMPANY PROFILE

Business type

Private

Industry

Automobile

Established in

2002

Sales volume

500 cars/year (approx)

Employees

45

Revenue

2 crores (approx)

Head quarter

Vadodara, Gujarat, India

Parent

Skoda Auto

Key people

Mr. Satish Bhungaliya (Owner/Director), Mr. Emish Mali (General Manager)

26 | P a g e

VISION

The most respected Company in the eyes of our people for the care, concern, and the pride in work that we create and provide.

VALUES

Satisfy consumers & business associates by providing high quality products and excellent

services Development and Growth of people through training, job enrichment and empowerment Employees to show high level commitment, ethics and principals

WORK-CULTURE

Quality is an integral part of Torque Auto motives well-defined and dynamic Human Resource (HR) policy. The company follows a strong value system which is driven by result orientation, adaptability to change, humility and respect for colleagues and peers. We believe that investment in human capital is the key source of competitive advantage and sustained growth.

27 | P a g e

SKODA YETI

SKODA YETI Logo Parent company Category Sector tagline/slogan Usp skoda auto sedan, hatchback, suv Automobiles the right of way tough,off-roader characteristics and features, comfortable STP Segment target group Positioning suv families and off roader drivers positioned as a tough car built for rough terrains but at the same time comfortable for a drive SWOT ANALYSIS Strength 1. great driver visibility due to high driving position 2. well suited for off roads due to great handling capabilities 3. handy and convenient features to use 4. easy to drive in traffic and in city due to increased driver visibility 5. also known as skoda sandi in some markets 6. koda yeti has been awarded a 5-star safety
28 | P a g e

rating by the euro ncap Weakness 1. skoda has not been penetrating into emerging economies as some of the other competitors 2. slightly expensive product but hasnt been able to capture the premium market as per its potential Opportunity 1.collaborations with automobile entities to penetrate deeper in the market through distribution and servicing network 2. augmenting automobile market 3.attracting more middle income class customers Threats 1.rapid technological innovations implemented in upcoming cars 2. intense competition from national car manufacturers 3.intense competition in thesuv market COMPETITION Competitors 1.hyundai tucson 2.maruti grand vitara 3. tata aria

29 | P a g e

MILESTONES OF THE COMPANY

YEAR 2002 2003 2004 2005 BBC Best Entry Level Car for Skoda Octavia NFO Voice of Customer Award 2nd rank J D Power India Sales Satisfaction Index Study CNBC TV-18 Auto car Best Variant of The Year SKODA RS Overdrive Auto Tech Of The Year SKODA RS J D Power Initial Quality Study Best Premium Car of the Year for SKODA Octavia J D Power APEAL Study Premium Midsize Car for SKODA Octavia CNBC TV-18 Auto car The Car of The Year for SKODA Superb CNBC TV-18 Auto car Best Design and Style of The Year for SKODA Superb CNBC TV-18 Auto car Viewers Choice Car Of The Year for SKODA Superb 2006 2nd rank J D Power India Sales Satisfaction Index Study CNBC TV-18 Auto car best variant of the year for Skoda Superb NDTV Profit Car India Executive car of the year for Skoda Laura Overdrive Auto Tech of the year for Skoda Laura Total Customer Satisfaction (TCS) Study by TNS Best Premium Midsize Segment car for Skoda Octavia 2007 1st rank in J.D. Power Asia Pacific 2007 India Sales Satisfaction Index 3rd rank in Dealer Satisfaction Study by TNS Automotive for four-wheeler manufacturers Total Customer Satisfaction (TCS) Study by TNS Best Premium Midsize Segment car for Skoda Octavia 2008 1st rank in J.D. Power Asia Pacific 2008 India Sales Satisfaction Index
30 | P a g e

Total Customer Satisfaction (TCS) Study by TNS Best Premium Midsize Segment Car for Skoda Octavia 2009 Active Small Car of the Year Active Small Car of the Year at the NDTV Profit Car & Bike Awards. Car of the Year Award Skoda's Super hatch Fabia wins the "Car of the Year" award at the CNBC TV 18 Overdrive awards Mumbai. Compact Car of the Year The Super hatch Fabia, known for the practicality along with roominess it offers, also bagged the award for Best Compact Car of the year. 2010 The Golden Steering Wheel Awards 2010 by AutoBild India Best Variant of the Year SKODA Laura Best Sedan of the Year SKODA Superb Overdrive - CNBC TV18 Awards 2010 Midsize Car of the Year SKODA Laura Bloomberg UTV-Auto car Awards 2010 Best Variant of the Year SKODA Laura NDTV Profit Car India & Bike India Awards 2010 Entry Premium Car of the Year SKODA Superb BS Motoring Executive Car Of The Year 2010 SKODA Superb SKODA Superb - Car of the Year - BBC Top Gear Awards 2010 2011 SKODA Rapid Vicky. in People's choice Car and Bike awards 2011 - Sedan of the year Top Gear Awards 2011 - Family Car Of The Year 2011 ET Zigwheels Car of the Year - Premium Compact Sedan of the Year SKODA Yeti Bloomberg UTV Auto car Awards 2011 - 4x4 of the Year Economic Times Zigwheels - SUV of the Year 09 held at Taj Lands End, on the 9th of January in

