Automobile Industry History

In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first
automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled,
military tractor that made the use of a steam engine. The range of the automobile, however,
was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition,
these automobiles were not fit for the roads as the steam engines made them very heavy and
large, and required ample starting time. Oliver Evans was the first to design a steam engine
driven automobileintheU.S.

A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and
1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were
amongst the first to invent more applicable automobiles, making use of non-rechargeable
electric batteries in 1842. Development of roads made travelling comfortable and as a result,
the short ranged, electric battery driven automobiles were no more the best option for
travelling over longer distances.

The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk
production of cars. This lead to the development of the industry and it first begun in the
assembly lines of his car factory. The several methods adopted by Ford, made the new
invention (that is, the car) popular amongst the rich as well as the masses.
According the History of Automobile Industry US, dominated the automobile markets
around the globe with no notable competitors. However, after the end of the Second World
War in 1945, the Automobile Industry of other technologically advanced nations such as
Japan and certain European nations gained momentum and within a very short period,
beginning in the early 1980s, the U.S Automobile Industry was flooded with foreign
automobile companies, especially those of Japan and Germany.




NEED FOR STUDY
Increasing competition, ever growing market, easy availability of the finances and
increasing population of young executives, with huge disposable incomes, over the
past few years has substantially increased the sales in the automobile industry. Also,
the competition among the dealers of the products has increased with each trying to
maximize their customer base. This makes it imperative for the dealers to provide the
best of the services and exceed the customer expectations to achieve customer delight
and loyalty.
The study tries to understand the key service parameters and reflect upon the
dysfunctional areas, thus providing the dealer with an insight into the level of
customer satisfaction and changing trends of the customer expectations.













OBJECTIVE OF THE STUDY

To study and understand the key service parameters using Customer Satisfaction and reflect
upon the low performing areas:

To study about the customer satisfaction on the services provided by the dealers.
To study the opinion of the customers regarding the availability and cost of spare
parts.
To study the opinion of the owners of cars regarding its features like mileage, price
etc.
To study the effect of advertisement on the customers to promote the product.
To study the customer satisfaction with usage of their cars.
To study the information resources that the customer using before purchasing the car.









SCOPE OF THE PROJECT
The research measures the experiences of customers.
Defines and analyses the experiences based on key deliverables.
Gains insights into Customer expectations.
Due to constraint of time only city of Hyderabad is selected and so it cannot claim to
be a comprehensive study of the population.
The sample size is restricted to 100 respondents.
COMPANY PROFILE

A. Background and Inception of the company:
Saboo Hyundai is one of the dealership of Hyundai Motors India Limited in
BOKARO. It was established in the year 2014. With the opening of this venture, customers
may feel ease as they are having options to take the view from either of the show room. It
seems Mr. B.D.Mishra decided to open this showroom in Chas (Bokaro) area as there is no
any passenger vehicle showroom in this area and it is going to be the future business area of
the Bokaro.
sabooHyundai working philosophy is particularly based on Prepare employees for the
future developments with developments in their personality. As competition is very much
intense hence the management is working hard for customer relationship to achieve future
business growth.
As it is newly opened organization hence as every other organization it is also facing some
management problems. Management is trying to overcome all these problems and achieving
systematic workings here. Each and every department is distinguished for the employees.
Every employee is having its own designation and job profile and he/she has to work under
that profile only. For each segment of the vehicles, Saboo Hyundai is having its separate
executives. Departments are connected through local area networks.
The main aim of management here is self development of employees. So that, they can be
empowered for the benefit of the organization and be able to take future responsibilities. It
starts with the joining of the employee in the organization. Initially, they have to work under
various departments till his/her probation period would be over. They have to start their
works from the ground level, so that they can understand the reality of the business here.
Daily reporting at the morning and the evening make them up to date with the objectives and
their future targets. The senior management knows that how they are doing their work and in
which way they have to be directed.
ABOUT HMIL
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the largest passenger car exporter and the second largest car
manufacturer of India. HMIL presently markets 54 variants of passenger cars across
segments. These includes the Santro in the B segment, the i10, the Getz Prime & the
premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the
Sonata Transform in the E segment and the Tucson in the SUV segment.

