Introduction

History of Automobiles
a. The First Motor Vehicle:-The first steam-powered vehicle was designed by Nicolas-Joseph Cugnot in 1769 and could attain speeds of up to 6 km/hour.

Nicolas-Joseph

Cut away Drawing

The original 1769 model

Cugnot's 17

b. The First Internal Combustion Engine:- In

1876 Nicolas internal

Otto

invented

the

first

four-stroke

Page 1

combustion engine. He called it the "Otto Cycle Engine

Nicolas Otto

Otto Cycle Engine

c. First Automobile with I.C. Engine:- In the year (1885)

Karl

Benz

the to

German built be the

mechanical world's by first an

engineer practical internal-

designed

and

automobile

powered

combustion engine based on Otto's design. It was a three wheeled machine.

Karl Benz

Original Benz in 1885

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d. First Four-Wheeled Motor Vehicle:- In the same year 1885 Gottlieb Daimler (with partner Wilhelm Maybach) perfected his internal combustion engine and attached it to a former stagecoach, thereby inventing the first four-wheeled motor vehicle.

Gottlieb Daimler

1st Four Wheel Motor Vehicle in 1885

History of Indian Automobile Industry

a. Trend in automobile industry:Page 3

Automobile Industry in India has witnessed a tremendous growth in recent years.

Come a long way since the first car ran on the streets of Bombay in 1898.

It employs more than 10 million people. After independence Indian automobile industry was plagued by unfavorable government policies. All it had to offer in the passenger car segment was a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800.

The automobile sector in India underwent a metamorphosis as a result of the liberalization policies initiated in the 1991

Measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking policies played vital role.

After the sector opened to foreign direct investment in 1996 global major moved in.

Matured in last few years and offers differentiated products for different segments of the society.

b. Todays Scenario: An annual contribution of 4% to the GDP and accounting for about 5% of the total industrial output, this segment clearly stands out as a significant contributor to the economic growth. The industry has grown at a CAGR of 16% p.a over the last 5 years.

Page 4

With the potential to emerge as one of the largest in the world. Presently, India is 2nd largest two wheeler market in the world 4th largest commercial vehicle market in the world 11th largest passenger car in the world and is expected to be the 7th largest market by 2016

The industry has emerged as a key contributor to the Indian economy

Over 9.9 million vehicles are produced by India & 1.3 million passenger cars and about 400 000 commercial vehicles.

c. Indian Automobile Market:-

1.Hyundai

6.Fiat

11.Mahindra & Mahindra

16.Nissan

21.Tata Motors 22.Toyota

2.Hindustan Motors 3.Audi

7.Force Motor

12.Lamborghi 17.Porsch ni e 18.Rollsroyce 19.San Motors

8.Ford

13.MahindraRenault

23.VolksWa gen 24.Volvo

4.Honda

9.Internationa l (Sonalika)

14.Mercedes

Motors Benz

5.BMW

10.GM(Chevro let)

15.Mitsubishi Motors

20.Skoda

25.Reva

(Source: - Hyundai Training Book)

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d. Car segmentation as per SIAM: A1 (mini upto 3400 mm): Maruti 800, Tata Nano. A2 (compact upto 3401 to 4000 mm): Santro, i10, i20, Indica. A3 (mid-size 4001 to 4500 mm): Accent, Lancer, Verna, SX-4. A4 (executive 4501 to 4700 mm): Octavia, Laura, Civic. A5 (premium 4701 to 5000 mm) : Sonata, Accord, Teana A6 (luxury 5001 mm to above) : s class ( Mercedes Benz, Audi) C (van type): Omni, Versa, Eeco. B2 (passenger carrier): Tavera, Innova, Tata Sumo. SUVs: Safari, Mahindra, Fortuner, CRV

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 About the Company

a. Hyundai Motor India Limited (HMIL). VISION & MISSION

Vision statement:-Our team provides value for your future. Mission Statement:-To pursue excellence and deliver cars that inspire, so you can live your life the way you want. And drive your way.

Picture view of the plant in Chennai

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter and the second largest car manufacturer in India. HMIL presently markets 6 models of passenger cars across segments. The A2 segment includes the Santro, i10 and
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the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the Sonata Transform. HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. To cater to rising demand, HMIL commissioned its second plant in February 2008, which produces an additional 300,000 units per annum, raising HMILs total production capacity to 600,000 units per annum. In continuation with its commitment to providing Indian

customers with cutting-edge global technology, HMIL has set up a modern multi-million dollar research and development facility in the cyber city of Hyderabad. It aims to become a centre of excellence for automobile engineering and ensure quick turnaround time to changing consumer needs. As HMCs global export hub for compact cars, HMIL is the first automotive company in India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It has been the number one exporter of passenger car of the country for the sixth year in a row To support its growth and expansion plans, HMIL currently has a 290 strong dealer network and 540 strong service points across India, which will see further expansion in 2010.HMIL Rank 2 nd in terms of Market Share in INDIA.

