SUMMER TRAINING REPORT

ON
CUSTOMER MAPPING
A SURVEY OF INDUSTRIAL CUSTOMER OF MUMBAI
(TOWARDS CARS)
Undertaken
at
MODY AUTO MOTORS PVT.LTD.MUMBAI NORTH

Submitted to
JIWAJI UNIVERSITY GWALIOR

In Partial Fulfillment of Masters of Business Administration

At
MAHARAJA INSTITUTE OF MANAGEMENT AND TECHNOLOGY,
GWALIOR (M.P.)
Submitted To:
Mrs. SHAIFALI CHAUHAN

Submitted By:
DEEPAK CHOUMAL
MBA 3 SEM

DECLARATION
I, DEEPAK CHOUMAL, student of MBA III Semester from Maharaja Institute Of
Management, Gwalior, declare that all the information, fact and figures represented in this
report entitled CUSTOMER MAPPING A SURVEY OF INDUSTRIAL CUSTOMER OF
MUMBAI are first hand in nature. They are actively based on my intensive research.

I have made the project under the safe roof of realistic data which was a sweet dream
before handling due to strong faith and elastic string of my heart. I have succeeded in
equaling the efforts with the output, for which I am very excited just like a blooming seed.
Any resemblance to earlier project or resource is purely coincidental.

Date
Place: Gwalior

DEEPAK CHOUMAL
MBA III Semester

CERTIFICATE

This is to certify that Mr. DEEPAK CHOUMAL student of MBA III Semester of maharaja
Institute Of Management Gwalior affiliated to Jiwaji University, Gwalior has completed his
summer training of 6 weeks ( from 15th of JULY to 30th AUGUST ) and prepared this report on
CUSTOMER MAPPING A SURVEY OF INDUSTRIAL CUSTOMER OF MUMBAI under
my guidance.

Date:
Place: Gwalior

SHAIFALI CHAUHAN
Faculty Guide

ACKNOWLEDGEMENT

It is privilege to express my gratitude & sincere thanks to Maharaja Institute Of Management

& Technology, Gwalior has given us the opportunity to summer training report on the topic. I
am thankful to Mr. Achal Pillai (Director-MIMT),
Dr. Subeer Banerjee (Dean Academics), and Faculty Guide (Ms. SHAIFALI CHAUHAN) for his
valuable guidance and support throughout report preparation. I would also like to thank

Mr.

Rohil Khara General Manager of Mody Auto Motors.

I sincerely thank computer laboratory in-charge and library staff for their timely co-operation.
I would also like to thank to all people who directly or indirectly helped to complete the report.

Date:
Place: Gwalior

DEEPAK CHOUMAL
M.B.A. lll sem.

PREFACE

T h e p r o j e c t i s b a s e d o n t h e Customer profile and mapping to understand the

consumer behavior regarding automobile sector. The project took 7 weeks for
completion. The main motive of project report was to enhance my expertise and extensive
knowledge I gained through my course, by applying it practically to the market of automobile
Mumbai North.
T h e p r o j e c t h a s b e e n c o m p l e t e d b y collecting the primary data by interviewing
the various companies of Mumbai. Secondary data was also used as per the
availability from different sources. In all the study was to find out at which
geographical area the potential customer may exist and also to study the consumer
behavior regarding automobile sectors.

During the project, I learnt the procedures and various other aspects of marketing of
automobile by applying theoretical knowledge and concepts to the best.
Needless to say, errors and omissions are bound to occur.
Last but not the least, I am grateful to all those who happened to be a part of the
successful completion of this Project and my mind and heart for going hand in hand!

DEEPAK CHOUMAL

CONTENTS
Page no.
Chapter1
INTRODUCTION TO THE PROJECT
EXECUTIVE SUMMARY
INTRODUCTION TO AUTOMOBILE HISTORY

7
8
13

Chapter2
INTRODUCTION TO VOLKSWAGEN GROUP
HISTORY OF VOLKSWAGEN
NINE AUTOMOTIVE COMPANIES OF VOLKSWAGEN
ACHIEVEMENTS OF VOLKSWAGEN

17
24
27
31

Chapter3
VOLKSWAGEN IN INDIA
INTRODUCTION TO MODY AUTO MOTORS
PRODUCT PROFILE FOR MODELS AVAILABLE IN INDIA

35
39
42

Chapter4
OBJECTIVES OF THE STUDY
RESEARCH METHODOLOGY
SWOT ANALYSIS

48
49
54

CONCLUSION
LIMITATIONS
RECOMMENDATION
QUESTIONAIRE
BIBLIOGRAPHY

56
57
58
59
61

Chapter5

CHAPTER 1

INTRODUCTION TO THE PROJECT

The project title is CUSTOMER PROFILE AND MAPPING TO UNDERSTAND

THECONSUMER BEHAVIOUR REGARDING AUTOMOBILE SECTOR .
Customer mapping is also known as geographical market analysis and it is the Easiest Way to
Identify Where Your Customers Come From and Who They Are. This project focus on to know
the profile and from which geographical part of Mumbai the potential customer of Volkswagen
cars can be and what is the consumer behavior of various users of cars like how many cars do
they have and after how much do they like to change their cars .The whole survey has been done
in various parts of Mumbai city like Focal Point, Industrial Area, Kandivali (West).
So, in this research I studied the mapping of the customers and behavior of the customers. So,
overall it was great learning experience for me to get such an intro spect about automobile
industry and various aspects related to its marketing strategy.

EXECUTIVE SUMMARY
Customer mapping is the Easiest Way to Identify Where Your Customers Come From and Who
They Are.

Customer Mapping Analysis may include:

A customer profile to understand where to find more like them.
Market penetration and market share reports showing performance in existing markets and
expected performance in new markets.
Market ranking reports allowing company to prioritize resource deployment into new markets.

Customer Mapping helps to know market potential by using following steps

Map Customer Locations
Create a "pin map" of where your customers live. Find out at a glance what parts of town you
draw from and where to advertise. If you have your names and addresses in a data file, you can
order right now with no payment required in advance.

Identify Your Trade Area

Map your customers to see what your trade area is. Compare your customers with the
market potential to see your market penetration.

Define Customer Profile

Once you have your customers mapped, you can analyze the demographic characteristics and
define a profile of your best customers. From this it is a short step to finding more potential
customers like them.

Target Your Advertising

Given your trade area, and your customer profile, you can focus advertising to the places and
media that are most likely to hit your target market.

Customer Mapping
Customer mapping shows organizations which neighborhoods and markets they are serving with
their products. The results of customer mapping can often be surprising and show trends that
were otherwise unknown. In addition, customer mapping can be applied not only to an entire
client database, but also to selected kinds of customers such as:
Those who have bought certain products, or certain services.
Those whose purchases exceed a specified amount gain the greatest value from Customer
mapping, it can be combined with market share analysis to reveal the strongest areas that are
being reached, and those that are not being reached.