Hyundai Motor India Ltd, continuing its tradition of being the fastest growing passenger car
manufacturer, registered total sales of 559,880 vehicles in the calendar year (CY) 2009, an
increase of 14.4 percent over CY 2008. In the domestic market it clocked a growth of 18.1
percent as compared to 2008 with 289,863 units, while overseas sales grew by 10.7 percent,
with export of 270,017 units. HMIL currently exports cars to more than 110 countries across
EU, Africa, Middle East, Latin America and Asia. It has been the number one exporter of
passenger car of the country for the sixth year in a row.

HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most
advanced production, quality and testing capabilities in the country. In continuation of its
commitment to provide the Indian customer with global technology, HMIL commissioned its
second plant in February 2008 which produces an additional 300,000 units per annum, raising
HMIL's total production capacity to 600,000 units per annum.

HMIL has invested to expand capacity in line with its positioning as HMC's global export
hub for compact cars. Apart from the expansion of production capacity, HMIL currently has
286 strong dealer network and 540 strong service points across India, which will be further
bolstered in 2010.

In December 2008, HMIL launched the much awaited premium compact the i20 after it had a
global preview at the Paris Motor Show in October, 2008. In 2009, HMIL also launched the
new facelift Sonata Transform and the new Verna which are vastly improved models
compared to the outgoing models. In March, 2009 Hyundai i10 clocked the fastest 3 lakh
sales since its launch in October, 2007. HMIL also became the only car manufacturer to
introduce Automatic transmission across segments with the launch of the i20 1.4 Litre Petrol
Automatic. The i20 also simultaneously got a powerful 1.4 Litre CRDi engine in July 2009.
The i20 achieved the highest safety rating by the European NCAP. In September 2009, HMIL
introduced the new refurbished Santro with luxurious interiors and improved exterior
features. The Santro has been the highest selling model for Hyundai with more than 15 Lakhs
units sold since its launch in India in 1998. Hyundai Motor India in December 2009 also
crossed the 25 Lakh car production milestone.
Hyundai Motor India remains one of the fastest growing car manufacturers in the country.
The companys overall performance in the automobile sector was recognized by the media as
it was awarded with the prestigious Manufacturer of the Year award by both UTVi Autocar
Car and NDTV Profit-Car & Bike in 2009

HMIL has invested to expand capacity in line with its positioning as HMC's global export
hub for compact cars. Apart from the expansion of production capacity, HMIL currently has
251 strong dealer network across India, which will be further bolstered in 2009.

B. Nature of Business Carried:
Saboo Hyundai is a dealer of cars of Hyundai motors. The business carried by Saboo
Hyundai is of dealership. It is an also an authorized service centre and it totally aims
in selling cars both passenger and SUV vehicles as per demand of customers.

C. Vision, Mission and Quality Policy:
MISSION:
The mission of the Saboo Hyundai is committed to develop the firm as a big
competitor and service provider in the Hyderabad Passenger car market.

VISION:
The dealer announced "Innovation for Customers" as our midto longterm vision
with five core strategies: global orientation, respect for human values, customer
satisfaction, technology innovation, and cultural creation. They desire to create an
automobile culture of putting customer first via developing humancentered and
environmentfriendly technological innovation.

