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Report submitted to IIMT, Greater Noida as a partial fulfillment of full time Postgraduate Diploma in Management. Report titled "Consumer Buying Behavior Pattern for Hyundai Cars" Project Work is original and not submitted earlier for the award of degree of PGDM of IIMT College of Management.
Report submitted to IIMT, Greater Noida as a partial fulfillment of full time Postgraduate Diploma in Management. Report titled "Consumer Buying Behavior Pattern for Hyundai Cars" Project Work is original and not submitted earlier for the award of degree of PGDM of IIMT College of Management.
Report submitted to IIMT, Greater Noida as a partial fulfillment of full time Postgraduate Diploma in Management. Report titled "Consumer Buying Behavior Pattern for Hyundai Cars" Project Work is original and not submitted earlier for the award of degree of PGDM of IIMT College of Management.
A report submitted to IIMT, Greater Noida as a partial fulfillment of full time Postgraduate Diploma in Management. Under guider by- Rakesh kumar(sales manager)
SUBMITTED BY- UNDER THE GUIDENECE OF DEEPAK KUMAR MR. RAJEEV GUPTA ROLL NO. PGDM/11/11
IIMT COLLEGE OF MANAGEMENT GREATER NOIDA
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CERTIFICATE
This is to certify that the Project Work titled Consumer Buying Behavior Pattern For Hyundai Cars is a bonafide work of DEEPAK KUMAR carried out in partial fulfillment for the award of degree of PGDM of IIMT College of Management under my guidance. This project work is original and not submitted earlier for the award of any degree or diploma or associate ship of any other University /Institution.
CO-ORDINATOR
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ACKNOWLEGEMENT Here I take the opportunity to express my gratitude to all of them, who in some or the other way helped me to accomplish this Project. The project study cannot be completed without their guidance, assistance, inspiration and co-operation. For successfully accomplishment of task apart from hard work the most important requisite is the right direction and guidance. And for a student these become the major part for the study. In HYUNDAI MOTORS this right direction and guidance is provided by my guide and all the executives of the PATNA, in form of necessary information and exhibits that give me a great help in completing my work. First of all I would like to thanks HYUNDAI MOTORS and KRRISH HYUNDAI showroom for giving me such a great opportunity of studying such a vast topic i.e. MARKETING STRATEGY OF HYUNDAI MOTORS IN PATNA. A special thanks to Mr. Rakesh kumar, Sales Manager (Patna) under whom I conducted this study, for his able guidance in getting my project completed. Lastly I express my gratitude to my parents who financed this project and who have been a moral support to throughout my life.
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DECLARATION The summer training project on krrish motors pvt ltd, title: MARKETING STRATEGY OF HYUNDAI MOTORS IN PATNA under the guidance of Mr. Rakesh kumar , Hyundai motors india Ltd is the original work done by me. This is the property of Institute & use of this report without prior permission of the Institute will be considered illegal & actionable.
Date: - Deepak kumar
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PREFACE All students learn theoretical subjects in their classroom, but as we are the management students, apart from theoretical studies we need to get a deeper insight into the practical aspects of those theories by working as a part of organization during our summer training. Training is a period in which a student can apply his theoretical knowledge in practical field. Basically practical knowledge and theoretical knowledge have a very broad difference. So this training has high importance as to know how both the aspects are applied together. The study of management acquires most crucial position in the business administration. In order to be successful, it is necessary to give priority to the management in an organization. But it cant be denied that the study of management would be more educational, materialistic and even more interesting, if it is to be paired with the work in organization as an employee. The training session helps to get details about the working process in the organization. It has helped me to know about the organizational management and discipline, which has its own importance. The training is going to be a lifelong experience. Management in India is heading towards a better profession as compared to other professions. The demand for professional managers is increasing day by day. To achieve profession competence, manager ought to be fully occupied with theory and practical exposure of management. A comprehensive understanding of the principle will increases their decision- making ability and sharpens their tools for this purpose. During the curriculum of management programmers a student has to attain a practical exposure of an organization on live project in addition to theory he/she studies. This report is about the practical training done at KRRISH HYUNDAI, Patna during the curriculum of PGDBM from IIMT.
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TABLE OF CONTENT S.NO DETAILS PAGE 1. Executive summary Literature review 8-10 11-12 2. Chapter 1. Introduction of the company About the company History of the company Objective of the company Mission and vision of the company
13-20
3. Chapter 2. Products of the company 21-24 4. Chapter 3. Sales and Distribution network in Bihar 25-38 5. Chapter 4. Marketing & Sales strategy of the company in patna 39-47 6. Chapter 5. Sales and Marketing strategy of its competitors. About the competitor Product of the competitor and comparison with product of Hyundai Comparison of strategy of Hyundai motors and its competitor
9. Chapter 8. social corporate activity of the company 87-94
10.