Strategies for Customer Mapping

What is a geographic market worth to your business? Mapping Analytics will help you find the
answer. Market potential can be expressed as a function of:
The number of customers purchasing.
Amount purchased.
Frequency of purchase.
In other words, market potential = (how many * how much * how often).

Bottom Up or Top Down Market Analysis?

It all depends on your specific needs. Mapping Analytics can advise you on the best approach to
sizing any market. We employ various methodologies and data sets to get you the answers you
need.
A bottom Up approach to market sizing starts with your customers. How much and often do
they buy? What is their profile? How many potential customers do you have in the market
based on your customer profiles? How can you reach them?
A Top down approach starts with market and industry data. It takes a close look at a geographic
market area and profiles the consumers and/or businesses to let you know their propensity to buy
your products and services. Mapping Analytics has expertise in both these approaches to market
sizing. We also have a wealth of data sources through partnerships with the best data providers in
the industry. We can match the right data for market analysis to your business and market
strategy.
Cluster Analysis for Customer Mapping
We often use lifestyle clustering systems to size consumer markets. Clustering systems operate
under the premise that "birds of a feather flock together." That means people with similar buying
behaviors and demographic profiles tend to live close together. This helps you identify
neighborhoods or markets where your potential is highest.
Cluster analysis identifies key segments in the population that are more likely to purchase your
products than the average consumer.
Knowing in which clusters people reside provides a reasonable means of understanding and
predicting how they will behave.
Understanding which clusters are more likely than others to purchase allows better targeting.
Clusters are tied to geography, allowing you to identify and prioritize neighborhoods, trade
areas and markets.

Access Market Opportunity

Market analysis services from Mapping Analytics will provide the key intelligence we need to
rank and prioritize markets. We will know:
The top new geographic markets to target based on customer or revenue potential.
Which markets where we currently do business have untapped potential Gaining this market
understanding is essential to growing and expanding our business. But it isn't enough on its own.

Demographic Site Selection

When we work with Mapping Analytics, we will discover that demographic site selection leads
to a sound business site selection decision. We include a series of important analyses when
helping we select new sites, including:
Customer profiling.
Mapping customer locations.
Competitive analysis.
Trade area development and mapping.
Demographic, Census, and market data analysis.
Market potential analysis.

Customer Profiling
Customer profiling services from Mapping Analytics create descriptive segments or groups of
your customers. Each segment has specific defining characteristics. A customer segment is not as
simple as applying a demographic label, such as "women age 45-54" or "businesses with revenue
>$500 million.
"Those descriptions alone won't tell you enough about your customer. For example, not all
women age 45-54 have the same tendency to purchase your products. So a profile like this may
not help you much, and you may waste resources marketing and selling to the wrong people.

That's why Mapping Analytics takes a more comprehensive and disciplined approach to
customer profiling. We use your own customer data, lifestyle cluster data, and analytical
techniques. The result is a more accurate description of your customer that can be used to
identify areas where you can find more of your best customers.

What Goes Into a Customer Profile

What makes up a customer profile? It depends on whether your customers are businesses
or consumers. In either case, you typically start with your own customer data (such as location,
purchases, spending volume), append additional consumer or business data, then group into
segments that share similar characteristic.

Mapping Customer Attitudes

By Cliff Allen, Click Z, Oct 17, 2000
However, it's hard to predict which car someone will buy just by knowing demographic
characteristics. While one person of a certain age, income level, and family situation may drive
an expensive imported car, his next-door neighbor might share the same demographic profile and
drive an inexpensive domestic car. Thus, the demographic data doesn't explain the difference in
automotive preferences. But understanding the differences in how these two consumers perceive
the features and benefits of automobiles could help marketers understand their needs and
interests and which cars they are likely to prefer. By surveying consumers about their attitudes
toward the leading products in a market, marketers can map customers' dominant attitudes
toward products. Market research companies such as Simmons conduct detailed interviews to
gather the data needed to identify clusters of buyer attitudes.

INTRODUCTION OF AUTOMOBILE INDUSTRY

The automobile industry has changed the way people live and work. The earliest of modern cars
was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As
the century turned, three cars were imported in Mumbai (India). Within decade there were total
of 1025 cars in the city. The dawn of automobile actually goes back to 4000 years when
the first wheel was used for transportation in India. In the beginning of 15th century,
Portuguese arrived in China and the interaction of the two cultures led to a variety of
new technologies, including the creation of a wheel that turned under its own
power. By 1600s small steam-powered engine models was developed, but it took another
century before a full-sized engine-powered vehicle was created. Brothers Charles and Frank
Duryea introduced the actual horseless carriage in the year 1893. It was the first internalcombustion motor car of America, and it was followed by Henry Fords first
experimental car that same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver
Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood,
and an aluminum body. Chauffeurs usually drove it and emphasis was on comfort
and style rather than speed. During the 1920s, the cars exhibited design
refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes. Graham
Paige DC Phaeton of 1929 feature dan 8-cylinder engine and an aluminum body.
The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more
to the needs of families. In 1930s, vehicles were less boxy and more
streamlined than their predecessor was.
The 1940s saw features like automatic transmission, sealed-beam headlights, and tubeless tires.
The year 1957 brought powerful high-performance cars such as Mercedes-Benz
300SL. It was built on compact and stylized lines,
and was capableof 230 kmph (144 mph).This was theI n d i a n a u t o m o b i l e h i s t o r y, a
n d t o d a y m o d e r n c a r s a r e g e n e r a l l y l i g h t , aerodynamically shaped, and compact.

The automobile industry in India is on an investment overdrive. Be it passenger car

or two-wheeler manufacturers, commercial vehicle makers or threewheeler companies everyone appears to be in a scramble to hike production
capacities. The country is expected to witness over Rs 30,000crore of investment by 2010.
Hyundai will also be unmasking the Verna and a brand new diesel car. General
Motors will be launching a mini and may be a compact car. Most of the companies have made
their intentions clear. Maruti Udyog has set up the second car plant with a manufacturing
capacity of 2.5lakh units per annum for an investment of Rs 6,500 Crore (Rs 3,200
Crore for diesel engines and Rs 2,718 Crore for the car plant itself).Hyundai and Tata Motors
have announced plans for investing a similar amount over the next 3 years. Hyundai
will bring in more than Rs 3,800 Crore to India. Tata Motors will be investing Rs 2,000 Crore in
its small car project. General Motors will be investing Rs 100 Crore, Ford about Rs 350 Crore
and Toyota announced modest expansion plans even as Honda Siel has earmarked Rs
3,000Crore over the next decade for India - a sizeable chunk of this should come
by 2010 since the company is also looking to enter the lucrative small car segment.
Talking about the commercial vehicle segment, Ashok Leyland and Tata Motors have eachannou
nced well over Rs 1,000 Crore of investment. Mahindra & Mahindras joint venturew
i t h I n t e r n a t i o n a l Tru c k s i s e x p e c t e d t o s e e a n i n f u s i o n o f a t l e a s t R s 5 0 0
Crore.
I n d u s t r y performance in 2008-09The Indian automotive market managed to stand up to the
vagaries of the economic meltdown to show slightly growth during fiscal 2008-09.
Overall vehicle sales at 97.23lakh grew 0.71 per cent from 96.54lakh units in 200708.When major automotive markets reported a 30-40 per cent decline, only a handful
of countries m a n a g e d t o s h o w g r o w t h . A f e w m o n t h s a g o , I n d i a w a s l o o k i n g
a t n e g a t i v e g r o w t h b u t h a s turned around. It is actually better than expected. P a s s e n g e r
vehicle sales at 15.51lakh registered flat growth while commercial vehicle
s a l e s showed a 21 per cent drop.

