Commerce Projects
Commerce Projects
SESSION 2025-26
TO:
(FACULTY OF COMMERCE)
_________________________
Mr. Ashish Agrawal (Principal)
_________________________
Sign of the External Examiner
_________________________
Sign of the Internal Examiner
ACKNOWLEDGEMENT
I would also like to express my gratitude towards my parents for their kind co-
operation and encouragement which helped me in the completion of this project.
I am also thankful to the ISC for giving me such an amazing opportunity for
making this project, and giving a suitable instructions and guidelines for the
project.
Last but not the least, I thank my friends who shared necessary information and
useful web links for preparing my project. Thanks again to all.
_____________________
Naman Deepani
(Name of the student) (UID NO.)
CONTENTS
S. No Content Page No.
1. Introduction 1
3. Bibliography/ References 19
TOPIC – 1
INTRODUCTION
In the dynamic automotive industry, Marketing Strategies play a vital role in the success and brand
positioning of companies. This project presents a comparative analysis of the marketing strategies adopted
by two leading automobile manufacturers: Volkswagen and Honda. The analysis is based on the 4P’s of
marketing: Product Mix, Price Mix, Place Mix, and Promotion Mix.
Marketing mix is a foundational concept in marketing that refers to the set of actions or tactics a
company uses to promote its brand or product in the market. It helps businesses make strategic decisions that
align with their goals and meet customer needs effectively.
The core of the marketing mix is often represented by the 4 Ps:
1. Product – This refers to what the company is offering to meet customer needs, including features,
design, quality, and branding.
2. Price – This is how much the customer pays for the product. Pricing strategies consider factors like
cost, competition, perceived value, and market demand.
3. Place – This involves how the product is distributed and where it is available for purchase. It
includes channels like physical stores, online platforms, and logistics.
4. Promotion – This covers all the ways a company communicates with customers to inform and
persuade them to buy, such as advertising, sales promotions, social media, and public relations.
Together, the 4 P's help companies to develop a comprehensive marketing strategy that ensures the right
product reaches the right people at the right time and price.
Volkswagen India: Company Overview
Volkswagen India Pvt. Ltd. is the Indian arm of the German automotive giant Volkswagen AG, one of the
world’s largest automobile manufacturers. Established in 2007, Volkswagen India operates as a part of Skoda
Auto Volkswagen India Private Limited (SAVWIPL), which manages the group’s brands in the Indian
market including Volkswagen, Skoda, Audi, Porsche, and Lamborghini.
From a commerce and business perspective, Volkswagen India has strategically positioned itself in the
competitive Indian automobile sector by focusing on premium offerings backed by German engineering,
safety, and performance. The company operates a highly advanced manufacturing facility in Chakan, Pune,
with an annual capacity of over 200,000 vehicles, and a parts and logistics hub in Aurangabad. This enables
efficient production and distribution, supporting its marketing and supply chain strategies.
Volkswagen’s product portfolio in India includes models like the Taigun (SUV), Virtus (Sedan), and Tiguan
(Premium Segment SUV), targeted at the upper middle-class and urban consumers. By offering
technologically advanced and safe vehicles, the company appeals to a niche but growing segment of quality-
conscious buyers.
In terms of pricing strategy, Volkswagen India balances between premium positioning and value-for-money
offerings by increasing localization. This helps manage production costs and remain competitive in a price-
sensitive market.
From a promotional standpoint, the brand has invested in a modern marketing mix, utilizing digital
campaigns, influencer collaborations, safety-focused messaging, and customer engagement initiatives to
strengthen brand recall. Its nationwide dealership network and after-sales service infrastructure support
brand reliability and customer satisfaction.
Looking ahead, Volkswagen India is aligning with global trends such as electrification and sustainability.
Plans for launching electric vehicles and further local investment reflect the company’s long-term
commitment to the Indian market.
Overall, Volkswagen India represents a case study in strategic market entry, brand differentiation, and
adapting global practices to local business environments—making it a relevant and dynamic subject for
commerce-related analysis.
Aim
The primary aim of Volkswagen India is to offer premium, safe, and high-quality vehicles to Indian
consumers by combining global engineering excellence with localized manufacturing and design. The
company seeks to establish itself as a leading brand in the Indian automotive market by emphasizing safety,
performance, innovation, and sustainable mobility.
Milestones
2007: Volkswagen entered the Indian market, establishing its presence under Volkswagen Group
Sales India.
2009: Inauguration of Volkswagen’s manufacturing plant in Chakan, Pune, with a capacity of over
200,000 vehicles annually.
2010: Launch of the Polo and Vento models, which became key products in the Indian market.
2019: Merger of Volkswagen India with Skoda Auto India to form Skoda Auto Volkswagen India
Pvt. Ltd. (SAVWIPL), streamlining operations.
2021: Launch of the India 2.0 strategy with a focus on localized platforms like MQB A0 IN for new
products.
2022: Launch of the Volkswagen Taigun (SUV) and Virtus (sedan), developed specifically for
Indian conditions.
2023 onwards: Announced plans for electric vehicle introduction and further expansion in the
EV segment.
Accomplishments
Developed and launched India-specific models under the India 2.0 strategy, increasing relevance in
the domestic market.
Received multiple awards for safety, design, and innovation, including high ratings in Global NCAP
safety tests.
Expanded to a strong dealer network with over 150 sales and service touchpoints across India.
Exported India-manufactured vehicles to several global markets, contributing to India's automotive
exports.