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b. Hyundai Motor India Limited (HMIL) Exports.

February 2010 March 2009

22,

Fastest Exports of 10 lakh cars

25,

Hyundai Motor India honored with EXIM Achieved Award for the year 2008 by Tamil Chamber of Commerce

November 2008

5,

Hyundai exports its first batch of i20 to European market. The first export consignment comprised 2,820 units of i20.

June 11, 2008

Fastest Export - Over One lakh units of i10 exported since its launch in Oct 31, 2007

March 2008 October 2006 October 2004

27,

Fastest Export of 5 lakh units

31,

Hyundai Motor India rolls out the fastest 300,000th export car

31,

HMIL crossed the figure of 1 lakh vehicles in exports and emerged as the largest exporter in the Indian automobile industry.

July 21, 2000

First major export-shipment of 760 Accent and Santro cars rolls out of the Chennai Port for Algeria

(Source:- www.Hyundai.co.in)

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c. Global sales ranking:

Ranking 1 2 3 4 5 6 7 8 9 10

Automakers Toyota GM Volkswagen HYUNDAI Ford PSA/Peugeot Honda Nissan Suzuki Renault

2009Global Sales(Units) 3,564,105 3,552,722 3,100,300 2,145,000 2,153,000 1,586,900 1,586,000 1,545,976 1,152,000 1,106,989

(Note: - Above data is of first half of year 2009, Source: - www.carzoo.com) Hyundai motor company has a brand value of approximate US $ 4.6 billion in 2009.Rank 8th in automotive brand ranking & ranked above Suzuki, GM, Chevrolet, Porsche, Lexus, Nissan, & Ferrari & 69 in top 100 brands It is sold in 193 countries through a network of over 5000 dealerships.

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Product Profile
1. SANTO XING

Facts: Launched in 1998. The first car launched in Indian from Hyundai Santro Zip Drive was launched in May 2000. Santro Xing was launched in 2003. Santro is Indias largest exporter car under the name Atos! Santro is produced exclusively in India and exported around the world to over 65 countries including advanced markets like North America and Europe. Variants: 1.1 eRLX Petrol

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1.1 eRLX LPG

Dimensions:

Overall Length- 3565 mm Overall Width- 1525 mm Overall Height- 1590 mm Wheelbase- 2380 mm Ground Clearance- 164 mm

Body Colours: Crystal White Sleek Silver Silky Beige Dark Grey Black Diamond Berry Red Electric Red Sparkle Blue

2. i10

FactsPage 12

Model name- i10 Design and creation- Hyundai- KIA, R&D Centre- Korea. International Debut- India Launch time- November07 Body style- 5 door hatchback i10 compete in the high volume mid compact segment.

Dimensions Overall Length- 3565 mm Overall Width- 1595 mm Overall Height- 1550 mm Wheelbase- 2380 Ground Clearance- 165

Variants: 1.2 L Kappa 1.1L iRDE

Body Colour: Alpine Blue Oyster Grey Crystal White Sleek Silver Electric Red Stone Black Deep Ocean Blue Blushing Red

3. i20

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 Facts: Theres a new shape on the street and its called the Hyundai i20. As you would expect from a car company that buzzes with fresh ideas, novel solutions and top technology, Hyundai i20 is the epitome of the modern premium compact. Sharp and stylish on the outside, spacious and versatile inside, it combines comfort, safety and reliability in a package that is affordable and economical. Dimensions: Overall Length- 3940mm Overall Width- 1710 mm Overall Height- 1505 mm Wheelbase- 2525 Ground Clearance- 165

Variants: 1.2 Kappa Petrol PL 1.4 CRDi Diesel 1.4 Gamma Petrol

Body Colour: Crystal White

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Sleek Silver Sparkle Blue Silky Beige Diamond Black Berry Red Dark Grey

4. ACCENT EXECUTIVE

Facts: Launched in India in October 1999. Awarded the JD Power Asia pacific award 2001 for Best Appeal.