SIAM has a positive outlook for the current financial year. While it foresees a 7-8
per cent growth for the commercial vehicle segment, the industry body predicts a 3-5 per cent
growth for passenger vehicles.
The passenger vehicle market has weathered the downturn largely due to
market leader Maruti Suzuki which holds 48 per cent of the market. The compact car giant
clocked 7.22lakh units for 2008-09. Closest rival Hyundai Motor India sold 2.44lakh cars, a
growth of 13 per cent. Most premium carmakers saw volumes shrink last fiscal. Toyota Kirloskar
Motors numbers fell1 5 p e r c e n t t o 4 6 , 8 9 2 u n i t s w h i l e F o r d I n d i a s s a l e s w e r e
down 17 per cent to 27,976 units.
Honda Siel Cars India also saw a 17 per cent drop at 52,420 units while General
Motors India was down 8 per cent to 61,526 units.
Among commercial vehicle makers, all major players saw substantial fall in
volumes. Market leader Tata Motors with a 60 per cent plus share, showed 22 per
cent drop in numbers at 2.34lakh units while Ashok Leyland showed 37 per cent drop at
47,632.Eithers sales volume fell 37 per cent at 17,341 units and Force Motors was down 28 per
cent at 7,819 units. The freight
Movement is unlikely to improve this fiscal which will impact truck sales.

CHAPTER 2

INTRODUCTION TO VOLKSWAGEN GROUP

Type:

Public Company

Headquarters:

Germany

Industry:

Automotive

Products:

Cars, Trucks

Revenue:

113.8 billion (2008)

Operating income:

6.61 billion (2008)

Profit:

4.68 billion (2008)

Employees:

369,928(2008)

Vehicle brand companies

Subsidiaries:

Audi
Bentley motors ltd
Bugatti automobile
Lamborghini
Seat
Skoda auto
Scania
Volkswagen passenger car
Volkswagen commercials vehicles

INTRODUCTION TO VOLKSWAGEN

Type:

Subsidiary of Volkswagen group

Founded:

May 28, 1937

Founders:

Ferdinand Porsche, Adolf Hitler

Headquarters:

Wolfsburg, Germany

Area served:

Worldwide

Key people:

Martin Winter korn

(Chairman of board of management)
Ferdinand piech
(chairman of Volkswagen supervisory board)
Christian kingler
(board of management of the Volkswagen passanger cars)

Industry:

Automotive

Products:

Cars, Trucks

Website:

Volkswagen.com

Worldwide location of various Volkswagen plants

I n G e rm a n , Vol k s p ron o u n c e d a s ( f o l k s ) , m e a n s p e o p l e a n d
Wagen means Car. Hence:

Volkswagen means "people's car" in German, in which it is pronounced

[f olksvan].

Its current tagline or slogan is Das Auto (in English The Car).

Its previous German tagline was Aus Liebe zum Automobile, which translates to:
Out of Love for the Car, or, For Love of the Automobile, as translated by VW
in other languages.

History of Volkswagen
Adolf Hitler had a keen interest in cars even though he did not like to drive. In 1933,
shortly after taking over as leader of Germany, he teamed up with Ferdinand Porsche to make
changes to Porsche's original 1931 design to make it more suited for the working man. Hans
Ledwinka discussed his ideas with Ferdinand Porsche, who used many Tatra design features
in the 1938"KdF-Wagen", later known as the VW Kferor Volkswagen Beetle.
When Chrysler brought out the 1934 De Soto Airflow coupe, its design enabled Mr. Porsche
to finalize his design of the B e e t l e . O n 2 2 J u n e 1 9 3 4 , Dr. Ferdinand Porsche agree d t o
c r e a t e t h e "People's Car" for Hitler's mother.

After some time, they planned to change some features regarding

v a r i o u s a s p e c t s . T h e s e changes included better fuel efficiency, reliability, ease-ofuse, and economically efficientrepairs and parts. The intention was that ordinary
Europeans would buy the car by means of a savings scheme ("Save five Marks a
week, if you want to drive your own car") , w h i c h around 336,000 people eventually
paid into. The VW car was just one of many KdF programmes which included things such as
tours and outings. The prefix "Volks" ("People's") was not just applied to cars, but also to
other products in Europe; the "Volksempfnger" radio receiver for instance. On 28
May 1937, the Gesellschaft zur Vorbereitung des Deutschen Volkswagens was established
by the Deutsche Arbeitsfront. It was later renamed "Volkswagenwerk" on 16September 1938.
VW Type 82E
Erwin Komenda the longstanding Auto Union chief designer, developed the car body
of the prototype, which was recognizably the Beetle w e k n o w t o d a y. I t w a s o n e o f
t h e f i r s t t o b e evolved with the aid of a wind tunnel; unlike the Chrysler Airflow, it would
be a success.

New factory started

The building of the new factory started 26 May 1938 in the new town of KdF-Stadt, now called
Wolfsburg, which had been purposely built for the factory workers. This factory only produced a
handful of cars by the time war started in 1939. None were actually delivered to any holder
of the completed saving stamp books, though one Type 1 Cabriolet was presented to Hitler on
20April 1938 (his 49th birthday).
At the times of 1st world War, Volkswagen War meant production changed to military vehicles,
the Type 82 Kbelwagen ("Bucket car") utility vehicle (VW's most common wartime
model),and the amphibious Schwimmwagen which were used to equip the German forces.
By 1946 the factory was producing 1,000 cars a month, a remarkable feat considering it was still
in disrepair. Due to roof and window damage, rain stopped production and steel to make the cars
had to be bartered for new vehicles.
Volkswagens were first exhibited and sold in the United States in 1949, but only sold two
units in America that first year. On its entry to the U.S. market, the VW was briefly sold as a
"Victory Wagon". Volkswagen of America was formed in April 1955 to standardize
sales and service in the United States. Production of the Type 1 Volkswagen Beetle increased
dramatically over the years, the total reaching one million in 1955.
Sales soared due in part to the famous advertising campaigns by New
Yor k a d v e r t i s i n g agency Doyle, Dane Bernbach. Led by art director
Helmut Krone, and copywriters Julian Koenig and Bob Levinson.