Honda India, officially operating as Honda Cars India Ltd. (HCIL), is a wholly owned
subsidiary of Honda Motor Co., Ltd., Japan. Established in December 1995, the company is headquartered
in Greater Noida, Uttar Pradesh. Honda India represents the brand’s commitment to the Indian passenger
vehicle market and reflects its philosophy of offering high-quality, technologically advanced mobility
solutions to Indian consumers.
Honda entered the Indian market with its debut model, the Honda City, in 1998—a sedan that remains one
of its best-known offerings due to its reliability, performance, and aspirational value. Over the years, Honda
India has expanded its portfolio to include hatchbacks, sedans, and compact SUVs such as the Amaze, WR-
V, and Elevate. These vehicles are designed with a focus on safety, fuel efficiency, innovation, and value for
money, catering to the evolving preferences of Indian car buyers.
Honda has invested heavily in manufacturing infrastructure in India. It operates two state-of-the-art
production facilities: one in Greater Noida (Uttar Pradesh) and another in Tapukara (Rajasthan), the latter
being Honda’s first fully integrated manufacturing plant in India. These facilities contribute to both domestic
supply and exports to international markets.
Aim
Honda India's core aim is to provide advanced, reliable, and eco-friendly mobility solutions tailored to the
Indian consumer. Guided by Honda's global philosophy of “The Power of Dreams,” the company strives to
deliver products that maximize customer satisfaction, prioritize safety and efficiency, and support
environmental sustainability. HCIL is also focused on localizing production, innovating in design, and
engineering, and transitioning toward greener technologies like hybrids and electrics.
3. Labelling
- Labelling includes badging and information decals on the car itself and within documentation:
- Clear badging: Model name, variant (e.g., GT Line), and engine spec (e.g., TSI) are prominently displayed
on the vehicle.
- Compliance labelling: Fuel efficiency labels, BS6 emission compliance stickers, and safety certification
tags are affixed as per Indian regulations.
- Digital labelling: In showrooms and online platforms, each model is listed with detailed technical
specifications, variant-wise features, and warranty/service details.
Honda India – Product Mix
1. Branding
Honda India, under Honda Cars India Ltd. (HCIL), positions itself as a brand that blends "technology with
trust." Its branding revolves around:
Core Brand Values: Reliability, fuel efficiency, engineering precision, and value for money. The
brand stands for quality mobility solutions with a customer-centric approach.
Taglines and Campaigns:
Tagline: “The Power of Dreams”
Campaigns emphasize human-centric innovation, comfort, and long-term dependability.
Sub-branding:
City: Mid-size premium sedan with a reputation for performance and luxury.
Amaze: Entry-level sedan with a strong value proposition.
Elevate: Urban SUV with a youthful and bold design language.
Honda e: HEV (Honda City Hybrid): Branded as a futuristic, eco-conscious option.
Consistent Identity: Clean, sleek branding across showrooms, service centers, and digital
platforms, emphasizing minimalism and sophistication.
Depending on the size, level of exclusivity, options, and engine power, Volkswagen car prices range from
affordable to very expensive cars, and that is what happens with many other cars. However, Volkswagen
prides itself on being a car manufacturer that manufactures vehicles the average person can afford. However,
Volkswagen is a German company, and being an exporter to India, there are naturally several cost
considerations, which makes Volkswagen less of a value-for-money product and more of a bit costlier
product.
When you compare the Volkswagen Polo with a Hyundai I10 or Maruti Swift, you will find that the Polo is
costlier. Thus, although Volkswagen wants to manufacture affordable cars at the lower end, the competition
is high. Hence, you will find that Volkswagen has better sales figures in the Sedan section. The best-selling
Volkswagen products are the Volkswagen Vento and Volkswagen Jetta. Thus, in some areas, Volkswagen’s
pricing is higher, whereas in others, it is competitive. Volkswagen is an in-between brand in terms of product
range and pricing. It is neither as costly as the BMW and Audi’s nor as cheap as Maruti or Hyundai.
Volkswagen’s pricing strategy is a well-crafted blend of market competitiveness, brand value, and customer
segmentation, designed to cater to diverse consumers while maintaining its reputation for quality and
reliability. Following is a breakdown of the key elements of their pricing strategy:
Value-Based Pricing: Value-based pricing is at the core of Volkswagen’s pricing strategy. They set
prices based not just on the cost of production but also on consumers’ perceived value of their vehicles.
This approach allows them to balance affordability with the premium quality associated with the brand.
Market Penetration and Competitive Pricing: In highly competitive segments, like hatchbacks
and compact sedans, Volkswagen often employs a market penetration strategy. They price their vehicles
competitively against key rivals to gain market share, especially in emerging markets with higher price
sensitivity.
Premium Pricing for Luxury Segments: For their high-end models and vehicles under luxury
brands like Audi, Porsche, and Bentley (part of the Volkswagen Group), they follow a premium pricing
strategy. This reflects the superior quality, technology, and status associated with these vehicles, catering
to a more affluent consumer base.
Dynamic Pricing Based on Features and Customization: Volkswagen’s pricing varies
significantly with added features, customizations, and model variants. This flexible pricing allows
customers to choose a vehicle that fits their budget while paying extra for additional features or luxuries
they value.
Geographical Pricing Strategy: Recognizing the differing economic conditions and consumer
purchasing power across regions, Volkswagen adopts a geographical pricing strategy. This means the
exact model may have different prices in different countries, factoring in local taxes, import duties,
transportation costs, and market-specific demands.
Adaptive Pricing for Electric Vehicles (EVs): Volkswagen is adopting an adaptive pricing
strategy in the rapidly evolving EV segment. They are strategically pricing their Evs, like the ID series,
to be competitive against traditional gasoline and other Evs while also considering government
incentives for electric vehicles.