31 | P a g e

Economics Times Zigwheels - Design of the Year CNBC Overdrive - SUV/UV of the Year BBC Top Gear - Car of the Year Car India - MUV/Crossover of the Year NDTV Car & Bike award - Compact SUV of the Year NDTV Car & Bike award - Best Integrated Marketing Campaign UTVi - Bloomberg Auto car - SUV of the year CNBC TV18 Overdrive - SUV of the Year

32 | P a g e

SKODA LOGO

1926- 1933 This company has been founded in the year 1895. In Mlad Boleslav cars have been manufactured under the brand Skoda and though the name brand has been completely changed in form of novel product logo is visible continuity with previous stage and the logo of this company has a novel which is of oval shape where the brand name is yet a dominant one in the center bounded laurels.

1926 - 1990 The first logo of became so popular which is of which is of winged arrow and this particular one has already been used earlier in 1926.Below is a clear view of logos of Skoda company with clear description behind the design!

33 | P a g e

OVERVEIW OF COMPETITORS

The following are the major players of automobile industry in the world 1) FERRARI: Ferrari is a sport car manufacturer based in Maranello, Italy. Founded by Enzo Ferrari in 1929 as Scuderia Ferrari, the company sponsored drivers and manufactured race cars before moving into production of steel- legal vehicles in 1947 as Ferrari. Throughout its history, the company has been noted continued participation in racing, especially in formula one, where it has enjoyed great success. 2) FORD: The Ford Motor Company is an American corporation based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16,1903.ford introduced methods for large- scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. 3) B.M.W.: Bavarian motor Works (BMW) is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the MINI brand, and is the parent company of Rolls-Royce Motorcars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands. BMW is known for its performance and luxury vehicles. 4) MERCEDES: Mercedes-Benz is a German manufacturer of luxury automobiles, buses, coaches and trucks. It is currently a division of the parent company, Dailmer AG (formerly DailmerChrysler AG), after

34 | P a g e

previously being owned by Dailmer-Benz. Mercedes-Benz has its origins in Karl Benzs creation of the first petrol-powered car, the Benz patent motor wagen, patented in January 1886. The Mercedes automobiles were first marketed in 1901by Dailmer Motoren Geselleschaft. The first Mercedes-Benz brand name vehicles were produced in 1926. 5) CHEVROLET: Chevrolet is a brand of automobile produced by General motors company (GM). Founded by Louis Chevrolet and ousted GM founder William C. Durant on November 8, 1911, Chevrolet was acquired by General Motors in 1917.

35 | P a g e

RESEARCH METHODOLOGIES

MARKETING RESEARCH

Definition of marketing research research as approved as by the board of directors of the association of American marketing association is: Marketing research is the function which links the customer and public to the marketer through information information used to identity and define marketing opportunities and problems generate define and understanding of marketing as process. Simply, marketing research isthe systematic design collection analysis and reporting of data finding relevant to a specific marketing situation facing the company. Carefully planning through all stages of the research is a necessity .Objectivity in research is all-important. The heart of scientific method is the objective gathering of the information. The function as marketing research with in the company as to provide the information and analytical necessary for effective. Planning of the future marketing activity. Control of the marketing operation in the present. Evaluation of marketing results. A research may undertake any of the three types of research investigation depending upon the problem. This type of research included: 1. Basic research 2. Applied research 3. Designated Fact Gathering

BASIC RESEARCH:

It is also known as the pure fundamental research, which refers to those studies, sole purpose of which is the discovery of new information. It is conducted to extend the horizons on given area of knowledge with no immediate application to existing problems.
36 | P a g e

APPLIED RESEARCH

It is attempt to apply the various marketing technique, which have been developed as research, first and later on they become applied research techniques. It is on attempt to apply the basic principles and existing knowledge for the purpose of solving operational problems.

DESIGNATED FACT GATHERING

It refers to a research where the investigation attempts to gather some pre-determined data.

STEPS IN MARKETING RESEARCH

Marketing research process can be out through following steps. Define the problems and research objectives Develops the research plan Collect the information Analysis and interpretation Present the finding.

RESEARCH METHOD

It must be classified on the basis of the major purpose of the investigation. In this problem description studies have been undertaken, as the objective of the project is to conduct the market shares study to determine the share of market received by the company to the competitor.

DATA COLLECTION

The information needed to further proceed had been collected through primary and secondary data.

37 | P a g e

PRIMARY DATA

It consists of information collected for the specific purpose, survey research was used and he all the details of Ford and their competitors were contacted. Survey research is the approached gathering description and information.

CONTACTED METHOD

The information was solicited by administering structured questionnaire to the customer and dealers, thus getting to know directly from the dealers their sales before and after sales service.

SECONDARY DATA COLLECTION

The secondary data consists of information that already existing somewhere having been collected for another purpose. Any researcher begins the research work by first going through secondary data. Secondary data includes the information available with company. It may be the findings of research previously done in the field. Secondary data can also be collected from the magazines, news papers, internet other service conducted by researchers.