Volkswagen ads became as popular as the car, using crisp layouts a n d w i t t y c o p y

t o l u r e t h e yo u n g e r, s o p h i s t i c a t e d c o n s u m e r s w i t h w h o m t h e c a r b e c a m e
a s s o c i a t e d . Despite the fact it was almost universally known as the Beetle (or the
Bug), it was never officially labeled as such by the manufacturer, instead referred to as the
Type 1. The first reference to the name Beetle occurred in U.S. advertising in 1968, but
not until 1998 and the Golf-based New Beetle would the name be adopted by Volkswagen.
Vol k s w a g e n w a s i n s e r i o u s t r o u b l e b y 1 9 7 3 . B e e t l e s a l e s h a d s t a r t e d t o
d e c l i n e r a p i d l y i n European and North American markets. The company knew that
Beetle production had to end one day, but the conundrum of replacing it had been a neverending nightmare. VW's ownership of Audi / Auto Union proved to be the key to the
problem - with its expertise in front-wheel drive, and water-cooled engines which
Volkswagen so desperately needed to produce a credible Beetle successor. Audi influences paved
the way for this new generation of Volkswagens, known as the Polo, Golf and Passat.
Volkswagen Golf, sold as the rabbits in USA

W h i l e Vol k s w a g e n ' s r a n g e o f c a r s s o o n b e c a m e s i m i l a r t o t h a t o f o t h
e r l a r g e E u r o p e a n automakers, the Golf has been the mainstay of the Volkswagen lineup
since its introduction, and the mechanical basis for several other cars of the company.
There have been six generations of the Volkswagen Golf, the first of which was produced
from the summer of 1974 until the end of 1983 (sold as the Rabbit in the United States and
Canada and as the Caribe in Latin America).
It w o u l d b e p r o d u c e d i n t h e U n i t e d S t a t e s a s t h e R a b b i t u n t i l t h e s p r i n g o f
1 9 8 4 . T h e s e c o n d - generation Golf hatchback/Jetta sedan ran from late 1983 to late
1991, and a North American version produced in Pennsylvania went on sale at the start of the
1985 model year.

In the 1980s, Volkswagen's sales in the United States and Canada fell dramatically,
despite the s u c c e s s o f m o d e l s l i k e t h e G o l f e l s e w h e r e . T h e J a p a n e s e a n d t h e
A m e r i c a n s w e r e a b l e t o compete with similar products at lower prices. Sales in the United
States were 293,595 in 1980, but by 1984 they were down to 177,709. Volkswagen had entered
the super-mini market in 1976 with the Volkswagen Polo, a stylish and spacious three-door
hatchback designed by Bertone. It was a strong seller in West Germany and most of the rest of
Western Europe, being one of the first foreign small cars to prove popular in Britain. The
second generation model, launched in 1981 and sold as a hatchback and "coupe" (with
the hatchback resembling a small estate car and the coupe being similar to a conventional
hatchback), was an even greater success for Volkswagen. It was face lifted in 1990 and was still
selling well after 15 years, when it was replaced by the third generation Polo in 1994.

The Volkswagen New Beetle concept, especially in North America.

In 1994, Volkswagen unveiled the J-mays-designed Concept One, a "retro"-themed car

with a resemblance to the original Beetle but based on the Polo platform. Its genesis was secret
and in opposition to VW management, who felt it was too backward-looking.
Management could not deny the positive public response to the concept car and gave the
green-light to its development as the New Beetle. The production car would be based on the
Golf rather than the Polo, because the Polo frame was too small for the car to pass crash test
standards in the U.S. It has been quite popular in the North America and is now gaining in the
EU.

Vol k s w a g e n g r o u p t h e Vol k s w a g e n B o r a ( t h e s e d a n , s t i l l c a l l e d J e t t a i n
t h e U S A ) , N e w B e e t l e , S E AT Tol e d o , S E AT L e n , Au d i A3 , Au d i T T a n d
S k o d a O c t a v i a . H o w e v e r, i t w a s beaten into third place for the 1998 European Car of the
Year award by the winning Alfa Romeo156 and runner-up Audi A6.
In the late 90s Volkswagen acquired the three luxury brands Lamborghini (through Audi),
Bentley and Bugatti w h i c h w e r e m a i n l y d u e t o Ferdinand Piech a n d a d d e d t o t h e
g r o u p portfolio.
Volkswagen in 2005, despite challenges, still maintained North American sales of
224,195adramatic increase from the low in 1993 when US sales totaled only 49,533 vehicles.
VW plans to c l o s e o u t t h e d e c a d e w i t h t h e r e l e a s e o n s e v e r a l n e w v e h i c l e s
w o r l d w i d e a n d a b a r r a g e o f advertising.

The Fifth-Generation Golf

Vol k s w a g e n i s r e c o g n i z e d a s o n e o f t h e l e a d i n g s m a l l d i e s e l e n g i n e
m a n u f a c t u r e r s , a n d i s partnering with Mercedes and other companies to market Blue
Tec clean diesel technology, c a l l i n g i t Blue-Motion
. Vol k s w a g e n h a s o f f e r e d a n u m b e r o f i t s v e h i c l e s w i t h a
TDI (Turbocharged Direct Injection engine) which lends class-leading fuel economy to
several models. According to the United States Environmental Protection Agency, four of the
ten most fuel efficient vehicles a v a i l a b l e f o r s a l e i n t h e U . S . i n 2 0 0 4 w e r e powered
by Volkswagen diesel engines.

Electric and alternative fuel vehicles:

Clean diesel

A Blue Motion Volkswagen Polo

Volkswagen has been selling clean diesel - p o w e r e d e n g i n e s
f o r t h e European market since2003. VW developed Turbocharged
Direct Injection (TDI) technology for diesel engines, andit offers a wide array of TDI power trains.
As modern diese fuel economy is 30 percent higher than gasoline engines, a proportional
reduction of greenhouse gases emissions is achieved with clean diesel technology. Volkswagen is
also developing hybrid technology for diesel-electric. A VW Golf turbo-diesel hybrid
concept car was exhibited in the 2008
Geneva Motor Show, which has a fuel economy of 70 mpg (3.3 liters per 100 km).

Electric vehicles:
Volkswagen and Sanyo have teamed up to develop a hybrid vehicle battery system.
Volkswagen boss Martin Winterkorn has confirmed the company plans to build
compact hybrid vehicles.

There will definitely be compact hybrid models, such as Polo and Golf, and without
any great delay, with gasoline and diesel engines.

Flexible-fuel vehicles

T h e 2 0 0 3 V W G o l 1 . 6 Tot a l Flex was the first full flexible-fuel vehicle launched

in Brazil, capable of running on any blend of gasoline and ethanol (E100).

Volkswagen Group owns nine active automotive companies

Audi:99.55% ownership; the Audi marque is the sole active brand of the former Auto Union, bought
from Daimler-Benz on 30 December 1964.

Automobilie Lamborghini:100% ownership by Audi AG; company was bought in June 1998.

Ben tl ey Mot ors Li m it e d :1 0 0 % o w n e r s h i p b y V o l k s w a g e n A G ; t h e company (at the time known as

Rolls-Royce & Bentley Motors Ltd.) was bought on 28July 1998 from Vickers, b u t
d i d n o t i n c l u d e t h e 'Rolls-Royce' brand name. The Rolls-Royce marquee was
subsequently restarted by BMW who had licensed the brand from Rolls-Royce plc.