Chapter 9. Findings Suggestions Learning My Experience Bibliography Annexure Word of thanks
95-103
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EXECUTIVE SUMMARY Being an PGDBM aspirant, I was assigned the most relevant title, as regards Summer Training project, on Marketing strategy of Hyundai motors in patna To execute the assigned task, I had to know about the car segment and made my customer aware about Hyundai motors product or to convince them that they have made the right choice. To fulfill this purpose I got detailed information about the products of Hyundai motors and learn about their features and specialty so that I can do my task easily. 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 7 models of passenger cars across segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the Sonata Transform and the SUV segment includes the Santa Fe. HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. 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 HMC's 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 115 countries across EU, Africa, Middle East, Latin America and Asia Pacific. 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 325 strong dealer network and 674 strong service points across India, which will see further expansion in 2011. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest car manufacturer and the largest passenger 9
car exporter from India. HMIL presently markets 55 variants of passenger cars across segments. The Santro in the B segment, the Getz Prime, i10 and the Premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Embera in the E segment and the Tucson in the SUV segment. Hyundai motors ranked highest in customer satisfaction with after-sales service. This is all due to True value Driving school Authorized service station Insurance Genuine accessories Strength Distributor network brand loyalty, Japan technology and Service distribution After sales service Cost-effective Low maintenance Indian middle-class Low price, High fuel efficiency Weakness Low capacity engine Opportunity High end car segment Overseas market 10
Improve handling Add extra features to small segment cars Attracting youth Export small cars Threats Fuel price Foreign brands Price high of raw material Small car competition Key competitors Tata Motors, maruti, Ford, Mahindra , General Motors, Honda Now my task was to meeting with clients and sales promotion or convincing customer, so I use to meet with the customer and convince them about the products . I used to talk very gently and they were also cordial with me, but I got some bitter experiences also at some places. Further I used to meet with our clients or whatever problems they are getting, my work was to solve that problem by consulting with different departments. For the purpose of making aware to the prospective customers I had to explain each & every aspect of the product. For fulfilling the formalities to giving information of Hyundai motors products I had to gain the knowledge of the technical part also. Further, in operations I learned about the documentation & process of filling the customer form & in this process I have to follow the guidelines given by the project guide, I analyzed different aspects of selling of cars with their benefits and finance facility..
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LITERATURE REVIEW The work is a pure applied part of my more than 7 weeks curriculum S T. It has been a purely practical exposure to the corporate sector. I must say that being a PGDM(MM) student, aspiring to take specialization in the field of marketing, I was quite familiar with the business environment theory after completing 1 year of my studies. Superficially, my Summer Training has enabled me to get an in-depth knowledge of the reality show of the corporate sector. There is no doubt about the fact that theoretical knowledge acquired by a student during the pursuance of his/ her PGDM(BM) lays down a foundation with the help of which the student, in consideration, can expect to have the widest exposure of the reality show of the corporate sector. But, one should not take it for granted that the so-called theoretical concepts can be applied to the business environment in totality. That is to say that there, actually, is a difference between the theoretical and practical environment of the corporate world. Part A of the story is that one has to take into consideration, the feasibility of a specific theoretical concept before one is to apply the same in the typical or complex business situation. Decisions taken out of thin air, in an ad-hoc manner, may spell a disaster for the organization as a whole. The other part of the story is that if one has applied a theoretical concept, in the light of its feasibility and after effective consideration of the Cost and Benefit Analysis, the same can prove to be very fruitful for the organization. Marketing is the important division of any organization. The main role of manager is improves the sales of company. They launch the product in market according to the market segmentation. Marketing manager also control the supply chain system of product. So in Hyundai motors we learned all aspect of business.
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Thus, to conclude, I would say that there is a slight difference between theoretical and practical realities. But, one must understand that, in order to rule the corporate world it is worthwhile to have the theoretical knowledge because, it is the theoretical knowledge that lays down the foundation for the success of a modern business man.