Honda India – Price Mix
Honda Motors employs a multifaceted pricing strategy that aligns with its global brand positioning, market
segmentation, and customer value proposition. Following is a breakdown of Honda’s pricing strategy in key
points:
Value-Based Pricing: Honda focuses on offering superior value to its customers through high-
quality products that incorporate reliability, fuel efficiency, and advanced technology. The company sets
prices based on the consumer’s perceived value of its vehicles and products rather than solely on
production costs. This approach helps Honda justify premium prices for its products, especially in
segments where it offers unique features or superior performance.
Market Penetration Pricing: Honda employs a market penetration pricing strategy in highly
competitive markets, particularly for its motorcycles and scooters in emerging markets. This involves
setting lower price points to attract price-sensitive customers, gain market share, and establish a strong
presence. Once Honda secures a foothold, it may gradually increase prices, adding more features or
newer models at slightly higher price points.
Product Line Pricing: Honda utilizes product line pricing within its automobile, motorcycle, and
power equipment ranges, offering products at various price points to cater to different customer
segments. This strategy encourages customers to upgrade within the Honda ecosystem, moving from
entry-level models to more premium offerings as their needs and financial capacity evolve.
Competitive Pricing: Honda closely monitors the pricing strategies of its competitors in all
segments and adjusts its prices to remain competitive. While Honda aims to offer superior value, it also
ensures that its pricing is in line with or slightly above or below competitors, depending on the brand’s
value proposition in a particular segment or market.
Geographical Pricing: Considering Honda’s global presence, the company adapts its pricing
strategy to reflect the economic conditions, tax structures, import duties, and consumer purchasing power
in different countries. This geographical pricing strategy ensures that Honda remains competitive and
accessible in various global markets.
Psychological Pricing: Honda sometimes employs psychological pricing strategies to make its
prices more attractive to consumers. For example, pricing a vehicle at $19,995 instead of $20,000 can
significantly affect the consumer’s perception of value, influencing their purchase decision.
Cost-Plus Pricing for After-Sales Services: Honda often uses a cost-plus pricing strategy for
after-sales services, ensuring that the pricing of spare parts and services covers costs and provides a
consistent profit margin. This approach helps maintain high-quality after-sales service, reinforcing
customer loyalty.
Volkswagen – Place Mix
Direct Channel
Company-Owned Showrooms:
o Volkswagen India operates several company-owned showrooms in major metropolitan areas.
o These showrooms serve as primary customer touchpoints for experiencing, test-driving, and purchasing
vehicles directly from the brand.
Indirect Channel
Indirect Channel
The company uses Television Advertisements and Print Media, in its initial year in India to
promote its brand and products. However, considering India started experiencing a surge in
automobile market competition, the company had no option but to adopt other marketing
strategies like digital, BTL, and out-of-home media in addition to ATL media. The company also
uses social media and online platforms to market its products. The company launched an
integrated marketing plan in 2009 to strengthen its brand image. The company also sponsors
numerous car events as well as other corporate events.
The company also allows customers to buy their cars through leasing to reach a broader customer
base. This means customers do not have to pay the total amount to buy the car. Although this
strategy is intensely used in the USA and the UK, the same promotional strategy is not so
effective in India. Volkswagen utilizes company-owned dealerships as crucial touchpoints to
enhance brand visibility, ensuring a consistent and premium customer experience.
Advertisement:
Volkswagen India uses a well-integrated advertising strategy to build a strong brand presence in
the country. The company runs multi-channel campaigns across television, print media, radio, and
digital platforms. Its advertisements are known for their creativity, engineering focus, and global
appeal, often emphasizing German technology, safety, and precision. Volkswagen India also
leverages digital advertising extensively, particularly on platforms like YouTube, Instagram, and
Facebook, to connect with younger, tech-savvy consumers. High-impact advertising campaigns
such as the “Think Blue” initiative have reinforced the brand’s commitment to sustainability and
innovation. Additionally, regional language ads help the brand connect with diverse consumer
groups across India.
Sales Promotion:
To stimulate short-term sales, Volkswagen India employs various sales promotion techniques.
These include limited-period offers such as cash discounts, low-interest finance schemes,
exchange bonuses, and free insurance packages. During festive seasons or new model launches,
the brand often intensifies these offers to attract footfall in showrooms. Promotional tie-ups with
banks and NBFCs also help customers with easier financing options. Additionally, Volkswagen
provides after-sales service packages and extended warranties to enhance value perception among
potential buyers.
Personal Selling:
Volkswagen India places considerable emphasis on personal selling, especially at the dealership
level. Sales executives are trained to offer a consultative approach, helping potential customers
understand the features, safety standards, and technological advancements of Volkswagen
vehicles. Test drive campaigns and showroom events are used to encourage direct customer
interaction with the product. The brand ensures that its staff is well-informed and capable of
delivering a premium customer experience, aligning with Volkswagen’s global reputation for
quality and professionalism.
Public Relations:
Public relations play a vital role in shaping Volkswagen India’s corporate image. The brand
regularly engages with the media through press releases, launch events, and media test drives.
Volkswagen has also undertaken several CSR initiatives in India, including road safety awareness
campaigns, environmental conservation programs, and community development projects. These
efforts help build a positive public image and reinforce the company’s commitment to social
responsibility. In times of crisis, such as product recalls or controversies, Volkswagen’s PR team
works to maintain transparency and protect the brand’s reputation.
Honda – Promotion Mix
1. Advertisement
Honda India uses a wide variety of advertising platforms to build brand awareness and reach a broad
audience:
• Television & Digital Media: Honda advertises heavily on TV channels and digital platforms like
YouTube, Facebook, Instagram, and Google Ads with high-quality, emotional, and performance-based
commercials.