Bugatti Autom obil es :1 0 0 % o w n e r s h i p v i a t h e Vol k s w a g e n F r a n c e s u b s i d i a r y o f V W A G , B u

g a t t i A u t o m o b i l e s S A S w a s c r e a t e d a f t e r V o l k s w a g e n purchased the right
to the Bugatti marque.

 SEAT:Initially cooperation agreement with Audi AG, 51% (1986) and 100% ownership by the
VW Group since 1990, and was the first foreign subsidiary in the VW Group.

koda Auto:100% ownership since 1999.

Volkswagen Passenger Car :100% ownership.

V o l k s w a g e n C o m m e r c i a l V e h i c l e s :( V W C V ) o r ' V o l k s w a g e n Nutzfahrzeuge' (VWN) (German) 1 0 0 %

ownership; started
operations as anindependent entity in 1995. VWCV/VWN is
i n c h a r g e o f a l l commercial vehicl e developments within the Group and has control
over Scania and is a shareholder in MANAG.

Scania AB :70.94% of voting rights as at 27 February 2009.

Current Volkswagen Models

EuropeCaddy Life.
Eos.
Fox.
Golf Mk6.
Golf Plus.
Golf Variant.
Jetta Mk5.
Multivan.
New Beetle.
New Beetle Convertible.
Passat Mk6.
Passat CC.
Phaeton.
Polo Mk4F.
Scirocco.
Sharan.
Touran.
Tiguan.
Touareg.

Achievements of Volkswagen
In 1980, Volkswagen competed in the Paris-Dakar Rally with the Audi-developed Iltis,
placing1st, 2nd, 4th and 9th overall.
Volkswagen enlists Dakar Champion Jutta Kleinschmidt, the first female to win the
Dakar in 2001, to help design and complete a Dakar Racer.
In 2003, V W r e p l a c e d t h e AD A C Vol k s w a g e n L u p o C u p w i t h t h e n e w l y
r e l e a s e d P o l o , t o become the ADAC Volkswagen Polo Cup.
In 2004, Volkswagen Commercial Vehicles enter the European Truck Racing series
with the Volkswagen Titan series truck - it became back-to-back champions for the 2004 and
2005 series.
In 2003, the Hannover based team starts with a 2WD buggy named Tarek. It places 6th
outright but took 1st in the 2WD and Diesel class.
In 2004, VW enters the newly developed Race-Touareg T2, finishing 6th overall and 2nd in the
diesel class.
In 2005, an updated Race-Touareg with slightly more power is entered, with driver Bruno Saby,
finishing in 3rd overall and 1st in the Diesel class!
2005 and 2004
May 23, 2005 - The Passat - receives five star rating - top result in the Euro NCAP crash test.
April 8, 2005 - The Golf - more than 25 awards worldwide.
March 23, 2005 - Volkswagen Phaeton moving ahead.
February 16, 2005 - The new Passat launched with four different engines.
January 30, 2004 - The Volkswagen Touareg an outstanding off-road vehicle International
experts award prizes to the Volkswagen SUV.
In 2006, Volkswagen released the most powerful Race-Touareg yet: the Race-Touareg
2. Five vehicles enter, with driver Giniel de Villers finishing in 2nd place overall, and 1st in the
Diesel class.

2006
September 12, 2006 - Volkswagen Ranks First in J.D. Power Environmental Study.
September 12, 2006 - Aerodynamic package makes Volkswagen Passat an eye-catcher .
June 20, 2006 - Volkswagen receives environmental award from Federation of German
Industries.
March 2, 2006 - Auto1 Award- The Passat is Europes Number One.
January 20, 2006 - Passat Awarded Renowned What Car Trophy as Best Family Car.
January 19, 2006 - The Passat is Germany's Favourite Car 2006-ADAC readers
awardVolkswagen the 'Gelber Engel' prize.
2007
May 16, 2007 - Volkswagen models voted Company Cars of the Year.
April 20, 2007 - Volkswagen wins 10 gold at Fleet Awards 2007.
March 27, 2007 - Multiple awards for Volkswagen advertising.
March 26, 2007 - "Innovation of reason" 2007: Award for high temperature fuel cell from
Volkswagen.
January 4, 2007 - Volkswagen unveiled the cleanest ever TDI engine.
2008
February 20, 2008 - Volkswagen Tiguan is voted SUV of the year by "OFF ROAD" magazine
readers.
January 29, 2008 - Volkswagen receives award for increasing shareholder value.
January 29, 2008 - Value champions 2008: Volkswagen Tiguan and Golf Estate.
January 24, 2008 - Golf GTI is one of 10 Best Cars of 2008.
January 18, 2008 - What Car? Award 2008: Double for Volkswagen.
January 17, 2008 - Prize for TSI and DSG: Yellow Angel 2008 Award for
Volkswagens Latest High-End Technologies.

In 2009, Volkswagen won the 2009 Dakar Rally held in Argentina. VW's Touareg race models
finished 1st and 2nd Winner of numerous international awards and accolades worldwide.

CHAPTER - 3

Volkswagen in India
Recently Volkswagen paved the way for sustainable market activities in India. With the
investment agreement signed at the end of 2006 the brand sets a new course that unites two
success stories Volkswagen and India.
Volkswagen AG is to build a new production plant in Pune in the Indian state of
Maharashtra. With investment totaling some 410 million euros, a full production plant with a
press shop, body shop, paint shop and assembly lines is to be built on the 230 hectare site in the
Chakan industrial p a r k n e a r P u n e .
T h e G e r m a n b r a n d a n d E u r o p e s l a r g e s t a u t o m o t i v e m a n u f a c t u r e r w i l l b e ent
ering the Indian market to meet the rapidly growing demand for mobility. Volkswagen will be
developing a vehicle in the foreseeable future specifically tailored to the needs of
the Indian market offering all the features of a genuine Volkswagen. For the first step the
Volkswagen brand will bring locally produced vehicles to the Indian market up from the third
quarter of 2007.
To accompany the growing supply of Volkswagen
Passenger C a r s , t h e G r o u p h a s e s t a b l i s h e d a s e p a r a t e I n d i a n
s a l e s c o m p a n y i n 2 0 0 7 , i n i t i a l l y f o r Volkswagen as well as for Audi.
Volkswagen Group Sales India Private Limited registered in
Mumbai will distribute locally manufactured and imp
orted vehicles in India.
T h u s , Vol k s w a g e n c a n b r i n g o n e o f i t ' s u p p e r - p r e m i u m s e d a n a s t h e f i r s t
l o c a l l y p r o d u c e d v e h i c l e t o t h e I n d i a n m a r k e t . I n Ap r i l 2 0 0 6 , Vol k s w a g e n
p r o d u c e d t h e 1 4 m i l l i o n t h o f i t s bestseller. The Passat has become the very
image of automotive progress, representing what Made in Germany means.
This long-term success is confirmed by numerous accolades from experts, journalists
and customers who have put the car through its paces in recent months. This image is
characterized by vehicle size, drive technologies, safety features such as airbags, ABS and ESP
in addition to quality details including galvanized bodies. Imported vehicles such as the premium
Sports Utility Vehicle Touareg will complement the range.