METHODS OF DATA COLLECTION

The basic method adopted in conducting the study is a structured questionnaire .Questionnaire is administered on the sample respondents. However there are certain cases where personal interactive method is followed with customers to find the satisfaction level. Descriptive study A B C Sampling technique Sampling unit Sampling size Convenience sampling & judgment sampling The consumers and dealer of car in surat city Consumer 150

38 | P a g e

OBJECTIVES

The study will focus to find out reason for low acceptance of yeti. Evaluate the parameters which influence the intention to purchase SUV vehicle. The Research so carried out would help me in understanding the consumers attitude towards the product and also help me to find out the problem faced by them. The study would recommend all the suitable strategies to organization which will enhance the consumer preference for yeti. This study will also try to find out the areas which need to be improved so as to gain a competitive advantage. To understand the triggers used to choose competitors Product as compared to yeti.

39 | P a g e

SCOPE AND LIMITATIONS

SCOPE Examines and identifies key information and issues about 'SKODA AUTO PVT LTD' for business intelligence requirements Study and presents the company's strengths, weaknesses, opportunities (growth potential) and threats (competition). Strategic and operational business info is accurately stated. The profile also covers info on business processes, company history, major products and services, prospects, key challengers, locations and subsidiaries.

LIMITATIONS Change in certain trends like rise in the price of cars may affect the data. The research is purely driven by the responses of the Customers. The research was carried out in only surat Area. A large number of customers who have bought vehicles in 2012 were included in this research which may also affect the result. The sample size of competitors product is not very high due to non-availability of data.

40 | P a g e

SUV ANALYSIS

The growing consumerism in Indian market has made the customer to have various options which has improved the customer bargaining power too. Indian companies like Mahindra & Mahindra, Tata have head on head competition among Mahindra Scorpio & Tata Safari. Surrounded by the foreign players who occupied Indian automobile industry only Toyota had a main impact in the SUV division with hot selling models like yeti, Innova & Fortuner. Additional players like Hyundai Motors India limited, Maruti Suzuki, Ford, Mitsubishi have a a smaller amount of market share. Mahindra leads the SUVs division ever since the takeoff of its Scorpio from Mahindra which has its own victory stories. Mahindra XUV 500 which is established indigenously by M&M was a hit because of the confidence that the customers had in Scorpio. The lists of SUVs in Indian market are listed below.

Company TATA Maruti Toyota Skoda Renault Force Mitsubishi Nissan Mahindra Ford Audi Chevrolet Volkswagen

Products Safari, Aria Ertiga Innova, Fortuner Yeti 4*2 Duster, Koleos Force One Pajero, Outlander X trail Scorpio, Bolero, XUV 500, Thar Endeavour, Eco Sport Audi Q3 Captiva Touareg
41 | P a g e

BMW Land Rover

BMW X3 Range Rover Evoque

The year 2012-13 will be the year of SUVs for India; all international auto players have their eye on emerging Indian market. The regular age of a consumer buying an SUV has reduced from 39 to 31 years, which reflects the market prospective of Indian SUV market is prosperous due to increase in buying power of young generations. This years Auto expo in New Delhi there were more than 1500 contestants from 23 nations. New contestants in the Indian SUV are Mercedes ML class, Renault Koleos, SsangYong Korando, Mahindra W201, Force one Safari Merlin, Touareg, Audi Q3etc. The growing craze for SUV market has hindered the growth of Indian small car segment. While there are countless SUVs arriving Indian market; M&M after occupying the Indian markets has started entering US markets; it exported more than 11000 SUVs and targeting to be the biggest exporter in this division. The much awaited XUV 500 is a hit with 25,000 bookings received since its launch. SIAM report says that India has the largest proportion of the residents who are below 35 years in that 70% are probable buyers; which can be only a myth in any other part of the world. The factors favoring the growth of SUV segment: 1. Developing Indian economy 2. Growth in disposable income 3. Easier financing choices 4. Transforming consumer life style 5. Sporting appeal 6. Great performance engine 7. Low Price of diesel compared to petrol

42 | P a g e

8. Desire of Middle class societies 9. Local manufacturing decreases price 10. Representation of status 11. Growing brand conscious among individuals

On the contrary side the increase of SUVs will cause a significant destruction to the environment with their fuel consumption and carbon discharge. The diesel price which is given in a backed price is consumed in a greater quantity by SUVs which is possessed by high end of the society. The rise of SUVs market will again increase diesel consumption causing fuel price hike. Hence SUV manufacturers face an unlimited contest ahead in manufacturing ECO friendly vehicle improved performance without compromising the mileage; which is the utmost key deciding issue in Indian context. Sports-utility vehicle (SUV) division which recorded the fastest progress rate in the last year. SUVs, which cost closely three times (or even more) what an entry-level car does, grew a huge 32% in the year, powered by higher demand for both India-made and imported models. The year also saw that, while the market faced a slew of negatives like high interest rates and increase in petrol prices, the demand for costlier cars was not reduced. Sedans (market share 19%) saw demand increase by 15%, and this was powered by superior models like the Hyundai Verna, VW Vento and Chevrolet Cruze. The rapidly-improving road structure and the gradual love of Indian people to travel together between cities are fuelling the demand. Also, the existence of diesel engines plays an important part here. Another reason behind the success of the SUVs is that the quantity of offerings in this segment is rising rapidly. Certain models like Toyota Fortuner & Mahindras latest launch XUV500 have the distinction of a long waiting list for them. Other companies that are set to unveil new SUVs include Ford, Renault, and Audi. The SUV division has witnessed a fantastic progress in India over the last few years and holds the maximum potential in terms of demand.
43 | P a g e