• Print Media: Ads in leading newspapers and automotive magazines such as Autocar India, Overdrive,
and The Hindu.
• Outdoor Advertising: Hoardings, billboards, and transit advertising (e.g., buses, metro stations) in urban
and semi-urban areas.
• Celebrity Endorsements: Occasionally engages celebrities or influencers to appeal to younger
audiences (e.g., cricketers and Bollywood actors).
• Slogan & Branding: Uses slogans like “The Power of Dreams” and localized campaigns to reinforce
brand identity.
2. Sales Promotion
Honda uses various short-term promotional tools to boost sales, particularly during festive seasons:
• Festive Offers: Special discounts, cashback, and low-interest finance options during Diwali,
Dussehra, and New Year.
• Exchange Offers: Enables customers to exchange old vehicles for discounts on new Honda models.
• Loyalty Programs: Offers rewards or service benefits to repeat customers.
• Test Drive Campaigns: Organizes events with free test drives and small giveaways to encourage
walk-ins and trials.
• Limited Time Offers: Flash deals or stock clearance discounts for select models and trims.
3. Personal Selling
Honda India emphasizes direct interaction with potential customers through:
• Showroom Sales Executives: Trained staff in dealerships guide customers through product features,
financing, and after-sales support.
• Product Demonstrations: On-the-spot vehicle walkthroughs, test drives, and technical explanation
of features (especially for models like Honda City or Elevate).
• Lead Follow-ups: Dedicated CRM systems to follow up on online and showroom inquiries.
• Corporate Sales Teams: Special B2B teams that handle fleet sales and corporate tie-ups.
4. Public Relations
Honda actively manages its public image and engages in PR activities to enhance goodwill:
• Media Events & Auto Expos: Regular participation in Auto Expo India and other industry events to
showcase new technologies and models.
• Press Releases: Timely updates to media about new launches, CSR initiatives, and technological
innovations.
• Corporate Social Responsibility (CSR):
o Promoting road safety awareness and driver training through Honda’s Traffic Training Parks.
o Environmental campaigns and tree-planting drives.
https://www.marketing91.com/marketing-mix-honda-motors/
Honda Motor Co., Ltd. (n.d.). Corporate profile and marketing approach. Retrieved from
https://global.honda
Economic Times. (2016). Akshay Kumar appointed brand ambassador for Honda Motorcycles in India.
Retrieved from https://economictimes.indiatimes.com
https://www.volkswagen.co.in/en/find-dealer.html
Honda Global. The Power of Dreams – Brand vision and corporate philosophy. Retrieved from
https://global.honda/
TOPIC – 2
CONTENTS
S. No Content Page No.
1. Introduction 1-4
3. Bibliography/ References 31
INTRODUCTION
Consumer Protection Act, 2019
The Consumer Protection Act, 2019 marks a significant milestone in the development of consumer
rights and the regulatory framework governing the consumer market in India. It replaced the earlier Consumer
Protection Act of 1986, which had become outdated in addressing the dynamic changes in the economy, market
structure, and digital commerce. This new Act was enacted by the Parliament of India and came into force on July
20, 2020, aiming to provide more comprehensive and timely redressal to consumer grievances while widening the
scope of consumer rights.
In a rapidly evolving market environment characterized by the increasing digitization of commerce, the emergence
of e-commerce platforms, and the growing complexity of product and service delivery systems, the Consumer
Protection Act, 1986 no longer met the contemporary needs of consumers. The legislative intent behind the 2019
Act was to bring consumer law in India in line with global standards and to provide for more efficient mechanisms
for grievance redressal, stricter penalties for misleading advertising, and greater accountability for product liability.
The 2019 Act introduces several key innovations, including the establishment of the Central Consumer Protection
Authority (CCPA), the inclusion of product liability, the regulation of e-commerce, and the implementation of
mediation as an alternative dispute resolution mechanism. The Act empowers consumers in both traditional and
digital marketplaces by providing them with clearer rights and more accessible remedies. It emphasizes
transparency, accountability, and fairness in trade and commerce, recognizing that the consumer is at the heart of
any economic transaction.
One of the most prominent features of the Consumer Protection Act, 2019 is the recognition and protection of
consumer rights. The Act defines a consumer as any person who buys goods or avails of services for consideration,
which can be paid, promised, partly paid, or under any system of deferred payment. It also protects those who use
such goods or services with the consent of the buyer, excluding people who obtain goods for resale or commercial
purposes. The Act explicitly lays down the six rights of consumers: the right to be protected against hazardous goods
and services, the right to be informed, the right to choose, the right to be heard, the right to seek redressal, and the
right to consumer education.
To provide institutional support for enforcing consumer rights, the Consumer Protection Act, 2019 establishes the
Central Consumer Protection Authority (CCPA). The CCPA is vested with wide-ranging powers to regulate
matters relating to violation of consumer rights, unfair trade practices, and misleading advertisements. It can
investigate complaints, initiate class-action lawsuits, impose penalties, and recall unsafe goods or services. This
body plays a central role in ensuring that corporate entities are held accountable for actions that adversely affect
consumers.
Another groundbreaking provision of the Act is the concept of product liability, which allows consumers to claim
compensation for harm caused by defective products or deficient services. This provision extends liability to the
product manufacturer, product seller, and service provider, thereby creating a strong incentive for businesses to
ensure the safety and quality of their products and services. It marks a major shift in consumer jurisprudence in
India, aligning it with international practices where manufacturers and service providers can be held legally liable
for damages caused due to negligence or misrepresentation.