Various positions of Volkswagen Dealers in India

Current Existing Dealers in India

Ludhiana - Prestige Motors, Lally Motors India Private Limited.
Ahmedabad - Volkswagen Ahmedabad Automark Motors Pvt. Ltd.
Bangalore - Elite Motors Pvt. Ltd.
Bangalore - Volkswagen Palace Cross.
Chandigarh - Genuss Motors, Swami Automotives Pvt.Ltd.
Cochin - Volkswagen Cochin EVM Motors & Vehicles India Pvt. Ltd.
Chennai - Volkswagen Chennai ABRA Motors Private Limited.
Coimbatore - Volkswagen Coimbatore Ramani Cars Private Limited.
Delhi - DD Auto world Private Limited.
Delhi - Kashyap Vehicle Works Private Limited.
Delhi West - Volkswagen Delhi West World class Automobiles Pvt. Ltd.
Goa - Volkswagen Goa Caulo Automotive Pvt. Ltd.
Hyderabad - Orion Motors.
Jaipur - Volkswagen Jaipur Tanya Cars Pvt. Ltd.
Kolkata - Volkswagen Kolkata OSL Exclusive Pvt. Ltd.
Mumbai - Volkswagen Downtown Mumbai.
Mumbai Mody Auto Motors Mumbai North.
Pune - Volkswagen Pune Vidyut Motors Pvt. Ltd.
Surat - Volkswagen Surat Navjivan Auto Square Pvt. Ltd.

INTRODUCTION TO MODY AUTO MOTORS

Volkswagen Mumbai North (Mody Auto Corp Pvt. Ltd.)

Volkswagen Mumbai North is a unit of Mody Auto Corp Private Limited, founded in the year
2014. This is also a part of Mody Group which is an authorized dealer for New Cars Sales, Pre
owned car sales & service provider for Volkswagen Passenger Cars in Mumbai. Volkswagen
Mumbai North committed to offer optimum customer satisfaction by providing quality of
products and unmatched service experience. Volkswagen Mumbai North thanks to its innovative
team
of
professionals
&
their
customers.

Vision:
To be the most admired auto retail company in south by delighting our customers. To be the
industry bench mark in terms of customer satisfaction, business process & performance results,
thereby adding value & prosperity to all who are associated with the company.

Mission:
To consistently delight our customers and build lasting relationship through our business
processes which are driven by motivated and empowered team. To create a seamless organization
that encourages listening, learning, innovation & employee growth inline with Mody Group core
values.

Strategy:

A long-term strategy is being the leading benchmark company in the Indian auto motive market
by constant investments in our people and facilities.

Quality Policy:
Mody Auto Motors are fully committed towards total customer satisfaction. We
believe in continual professional improvement. Hence we keep updating our systems and
facilities to offer the very best for:

Total Commitment to customer satisfaction.

Focus on employees involvement and improve retention.
Work professionally and honestly.

Mody Auto Motors Sales:

Highly qualified Sales Team is ready to advise customers on any specific want and need that
would require and will assist in making the right choices.

Product Profile For Volkswagen Models Available In INDIA

Volkswagen Polo.

Volkswagen Cross Polo.

Volkswagen Vento.

 Volkswagen Jetta.

Volkswagen Touareg.

Competitors Of Existing Volkswagen Models In India

Competitors of JETTA (14-18lakhs)
Honda Civic.
Hyundai Sonata (Emberra).
Skoda Octavia.
Skoda Laura.
Toyota Corrola Altis.
Fiat 500.

Competitors of Passat (24lakhs)

Toyota Camry.
Honda Accord.
BMW 3series.
Skoda Superb.

CHAPTER - 4

OBJECTIVES OF THE STUDY

The study has been under taken to analyze the customer profile and mapping to understand the
consumer behavior regarding automobile sector.

Objectives:
To know the customer profile.
To analyze the exact segregation of the industry of Mumbai.
To know at which geographical segment the potential customer exist.
To know the consumer behavior regarding cars on following parameter:
(a) To analyze the factors that influence the customer before buying a car.
(b) To find out the replacement pattern of customers.
(c) To find out the purchase pattern.

RESEARCH METHODOLOGY
A research process consists of stages or steps that guide the project from its conception through
the final analysis, recommendations and ultimate actions.
The research process provides a systematic, p l a n n e d a p p r o a c h t o t h e
research project and ensures that all aspects of the research project are
consistent with each other. Research studies evolve through a series of steps, each
representing the answer to a key question.
This chapter aims to understand the research methodology establishing a fr
a m e w o r k o f evaluation and revaluation of primary and secondary research. The techniques
and concepts used during primary research in order to arrive at findings; which are also dealt
with and lead to a logical deduction towards the analysis and results.

RESEARCH DESIGN
I p r o p o s e t o f i r s t c o n d u c t a i ntensive secondary research to understand the full
impact and implication of the industry, to review and critique the industry norms and
reports, on which certain issues shall be selected, which I feel remain unanswered or liable to
change, this shall be further taken up in the next stage of exploratory research. This stage
shall help me to restrict and select only the important question and issue, which inhabit
growth and segmentation in the industry. The various tasks that I have undertaken in the research
design process are:
Defining the information need.
Design the exploratory, descriptive and causal research.

RESEARCH PROCESS
The research process has four distinct yet interrelated steps for research analysisIt has a logical
and hierarchical ordering:
Determination of information research problem.
Development of appropriate research design.
Execution of research design.

 Communication of results. Each step is viewed as a separate process that includes a

combination of task, step and specific procedure. The steps undertake are logical, objective,
systematic, reliable, valid, impersonal and ongoing.

EXPLORATORY RESEARCH
The method I used for exploratory research was:
Primary Data
Secondary data

PRIMARY DATA
New data gathered to help solve the problem at hand. As compared to secondary
data which is previously gathered data. An example is information gathered by a questionnaire.
People and includes information gathered from surveys, focus groups, independent
observations and test results. Data gathered by the researcher in the act of conducting
research. This is contrasted to secondary data, which entails the use
of data gathered by someone other than the researcher information that is obtained directly
from first-hand sources by means of surveys, observation or experimentation.
Primary data is basically collected by getting questionnaire filled by the respondents.

SECONDARY DATA
Information that already exists somewhere, having been collected for another purpose. Sources
include census reports, trade publications, and subscription services. There are two types of
secondary data:
Internal and External Secondary Data.

It can be internal data, such as existing sales-tracking information, or it can be research

conducted by someone else, such as a market research company or the U.S.
government. Secondary source of data used consists of books and websites. My proposal is to
first conduct a intensive secondary research to understand the full impact and implication
of theindustry, to review and critique the industry norms and reports, on which certain issues shal
l be selected, which I feel remain unanswered or liable to change, this shall be further taken up
in the next stage of exploratory research.