Dimensions Overall Length- 4250 mm Overall Width- 1670 mm Overall Height- 1370 mm Wheelbase 2440 mm
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Ground Clearance 172 mm

Variant: 1.5 SOHC Petrol 1.5 SOHC LPG

Body Colours: Crystal White Black Diamond Sleek Silver Silky Beige Berry Red

5. VERNA

Facts: Hyundai Verna Petrol & Diesel Launch in September 2006. Verna CRDi was awarded the Performance Car of The Year 2007 by Business Standard Motoring. Dimension: Overall Length- 4310 mm Overall Width- 1695 mm Overall Height- 1490 mm

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Wheelbase- 2500 mm Ground Clearance-170 mm

Variant: 1.6 VTVT Petrol 1.5 CRDi Diesel VGT

Body Colour: Crystal White Stone Black Sleek Silver Blushing Red Deep Ocean Blue Champagne Gold

6. Sonata

Facts: HMIL launches luxury sedan Sonata in year the 2001. HMIL launches the all new Sonata Transform in the year 2009. Awarded with Best Overall Values by Intelchoice.com.

Variants 2.4 M/T 2.4 A/T 2.0CRDi M/T

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2.0 CRDi A/T

Dimensions

Overall Length- 4800 mm Overall Width- 1832 mm Overall Height- 1475 mm Wheelbase- 2730 mm Ground Clearance- 170 mm Crystal White

About The Topic

2.1 Conceptual Framework Regarding Buying Motives
Introduction of Buying Motives:What motivates prospects to buy? Why do they buy what they do? Each prospect enters the selling and buying process with emotional needs and motives that singularly or together cause them to buy your service or product. People buy for their own reasons, not yours or your companys. Often these reasons are rooted in emotion rather than logic, so although they may not seem reasonable to you, they are important to the prospect. Meaning of Buying Motives:Buying Motive as A motive can be defined as a drive or an urge for which an individual seeks satisfaction. It becomes a buying motive when the individual seeks satisfaction through the purchase of something. Motive is inner urge that prompts a person to perform some action. It can be a strong desire, feeling, a drive or any emotion which plays a role in the consumers decision to purchase a product or a service.

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According to D.J.Duncan, buying motives are those influences or considerations which provide the impulse to buy, induce action or determine choice in the purchase of goods and service. Characteristics of Buying Motive There is a process by which individual decides whether, what, when, from whom, where & how much to buy. It comprises of mental and physical activities of a consumer. Individual behaviour is also influenced by internal and external factors. There is drastic change in the attitude and behaviour of consumer. Types of buying motives:1. Product or patronage motives 2. Emotional and rational motives 3. Inherent and learned motives 4. Latent and Manifest motives 5. Psychological buying motives 6. Environmental Buying Motives
1.

Product or Patronage motives:a. Product Motives:-It refers to those influences and reasons which make the consumer to buy a certain product in preference to another. These explain why people buy a certain product. Product are of two types i. Primary product motives: These motives induce a consumer to purchase general class of the product. These motives relate to the basic needs of people like hunger, thirst, sleep.
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ii.

Selective product motives: These general class

motives determine

which particular brand or item will be purchased from the Patronage motives: These are the motives which

determine where or from whom products are purchased. These are the considerations which induce a buyer to buy goods from specific stores. Patronage motives includes Price Location Quality Variety Services Personality of Salesman

2.

Emotional and Rational motives:a. Emotional motives: These are the motives which are affected by the feeling of heart. Thus, motives physiological and psychological following types Love of others Social acceptance motive Vanity motive Recreation and relaxation motive Emulative motive Comfort and convenience motive needs are such as thirst ,

hunger, sex attraction etc. The emotional motives are of the

b. Rational motives: These are the motives where a consumer takes the decision of purchasing a product by his head and
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means considers

i.e.,

after

careful rational

consideration purchases,

and the

logical

thinking. In making price,

consumer

durability,

dependability, efficiency etc.

Rational motives are of the following types: Monetary gain Efficiency in operation Dependability motive

3.

Inherent and Learned motives:a. Inherent motives: These are the motives for the satisfaction of which a consumer his best efforts and if these motives are not satisfied he feels mental tension b. Learned motives: These are the motive which are acquired or learned by a consumer from the environment and education. These motives are social status, social acceptance, religious belief, fear, security etc.

4.

Latent and Manifest motives:a. Latent motives: Motives that the consumer is unaware of or unwilling to recognize, harder to identify require projective techniques to identify. b. Manifest motive: Motives that the consumer is aware of and willing to express.

5.

Psychological buying motives:Psychological factors include: Motives-A motive is an internal energizing force that
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orients a person's activities toward satisfying a need or achieving a goal. Actions are effected by a set of motives, not just one. If marketers can identify motives then they can better develop a marketing mix.

MASLOW hierarchy of needs!!

Physiological Safety Love and Belonging Esteem Self Actualization

6.