The Consumer Protection Act, 2019 also brings e-commerce transactions within its scope. Given the exponential
growth of online retail in India, it was essential for the law to address challenges such as lack of clarity in the
identity of sellers, fake reviews, delayed deliveries, data misuse, and grievance redressal. The Act lays down specific
guidelines for e-commerce entities, mandating them to provide transparent information about return policies,
grievance officers, and redressal mechanisms. E-commerce platforms are now considered marketplaces that are
obligated to ensure that sellers comply with consumer protection rules, thereby enhancing consumer trust in digital
transactions.
Moreover, the Act introduces mediation as a tool for quick and cost-effective resolution of consumer disputes. A
dedicated mediation cell is established at each Consumer Commission level to facilitate amicable settlements
without the need for prolonged litigation. This provision acknowledges the value of alternate dispute resolution
methods in reducing the burden on the judicial system and promoting harmonious consumer-business relationships.
The dispute redressal mechanism under the 2019 Act has also been revamped for greater efficiency and convenience.
It consists of a three-tier system: the District Consumer Disputes Redressal Commission, the State Consumer
Disputes Redressal Commission, and the National Consumer Disputes Redressal Commission. The monetary
jurisdiction of these bodies has been revised upward to reflect inflation and changes in consumption patterns.
Complaints can now be filed electronically, and hearings may take place through video conferencing, ensuring
better access to justice, especially for rural or remote consumers.
In addition to strengthening institutional and legal frameworks, the Act imposes penalties for misleading
advertisements and false claims. Celebrities and influencers who endorse products without due diligence can be
held liable for the dissemination of misleading information. This provision reflects the increasing role of media in
shaping consumer choices and seeks to promote responsible advertising practices.
The Consumer Protection Act, 2019 is, therefore, a comprehensive, forward-looking legislation that aligns with
modern economic realities and consumer expectations. It significantly strengthens the consumer's position in the
marketplace while also encouraging ethical business practices. With its focus on digital protection, enhanced
grievance redressal systems, and clear delineation of rights and liabilities, the Act serves as a robust legal foundation
for protecting consumers in the 21st century.
Furthermore, the Act plays a pivotal role in improving the ease of doing business by providing clear compliance
requirements for businesses and by reducing the incidence of disputes through preventive measures like
transparency and fair-trade practices. By fostering an environment of trust and accountability, the Act contributes
to sustainable market development and balanced economic growth.
In conclusion, the Consumer Protection Act, 2019 represents a paradigm shift in consumer law in India. It goes
beyond mere protection to promote consumer empowerment, business accountability, and institutional
responsiveness. As India continues to grow as a consumer-driven economy, the importance of this Act in
maintaining market integrity, safeguarding consumer interests, and ensuring fair competition cannot be overstated.
It is a landmark reform that reflects the government’s commitment to placing the consumer at the center of economic
legislation and policy.
Rights of Consumers
1. Right to Safety
Consumers have the right to be protected against products and services that are hazardous to their health or
life. This includes ensuring products meet safety standards and that proper instructions and warnings are
provided.
2. Right to Be Informed
Consumers have the right to receive accurate and complete information about products and services. This
includes details about quality, quantity, ingredients, price, and instructions, enabling consumers to make
informed decisions.
3. Right to Choose
Consumers should have access to a variety of products and services at competitive prices. This right
protects against monopolies and unfair trade practices, giving consumers the freedom to choose what best
suits their needs.
4. Right to Be Heard
Consumers have the right to voice complaints, opinions, and concerns about products and services. This
includes being able to influence public policies and having their issues addressed by businesses and
government bodies.
These rights are often supported by national and international consumer protection laws and organizations
globally.
Consumer Rights Upheld: Dipika
Pallikal vs Axis Bank – A Landmark
Judgment
Dipika Pallikal had sued Axis Bank for humiliation and loss of reputation after her debit card
transaction did not go through at a Rotterdam Hotel in Netherlands in 2011 despite Pallikal having
sufficient balance in her account.
Arjuna awardee squash champion Dipika Pallikal won her long-drawn legal match against Axis
Bank in a consumer court here. Holding Axis Bank responsible for deficient service, the consumer
court ordered the bank to pay a compensation of Rs 500,000 to Pallikal as well as Rs 5,000
towards costs.
Pallikal had sued Axis Bank for humiliation and loss of reputation after her debit card transaction
did not go through at a Rotterdam hotel in 2011 despite, she having sufficient balance in her
account.
On learning about it, players from other countries made some remarks about her creditworthiness
and about India. Pallikal, however, had another card - that of DCB Bank - and paid the hotel with
that.
Soon after the incident, Axis Bank did not credit Pallikal's account with the Rs 1,00,000 cheque
she had deposited and returned the cheque to her with remark "not drawn on us".
The cheque was given by the Indian government for her achievement in the sporting arena and
making the country proud. After a lot of communication, Axis Bank finally credited the amount,
saying the instrument was returned due to technical error.
Upset at the callous attitude of Axis Bank, Pallikal filed a case in the consumer court in 2012.
Refusing to take blame, the bank, in its affidavit filed in the court, said: "The very fact that the
complainant is not able to take the slightest disturbance would prove that she lacks the requisite
mental toughness of a world champion."
After carefully reviewing the arguments and evidence presented, the Consumer Forum ruled in
favour of Dipika Pallikal. The forum declared that Axis Bank had exhibited a clear deficiency in
service by:
In its order, the Consumer Court directed Axis Bank to pay a compensation of ₹5 lakh to Dipika
Pallikal for the mental agony, humiliation, and loss of reputation suffered due to their negligence.