DATA COLLECTION
Data collection took place with the help of filling of questionnaires. The questionnaire method
has come to the more widely used and economical means of data collection. I found it essential
to make sure the questionnaire was easy to read and understand to all spectrums of people in the
sample. It was also important as researcher to respect the samples time and energy hence
the questionnaire was designed in such a way, that its administration would not exceed 4-5
minutes. These questionnaires were personally administered. The first hand information was
collected by making the people fill the questionnaires. The primary data collected by directly
interacting with the people.

DETERMINING THE SAMPLE PLAN AND SAMPLE SIZE

TARGET POPULATION
It is a description of the characteristics of that group of people from whom a course is intended.
It attempts to describe them as they are rather than as the describer would like them to be. Also
called the audience the audience to be served by our project includes key demographic
information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program.
The target population is the population I want to make conclude an ideal situation; the
samplingframes to matches the target population. A specific resource set that is the object or targ
etof investigation. The audience defined in age, background, ability, and preferences, amongothe
r things, for which a given course of instruction is intended.
I have selected the sample trough Simple random Sampling.

SAMPLE SIZE
This involves figuring out how many samples one need. The numbers of samples you need are
affected by the following factors:
Project goals
How you plan to analyze your data
How variable your data are or are likely to be
How precisely you want to measure change or trend
The number of years over which you want to detect a trend
How many times a year you will sample each point.
I have targeted 120 people for the purpose of the research. The target population
influences the sample size. The target population represents Mumbai region.
The people were from different professional backgrounds. The details of our sample
are explained in chapter named primary research where the divisions are explained in
demographics section.

ERRORS IN THE STUDY

Interviewer error
There is interviewer bias in the questionnaire method. Open-ended questions can be
biasedbyt h e i n t e r v i e w e r s v i e w s o r p r o b i n g , a s i n t e r v i e w e r s a r e g u i d i n g t h e
r e s p o n d e n t w h i l e t h e questionnaire is being filled out. The attitudes the interviewer revels to
the respondent during the
interview can greatly affect their level of interest and willingness to answe
r o p e n l y. A s interviewers, probing and clarifications maximize respondent understanding and
yield complete answers, these advantages are offset by the problems of prestige seeking, social
desirability and courtesy biases.

Questionnaire error
The questionnaire designing has to careful so that only required data is concisely
reveled and t h e r e i s n o r e d u n d a n t d a t a g e n e r a t e d . T h e q u e s t i o n s h a v e t o b e
w o r d e d c a r e f u l l y s o t h a t t h e questions are not loaded and does not lead to a bias in the
respondents mind.

The respondents selected to be interviewed were not always available and willing to co operate
also in most cases the respondents were found to not have the knowledge, opinion,
attitudes or facts required additionally uninformed response errors and response
styles also led to survey error.

Sampling error
We have taken the sample size of 150, which cannot determine the buying behavior
of the total population. The sample has been drawn from only National Capital Region.

Research Design
Research design is a conceptual structure within which research was conducted. A
research design is the detailed blueprint used to guide a research study towards its objective. It
is a series of advanced decision taken together comprising a master plan or a model
for conducting the research in consonance with t h e r e s e a r c h o b j e c t i v e s . R e s e a r c h
d e s i g n i s n e e d e d b e c a u s e i t facilitates the smooth sailing of the various research
operations, thereby making research as efficient as possible yielding maximum information
with the minimum effort, time and money.

SWOT ANALYSIS
SWOT analysis of Volkswagen will tell us the internal strengths and weaknesses of the company
as well as external opportunities and threats that the company is facing. SWOT analysis of the
company will explore the strategic situation of Volkswagen. Analysis is described below:

Strengths:
The manufacturing and production processes of Volkswagen are its biggest strength. It has
developed many techniques with the help of which it produces cars at a greater scale. With the
help of technical production Volkswagen also gets the benefit of price competitiveness as the
production cost gets decreased. Volkswagen has also developed ideas for the full utilization of its
different plants as we already discussed that it has many plants in different parts of the world. If
one plant is busy in producing some part of the cars it uses other plants for the production of
other parts and hence gets the optimal utilization of plants as well as saves the time. With the
effective use of its plants and technology Volkswagen has increased its sales and reduced its cost
(123 Help me 2012). We can describe strengths of Volkswagen in brief as follows:
Strong portfolio of brands
High focus on research and development department.
Robust capabilities of production.

Global presence.
Volkswagen operates in 153 countries worldwide and was the third biggest auto manufacturer in
2012, down from the 1st place in 2011. The company manufactures its cars in 100 plants in
Europe, North and South America, Asia, Africa and Oceania. Except GM and Toyota, no other
automotive company is capable to compete with Volkswagen in terms of global presence.

Strong brand portfolio

The business owns and sells 13 automotive brands: Audi, Bentley, Bugatti, Lamborghini,
Porsche, SEAT, koda, Volkswagen, MAN, Scania and other commercial vehicles. With such
wide range of vehicle models the company satisfies nearly all consumer needs and have an
access to an immense consumer market.

Synergy
Volkswagen Group benefits from the synergy created between all 13 separate automotive
brands. All 13 separate companies share a part of R&D and servicing costs, learns from each
other best practices and shares distribution channels.

Strong presence in China

China is the largest automotive market and is an emerging economy that grows steadily. It is also
the biggest market for Volkswagen vehicles where the company captures nearly 20% of the
market mainly with its Audi and Volkswagen brands.

Well performing brands

Without its namesake brand, the company owns a few other very successful brands, including
Audi and Porsche. Audi brand is valued at $7 billion, while Porsche is valued at $5 billion. Audi
is also the second biggest brand in the firms portfolio and is growing impressively.

Weaknesses:
Volkswagen has been seen going away from its goal having its leadership in incorrect hands.
Volkswagen has suffered from some hard times in past. Currently Volkswagen has again
achieved the right path towards its goal by having multi brand car manufacturing company
serving in more than 150 countries and it needs to focus on it so that it can sustain its growth and
can remain competitive. Weaknesses of the company can be described in brief as follows:

In few regions performance of the company is sluggish e.g. South America

Employee productivity of the company is relatively low

Cash flow of the company is little poor (You Sigma n.d.).

Weak position in the US passenger car market

In 2012, Volkswagen had only about 5% market share in the US passenger car market. US is the
second largest automotive market in the world and weak Volkswagens position there results in
comparably lower sales.

Most cars are not environment friendly

Volkswagen owns three sport car brands Porsche, Lamborghini and Bugatti that emit high
amount of CO2 and are fuel inefficient. Besides Volkswagen group is strongly opposing to
legislation requiring tighter regulations on CO2 emissions and energy efficiency as their cars are
not as fuel-efficient and environment friendly as their competitors.