Environmental Buying Motives:The set of needs an individual experiences at a particular time are often activated by specific cues in the environment. Without these cues, the needs might remain dormant. For example, a young college student may see a new, slick-looking cell phone model with more features displayed in a store window. The exposure may make him unhappy with his old cell phone and cause him to experience tension that will be reduced only when he buys himself the new cell phone model.

2.2 Literature Review To understand your client, know their 'buying

motives'

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As a salesperson you might think that people buy your product or service because of the reasons you give them. On the contrary, people buy not because of your reasons, not your company's reasons but for their very own reasons (Chitwood 1998). These reasons may not seem sensible, logical or even intelligent to us but they seem that way to the prospect. There are six different motives and they are not presented in any special order nor are they any more important than any other. They are: Desire for gain (usually financial) Fear of loss (again, usually financial) Comfort and convenience Security and protection Pride of ownership Satisfaction of emotion

I shall refer to these as the six buying motives. You may notice that all these buying motives are emotional, not logical. People buy emotionally, not logically. People buy emotionally, then justify their decisions logically. Therefore you must provide your prospects with logical as well as emotional reasons why your product or service will benefit them. People have strong, genuine, deeply felt emotions to start with. When they buy anything, including things they buy on their own initiative that no one is trying to "sell" them, they buy for emotional reasons. You couldn't change that even if you wanted to.

Buying motives Do you know why do they buy?

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Buying motives often overlap. Suppose you just purchased a new jacket. What was your dominant motive in making that purchase? Maybe you bought the jacket for comfort; you expect it to keep you warm. You might have bought it simply because it has a style or label that youre proud to wear or show your friends. (Chintan Bharwada) Maybe you bought it because the colour makes your eyes look bluer, or it makes you look taller and thinner, or in some way it makes you feel good about yourself it gives you emotional satisfaction. Maybe you bought the jacket for all three reasons merged together: Its comfortable, youre proud to own it, and it makes you feel good about yourself. As a salesperson you might think that people buy your product or service because of the reasons you give them. On the contrary, people buy not because of your reasons, not your companys reasons but for their very own reasons. These reasons may not seem sensible, logical or even intelligent to us but they seem that way to the prospect. Broadly speaking we can categories buying motives into Rational and Emotional reasons.

Effects of Consumer Motives on Search Behavior Using Internet Advertising. Kenneth C.C. Yang
Past studies on uses and gratifications theory suggested that consumer motives affect how they will use media and media contents. Recent advertising research has extended the theory to study the use of Internet advertising. The current study explores the effects of consumer motives on their search behaviour using Internet advertising. The study employed a 2 by 2 between- subjects factorial experiment design. A total of 120 subjects were assigned to an experiment
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condition advertising

that

contains (i.e., (high

an vs.

Internet vs. low). were

advertisement emotional) amount by Consumer total

varying and of

by

appeals levels by the and

rational

product search),

involvement (measured

search

behaviour

depth, motives

breadth,

demographics,

collected

post-experiment

questionnaires. Because all three dependent variables measuring search behaviour were conceptually related to each other, MANCOVA procedures were employed to examine the moderating effects of consumer motives on the dependent variables in four product involvement-advertising appeal conditions. Results indicated that main effects for product involvements and advertising appeals were statistically significant. Univariate ANOVA also showed that advertising appeals and product involvement levels influenced the total amount of search. Three-way interactions among advertising appeals, product involvement levels, and information motive were also statistically significant. Implications and future research directions are discussed. (Kenneth C.C. Yang)

Demographics and patronage motives of supercenter shoppers in the United States Jason M. Carpenter
with specific knowledge of the patronage motives driving crosscategory shopping in supercenters (e.g. value, one-stop shopping convenience, brands, This research provides supercenter retailers who operate within the USA product assortment) and identifies the demographic characteristics of cross-category shoppers. The results suggest marketing strategy implications for supercenter operators in the US market. (Jason M. Carpenter)

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MARKETING STRATEGY
Objectives
First year Objectives: We are aiming for 5% market share of the Indian market through unit sale volume of 100000. Second year Objectives: We are aiming for 10% market share of the Indian market. An important objective will be to establish a well-regarded brand name linked to a meaningful positioning. We will have to invest heavily in marketing to create a memorable and distinctive brand image projecting innovation, quality and value. We also must measure awareness and response so we can adjust our marketing efforts if necessary.

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Target Markets Hyundai Pas marketing strategy is differentiated marketing. Our primary consumer target is middle to upper income professionals who need true value for their money and comfortable ride in city conditions. Our secondary consumer target is college students who need style and speed. Our primary business target is mid sized to large sized corporates that want to help their managers and employees by providing them a car for ease of transport. Our secondary business target is entrepreneurs and small business owners who want to provide discounts to managers buying a new car. Each of the four marketing strategies conveys Hyundai Pas

differentiation to the target marketing segments identified above.