In addition to the compensation, the bank was also ordered to pay ₹5,000 towards legal and court
expenses.
This ruling sent a strong message to all service providers, especially those in the banking and
financial sectors, that customer grievances must be treated seriously, and lapses in service will not
be tolerated. The decision underlined that high-profile individuals, just like any other citizen, are
entitled to dignity and protection.
The verdict in the case of Dipika Pallikal vs Axis Bank serves as a landmark in the evolving
landscape of consumer rights in India. It illustrates the importance of holding even the most
established corporations accountable for lapses in service. The ruling reinforces several critical
principles enshrined in the Consumer Protection Act, 1986 (now replaced by the Consumer
Protection Act, 2019):
"We are very happy with the verdict. We are awaiting the certified copy of the order. Service
providers like banks cannot leave their customers in the lurch, wash their hands off and hide
behind disclaimers like force majeure. What's worse, after their deficiency in service, the bank's
snide remarks on my client's mental strength were insensitive and constituted a double whammy,"
said her lawyer, Sanjay Pinto.
A Common Man's Triumph: The Story
of Rajesh Sakre vs State Bank of India
Rajesh Sakre, a man with limited formal education—having studied only up to Class 5—found
himself in a distressing situation in 2011. A sum of ₹9,200 mysteriously vanished from his savings
account with SBI. What followed was a nearly decade-long battle marked by bureaucratic hurdles,
legal proceedings, and the relentless pursuit of justice. Despite lacking formal legal training and
financial resources, Mr. Sakre's determination turned what seemed like an impossible task into a
landmark consumer rights victory.
The Incident:
In 2011, Rajesh Sakre maintained a modest bank account with the State Bank of India, having
deposited ₹20,000—a substantial amount for a small tea vendor. He later withdrew ₹10,800 for
personal and business use. Expecting the remaining ₹9,200 to be intact, he visited the ATM a few
days later, only to find that his account balance had been wiped clean.
This unexpected and unexplained disappearance of funds left him shocked and distressed.
Believing it to be a bank error or a fraudulent transaction, he promptly approached the nearest SBI
branch to file a complaint. Unfortunately, instead of receiving assistance, Mr. Sakre was met with
indifference. The bank officials dismissed his concerns, shifting the blame onto him and insisting
that the transaction had been carried out by him or was the result of his negligence.
Frustrated but undeterred, Mr. Sakre escalated the matter by writing to SBI’s Mumbai
headquarters. However, his complaint was ignored, and no action was taken to investigate or
redress his grievance.
Legal Action and Challenges:
Having exhausted all available options within the banking system, Mr. Sakre decided to pursue
justice through legal means. In a bold move, he filed a complaint with the District Consumer
Disputes Redressal Forum—a platform meant to address consumer grievances against service
providers.
Without the means to hire a lawyer, Mr. Sakre chose to represent himself in court. This decision
was both brave and strategic. While the bank appeared in court with a team of legal professionals,
Mr. Sakre relied solely on his determination, the truth of his experience, and the support of
documented evidence.
Throughout the legal proceedings, the bank argued that the disputed amount had been legitimately
withdrawn by Mr. Sakre. However, when pressed by the court to present concrete evidence such
as ATM logs or CCTV footage to support their claims, the bank failed to do so. Their inability to
prove that Mr. Sakre had made the withdrawal ultimately weakened their defense.
The hearings stretched over several months, involving multiple appearances by Mr. Sakre.
Despite the slow and sometimes intimidating nature of the legal system, he remained committed
to seeking justice.
The Final Verdict:
On June 16 (year unspecified in the report, but inferred to be after years of hearings), the District
Consumer Disputes Redressal Forum ruled in favour of Rajesh Sakre. The court's decision was a
significant affirmation of consumer rights, particularly for economically disadvantaged
individuals.
The court ordered the State Bank of India to return the missing ₹9,200 to Mr. Sakre. Additionally,
acknowledging the inconvenience and emotional trauma caused by the bank's negligence and
apathy, the forum mandated that SBI pay 6% interest on the amount from the date of the incident.
Furthermore, the bank was directed to pay ₹10,000 as compensation for mental harassment and
another ₹2,000 towards Rajesh Sakre’s legal expenses.
The ruling underscored the accountability of even the largest institutions when it comes to
protecting consumer rights. It was a reminder that ordinary citizens, regardless of their
socioeconomic status, can seek and obtain justice when wronged.
Significance and Impact:
The case of Rajesh Sakre vs. State Bank of India holds broader implications for consumer
awareness and the justice system in India. Firstly, it highlights the importance of the Consumer
Protection Act, which empowers individuals to challenge powerful entities in a legal forum
designed for fairness and accessibility.
Secondly, it draws attention to the challenges faced by economically weaker sections when
dealing with institutional errors. The legal victory was not merely about ₹9,200—it symbolized a
win against systemic neglect and bureaucratic inertia.
Moreover, Mr. Sakre’s story has been widely circulated in regional news, especially through
sources like ‘Bhopal Samachar’, inspiring other consumers to speak up and demand
accountability. It serves as a case study in persistence and self-advocacy, reinforcing the idea that
legal redress is not reserved only for the wealthy or educated elite.
Rights Violated:
1. Awareness of Rights: Every consumer should know their rights and how to assert them,
especially in cases involving banks, insurance, or essential services.
2. Role of Consumer Forums: Institutions like the Consumer Disputes Redressal Forum
play a vital role in ensuring that justice is accessible, cost-effective, and fair.