At present-day SUV accounts for 15% of total passenger car market which are expected to develop up at 25% in next three years. AS Finance Minister also declared a hike in import duty to 75 per cent from 60 per cent for assembled SUVs and MUVs costing more than $40,000. The declared increase in excise tax for cars made in India to 27 per cent would only have a minor impact on car costs. Shares in Mahindra & Mahindra, India's prominent SUV maker, whose entire model range runs on diesel, increased as much as 6.1 per cent. Diesel car sales have improved to account for about 40 % of new buying in India, compared to less than 20 per cent a few years ago. The diesel model of Maruti Suzuki's common new Swift hatchback has a waiting list longer than six months. A hurry to buy vehicles before the budget increased car sales in February to their highest level. Cutting the subsidy, which makes the fuel about 50 per cent reasonable than petrol, is a political move due to diesel's extensive use in India's huge farming business.

44 | P a g e

REASON FOR LOW ACCEPTANCE OF SKODA YETI

Unclear Positioning

Low Brand (Aria) Awareness

Low Motivation to sales team

Reason for low Acceptance of yeti

Less satisfied Current owners

Low Brand Recall

45 | P a g e

SKODA YETI PROMOTION

Following are the promotional strategies of Skoda Yeti

ADVERTISING Advertising is promoting a product via/through the media. Advertising must reach the target audience. It has to emphasise the characteristics of the product that will appeal to the potential consumer. In advertisement that can refer to the unique selling proposition of the
46 | P a g e

product and if that is not available company can promote by brand imaging. Advertising can be done by different kind of media are as follow: Newspapers Magazines Direct mail letters Radio Television Billboards Posters Internet

The advertise needs to have a specific target group and should get the attention of the potential customers. In the end the company want with advertising is the customers attention and create the desire of the customer to buy the product instead they buy the product of the competitor. Yeti get promoted by Skoda by different kind of advertising because it has different target groups. It gets promoted on the website of Skoda. The website includes all the features of the car. It also gets promoted in the business line, they put it in a magazine which especially business people read. The basic line promotion of Skoda is to get it promotes on television because everybody is watching television and not only business man. So with television their target group is wider. In one of the television commercial of Skoda we can see some of the unique selling points. Like speed, design, where we can buy it. In the commercial we also see a beautiful landscape with this they also try to link that the car is better for the environment than other cars
47 | P a g e

CRM - Customer Relationship Management

CRM is the abbreviation for customer relationship management. CRM entails all aspects of interaction that a company has with its customer, whether it is sales or service-related. CRM is often thought of as a business strategy that enables businesses to:

Understand the customer Retain customers through better customer experience Attract new customer Win new clients and contracts Increase profitably Decrease customer management costs

While the phrase customer relationship management is most commonly used to describe a business-customer relationship, however CRM systems are used in the same way to manage business contacts, clients, contract wins and sales leads. CRM solutions provide you with the customer business data to help you provide services or products that your customers want, provide better customer service, cross-sell and up sell more effectively, close deals, retain current customers and understand who the customer is. Technology and the Web has changed the way companies approach CRM strategies because advances in technology have also changed consumer buying behavior and offers new ways for companies to communicate with customers and collect data about them. With each new advance in technology -- especially the proliferation of self-service channels like the Web and smartphones -- customer relationships is being managed electronically. Many aspects of CRM relies heavily on technology; however the strategies and processes of a good CRM system will collect, manage and link information about the customer with the goal of letting you market and sell services effectively.

48 | P a g e

LITERATURE REVIEW

Consumer Behavior and IMC

To get a better knowledge about product and dealership services I read many of the published books/leaflets of Tata Motors, apart from that I even went through the training material provided by Tata Motors to Dealers sales advisors Winning every prospect. An extensive literature study about product was carried out so as to know all the features of car which will helped me to convince customer while interacting with them.

The existence of the customer is integral to the existence of the retailer/dealership. The ability to understand the customers is the key of developing a successful retail strategy. To be able to satisfy the customers, it is necessary to understand him, his needs and how he responds to the various marketing efforts which have been undertaken by the organization. An integral part of understanding the customers for the product or service i.e., the target segment, and the demographics of this segment, their needs and buying behavior. The decision making process by the customer is extensively examined. The consumers can be studied in a variety of ways including through observations, electronic surveillance, interviews and surveys, experimentation etc. The most important application of consumer behavior study is the development of the marketing strategy. The firms and organizations improve their marketing strategies by understanding issues such as how The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);

49 | P a g e

The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

Hence, Integrated marketing communication channels depends completely on the behavior of the consumer and the effective promotions are advertising campaigns are formulated based on a careful study on these.