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CHAPTER---------1
Introduction of the company
About the company
History of the company
Objective of the company
Mission and vision of the company
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Introduction of company About the company. The Hyundai Motor Company was founded in 1967. It produced Koreas first locally designed car in 1976, and now produces close to four million cars and commercial vehicles a year. Today, Hyundai employs over 68,000 people around the globe. We have manufacturing plants in Korea, India, the USA and the Czech Republic, and joint venture plants in China, Turkey, South-East Asia, South America, Africa and Russia. Hyundai is growing into a brand appreciated by its customers by continuously striving to achieve the single goal of making excellent quality products with an emphasis on exceeding customer expectations. Hyundai now ranks as the worlds fifth largest automotive corporation. Whats more, Hyundai annually invests billions of dollars in research and development to continuously bring you eye-catching, practical cars that are safer and more efficient than ever before. 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 7 models of passenger cars across segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the Sonata Transform and the SUV segment includes the Santa Fe. HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. 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. 15
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 HMC's 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 115 countries across EU, Africa, Middle East, Latin America and Asia Pacific. 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 325 strong dealer network and 674 strong service points across India, which will see further expansion in 2011. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest car manufacturer and the largest passenger car exporter from India. HMIL presently markets 55 variants of passenger cars across segments. The Santro in the B segment, the Getz Prime, i10 and the Premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Embera in the E segment and the Tucson in the SUV segment. Hyundai Motor India Ltd, continuing with its tradition of being the fastest growing passenger car manufacturer, registered total sales of 489,328 vehicles in the calendar year (CY) 2008, an increase of 49.6 percent over CY 2007. In the domestic market it clocked a growth of 22.4 percent with 245387 units in 2008, while overseas sales grew by 92.5 percent, with exports accounting for 243,931 units in 2008. HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. In continuation of its commitment to provide the Indian customer with global technology, HMIL commissioned its second plant in February 2008 which produces an additional 300,000 units per annum, raising HMIL's total production capacity to 600,000 units per annum. HMIL has invested to expand capacity in line with its positioning as HMC's global export hub for compact cars. Apart from the expansion of production capacity, HMIL currently has 271 strong dealer network across India, which will be further bolstered in 2009. In 2008, HMIL also successfully completed 10 glorious years of operations in India and to commemorate its achievements, initiated a unique trans-continental drive from Delhi to Paris 16
in two of its hugely popular i10 Kappa cars. The drive created automobile history by completing a distance of 10,000km in just 17 days after which the i10s were showcased at the Paris Motor Show in October. In fact it was at the Paris Motor Show that HMIL first unveiled the Hyundai i20 and the car received a phenomenal response from the auto enthusiasts across the world. Hyundai Motor India also accomplished the landmark of producing the fastest 20th lakh cars in India in 2008. Like 2008, the year 2007 had also been a significant year for Hyundai Motor India. It achieved a significant milestone by rolling out the fastest 400,000th export car. Hyundai exported to over 95 countries globally; even as it plans to continue its thrust in existing export markets, it is gearing up to step up its foray into new markets. 2007 also saw the launch of the i10 and yet another path-breaking record in its young journey by rolling out the fastest 1,500,000th car. Hyundai's new model i10 made a clean sweep of all the 'Car of the Year 2008' awards from the leading automotive magazines and TV channels like BS Motoring, CNBC-TV18 AutoCar, NDTV Profit Car & Bike India and Overdrive magazine. The i10 was also the choice of the discerning automotive media of the country as they conferred the prestigious 'Indian Car of the Year' (ICOTY) award to the i10 as well. The Santro and the Accent also received the 'TNS Voice of the Customer - 2008' award for the Premium Compact Car (Santro) and the Entry Mid size Car (Accent). In March 2008 it achieved yet another milestone by rolling out the fastest 500,000th export car. In 2007, the Hyundai Verna had also bagged some of the most prestigious awards starting with the Overdrive magazines Car of the Year 2007, the Best Mid-size Car of the Year award from NDTV Profit Car & Bike India, the Best Value for Money Car from CNBC Autocar and 'Performance Car of the Year' from Business Standard Motoring. Hyundai cars have been a favorite at all awards ceremonies and has won many awards. The Sonata Embera won the 'Executive Car of The Year 2006' award from Business Standard Motoring magazine and NDTV Profit Car & Bike India had declared the Tucson as the 'SUV of The Year 2006'. Not only this, HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices.