Positioning Using product differentiation we are positioning the Hyundai Pa as the most versatile, convenient, value added car model for above target market used. The marketing strategy will be focused on promoting the car as economic car for the next generation Strategies Product Hyundai pa is fully loaded and will be sold with 3 year warranty. We will also introduce a diesel/CNG/LPG version of Hyundai Pa in the near future. Also the high end model will have an option of GPS system. Price Hyundai Pas base model will be introduced at ex-showroom price of 3 lakhs. This price reflects a strategy of 1) attracting desirable channel partners
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2) Taking market share from Maruti.

Distribution

STOCKI ST DEAL DEAL ERS ERS SUB SUB DEALERS DEALERS

BOOKING BOOKING AGENTS AGENTS

The Stockist will represent 3 to 4 districts in a State. The Dealer will represent a district or main City. The Sub-Dealer shall represent a particular area or taluka. The booking agents will be individuals working on freelance basis.

Marketing Communications By integrating all messages in all media we will reinforce the brand name & main points of product differentiation. Research about
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media consumption, pattern will help our advertising agency to choose appropriate media and timing to reach prospects before & during the product introduction. Thereafter, advertising will appeared on a pulsing basis to maintain brand awareness and communicate various differentiation messages. The agency will also co-ordinate public relation efforts to build Hyundai brand & support the differentiation message. To attract market attention & encourage purchasing, we will offer a limited time, registration & insurance. To attract, retain & motivate channel partners for a push strategy, we will use trade sales promotions and personal selling to channel partner. Marketing Mix

Product Features: The all-new Hyundai Pa is fully loaded with a range of exciting new features. It's a perfect complement to your evolved tastes and lifestyle. And the best way to take your driving pleasure to a brand-new high. European Styling. Japanese Engineering. Dream-Like Handling. The new Hyundai Pa is a generation different from Getz and Santro design. Styled with a clear sense of muscularity, its one-and-ahalf box, aggressive form makes for a look of stability, a sense that it is packed with energy and ready to deliver a dynamic drive.

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Its solid look is complemented by an equally rooted road presence and class-defining ride quality. New chassis systems allow for the front suspension lower arms, steering, and gearbox and rear engine mounting to be attached to a suspension frame. You get lower road noise and a greater feeling of stability as you sail over our roads with feather-touch ease.

Price
Hyundai is expected to take Maruti heads on with the pricing of their upcoming Hyundai Pa car. After launching cars for the masses since so many years, Indias second largest automobile manufacturer is now targeting the premium segment with their latest model from the Hyundais stable. The analysts predict the pricing of this premium hunchback to start from Rs. 3 lakh. This price range would practically rip apart Marutis offering in Zen Estilo, which is priced at a higher tag of Rs. 3.5 lakh. Both the companies are known for their value based offerings and Hyundai with their extensive service network and brand reputation for making reliable cars should get the customers nod over their competition. The official pricing however is still not out. However, the company is said to be studying the prospects of launching the base model at the 3 - lakh price tag. if they indeed do take the chance of pricing Hyundai at a considerable lower price than Zen Estilo , they would quite likely force the competition to rethink their strategy. Promotion Road Shows The company plans to stage road shows, to display vehicles in the pavilions during various college festivals and exhibition. This car will appeal to youngsters more. Television advertisements Advertisements to promote and market our product will be shown on leading television channels. Major music and sports channels

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will promote and they will reach out to the youth will be promoted through Star, Zee, Sony and Doordarshan etc as it has more viewers.

Radio Radio is the medium with the widest coverage. Studies have recently shown high levels of exposure to radio broadcasting both within urban and rural areas, whether or not listeners actually own a set. Many people listen to other people's radios or hear them in public places. So radio announcements will be made and advertisements will be announced on the radio about the product features and price, qualities, etc. Print Ads Daily advertisements in leading newspapers and magazines will be used to promote the product. Leaflets at the initial stage will be distributed at railway stations, malls, college areas and various other locations. Workshops and Seminars Workshops and seminars will be held in colleges and big corporate to make people aware about the companies past performance and product features, its affordability and usage, vast distribution network. Road shows will be conducted where free trials of the car would be given.