50 | P a g e

PROJECT ANALYSIS

A survey was carried out for a sample of 150 consumers (75 current & 75 potential) to understand their expectation from the vehicle and even for getting feedback about yeti and dealership. The survey gave the following results:-

1) What do you think is more important to you before buying product. Loyal towards Percentage of respondents

Brand/Company Dealers/ Service provider

67% 33%

Loyalty

33% Company/Brand Dealer/Service provider 67%

51 | P a g e

ANALYSIS: As we can see that a large no. of people around 67% of our sample agreed to consider Brand as important factor while purchasing any product. Still almost one third of Customers prefers to buy it from a specific dealer rather than Brand. torque Automotive being the oldest dealer of SKODA has gained a huge loyalty base because of its presence in many residential Areas. SUGGESTION: Though its not a big issue but we should try to make people more brand loyal than dealer loyal so that in case the dealer chose to go with competitors product we should not lose our customer base.

2) Which factors do you consider while buying a car. Purchase Influencing Factors Price Mileage ROI Resale Dealer network Service reach Others % of respondents 19.50% 14.5% 9.50% 13.50% 14% 15.50% 13.50%

52 | P a g e

Factors Influencing Purchase

25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 19.50% 15% 9.50% Factors Influencing Purchase 13.50% 14% 15.50% 13.50%

ANALYSIS: As we all know India is a price sensitive country, pricing of the product affects the buying decision of a customer, a large no. of customers agree that the presence of dealer network and resale value of product is also one of the driving factors which affect the buying decision of Cars. SUGGESTION: Company can adopt a better value chain model so as to reduce the cost of product and price them which attracts a customer and also profitable for seller. SKODA-AUTO with a network of more than 800 dealer across India has a good presence; still company has a large scope in Tier 3 and Tier 4 cities.

53 | P a g e

3) Please tick the appropriate reasons for your decision of purchasing SUV vehicle: Reasons for purchasing SUV Safety Off-roading Comfortable/Spacious Powerful Style statement Others % of respondents 22.6% 16.7% 21% 23.4% 9.2% 7.1%

Reasons for purchasing SUV

25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 9.20% 7.10% Reasons for perchasing SUV 22.60% 16.70% 23.40% 21%

ANALYSIS: Reasons for purchasing SUV have increased now a days because customer want a powerful, comfortable/spacious car as from the above graph we can see that.

54 | P a g e

4) How did you come to know about skoda: Awareness Reference Dealer Newspaper Ad Leaflets/Banners Demo activity Online Others % of respondents 21% 9.5% 16% 17% 8% 19.5% 9%

Awareness about YETI

25% 20% 15% 10% 5% 0% 9.50% 8.00% 9% 21% 16.00% 17% 19.50%

ANALYSIS: A large number of potential customers has not even heard of YETI, a large number of Customers came to know about Aria from various websites and references which is not a good things.

55 | P a g e

SUGGESTION: SKODA should promote yeti as the segment to which skoda is targeting for yeti are upper middle class or higher class people who have a large no. of options available in the market. If people themselves are searching for vehicle and current customers are referring yeti to potential customers than obviously there is a market pull for the product but due to lack of awareness of product its not being converted in final sale.

5) Feedback for yeti Rating for Looks of yeti 1 2 3 4 5 % of respondents 13.5% 30.5% 16% 13% 27%

Looks
13.50% 1 2 30.50% 13% 16% 3 4 5

27%

56 | P a g e

ANALYSIS: Looks is considered to be one of the most important things while buying any SUV, After interacting with so many customers and even sales advisors, I realized that yeti lacks in giving a sporty and attractive look. Though many of the customers prefer the look of yeti, they considered it as a brand identity of skoda vehicle. SUGGESTION: A vehicle is designed after taking review from many people, and so many of qualified engineers and designers design in keeping in mind various things. But I would suggest that a small modification in its front look can be done so as to make it look different from a regular skoda Car.

Rating for Comfort of yeti 1 2 3 4 5

% of respondents 3.5% 2.5% 9.5% 23.5% 61%

57 | P a g e

Comfort
70.00% 60.00% 50.00% 40.00% Comfort 30.00% 20.00% 9.50% 10.00% 0.00% 1 2 3 4 5 3.50% 2.50% 23.50% 61%

ANALYSIS: When a person is investing a huge amount to buy SUV he definitely expects it to be a comfortable vehicle, yeti customers are not just happy but delighted with the comfort of yeti. More than 80 percent people consider yeti as one of the best vehicle when it comes to comfort.

SUGGESTION: Almost all the current and potential customers are happy with the comfort of yeti; skoda can promote its car keeping in mind this point which can prove to be biggest differentiator from other vehicles.

58 | P a g e

Rating for Power of yeti 1 2 3 4 5

% of respondents 9.5% 19.5% 25.5% 21.5% 24%

Power
30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 1 2 3 4 5 9.50% 19.50% Power 21.50% 24%

25.50%

ANALYSIS: Yeti with its engine has amazed so many people but a large no. of people think that the power output of yeti can further be increased.

59 | P a g e

Ease of maintenance of YETI 1 2 3 4 5 12% 37% 23% 16% 12%

% of respondents

Ease of Maintainance
12% 12% 1 16% 2 3 37% 23% 4 5

ANALYSIS: Only owners feedback was taken for this question, we can see that a large no. of customer thinks that its not easy to maintain YETI, while interacting with them I realized its not the vehicle but the dealership which is causing them problem. As it takes too long for them to get back their vehicle, no pickup drop facility, Parts not available with dealer, low level of product knowledge to servicing staffs etc.