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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 8 models of passenger cars across segments. The A2 segment includes the EON, Santro, i10 and the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the Sonata Transform and the SUV segment includes the Santa Fe. HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. 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 HMC's 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 115 countries across EU, Africa, Middle East, Latin America and Asia Pacific. 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 336 strong dealer network and 721 strong service points across India, which will see further expansion in 2011. Hyundai was founded in 1946 in Seoul, Korea. The name Hyundai literally means Modern era, and from the very start the company quickly adopted a passion for progress which has been our hallmark ever since. In less than 50 years, the Hyundai group has become a world leader in building everything from ships to microchips, including consumer electronics, oil rigs and massive infrastructure projects. We even have our own steel blast furnace to process raw materials, many of which come from Australia, which provides enhanced quality control over our products 18
History of the company Taking pride in your car by driving it and admiring it is one thing, actually knowing its history is quite another. The Hyundai Motor Company is one if not the most dynamic automobile producer in any developing country. This is remarkable considering that the company is closing in on 40 years of existence. To outline its history one must also look into the life and times of its founder Chung Ju-Yung. It cannot be told without the outlining the founders rise from the rice fields of Korea to the circumstances that let him to acquire the knowledge and determination that led to the creation of one of the fastest growing family owned businesses into a global competitor. His creation of numerous companies eventually let to the establishment of the Hyundai Group. The Hyundai Motor Company was one of these. He created it and transformed it from a mere assembler of Ford models to a designer and exporter of its own cars and engines in less than four decades. It has already become a major global player with plants and dealerships that span six continents. The company is one of the largest and most diversified business organizations with 45 affiliated domestic companies and 254 overseas companies in nearly 200 countries. The Hyundai Motor Company is but one which the Group is active in such as shipbuilding, steel, petrochemicals, heavy machinery, aerospace, electronics and financial services. These pages therefore outlines not only the rich and unique History of the Hyundai Motor Company but also the remarkable years beforehand that led to its creation, the eventual breakup of the Group and its continuous development into a top ten global automaker. Pre-Hyundai History 1900-1946 1915 1930 1932 1934 1937 1939 1940 1945 1946 1947 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 19
Mission and vision of the company Vision We announced "Innovation for Customers" as our midto longterm vision with five core strategies: global orientation, respect for human values, customer satisfaction, technology innovation, and cultural creation. We desire to create an automobile culture of putting customer first via developing humancentered and environmentfriendly technological innovation.
Management Policy Based on a respect for human dignity, we make efforts to meet the expectations of all stakeholders including customers and business partners by building a constructive relationship amongst management, labor, executives and employees. Also, we focus on communicating our corporate values both internally and externally, and gaining confidence from all stakeholders.
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Mid-and Long-term Strategies We developed five midand longterm strategies: global management, higher brand values, business innovation, environmental management, and strengthening product competitiveness. Especially, we selected environmental management as one of our strategies to meet the needs of our stakeholders and the society we belong to. We also intend to promote sustainability development and preservation of the environment.
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Chapter- 2 Products of the company HYUNDAI VERNA
HYUNDAI ACCENT
HYUNDAI TUCSON
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Hyundai Cars in India are delivered from Hyundai Motor India Limited, a wholly owned subsidiary of Hyundai Motor Company. Hyundai India is the second largest car manufacturer in India. It markets a great number of Hyundai car variants particularly in the passenger car section. The Hyundai Car variants are marketed in six segments. Hyundai India has great plans for the future. Hyundai India envisages the employment of 800 odd people in the period of 2 years. Hyundai cars in India have offered a wide scope in the R&D segment. Hyundai India is also looking forward to undertake application oriented strategic research in Information and Communication Technologies like Software, Telemetric and Simulation Systems. Hyundai car is well known for its user friendly drive, fuel efficiency and easy manoeuvrability. Hyundai Car provides engineering services through Computer Aided Designing & Computer Aided Engineering. Hyundai Cars in India have managed to secure very skilled research personnel to create new technologies. Hyundai Car has focus on future-oriented automobiles and improvised products, ideally suited to various regions. Hyundai India has also been a pioneer in manufacturing family oriented small cars well suited for the Indian roads. Eco friendly cars and hybrid beauties are soon going to be a reality at Hyundai India.
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EON:- The Hyundai Eon is a 5-door hatchback subcompact produced by the Hyundai Motor Company. It was launched in 1 October 2011 in India and in March 2012 in the Philippines.
Design:- The Eon was designed jointly between the Hyundai R&D centers in Namyang, South Korea and Hyderabad, India. It is offered with a 814cc 3-cylinder gasoline engine that generates 55 bhp and 75 Nm torque. Accor ding to Hyundai's Philippine distributor, the Eon has a fuel economy rating of 26.3 kilometers per liter. In January 2012, Hyundai India announced LPG models of Eon as well, with an additional cost of approximately INR 27000 to the available models. Model of Eon D-LITE D-LITE+ ERA+ MAGNA+ SPORTZ 24
Variants of EON:- D-Lite:- This has the same features as D-Lite but has an air conditioner and full wheel cover with Hub cap.
Hyundai Sonata Hyundai Sonata Embera has added a new dimension in the luxury sedan car segment of India. This new offering from Hyundai is "undoubtedly distinguished" in terms of design, comfort and safety. Sonata Embera is contemporary and sharp from the outside with charismatic features from inside, i.e. more spacious, elegant and cool. The 2.4 L VTVT engine, with the awesome power of 165 ps, would make your ride smoother and controlled.