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SWOT ANALYSIS

STRENGTHS
The Quality Advantage Hyundai owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study). The Santro was chosen the best in the premium compact car segment and the Getz in the entry level mid - size car segment across several parameters. This study measures owner in terms of design, content, layout and performance of vehicles across several parameters. A Buying Experience Like No Other Hyundai has a sales network of 250 state-of-the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. Our high sales and customer care standards led us to achieve higher nameplate in the J.D. Power SSI Study. Quality Service across 1036 Cities In the J.D. Power CSI Study Hyundai scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience. The 92% of Hyundai owners feel that work gets done right the first time during service. The J.D. Power CSI study also reveals that 97% of Hyundai owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle.

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Weaknesses
Commodity Price Risks Hyundai commodity price risks to higher costs due to changes in prices of inputs such as steel, aluminum, plastics and rubber, which go into the production of automobiles. In order to mitigate these risks, the company continues to attempts to enter into long term contracts based on its projections of prices. In a volatile commodity market, where your company gives top priority to ensuring smooth availability of inputs, long term contracts are helpful. They also help minimize the impact of growing input prices. Conversely, long term contracts dilute the benefits, if any of a decline in input prices. Exchange Rate Risk The company is exposed to the risks associated with fluctuations in foreign exchange rates mainly of import of components & raw materials and export of vehicles. The company has a well structured exchange risk management policy. The company manages the exchange risk by using appropriate hedge instruments depending on the prevailing market conditions and the view on the currency.

Opportunities
Leading Growth As the market leader, company led the growth in the passenger car sector last year. Hyundai sales went up 30% to 4,72,000 units. This, as I said earlier, is the highest annual sale since company began operations 20 years ago. Hyundai also gained market share, mainly on account of its performance in the competitive A2 segment where it increased its share from 40.3% in 200506 to 47.7% in 2006-07. The record sales performance was reflected in the financials. Net Sales (excluding excise) grew by 31% to Rs 93,456 million. Operating Profit Margin increased from 0.8 % in 2005-06 to 4.7 % in 2006-07. Profit after Tax jumped 270% to Rs 5421 million. Page 33

Threats
Risk Factors In the course of its business, Hyundai is exposed to a variety of market and other risks including the effects of demand dynamics, commodity prices, currency exchange rates, interest rates, as well as risk associated with financial issues, hazard events and specific assets risk. Whenever possible, we use the instrument of insurance to mitigate the risk. Business Risks The automotive industry is very capital intensive. Such investments require a certain scale of operation to generate viable returns. These scales depend on demand. Although 2005-06 was year of continued growth for the Indian economy, whether this growth momentum will continue has to be seen.

Threats from Competitors

Maruti Udyog Limited For the fiscal year ended December 2006, Maruti generated revenues of $193,517 million, an increase of 4.3% from the previous year. The company reported a net income of $2,805 million for fiscal 2005, down 26.6% from the previous year. Tata Motors Limited In the 2006 fiscal year, Tata Motors generated revenues of $3,542.2 million (INR154,935.2 million). The company made a net profit of $185 million (INR8,103.4 million) in the 2006 fiscal year.

Research Methodology
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Research Problem:The company wants to know more about the various factors customers that motivate them to purchase Hyundai Cars. It's very important for every marketer to know about the buying motives of the customers because it helps them to design proper policies and programs to attract customers. It also helps them to determine their advertisement budget .

Objective of study: Primary Objective:I.

To find out various factors that motivates customers to buy Hyundai Cars.

Secondary Objectives:I.

To find out which is the most preferred source for awareness. To find out which is the most preferred preference for buying Hyundai Cars. To find out who gives suggestion while buying Hyundai Cars. To know which class of customers is using Hyundai Cars. To know at what level customers are influence by financing facility.

II.

III.

IV.
V.

Research Design:A research design is a logical and systematic plan prepared for directing a research study. It is the program that guides the investigator in the process of collecting, analyzing and interpreting observations. It is a blue print for understanding project & collection of data.

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There are three types of research design. I. Exploratory research design II. Descriptive research design III. Causal research design

Here, descriptive research (Cross-Sectional) design is used for analyzing buying motive of Hyundai Cars. It is very simple and more specific than exploratory study.