QUALITY POLICY:
Based on a respect for human dignity, it make efforts to meet the expectations of all
stakeholders including customers and business partners by building a constructive
relationship amongst management, labor, executives and employees. Also, they focus
on communicating their corporate values both internally and externally, and gaining
confidence from all stakeholders.
D. Products Profile:
MODEL VARIANT Ex-Showroom Price
(As on 19/02/2010)
(In Rupees)



Non A/C (S) 2,69,524
Non A/C (M) 2,72,985
GL (S) 3,34,971
GL (M) 3,38,432
SANTRO

GLS (S) 3,22,168
GLS(M) 3,58,628






I-10
D-Lite (S) 3,38,276
D-Lite (M) 3,41,757
Era 1.1L (S) 3,73,514
Era 1.1L (M) 3,76,996
Magna 1.1L (S) 3,87,693
Magna 1.1L (M) 3,91,174
Magna 1.2L Kappa (S) 3,99,794
Magna 1.2L Kappa (M) 4,03,275
Magna 1.2L-AT (M) 4,48,874
Sportz GLS1.2L (S) 4,27,061
Sportz GLS1.2L (M) 4,30,543
Sportz GLS1.2L-AT(M) 4,72,967
Asta GLS 1.2L (S) 4,85,749
Asta GLS 1.2L (M) 4,89,231

Getz
GLE 1.1 3,62,281
GVS 1.1 3,92,281
GVS 1.1 (175 tyre+ rear spoiler) 4,02,281

I-20
Magna 1.2L 4,83,999
Asta 1.2L 5,63,999
Magna Diesel 1.4L (ABS) 6,23,599
Asta Diesel 1.4L 6,87,199

Executive IMM 5,03,901
Xccent
GLE 5,24,652
ECO 5,33,900

Verna
1.6 VTVT 6,46,038
1.6 SX VTVT 7,20,838
1.5 CRDi VGT 7,69,070
1.5 SX CRDi VGT 8,18,967


Sonata
Embera MT (Leather) 13,30,067
Embera AT (Fabric) 13,61,639
Embera AT (Leather) 13,92,927
Embera 2.0 CRDi 14,43,917
Embera MT (Fabric) 12,98,786
Suntafi
CRDi 16,96,114


E. Area of Operation:
The firm operates regionally in the Hyderabad circle. The showrooms are
situated in the important markets of Hyderabad that are Bokaro(Head office),
Dumka, Ramgarh, Ranchi and Purulia (Bengal). But the HMIL under which
the dealership situated operates globally in both Passenger cars segments and
SUVs segment.
F. Ownership Pattern:
The firm is private limited firm and the dealership is directly under the HMIL.
Owner Mr. B.D. Mishra
CEO- Mr. Nitesh Kumar Mishra
Branch Manager and Manager Sales Mr.deepak vall
G. Competitors Information:
Car segment Maruti Suzuki

M-800 had dominated the Indian car market since it was launched in 1984. The
introduction of new cars by competitors made the M-800 look obsolete as it had not
been changed in any major way for over two decades. Apart from the increased
competition, MUL also had a few other problems on its plate.
There was a delay in setting up of a plant in India for manufacturing diesel engines and
transmission systems for cars. The engines for its diesel variants were imported from
other countries, and there were limits on the quantities it could import. In the market,
MUL's models like the Zen, Alto, WagonR, and Baleno were showing mixed results.
Utility Vehicle segment Mahindra
Marketing Strategy of Mahindra and Mahindra Limited for Scorpio
In June 2003, 'Scorpio,' a sports utility vehicle (SUV) from Mahindra and Mahindra Ltd.
(M&M), a leading Indian automobile company, celebrated the first anniversary of its launch.

This one year journey had been quite fruitful for Scorpio, which had impressed many industry
observers and customers.

A year ago, within the first eight days of its launch, Scorpio had attracted over 10,000
customers to its dealer showrooms and over 3,000 customer enquiries, resulting in 1000 order
bookings. According to company sources, by the time it completed its first birthday, Scorpio
had sold 15,000 units across India.
Media reports, automobile enthusiasts and industry analysts had all given the SUV extremely
positive reports. With demand for the vehicle growing steadily, M&M even had to increase
its production from 1,800 units per month in 2002 to 2,000 per month in June 2003, and
2,500 per month by late 2003.