60 | P a g e

SUGGESTION: A dealer earns money once while selling the cars but through servicing a major chunk of money comes, so all dealers should be advised to give preferences to all yeti when it comes for servicing, they should keep the an appropriate stock of parts with them, maximum one day of servicing time should be taken for Yeti vehicles, proper reminder of Servicing should be sent to customers from servicing managers/staffs.

YETI FUEL EFFIENCY 1 2 3 4 5 23% 16% 39% 6% 16%

% OF RESPONDENTS

Fuel Efficiency
39% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1 2 3 4 5 6% 23% 16% 16% Fuel Efficiency

61 | P a g e

ANALYSIS: Fuel efficiency differs from person to person due to driving habit, road and traffic conditions, fuel quality, loading pattern and maintenance practices so many of the customers are getting average of 12 in city and 13 on highway while some of them are getting 10 in city and 11 in highway. SUGGESTION: Customers can be given guidance so as to give them a proper knowledge about the driving habit which will help them in getting high average.

COST 1 2 3 4 5 22%

% of respondents

18.5% 22% 13% 24.5%

COST
24.50% 25% 20% 15% 10% 5% 0% 1 2 3 4 5 22% 18.50% 13% 22%

62 | P a g e

ANALYSIS: A customer should always feel that he has made a right decision by buying the car, as the price of Yeti has been rising consistently due to increase in tax and other things many people who bought Yeti previously are very happy, but the current buyer and potential customer thinks that the vehicle is overpriced and they expect it to be lowered down. SUGGESTION: Many people are not aware of product because of which they feel it doesnt worth the price its charging, we should give them proper information regarding project.

ASTHETIC FEATURE 1 2 3 4 5 3%

% OF RESPONDENTS

6.5% 11% 30.5% 49%

63 | P a g e

Asthetic features
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1 49%

30.50% Cosmetic features 11% 3% 6.50%

ANALYSIS: Yeti has done a tremendous job in adding features to yeti, the fit and finish of Yeti is tremendous, as we can see that more than 75% of people are very happy with the cosmetic features offered by yeti. SUGGESTION: Though the customers are very happy with the features given in Yeti but many of them are not happy with the quality of plastic used as some of them are facing problem with low quality of plastic, this can be improved, some of them even raised question on the excess no. of roof utility box provided which was not necessary in the vehicle.

64 | P a g e

LUGGAGE SPACE 1 2 3 4 5

% OF RESPONDENTS 6.5% 6.5% 29% 18.5% 39.5%

Luggage Space
6.50% 6.50% 1 39.50% 29% 2 3 4 5

18.50%

ANALYSIS: Yeti has been provided with ample space for luggage so almost every customer was happy with that though some owners who are using it as a cab suggested that they could have given a company fitted roof racks/ cargo carrier. SUGGESTION: Yeti provides enough space for luggage, though it can offer roof racks to customers while buying car at some discounted price.
65 | P a g e

SAFETY FEATURE 1 2 3 4 5 8%

% OF RESPONDENTS

13.5% 23.5% 16% 39%

Safety Features
5 4 3 2 1 0% 16% 23.50% 13.50% 8% 10% 20% 30% 40% 50% Safety Features 39%

ANALYSIS: Yeti is equipped with so many of the safety features For other variants mostly all the customers were satisfied with the safety features offered. This will be good for customer from safety point of view.

66 | P a g e

6) Feature importance: ABS/EBD 1 2 3 4 5 8% 6.5% 22.5% 27% 37% % OF RESPONDENTS

ABS/EBD

40% 30% 20% 10% 0% 1 2 3 4 8% 6.50% 27% 22.50%

37%

ABS/EBD

ABS/EBD 5

ANALYSIS: Majority of people thinks that ABS/EBD is one of the most important features of SUV and Yeti. As is helps in controlling the vehicle at the time of emergency while driving at a high speed.

67 | P a g e

Now days almost all the vehicles are installing ABS in their vehicle due to demand from customers side.

MORE THAN 2 AIRBAGS 1 2 3 4 5 24%

% OF RESPONDENTS

14.5% 19.5% 13.5% 28.5%

More than 2 AIRBAGS

30% 25% 20% 15% 10% 5% 0% 1 2 3 4 5 14.50% 24% 19.50% 13.50% > 2 AIRBAGS 28.50%

ANALYSIS: Airbags are considered to be one of the important passive safety features of any car; many respondents think that two Airbags are more than enough for any vehicle while a large chunk of

68 | P a g e

customers are in favor of more than 2 airbags in vehicle so as if there is any side impact passengers sitting at back row also should not have any injury. SUGGESTION: An option to customers can be given who want to add additional airbags in car at the time of booking itself by paying additional cost.

CRUISE CONTROL 1 2 3 4 5

% OF RESPONDENTS 33.5% 26.5% 13% 15.5% 11.5%

Cruise control
40.00% 30.00% 20.00% 10.00% 0.00% 1 2 3 Cruise control 4 5 33.50% 26.50% 13% 15.50% 11.50%

Cruise control

69 | P a g e

ANALYSIS: Cruise control helps a driver to drive vehicle at a constant speed without giving acceleration to vehicle, it is a growing trend in India but due to non-availability of good roads and heavy traffics this feature is also not of a much use. SUGGESTION: Due to low usage on Indian roads Cruise controls are not very much in demand, but we should try to create awareness about it, as its very useful on highways, it helps to differentiate Yeti from other vehicles.