The descriptive study is a fact finding investigation with adequate It reveals interpretation. potential The descriptive between study aims at and identifying the various characteristics of a problem under study. relationships variables also setting the stage for further investigation later

DATA SOURCES:The researcher can gather the data & information are two types;1. Primary data 2. Secondary data
Collection of Primary data:- Primary data are collected on

original information gathered for a specific purpose either etc.

through

personnel interviews/questionnaires

Collection of Secondary data: -:- Secondary data for the study were collected and subject from the library reference, and technical based books, journals

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magazines, websites and other previous studies. To know about details of HMIL data is collected from magazine, web pages etc. In this research project I am using Primary Data collection through questionnaire. RESEARCH INSTRUMENTS:In the marketing research it has main research instruments in collection the primary data that is questionnaire. The structured questionnaire is the research instrument to collect the primary information for this marketing research projects. A Questionnaire consists of a set of question presented to respondent for their answers. Questions may be open ended or close ended, it depends upon the Marketing Research. Sampling Plan:a. Sample Unit:Who is to be surveyed? The marketing research must define the target population that will be sampled. The sampling unit for the project is taken from Navsari who are the current users of Hyundai Cars. Sample Size: How many customers should be surveyed large samples can give the more reliable results then small samples yet it is more costly than small samples. I have taken 150 samples in this project survey. b. Sampling Method:Sampling is the process of selecting units (e.g., people, organizations) from a population of interest so that by studying the sample we may fairly generalize our results back to the population from which they were chosen. In
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short, the process of drawing sample from a population is known as a sampling.

Two types of sampling methods are:I. II.

Probability Sampling Nonprobability Sampling

For Present study Nonprobability sampling method is use and in that convenience sampling technique is taken for use. Nonprobability sampling it is not based on the theory of probability. It does not provide a chance of selection each population element. The merit of this type sampling is simplicity, convenience and low cost. Convenience sampling:- In this project convenience sampling is to be used because it is less costly, time saving, and easier than probability sampling. Contact Method:Once the sampling plan has been determined it must be decide how the respondent should be contacted i.e. by Mail, telephone, personal, and on-line-interview. In this research project I have use contact methods of personal interview & telephone interview. Limitation of Study 1. The study was confined to only Navsari. Therefore the results cannot be generalized. 2. The result generated out of the study is completely dependent on the nature of the response given by the customers. 3. Short span of time for gathering data was a limiting factor. Despite these limitations, a sincere attempt has been made to collect and analyze the data and present the information as accurately as possible.
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4. DATA ANALYSIS & INTERPRETATION

Table: 1 Following table shows the consumers who have previous experience with Hyundai.

Responses No Yes Total

No. of Respondent 30 20 50

Interpretation:From the above frequency distribution it is found that from 50 respondent 30 has no previous experience with Hyundai & remaining 20 had been experience Hyundai before also.
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TABLE: 2 Following table shows the customers who travel daily (KMS) by their Hyundai Car.

Daily Kilometers Less than 30 31 to 60 Above 61 Total

No. of Respondent 22 18 10 50

Interpretation: From the above frequency distribution table it is found that out of 50respondent customers travels less than 22 kilometers a day, 18 customers travels between 31 to 60 kilometers a day and remaining 10 customers travels above 61 kilometers a day.

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TABLE: 3 Following table shows from which sources they got aware about Hyundai. Sources News paper Advertisement Experienced User Events & Promotion TV advertisement Online Source Total No. of Responses 20 16 8 4 2 50

Interpreatation:As in this question customers has answer more than one option, so total of 50 answers is got out of survey of 50 customer and from that it is found that 35.50% of customes got aware from experience user which is highest & 4.56% of customers got information from online source which is lowest. TABLE: 4 Following table show who gives suggestion for buying Hyundai

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Suggestion Family Friends & Relatives Colleagues Total

No. of Respondent 18 20 12 50

Interpreatation:From the above frequency distribution table it is found that out of 50 customers 18 of customers got suggestion from their family for buying Hyundai, 20 of customers got suggestion from their Friends Colleagues for buying Hyundai. relatives for buying Hyundai 12 of customers got suggestion from their

CHART: 1 Following Chart shows which factors mostly prefer by customers

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Interpretation:The above table shows that most of the customers rates comfort as the most important factor for purchasing a car, then comes mileage, overall looks, driving experience, safety, price and extra features respectively.

TABLE: 6 Following table shows which other factors influence for buying Hyundai.

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Factor Influencing more Nearby Showroom & Service Centre Availability of spares Authorization of service centre Availability of Models & Variants Product performance Total

No. of Responses 12 13 8 6 21 50

Interpreatation:As in this question customers has answer more than one option, so total of 50 answers is got out of survey of 50 customer and from that it is found that 12 customers were influenced by product performance after that availability of models & variants 13 nearbyshowroom 8 authorization of service centre 6 & last availability of spares 21respectively. TABLE: 7 Following table shows the opinion of customers regarding the brand image of Hyundai Responses No No. of Respondent 20
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Yes Total

30 50

Interpretation: From the above frequency distribution table it is found out of 50 customers 20 of customers were influenced by brand image of Hyundai while making their buying decision of Hyundai Cars. 30 customers were not influenced by the brand image of Hyundai.