CHAPTER3 25
Sales and Distribution network in Bihar Hyundai sales up by 3.5% Patna, July 2, 2012: Hyundai Motor India Ltd (HMIL), the countrys second largest car manufacturer and the largest passenger car exporter registered aggregate sales of 54,354 units (52,521 units) in June, up 3.5 % from the corresponding month last year, domestic sales were 30,450 units (30.402 units) up 0.2% and exports were 23,904 units (22,119 units) up 8.1%. Commenting on the sales, Mr Arvind Saxena, Director, Marketing and Sales, HMIL said, The general inflationary trend, high fuel prices, interest rates that are still high are keeping sentiment low. Unless any triggers get activated, sentiment is not expected to improve very much. Speaking about the growth in exports, Mr Saxena said, We are witnessing good volumes in South America and Africa. The Eon is being particularly well received in Africa and the i10 is strong in South America. HMIL Sales June 2011 June 2012 Growth% Domestic 30,402 30,450 0.2 Exports 22,119 23,904 8.1 Cumulative 52,521 54,354 3.5
The segment-wise cumulative sales for June 2012 are: A2 segment 44,046 units (Eon, Santro, i10, i20); A3 Segment 10,182 units (Accent and Verna); A5 segment 39 units (Sonata); SUV 87 units (Santa Fe) Hyundai aggregate sales up 16.6% Patna, June 1, 2012: Hyundai Motor India Ltd (HMIL), the countrys second largest car manufacturer and the largest passenger car exporter registered aggregate sales of 55,670 units (47,762 units) in May up by 16.6% from the corresponding month last year, domestic sales were 32,010 units (31,123 units) up 2.8% and exports were 23,660 units (16,639 units) up 42.2 %. 26
Commenting on the sales, Mr Arvind Saxena, Director, Marketing and Sales, HMIL said, The recent hike in petrol prices has depressed market sentiment, with the macro-economic indicators providing no cause for cheer, the demand outlook doesnt look very bright.
HMIL Sales May 2011 May 2012 Growth% Domestic 31,123 32,010 2.8 Exports 16,639 23,660 42.2 Cumulative 47,762 55,670 16.6
The segment-wise cumulative sales for May 2012 are: A2 segment 48,250 units (Eon, Santro, i10, i20); A3 Segment 7,306 units (Accent and Verna); A5 segment 43 units (Sonata); SUV 71 units (Santa Fe). Hyundai domestic sales up 10.9% Patna, May 2, 2012: Hyundai Motor India Ltd (HMIL), the countrys second largest car manufacturer and the largest passenger car exporter registered domestic sales of 35,070 units (31,636 units) last month, up 10.9% from the corresponding month last year, aggregate sales touched 54,606 units (52,057 units) up 4.9 % for the same period. Commenting on the April domestic sales, Mr Arvind Saxena, Director, Marketing and Sales, HMIL said, Consumer confidence continues to be weak, prices went up following the excise hikes in the Union Budget and interest rates are yet to come down. Given the present conditions its a challenging market.
HMIL Sales April 2011 April 2012 Growth% 27
Domestic 31,636 35,070 10.9 Exports 20,421 19,536 - 4.3 Cumulative 52,057 54,606 4.9 The segment-wise cumulative sales for April 2012 are: A2 segment 44,891 units (Eon, Santro, i10, i20); A3 Segment 9,579 units (Accent and Verna); A5 segment 66 units (Sonata); SUV 70 units (Santa Fe). DISTRIBUTION NETWORK The system of intermediaries between the producer of goods and/or services and the final users. Distribution Network Design In the wake of increasingly complicated supply chains, distribution network design plays a key role in controlling the cost of doing business. And, in a world of shrinking margins, controlling the cost of doing business can be the factor that puts you ahead of your competitors. Distribution Network Design Solutions An optimal distribution network is intelligently designed to minimize costs by providing the customer the right goods, in the right quantity, at the right place, and at right time. A tall order, right? In most organizations, controlling distribution costs involves striking a balance between warehousing and transportation. While more distribution centers drives down the cost of transportation, the opposite holds true as well. Tompkins distribution network design services attempt to answer questions like: How many DCs should you have? Where should they be located? What should be the configuration and strategy of each DC? Which group of customers should each DC service? How will customers order from and how will each DC be replenished? 28
Tompkins Associates pioneered the use of computers for modeling and analyzing distribution networks. Nobody does it with the depth of understanding or attention to detail that we do. We choose from an array of the best modeling tools to best suit each client's operation. Understanding Distribution Network Design Because the volatile forces at play in the market today can cause a company's momentum to vanish into thin air, we design into your distribution network the flexibility to adjust to changing market conditions, including: Geographic shifts in production and consumption Market segmentation, new markets and new customer service requirements Cost increases in energy, plant and equipment maintenance, and labor Government regulation or deregulation Not only will we create the most demand-flexible, cost-effective distribution network, as a full-service consulting and integration firm, we can build it for you and step you and your employees through the transition to the new network. Tompkins can provide your firm everything from site selection and real estate services to construction and integration services. Product Promotional Pattern In classification various techniques are used to promote and sell a pharmaceutical such as TV advertising, distributing broachers, regular visits by medical representative, gift and sample distribution. An ethical drug first has to be approved and recommended by a physician and then sold to the patient or consumer, through medical stores, non ethical or patented products can be directly sold to the consumer through persuasive advertising through various media such as newspaper, magazine, radio or TV. It can be sold through point of sale advertising which means poster in the medical shop or window displays, but the proportion of non ethical or patented products is hardly about 20% of the total output of drugs and pharmaceutical products.