GLOVEBOX CHILLER 1 2 3 4 5 7% 13% 33%

% OF RESPONDENTS

22.5% 24.5%

70 | P a g e

Chiller Box
35% 30% 25% 20% 33% 15% 22.50% 10% 13% 5% 0% 1 2 3 4 5 7% 24.50% Chiller Box

ANALYSIS: Chiller Box is considered to be a must for all high end class cars, as Yeti is meant for long journey and family journey purpose; it helps in keeping some drinks and chocolate for children. Even customers who are using Yeti for taxi purpose thinks its an important feature and it makes customer more comfortable while going for long journeys.

FOG LAMPS 1 2 3 4 5

% OF RESPONDENTS 11.5% 9.5% 19% 22% 38%

71 | P a g e

Fog lamps
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 1 2 3 4 5 11.50% 9.50% 19% 22% 38% Fog lamps

ANALYSIS: The people consider fog lamps to be an important feature, as a large number of customer visits hill stations for lamps help them in clear visibility. SUGGESTION: Fog Lamps is largely used feature of any vehicle, we should try to promote it as it helps in clear visibility. ALL WHEEL DRIVE 1 2 3 4 5 % OF RESPONDENTS 21.5% 8.5% 33.5% 19.5% 17%

72 | P a g e

AWD

17% 21.50% 1 2 19.50% 8.50% 3 4 5 33.50%

ANALYSIS: SKODA-AUTO has introduced 2 wheel drive version of Yeti. Then Yeti was launched in an All-wheel drive version but not so many people are fond of all wheel drive in India SUGGESTION: Many people are still thinks that AWD is not necessary for them and its a less used feature but in Indian roads where roads are uneven and at many places where there are no roads, it is a very useful feature, so people should be given proper knowledge about this feature.

ASTHETIC FEATURE 1 2 3 4 5

% OF RESPONDENTS 15.5% 19.5% 27% 13.5% 24.5%

73 | P a g e

Reverse parking sensor/camera

5 4 3 2 1 0.00% 19.50% 15.50% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 13.50% 27% 24.50%

Reverse parking sensor/camera

ANALYSIS: People consider Reverse sensors and camera as auxiliary feature, for some of them its very important as it helps them in parking bigger vehicle. SUGGESTION: As Yeti is a big vehicle reverse parking camera/sensors help in parking vehicles, so people should be informed about this feature and we should tell them about the advantage of this feature.

74 | P a g e

TWIN EXHAUST 1 2 3 4 5 8% 7%

% OF RESPONDENTS

16.5% 29% 39.5%

Twin Exhaust
40% 35% 30% 25% 20% 15% 10% 5% 0% 1 2 3 4 5 8% 7% 16.50% 29% 39.50% Twin Exhaust

ANALYSIS: Twin Exhaust helps to reduce engine strain and helps engine to perform better, it is also considered as an accessory by customer to enhance the looks of vehicle. SUGGESTION: Yeti has 1900 cc engine and dual exhaust helps the vehicle to give a better performance, so dual exhaust is a must for Aria irrespective of variants.
75 | P a g e

7) Relative Brand Rating: please rank the vehicles as per your preference (1 being the best)

RELATIVE BRAND RATING YETI CAPTIVA ARIA OUTLANDER XUV500 17% 23% 12%

% OF RESPONDENTS

26.5% 21.5%

Rated as No. 1
30% 26.50% 25% 20% 15% 10% 5% 0% Yeti Captiva Aria Outlander Xuv 500 23% 21.50%

17% 12% Rated as No. 1

ANALYSIS: Captiva and Outlander are being considered as the top sought brand by customers while Xuv is on third rank followed by Yeti, Aria is not being considered as a Family car as many people

76 | P a g e

consider it as a tourist vehicle. Yeti is being ranked on an average position where many people think that this is one of the best product offering from SKODA-AUTO.

8) How will you rate the service offered at SKODA-AUTO PVT LTD dealerships: (1 being lowest and 5 highest) DEALERSHIP RATING 1 2 3 4 5 % OF RESPONDENTS 48.5% 27% 9% 9.5% 6%

Dealership rating
60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 1 2 3 4 5 9% 9.50% 6% 27% Dealership rating 48.50%

77 | P a g e

ANALYSIS: A large number of customers are not happy with the service provided by dealership, before/during and even after the sale is done. Many of customers are facing various issues with vehicle due to negligence of dealers. SUGGESTION: Yeti customers are totally a different segment, they should be given preference in servicing of vehicle, An Yeti servicing should not take more than a day, dealership service centers should keep a track on the stock of parts of Yeti as many of customers keep on waiting for parts for more than 2-3 months.

9) Are you satisfied with the Information/Demo/Test drive given to you:

INFORMATION FROM SALES ADVISOR YES NO 57% 43%

% OF RESPONDENTS

78 | P a g e

Information

43% 57%

Yes No

ANALYSIS: We can see that around 57% of people are not satisfied with the demo/ test drive given to them, the basic reason which I have identified is lack of maintenance of Test drive vehicle.