TABLE: 8 Following table shows how far celebrity endorsement influence on buying decision of customers. Level of Influence No. of Respondent High Influenced 8
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Normal Influenced Neutral Less Influenced Not Influenced Total

15 11 5 11 50

Interpretation:-

The above frequency table shows that 8 customers were highly influenced and 15 were normal influenced by the celebrity advertisements and 11 customers were not influenced towards celebrity endorsement while making buying decision. TABLE: 9 Following table shows how far financing facility influence on buying decision of customers.

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Level of Influence

No. of Respondent

High influenced Normal Influenced Neutral Less Influenced Not Influenced Total

10 11 8 12 9 50

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Interpretation:-

The above frequency table shows that 10 customers were highly influenced and 11 were normal influenced by the financing facility and 8 customers were not influenced towards financing facility while making buying decision.

TABLE: 10 Following table shows past experience with other Hyundai service station. Past Experience
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No .of Respondent

No Good Average Poor Total

28 12 7 3 50

Interpretation: The above frequency table shows that 28 customers has no previous experience with other Hyundai service station, 12 has good experience with other Hyundai service station & 7 has average experience with other Hyundai Service Station.

FINDINGS

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The study finds that majority of the customers were highly prefer comfort of the car. In the case of awareness & getting information about Hyundai it is founds that experience users is having high influence on customers compared to other sources. Following are the other important findings of the study: It is found that majority of customers fall between age group of 31 40. It is found that of the users of Hyundai Cars is Businessman, Service/job & Professionals Most of the customers of Hyundai fall in family income group of 300,001 600,000(48.00%). Most of the customers of Hyundai are Male (94.70%) It is found that 22.70% customers have experienced Hyundai before & they had chosen same company again. From the study it is found that majority of the customers travel less than 30 Kms a day i.e. 44.70%. It is very important note that experienced users become an important source for getting aware about Hyundai with 35.50% and TV advertisement at second with 28.10%. Majority of suggestion for buying Hyundai car is given by family 48.00%. Majority of Customers has preferred Comfort, Mileage & Driving experience. Product performance is the most influencing factor for buying Hyundai car.39.10% customers has chosen product performance as most influencing factor.
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 Most of the customers (.91.30%) were influenced by the brand image of Hyundai.
Majority of the customers were not influenced (46.00%) by the

celebrity endorsement. Majority of the customers were normally influenced (36.00%) by the Financing facility. Majority of the customers has no experience (64.00%) with other Hyundai Service Station and 14.00% has average experience. It is found in Chi-Square results that there is association of daily travelling & Family annual income on purchase of models. There is moderate association of daily travelling kilometers on model purchase as seen in contingency coefficient value 0.456. There is moderate association of family annual income on model purchase as seen in contingency coefficient value 0.600. Majority of customers recommend Hyundai Cars to others because of Engine technology, Driving Experience, Mileage, Quality of Cars etc.

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CONCLUSION
The project entitled on Consumer buying motives of Hyundai cars with special reference to Harshalli Hyundai. These findings will help the company to know which factors motives customers for Buying Hyundai Car. It also helps to decide proper marketing strategies.

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RECOMMENDATIONS
The company can try to improve the service quality of Hyundai Cars. The Company can improve availability of spares & parts on time. The Company can provide easy financing facility by giving them a counter in their showroom. The company can cut the cost on celebrity endorsement because study shows that customers are not influenced by celebrity endorsement. The Company can give more importance to extra features includes basic accessories, easy insurance & vehicle registration. The Company can adopt print media as a tool for source of awareness, because it is cheap compare to TV advertisement.

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Bibliography:Books: Donald R.Cooper and Pamela S. Schindler. (June-2006) Ninth Edition, Business Research Methods, Tata McGraw Hill Publishing, NewDelhi. Leon G. Schiffman and Leslie Lazar Kanuk (Feb 2006). Ninth Edition, Consumer Behaviour, Prentice Hall, India.

Philip Kotler, Lane Keller, Abraham Koshy, Mithileshwar Jha (2008).Thirteen Edition, Marketing Management, Pearson Education, India.

Journals and Articles: Roy Chitwood, Puget Sound Business Journal. Chintan Bharwada Buying motives Do you know why do they buy? Kenneth C.C. Yang, Effects of Consumer Motives on Search Behavior Using Internet Advertising. University of Texas Demographics and patronage motives. University of South Carolina,

Websites:-

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http://www.hyundai.com/in/en/main/ http://www.navjivanmotors.com http://www.carazoo.com/.../Top-10-Car-Makers-of-the-World-in2009

http://www.siamindia.com/

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