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Hence an indirect method, a roundabout way of promotion and distribution has been adopted in pharmaceutical marketing. It can be shown diagrammatically as given under. Company
Central Depot
C & F (Carry and Forward)
District wise Stockist
Retailers
Customer
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Automobile Co.
SALES PROMOTION HYUNDAI MOTOR Marketing is the process of performing market research, selling products and/or services to customers and promoting them via advertising to further enhance sales. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing is used to identify the customer, to satisfy the customer, and to keep the customer. With the customer as the focus of its activities, it can be concluded that marketing 31
management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable. The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.
Hyundai Motor India Limited Annual Sales Calendar Year Domestic Sales Exports Total 2009 289,863 270,017 559,880 2010 356,717 247,102 603,819 2011 373,709 242,330 616,039 OBJECTIVES OF SALES PROMOTION Sales promotion is a tool used to achieve most of the five major promotional objectives discussed in the Promotion Decisions tutorial: Building Product Awareness Creating Interest Providing Information Generally sales promotion techniques are designed to move customers to some action and are rarely simply informational in nature. However, some sales promotions do offer customers access to product information. For instance, a promotion may allow customers to try a fee-based online service for free for several days. This free access may include receiving product information via email. Stimulating Demand Reinforcing the Brand CLASSIFICATION OF SALES PROMOTION Sales promotion can be classified based on the primary target audience to whom the promotion is directed. These include: Consumer Market Directed - Possibly the most well-known methods of sales promotion are those intended to appeal to the final consumer. Consumers are exposed to sales promotions nearly everyday, and as discussed later, many buyers are conditioned to look for sales promotions prior to making purchase decisions. Trade Market Directed Marketers use sales promotions to target all customers including partners within their channel of distribution. Trade promotions are initially used to entice channel members to carry a marketers products and, once products are stocked, marketers utilize promotions to strengthen the channel relationship. 33
Business-to-Business Market Directed A small, but important, sub-set of sales promotions are targeted to the business-to-business market. While these promotions may not carry the glamour associated with consumer or trade promotions, B-to-B promotions are used in many industries. An extensive discussion of different types of promotions for each classification can be found in our Types of Sales Promotion tutorial. FUNTION OF SALES PROMOTION Sales promotion is a short-term marketing strategy designed to achieve a specific purpose. Sales promotion differs from advertising in that its intent is to create a sense of urgency to encourage immediate action as opposed to building sales or a brand over a long period of time. Sales promotion may take the form of a temporary price reduction or a campaign to introduce an item. Production Differentiation Attract Customers Increasing Market Share New Product Introduction Inventory Control TOOLS OF SALES PROMOTION To increase the sale of any product manufactures or producers adopt different measures like sample, gift, bonus, and many more. These are known as tools or techniques or methods of sales promotion. Let us know more about some of the commonly used tools of sales promotion. (i) Free samples: You might have received free samples of shampoo, washing powder, coffee powder, etc. while purchasing various items from the market. Sometimes these free samples are also distributed by the shopkeeper even without purchasing any item from his shop. These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to 34
popularize the product. For example, in the case of medicine free samples are distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers. (ii) Premium or Bonus offer: A milk shaker along with Nescafe, mug with Bournvita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of one kg. are the examples of premium or bonus given free with the purchase of a product. They are effective in inducing consumers to buy a particular product. This is also useful for encouraging and rewarding existing customers. (iii) Exchange schemes: It refers to offering exchange of old product for a new product at a price less than the original price of the product. This is useful for drawing attention to product improvement. Bring your old mixer-cum-juicer and exchange it for a new one just by paying Rs.500 or exchange your black and white television with a colour television are various popular examples of exchange scheme. (iv) Price-off offer: Under this offer, products are sold at a price lower than the original price. Rs. 2 off on purchase of a lifebouy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on cooler etc. are some of the common schemes. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market. (v) Coupons: Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount. For example, you might have come across coupons like, show this and get Rs. 15 off on purchase of 5 kg. of Annapurna Atta. The reduced price under this scheme attracts the attention of the prospective customers towards new or improved products. (vi) Fairs and Exhibitions: Fairs and exhibitions may be organised at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a reasonable discount. International Trade Fair in New Delhi at Pragati Maidan, which is held from 14th to 27th November every year, is a well known example of Fairs and Exhibitions as a tool of sales promotion.