79 | P a g e

FINDINGS

Torque motors do communication from their customers by the way of telephone. Secondly they stand there employees to the place of the customer to take their feedback They send their employees for the insurance paperwork, to take their car from their place to the service station. The main tool of the communication are face to face, telephone, and through message remainders.

SKODA at the time of launching Yeti has taken help of various promotional tools and tried to make an impact on customers mind, but after some time their focus started changing.

Due to low promotion Yeti has a very less awareness in Market; moreover SKODA has been sceptical about the positioning of Yeti.

SKODA-AUTO is an extremely well established brand. Further initiatives and efforts could see SKODA-AUTO at the very top for the entire range of products dealing with high class comfortable vehicle.

Current owners are facing a lot of problem relating to service of vehicle and even with the low availability of parts. One of the main problem is that customer advisors directly focus on price rather than showing them vehicle and its features. Yeti has a huge potential in the market as almost all the current owners are well satisfied with vehicle and its performance. The biggest issue with yeti is its look which is not being accepted by customers.

80 | P a g e

RECOMENDATIONS
PRODUCT RELATED: Yeti is being designed by Top designers of SKODA-AUTO keeping in mind the expectation and also the financial constraints, no doubt its a master piece created by them. But as per my personnel opinion after interacting with costumers, I would like to suggest some important concerns of customer Positioning is one of the very critical aspects of any product, just by labeling the product as a crossover does not make it a crossover. The brand should produce sufficient evidence that it belongs to a new breed. Skoda should promote yeti as a large number of owners are happy with the product but due to low awareness the sale of yeti is low. Skoda should also take part in vehicle exhibition of premium cars which is organized by various organizations. All the promotional offers/ discounts of month should be informed to dealers as soon as possible because a large number of inquiries which is being made on first week of month are lost to competitor

81 | P a g e

DEALERSHIPS/ SERVICE RELATED

Sales Advisors should be motivated so as to sell Yeti. Dealerships should give preference to yeti owners in service, not more than 24

hours should be taken to service the vehicle.

Dealers should also maintain a proper stock of parts of Yeti, if they dont have

any part available they should arrange for it.

Sales advisors should focus on customers rather than filling up green forms. Test drive vehicles should be maintained carefully as almost every dealerships

vehicle has some problem.

Sales Advisors should use the Video player which is provided to them while

dealing with Yeti Customers.

Various kinds of Rally/ Events related to Yeti could be organized in a particular

city.

82 | P a g e

LEARNING FROM SIP

Dealing with different types of customers. Various procedures to be followed while closing any deal. Consumer insights about SUVs Various ways of contacting customers and increasing inquiries for vehicle. Essential things which should be kept in mind while organizing events. Patience. Various stages of sales and action required at that stage. How to deal with dealerships/ service provider.

83 | P a g e

BIBLIOGRAPHY

WEBSITES:

www.data.worldbank.org www.skoda-auto.co.in www.siamindia.com www.carwale.com www.managementpunditz.com http://planningcommission.nic.in/data/datatable/index.php?data=datatab www.newskodayeti.co.in

Magazines/ Books/Newspaper: Times of India Business worlds, The Marketing White book; 2011-2012 Marketing management Philip Kotler, 13th Edition, Pearson Education Marketing management, N. D. Gami.

84 | P a g e

ANNEXURE

QUESTIONNAIRES:

Understanding Consumer Insights of skoda yeti 1. What do u think is more important to you before buying product o Company/Brand o Dealer/Service provider

2. Which factors do u consider while buying a car o Price o Mileage o ROI o Resale o Dealer network o Service reach o Other specify.

3. Please tick the appropriate reasons for your decision of purchasing SUV vehicle: (You can select multiple options) o Safety o Off-roading
85 | P a g e

o Comfortable/Spacious o Powerful o Style statement o Other please specify .

4. How did you come to know about YETI: Reference Dealer Newspaper Ad Leaflets/Banners Demo activity Online Others please specify __________________

5. Feedback for YETI:

(1 being Lowest and 5 Highest)

Sr.No. Parameters 1. 2. 3. 4. 5. 6. 7. 8. 9. Looks Comfort Power Ease of Maintenance Fuel efficiency Cost Cosmetic Features Luggage space Safety features

86 | P a g e

6. Features Importance :

Sr. No. 1. 2.

Features

Not Important

Least Important

Neutral Highly Important

Utmost Important

ABS/EBD More Airbags than 2

3. 4. 5. 6.

Cruise Control Chiller box Fog lamps Reverse parking

sensor/camera 7. 8. Twin exhaust AWD

7. Relative Brand Rating: please rank the vehicles as per your preference (1 being the best) --------------------------------------------------------YETI CAPTIVA ARIA OUTLANDER XUV500

8. How will you rate the service offered at SKODA-AUTO PVT LTD dealerships: (1 being lowest and 5 highest)
87 | P a g e

o 1 o 2 o 3 o 4 o 5 9. Are you satisfied with the Information/Demo/Test drive given to you: o Yes o No

10. Any other concerns / Valuable suggestions:

11. Personal details: Name: .. Profession: .. Contact No. : .

Model purchased/Interested: .. Dealership Name: Sales Advisors name:

88 | P a g e