H. Infrastructural Facilities:

The firm has good infrastructural facilities these are:
o It is situated in the main market place of the Bokaro Steel City.
o The showroom has good facilities such as Playing area for children who are
coming with the customers,
o Good servicing facilities for cars with advanced technologies,
o Good entertainment facilities available for customers who were wait during the
servicing of their car,
o The showroom uses new technology in their management information
system(MIS).

I. Achievement and Awards:
o Achieved the most car seller dealership in Hyderabad.
o Win the best car seller award in Bokaro from Chas Chamber of Commerce.

J. Work flow Model:











There are three broad processes at a showroom.
CUSTOMER APPROACH
MODEL

FEATURES

COLOUR

BOOKING OF CAR


PROCESSING OF ORDER
Order to Manufacturer

Supply of cars from
Manufacturer

Delivery to Showrooms
Wit in 5 days


DELIVERY OF ORDERS
Customer choose the
payment option i.e.,
car finance or cash.

After all
Documentation the car
is finally delivered to
customer

Pre-sales
Sales
Post sales

All these are inter-related to each other.
The pre-sales process is very important because if a customer has a satisfying experience
during this process, it greatly increases the chances of him purchasing the car from your
showroom. At this stage, the customer is indecisive as to which car to buy and from where to
buy.











The pre-sales activities include:

Cold Calling and Identification of Prospects
Creation of Customer Card
Acquire Knowledge about MUL s range of cars, competitor cars
Knowledge about other allied services like finance, insurance, pre owned cars,
extended warranty etc.
Knowledge about accessories, range offered, prices etc. and about preventive
maintenance of the car.
Walk in Enquiry Telephonic Enquiry
Product
Demonstration
Test Drive

THE SALES ACTIVITIES INCLUDE:

Visit the prospects
Understanding needs of the prospects
Give a proposition to the customer.
Create interest and preference for MUL
Give a detailed demonstration and test drive
Provide clarification to queries and handle objections
Follow-up with the customer
Secure order from customer
Offer allied services like finance, insurance, accessories etc.
Advice customer on all matters related to his car.

In case there are too many Sales cases, a special focus is required to serve these customers
since ultimately, the customers are also the showrooms customers and there are suggested
ways to handle them.

K. Future growth and prospects:
Saboo Hyundais future growth is very bright because it is the newly growing firm in
the Bokaro market. It is the division of Ranju automobiles (Pvt.) Ltd. which is already
a well established Bajaj showroom in the Bokaro market. The customers of Bokaro is
already aware about the Ranju Automobile because this is the very old firm and
dealership in Hyderabad. Due to this customers are committed toward this dealership
and due to this customers do not go for any other showroom of Hyundai.


1. McKinseys 7S framework :




STRATEGY
Saboo Hyundais marketing strategy is differentiated marketing.
Its primary consumer target is middle to upper income professionals who need true
value for their money and comfortable ride in city conditions. Its primary business
target is midsized to large sized corporates that want to help their managers and
employees by providing them a car for ease of transport.
Its secondary business target is entrepreneurs and small business owners who want to
provide discounts to managers buying a new car



SHARED
VALUE
STRATEGY
STRUCTURE
SKILL
STAFF
STYLE
SYSTEM
STRUCTURE
Overall Structure of the Saboo Hyundai:














SKILL
Saboo Hyundai product is Passenger Cars, so they should be handled carefully. So it required
skilled manpower for handling, and skill in the sense testing of cars.
Training will be conducted in Hyundai Jamshedpur (Hyderabad). For newly recruited
employees will be given basic training program for 10 weeks. And 10 weeks training will be
given for employees for junior technical officer, about machines. Training will be given to
employees to know about the total features of cars in Saboo Hyundai.