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SALES & DISTRIBUTION A sales promotion at a business may be a scheduled event, such as a weekly or monthly price reduction, or it may occur at different times throughout the year. It is completely up to the company as to when they will offer promotional pricing on goods or services. Sales promotions often occur at the changes of the seasons, where the type of merchandise sold may change, and companies will want to move old merchandise quickly to make room for new items to sell at full price. 1. Aim and structure Our aim is to analyses the driving forces affecting the S&D innovations and increase the understanding of supply chain management innovations in delivering customer satisfaction. What does the network of relations mean in this system? Which are the major actors and core relations? Which power do they exercise? Who are the win-ners and the losers so far? In section 3 and 4 we are developing a model for the analysis of our case. In section 5 we are presenting the case which is analyzed in section 6. In section 7 we are look-ing for a pattern of change, the managerial implications and policy issues of the de-regulation process going on in the EU. 2. Theory: Competitiveness, competencies and networks There is an interesting imbalance between different theoretical aspects of this field and also between theories and best practice. More general research approaches of interest here are found in the fields of industrial organization, e.g. Porter (1980; 1985; 1990) and transaction cost economics (TCE) (Williamson, 1999). In the automotive industry, one of the most competitive of the major, mature industries, competitive-ness and performance are key concepts for the understanding of the innovative process. However, Porter/Competitive Strategies and Williamson/TCE can only offer partial explanations for the understanding of the automotive channels development. Their major weakness is that both approaches are very cost focused. There are no concepts for the understanding of the dynamics, value creation and other processes that are generating income. We need other references for these aspects. 3. Managing innovations in sales and distribution In the development of a model for the understanding of the innovation process we are using some relevant concepts and a process model from the literature. For each phase in the model 36
we are discussing our empirical case in the light of the model. Finally, we will analyze the case and discuss how the innovation process could be improved. 4. Empirical setting The major members in the automotive industry supply chain are traditionally the car manufacturers and their suppliers, especially the first tier suppliers, the dealers and the final consumers. During the last few years a new group of members has ap-peared namely the Internet-based intermediaries (new middlemen). Our analysis of the distribution and sales part of the supply chain is taking the driving forces including the new members and catalysts into account.
5. Analysis In order to analyse the development of automotive industry sales and distribution we are applying the four different aspects of the management of innovations presented by Van de Ven (1986). First, we are discussing how the market channel members have managed peoples attention to new ideas. In the following sections, the man-agement of ideas into 37
good currency, and the part-whole relationships and the man-agement of innovation context are depicted. Managing attention: recognizing the need of renewal, communicating the need of renewal, and understanding double-loop learning . The human problem of managing attention involves the tension between stability and creativity in the initial phase of the innovation process. The problem is how to trigger people to pay attention to new ideas and concepts. Van de Ven means that successful organizations experience more difficulties in changing peoples attention from daily activities and routines to new ideas, opportunities and needs. According to Schroeder et al (1989), innovations are often triggered by internal or external shocks, e.g. business cycles or internal organizational crisis. In the strategic analysis of the development of more efficient S&D, we must consider the roles of the members. The OEMs or primes own the product brands that are the basis for all businesses in the supply chain. Therefore they have to focus upon the management of the interfaces, relationships and contracts from the suppliers all the way to the final customer. At the same time OEMs control over the operational part of the value-adding supply chain is decreasing as suppliers are taking over a larger share of operational activities. Cross- functional and organizational integration is in-creasing. The complexity of the system is growing.
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Managing ideas into good currency and the part-whole relationships: Dy-namic Capabilities - A Quasi-Resolution to Conflict The process problem of managing ideas into good currency relates to the difficulties in implementing and institutionalizing innovative ideas in the organization. While individuals provide the invention and the initial idea, the implementation of the invention involves the whole organization. This process of transforming the idea into good currency is primary influenced by social-political dynamics within the organization, and is controlled by the existing system as long as the critical debate of problems continue (Van de Venn 1986). Thereafter, new ideas are initiated and the political debate can go on. A political tension in the organization can move the idea forward. When this tension decreases other ideas are initiated and thus the political problems related to the new idea are debated.