Opportunities:
Volkswagen has acquired many companies to enhance its market share and with the help of its
increased profits and other divisions i.e. financial division, it can go for further acquisitions to
capture the maximum market share. It has another opportunity of investing in new technologies
so that it can give a new look to the car manufacturing industry (123 Help me 2012). The
opportunities available to the company are described below in brief:

Increasing demand for the buses globally

Increasing demand for the vehicles which are hybrid electric

Potential of growth in Asian region like China and India

Changing customer needs

Volkswagen could introduce more fuel-efficient models that also emit much less CO2 across all
its automotive brand, thus meeting new customer needs (environment friendly cars) and
increasing brand reputation.

Increasing fuel prices

Consumers are very sensitive to rising fuel prices and when prices go up, their demand tends to
grow for fuel-efficient and hybrid cars.

Positive attitude towards green vehicles

Cars that emit large quantities of CO2 and fuel inefficient cars pollute air and negatively affect
the environment. Consumers are aware of this negative impact and are more positive to green
vehicles that emit much less CO2 and are fuel-efficient.

Growth through acquisitions

So far, Volkswagen Group was very successful in acquiring other auto manufactures and getting
access to larger consumer markets as well as faster than organic growth. To continue grow at
current rates and to access vital US market, Volkswagen should continue acquiring competitors.

Increasing global demand for buses

Demand for buses is expected to grow by 5% annually until 2016. Volkswagen being a major bus
supplier has an opportunity to expand its manufacturing and increase sales.

Threats:
The main threats in front of the Volkswagen are increasing competition and uncertain economic
condition of the world. The main competitors of Volkswagen are Toyota, Honda, Hyundai,
Mercedes, and BMW etc. Volkswagen produces a range of cars from lower segment to higher
segment to compete with these competitors. Economic slowdown all over the world is another
big problem of Volkswagen. European debt crisis affected its business in Europe and slowdown
in American economy also decreased its sales figures. If the consumers are in trouble they start
purchasing cheaper quality vehicles and Volkswagen needs to focus on it. Threats to the
company are described in brief below:

Recession in 2009 globally

Automotive industry is weakening globally due to high fuel prices and uncertain
economic condition

Regulation to protect the environment of the society in which company operates (You
Sigma n.d.).

New emission standards

Volkswagen strongly opposes stricter regulations for lower emission standards. If such
legislation would be passed the business would have to make huge investments to engineer
newer engines that emit less CO2.

Fluctuating fuel prices

Due to increasing extraction of shale gas, future fuel prices should drop and make hybrid cars
less attractive. Volkswagens investments to hybrid and electric cars would be treated as losses,
rather than perspective future cars. On the other hand, steeping fuel prices would make current
Volkswagen models less attractive to cost conscious consumers, as they demand smaller cars that
consume lower amounts of fuel.

Rising raw material prices

Rising prices for raw metals will lift the costs for auto manufacturers and result in squeezed
profits for the companies.

Growing euro exchange rate

The business earns more than 70% of its revenue outside the euro zone. Exchange rate
fluctuations threaten Volkswagen's profits if the euro will start appreciating against other
currencies.

CHAPTER - 5

Conclusion
The above study shows that Mumbai industry is manufacturing industry and
m o s t o f t h e industry resides in focal point and industrial area.
In manufacturing industry cycle industry, auto parts industry and hosiery industry are major
industries. And among car companies maruti holds the major part of the market followed by
Hyundai, Honda, Tata and then other companies.
And most number of cars hold by customers are in the range 3-7lakhs (35%) and then
7-12lakhs range. Most of the customers (77%) prefer to purchase cars on finance. Most
customers change their cars after 3-4 year interval.
As this result may not be suitable to all the regions of the c o u n t r y b e c a u s e o f t h e
c u l t u r e , s t a n d a r d o f l i v i n g a n d v o l u m e o f t h e m a r k e t . T h e r e s e a r c h concludes
that Volkswagen have great opportunity to penetrate in the market.
Volkswagen is not just a car manufacturing company but it is a big group which can be divided
into two groups: first automobile and second financial services. It has a range of successful
brands which help it in achieving its strategic objectives.
The main brands of the company are Volkswagen, Audi, Bugatti, Skoda, Bentley, Seat and
Lamborghini. The strategic objective of Volkswagen is to position itself as a global leader in
economic and environmental terms.
The group has decided to achieve the four goals to become the global leader in car
manufacturing by 2018.

LIMITATIONS OF THE RESEARCH PROJECT

The research study suffers from following limitations:

The Mumbai market was too vast and it was not possible to cover each
a n d e v e r y customer in the available short span of time.
G e n e r a l l y , t h e r e s p o n d e n t s w e r e b u s y i n t h e i r w o r k a n d
W e r e n o t i n t e r e s t e d i n responding.
R e s p o n d e n t s w e r e r e l u c t a n t t o d i s c l o s e c o m p l e t e a n d
c o r r e c t i n f o r m a t i o n a b o u t themselves and their organization.
Most respondents were reluctant to provide exact information as in why they
preferred particular companys car.
T h e r e s e a r c h w a s c o n d u c t e d i n p r e s e n t p r e v a i l i n g c o n d i t i o n s .
T h e r e c a n b e s o m e fluctuations in the market, which can offset the findings.
The project is carried out for the period of 45 days only.
Measurement of customer satisfaction is complex subjects, which uses non- objective methods,
which is not reliable.

Recommendation

Volkswagen should increase their service stations.

Facilities regarding after sales services should be increase.
People were not aware about VW brand, there should be more brand awareness in the market.
They should increase advertisement activities.
People didnt recognize difference between prestige motors & Prestige Honda,
be rectified.
They should promote more road shows in the respective areas.
The company should promote about the entire feature offered by it.

that should

QUESTIONNAIRE FOR THE CUSTOMER PROFILE MAPPING

Name .
Q1: What is your age?
(a) 20-30

(b) 30-40

(c) 40-50

(d) 50+

Q2: Are you a:

(a) Main earning member

(b) Other earning member

Q3: What is your occupation?

(a) Businessman

(b) Employee on salary based

(c) Self Employed

Q4: What type of business are you doing?

(a) Manufacturing

(b) Trading

(c) Service Industry

Q5: What is your monthly household income?

(a) Below 50,000
(d) Above 50, 00,000

(b) 50,000-1, 00,000

(c) 1, 00,000-1,50,000

Q6: Number of cars currently have owned?

(a)1

(b)2

(c)Thinking to purchase

BIBLIOGRAPHY
References
Books
1. C.N. Sontakki, Marketing Research, Himalaya Publishing House, New Delhi, 2006.
2. C.R. Kothari, Research Methodology Methods and Techniques, New Age International
(Pvt.) Ltd., publishing New Delhi, 2004.
3. Churchill, Gilbert and Dawn Iacobucci, Marketing Research Methodological Foundations,
South-Western, Thomson Learning, 2002.
4. Crosby, Philip, Quality is free: The art of making quality certain, McGraw Hill Custom
Publishing, 1978.
5. Dr S.C.Gupta, Statistical Methods, Sultan Chand & Sons Educational Publishers, New
Delhi, 2006.

WEBSITES:http://www.volkswagen.co.in
http://www.volkswagenmumbainorth.com
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