Employee 1
Employee 2
Employee 3
Managing Director
Branch Manager and Manager sales & marketing
Corporate &Exchange
, Hyundai Advantage
Pre-Owned Cars

Finance
Dept.
GDMS and
Back Office
Accessories
& Spares
Service Dept.
S.E. 1
S.E. 2

S.E. 3
S.E. 4

S.E. 5
S.E. 6
Sales
Executives
Chief Executive Officer
S.E. 7
Team
Leader,Sales
Employee 1
Employee 2
Employee 3
Service Employees 01 to 30
STYLE
Top down Approach
The management acts with autonomy and independence in excercising strategic
supervision, discharging its fiduciary responsibilities, and in ensuring that the company
observes the highest standards of ethics, transparency and disclosure.

Participating Approach
At Saboo Hyundai the management is participating in nature. Anyone in the company
can put in their view points before the management for any improvement in the prospects of
the company, manpower, working environment,etc.

SYSTEM
The marketing department is divided into 5 Teams. For all the different marketing teams, one
Team Leader is assigned. The team leaders take care of their teams activities and report to
the marketing manager that is further reported to the CEO. The marketing is totally target
based and based on targets given by HMIL, the task is distributed to different teams.
The customers are handled by the same personnel from the beginning to the end. Spot
incentive Schemes etc is placed in the system to motivate the employees. The conversion and
Target fulfillment is traced out via the software.










STAFF
CATEGORY NO. OF STAFF TYPE OF WORK
Sales Consultants 10 Generate sales from market
Back Office 02 Maintain the data of
customers
Finance Dept. 06 Maintain the financial data
Spares And Accessories 04 Maintain the data and Stock
of parts and spares
Corporate and Exchange 03 Deal in all the pre-owned
cars of Hyundai
Service Dept. 40 Servicing of cars and data
maintenance of Serviced cars
in service station of Saboo
Hyundai.
EDP 06 Maintain Showroom data and
customers complaints, etc

DUTIES AND RESPONSIBILITIES OF STAFF
To report him/ her to duty at the place to which he/she posted.
To undergo the prescribed probation under specify period and undergo such training
and for a period has may be arranged for him/her and acquit him/her self creditably in
the training imported to him/her.
To obey and abide the rules, regulations, service conditions and standing orders which
the may adopt, prescribe, frame are issue from time to time to govern its employees.



SHARED VALUES
Review of Customer Care Activities.
The review of customer care activities is done through morning meetings and weekly
meetings on customer care. The documents that are necessary during the weekly review are:
PSR related, Internal SSI forms related,HMIL related and other information related.

Customers for Life
A week after the delivery, the concerned sales person must fix an appointment with the
customer and visit him along with the service advisor. He should personally hand over the
photographs clicked also the vehicles registration certificate and try to become the
customers car advisor for life and never lose touch with the customer.
Show Room Ambience
The hours of operation, outside and insides of the showroom along with reception, car display
area, selling area, customer lounge and delivery area should be taken care of.
Customer Meets
Organizing customer meets helps in improving SSI, helps in introducing the workshop staff
to the customers and in getting referrals and there are guidelines for the same










Research Methadology

A. Statement of the problem:
The research is based on the Strategy to Increase the Demand for Hyundai
motors Products and Services. Why their competitors sales are more than
Saboo Hyundai? How to manage our company to win from these
competitors?

B. Objective of the study:
The objective of the study is To:
Increase the sales of the Saboo Hyundai by implementing different
marketing strategy.
Understand the market conditions for Hyundai Cars.
Study about the strategy of its competitors in the market.
Different promotional tool used by Saboo Hyundai
Study the consumer behaviour, and perception about the Hyundai
Cars.
Study about the need of improvement in existing Marketing
System.
Study about the difficulties faced by Executives while Marketing
in the field.
To study about the effectiveness & efficiency of Saboo Hyundai in
relation to its competitors