4. Systemic Accountability: The case highlights the need for banks and other public
institutions to improve transparency, maintain accurate records, and respond effectively to
consumer grievances.
Rajesh Sakre’s fight is a beacon for countless Indians who feel helpless in the face of institutional
indifference. His victory stands as a message: “Never underestimate the power of a common man.”
Rajesh Rajan vs Pepsi
Incident Overview
In April 2003, Rajesh Rajan, a resident of Ahmedabad, Gujarat, purchased a sealed bottle of Pepsi from a
shop near his home. Upon examining the bottle, he discovered that it contained a small packet of chewing
tobacco floating inside the soft drink bottle. The presence of a foreign object in a sealed consumable
product prompted Rajan to file a formal complaint with the Consumer Disputes Redressal Forum.
This discovery raised concerns about product safety and hygiene, particularly in the context of beverages
that are mass-produced and distributed under a trusted brand name. Rajan took legal recourse, seeking
redress for what he claimed was a breach of consumer trust and a deficiency in service on the part of
PepsiCo India Holdings Pvt. Ltd.
Filing of the Complaint
Rajan approached the Ahmedabad District Consumer Disputes Redressal Forum with a complaint under the
provisions of the Consumer Protection Act, 1986. In his complaint, he cited the presence of the gutka pouch
in a sealed Pepsi bottle as a clear indication of negligence and lack of proper quality control during the
manufacturing and packaging process.
He alleged that this incident caused him mental distress and constituted unfair trade practice and deficiency
in service. Rajan sought compensation for the inconvenience and harassment caused to him and
reimbursement for the legal expenses incurred in the process of filing the complaint.
Under the Consumer Protection Act of India, 1986 (and now updated under the 2019 Act), a consumer can
file a complaint for "deficiency in service" or "defect in goods" if a purchased product fails to meet safety,
quality, or performance standards. Rajan's complaint was based on these legal principles.
The presence of a gutka packet in a sealed soft drink bottle represented a clear defect in the product and a
deficiency in the service rendered by PepsiCo. It reflected a lapse in quality control and manufacturing
protocols. Such a defect could have endangered the life or health of the consumer, and thus, Rajan was well
within his rights to seek not just a refund but also damages for potential harm.
Rajan approached the District Consumer Disputes Redressal Forum (CDRF) with a complaint, demanding
₹5 lakh in compensation for the distress, potential health hazard, and testing costs incurred.
Pepsi Co.’s Defence and Proceedings at the
District Forum
In its defence, PepsiCo submitted that the bottle in question may have been tampered with after it
left the manufacturing facility, implying that the foreign object could have been inserted by a third
party or during retail-level handling. The company attempted to disassociate itself from the
contamination, suggesting that it could not be held accountable for any external interference that
may have occurred post-production.
This line of defence is commonly used by manufacturers when there is no direct evidence
available to determine the stage at which contamination might have occurred. However, the forum
was tasked with determining whether the explanation provided by PepsiCo sufficiently absolved
the company of its responsibility.
The District CDRF, after hearing the arguments and examining the evidence—including the
contaminated Pepsi bottle and the lab test results—acknowledged that the product sold to Rajan
was indeed defective and that the company had failed in maintaining the basic standards expected
in food-grade products.
However, despite agreeing with the core argument, the District Forum awarded a relatively
modest compensation. It ordered PepsiCo to pay ₹4,000 as compensation for the mental agony
and inconvenience caused and an additional ₹8 to reimburse the cost of the defective bottle.
This decision, though a victory in principle, left Rajan dissatisfied. He had incurred expenses
beyond what the Forum awarded, including ₹500 spent on getting the sample tested. Moreover, he
believed the low compensation did not reflect the gravity of the company’s negligence.
Rajesh’s appeal to the State Commission
Unsatisfied with the District Forum’s ruling, Rajan decided to escalate the matter to the State
Consumer Disputes Redressal Commission. In his appeal, he argued that the ₹4,008 awarded was
not adequate to cover even his out-of-pocket expenses and did not serve as a sufficient deterrent
for a multinational corporation like PepsiCo, which had committed a serious lapse in quality
control.
Rajan contended that the presence of gutka in a beverage meant for mass consumption, including
by children, was a matter of grave concern. The appeal emphasized that the compensation should
be proportionate to the risk posed and the potential health implications involved. His legal team
further argued that fair compensation should consider both the actual costs incurred and the
emotional trauma endured.
Final Verdict
The State Commission reviewed the evidence and Rajan’s arguments and agreed that the
compensation awarded earlier was indeed inadequate. It recognized that the presence of a gutka
packet in a soft drink was not just a defect but an alarming lapse that could have had severe health
repercussions. Acknowledging the reasonable nature of Rajan’s claims and the expenses incurred
in pursuing the case, the State Commission revised the compensation.
PepsiCo was ordered to pay ₹20,000 as compensation for the distress and inconvenience suffered
by Rajan and ₹2,000 to cover the litigation and incidental expenses. This judgment not only
addressed the financial inadequacy of the earlier ruling but also sent a clear message to food and
beverage companies about the importance of maintaining quality standards.
Broader Significance of the Case
The case of Rajesh Rajan vs PepsiCo is more than just an individual’s legal battle—it underscores
the empowerment of consumers under Indian law. It demonstrates that even large multinational
corporations are not above scrutiny and must adhere to strict quality control norms, especially in
the food and beverage industry where consumer safety is paramount.
This case also illustrates the importance of consumer awareness and persistence. Rajan's
willingness to escalate the matter and pursue justice through multiple legal avenues resulted in not
only better compensation for himself but also in creating a precedent that may benefit others
facing similar situations. The outcome reinforced the principle that consumer grievances, when
pursued diligently, can bring about corporate accountability.
In conclusion, Rajan’s victory, though modest in monetary terms, represents a significant win for
consumer rights advocacy in India. It highlights the critical role played by consumer forums in
upholding justice and protecting public interest against negligent practices in the market.
Chidipothu Kondaiah vs Sarvi Food Court:
A Landmark Case on MRP Overcharging
This case was brought before the District Consumer Disputes Redressal Forum-II, Hyderabad,
and not only did the consumer win, but the ruling also resulted in a meaningful compensation that
reaffirmed the rights of individuals against corporate overreach and unfair trade practices.
The Incident in Detail
On the day of the incident, Mr. Kondaiah visited Sarvi Food Court, located opposite Care Hospital
in Banjara Hills, for lunch. As part of his meal, he ordered a Kinley packaged water bottle, which
had an MRP of Rs 20. After completing his meal, he was presented with a bill that showed he was
being charged Rs 40 plus taxes for the water bottle—double the printed MRP.
Recognizing the discrepancy, Kondaiah questioned the billing and requested the restaurant staff to
correct the overcharge. However, the manager refused to amend the bill, insisting that the price
was fixed by the restaurant and had to be paid in full. Kondaiah complied and paid the bill under
protest, but not before securing documented proof. He demanded a receipt, which included the
handwritten batch number of the water bottle and the manager’s signature.
This documentation later served as crucial evidence when the matter was taken to the Consumer
Forum. The incident left Mr. Kondaiah determined to seek justice, especially after the manager
dismissed his warning about legal action, even mocking him and challenging him to “go to the
Supreme Court” if he wished.
Legal Action and Arguments
Following the incident, Mr. Kondaiah approached the District Consumer Disputes Redressal
Forum-II, Hyderabad, and lodged a formal complaint. He presented the bill, the signed receipt,
and the written batch number as part of his evidence.
The case was heard by Forum President T. Simhachalam and Member P. Kasthuri. Sarvi Food
Court’s legal team argued that under the principles of hospitality law, once a consumer enters an
eatery and consumes food or beverages, an implied contract exists that binds the consumer to the
prices listed in the menu card, irrespective of the MRP on any item.
However, the Consumer Forum dismissed this defence. The bench clarified that while such an
implied contract might hold valid for freshly prepared food and beverages served in the
restaurant, it could not override statutory provisions applicable to pre-packaged goods, like
bottled water. The forum emphasized that charging above MRP for a product marked with an
inclusive tax price was a direct violation of the Legal Metrology (Packaged Commodities) Rules,
2011.
Forum’s Decision and Legal Reasoning
After reviewing all the evidence and listening to the arguments presented by both parties, the Consumer
Forum concluded that Sarvi Food Court had indeed indulged in unfair trade practices and had violated
consumer rights. The forum particularly noted that:
Accordingly, the forum passed an order directing Sarvi Food Court to:
This amounted to a total of Rs 25,020, which Mr. Kondaiah received through a bank cheque on April 3,
2017.
Significance and Impact
This case stands as a landmark example of consumer empowerment. It highlighted several key points:
• MRP is legally binding, and no retailer, including restaurants and hotels, is allowed to charge more than
the printed price on packaged goods.
• Consumer forums offer accessible legal recourse for grievances, with no requirement for a lawyer or
complex litigation.
• Even a small overcharge—such as Rs 20—can result in significant penalties for the violator if proven to
be willful and unjustified.
• Documentation such as bills and receipts plays a crucial role in securing justice.
Importantly, the case also sent a strong message to eateries and establishments across India that consumer
protection laws are enforceable and that even small violations will not go unchecked.
Aftermath and Public Statement
After winning the case, Mr. Kondaiah gave a public statement reflecting on his experience. He
recalled how the manager had ridiculed his concern and even mocked the judiciary, challenging
him to go to the highest court. This treatment further motivated him to pursue justice, not only for
himself but as a lesson for others who might be silently suffering from similar abuses.
He stated:
“When I asked the manager about charging excess amount than the MRP, he misbehaved with me.
I told him that I will go to the consumer forum and file a case, but he made a joke of courts and
suggested that I can go to the Supreme Court after paying the bill. I suggest to all consumers to
take bills for the purchases and spending and they can fight against anyone if they are forced to
pay more than the MRP.”
His words serve as a reminder that consumer rights are enforceable, and that legal literacy and
persistence can triumph over arrogance and exploitation. This case continues to be cited in
discussions about MRP violations and has strengthened the position of consumers across India.
Nikhil Bansal vs Snapdeal
Introduction
The case of Nikhil Bansal vs. Snapdeal serves as a landmark example of consumer rights
enforcement in India's burgeoning e-commerce sector. It underscores the legal obligations of
online retailers and the avenues available to consumers for redressal.
• Right to Information: Consumers are entitled to accurate information about products and
services. Snapdeal's incorrect price listing breached this right.
• Right to Choose: By cancelling the confirmed order, Snapdeal infringed upon Bansal's
freedom to choose a product at the offered price.
• Right to Seek Redressal: Bansal's pursuit of legal remedies exemplifies the enforcement of
this right.
• Right to Fair Trade Practices: The misrepresentation and subsequent cancellation reflect
unfair trade practices prohibited under consumer law.
Legal and Ethical Implications
The judiciary's decisions underscore the accountability of e-commerce platforms for their online
representations. The rulings affirm that technical glitches do not absolve companies from
honouring confirmed transactions. This case sets a precedent, emphasizing that consumer trust is
paramount and must be upheld through diligent business practices.
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