C. Scope of the study:
Saboo Hyundai working philosophy is particularly based on Prepare employees for
the future developments with developments in their personality. As competition is
very much intense hence the management is working hard for customer relationship to
achieve future business growth.
As it is newly opened organization hence as every other organization it is also facing
some management problems. Management is trying to overcome all these problems
and achieving systematic workings here. Each and every department is distinguished
for the employees. Every employee is having its own designation and job profile and
he/she has to work under that profile only. For each segment of the vehicles, Saboo
Hyundai is having its separate executives. Departments are connected through local
area networks.
The main aim of management here is self development of employees. So that, they
can be empowered for the benefit of the organization and be able to take future
responsibilities. It starts with the joining of the employee in the organization. Initially,
they have to work under various departments till his/her probation period would be
over. They have to start their works from the ground level, so that they can understand
the reality of the business here. Daily reporting at the morning and the evening make
them up to date with the objectives and their future targets. The senior management
knows that how they are doing their work and in which way they have to be directed.
Saboo Hyundai tries to find out the answer of 4 critical questions while doing its
business;
1. Are we easy for customers to do business with?
2. Do we keep our promises?
3. Do we meet the standards, we set?
4. Are we responsive to customer needs?



D. Methodology:
The nature of the project work has been descriptive as no hypothesis, is
taken to be tested. Though the conclusions drawn could be taken as the
hypothesis and further tested by the research work undertaken in the
relevant field. The reason for choosing the descriptive research design is the
fact the project report has been primarily based upon the secondary sources
of data and whose authenticity could be assured of.
The reluctance of the company's personnel in parting with much of
information led the project report to be based substantially on the secondary
source of data. The sources of data used in data collection are the following:
Primary sources
In order to gather information about the various products of Saboo Hyundai,
I personally visited a number of Showrooms and collected data pertaining to
the prices of the cars offered. The market visits were useful in knowing the
comparative prices and quality of the offered brands vis -versa the
competitive brands. Details regarding the delivery of the cars were collected
and I also inquired about the various sales promotion schemes followed by
the three car showrooms in Bokaro.
By interviewing these dealers valuable information was collected. I inquired
from them about their marketing advertising and sales strategies.
Secondary sources
Information was collected from secondary sources such as customer survey,
newspapers advertisements, Automobile newsletters, etc.
Beside these the use of Internet was also made in collecting relevant
information. The data collected from the above mentioned sources has been
adequately structured and used at appropriate places in the report. The
information gathered included:
Their annual reports.
Pamphlets.
Posters.
Press clippings.
News releases.
Newsletters.
Pictures.
Exchange schemes.
Loan fair.

E. Sampling :
Population:
The population considered for this research type is the overall
general buyers who:-
a. Planning to buy four wheeler(one time payment or EMI) for the
first time.
b. Are planning to replace their old four wheeler with a more
satisfying product type.
c. Fill the need of four wheeler.
d. Can afford a car however do not fill the need of buying one.
In short we can mathematically say that it is a general set which
includes all the set and sub-sets of potential buyer of four buyers.

Non probability sampling:
Non-probability sampling provide a non- scientific techniques
of drawing sample from the population according to non-particular laws
of chance in which each unit in the universe has No definite pre-
assigned probability of being selected in the sample. in short it is the
purposes of subjective or judgment sampling.

The sampling design I used here is convenient sampling
because it is based on the selected customers i.e., previous customer of
Hyundai, the customers who are planning for new cars and customers
who came in showroom for enquiry of Hyundai Cars. I was selected the
convenient sampling because it was not easy to survey all customers.
Sample size:
The sample size shorted out from the population (universe set)
is 100 nos. to draw the conclusion of the study.

F. Limitations of study:
Since the road to improvement is never ending, so this study also suffers from
certain limitations. Some of them are as follows:
Because of illiteracy, it was a time consuming method in which
continuous guidance was required.
Questionnaire method involves some uncertainty of response. Co-
operation on the part of informants, in some cases, was difficult to
presume.
The project was limited to a period of 10 weeks and is done purely for
the academic purpose.
It is possible that the information supplied by the informants may be
incorrect. So, the study may lack accuracy.