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CHAPTER-4 Marketing & Sales strategy of the company in Patna As companies find it harder to differentiate their physical products, they turn to service differentiation. Companies seek to develop a reputation for superior performance in on time delivery, better and faster answering of inquiries, and quicker resolution of complaints. Service becomes the mantra, and many books have been written to point out the superior profitability of companies that manage to deliver superior service. Marketing strategies for service firms Once service firms lagged behind manufacturing firms in their use of marketing because they were small or professional businesses that did not use marketing, or faced large demand or little competition; but this has certainly changed. Three additional Ps The traditional four Ps marketing approaches work well for goods, but additional elements require attention in service businesses. Booms and bitner suggested three additional Ps for service marketing people, physical evidence, and process. Because most services are provided by people, the selection, the training, and motivation of employees can make a huge difference in customer satisfaction. Ideally, employees should exhibit competence, a caring attitude, responsiveness, initiative, problem solving ability and good will. The Price Cut In August 2004, a leading business newspaper reported that Hyundai Motors India Limited (HMIL), an Indian subsidiary of the South Korea- based Hyundai Motors Company (HMC)3 was expected to reduce the price of its flagship car - Santro - by as much as Rs 40,000. Industry experts were expecting a reduction in Santro's price in response to the price war being waged by the market leader in India - MarutiUdyog Limited (MUL),4 which had reduced the price of its largest selling car in the B segment - Alto - by Rs 58,000 in two price cuts starting from September 2003. This move had resulted in Alto replacing Santro as the 40
largest selling car in the B segment in the period January to June 2004 (Refer Exhibit I for the market segmentation of the Indian car industry). This would lead to a loss in Santro's market share. (Refer Exhibit III for the comparison of features of various models in the B segment). Background Note For a long time after India became independent in 1947, the car market had just two models to offer - the sturdy 'Ambassador' from Hindustan Motors (HM) and the sleek 'Fiat' from Premier Automobiles (PA). This was the result of Government of India's (GOI) decision to keep the car industry tightly protected. Hyundai's Entry in India One of the major players that entered the Indian car market was HMC through its subsidiary HMIL. Before making its move, the company closely studied the industry for a year. The company's officials talked to vendors, dealers and customers to get a thorough knowledge of the industry.
Marketing Santro Santro received an encouraging feedback from customers who appreciated its unique design that gave more headroom and facilitated easy entry and exit... Launch of Accent By mid 1999, the major players realized that the 'B' segment would be the fastest growing in the car industry. To cash in, Telco re-launched its 'Indica' by introducing several new features and solving the glitches in the original model... Repositioning Santro By late 2002, the competition in the B segment had increased significantly. MUL's Alto which was launched in October 2000 had received a good response. Although HMIL's Santro remained the largest selling car in the B segment, MUL commanded the largest market share in this segment due to the combined sale of its three cars - Zen, Wagon R and Alto... Status in 2004 41
The financial year 2003-04 ended on a positive note for HMIL. The company achieved revenues of Rs 50 bn and profit after tax (PAT) of Rs. 1.90 bn in the financial year 2003-04 compared to Rs 43 bn revenues and PAT of Rs 1.65 bn in the fiscal 2002-03... The Challenges Ahead During the period January to June 2004, Santro lost its leadership status in the B segment... Exhibits Exhibit I: Segments of Indian Car Market Exhibit II: Total Sales of Leading Car Models (2003-04) Exhibit III: Comparision of Features of Different Models in B Segment Exhibit IV: Market Share (in Units) of Car Models (April 2000 - January 2004) Exhibit V: HMIL's Santro Exhibit VI: Advertisement of Accent Exhibit VII: Advertisements of Santro Xing
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. 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 42
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. Marketing Communications By integrating all messages in all media we will reinforce the brand name & main points of product differentiation. Research about 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 43
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-a-half box, aggressive form makes for a look of stability, a sense that it is packed with energy and ready to deliver a dynamic drive. 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. 44
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 will promote and they will reach out to the youth will be promoted through Star, Zee, Sony and Doordarshanetc 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 45
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. Banners, neon signs Hoardings, banners, neon signs will be displayed at clubs, discs, outside theatres and shops to promote our brand car. Booklets and pamphlets Booklets will be kept at car showrooms, retail battery outlets, etc for the customer to read. These booklets will provide information about our company; the products offered which suits the customers need accordingly. Marketing Strategies - Hyundai The case discusses the marketing strategies of Korea based Hyundai Motor Company (HMC) in India. HMC entered India by establishing its wholly owned subsidiary Hyundai Motors India Limited (HMIL) in 1996. Within a year of launch of its first product - Santro, HMIL had emerged as the second largest car company in India. The case describes in detail the entry, product, pricing, distribution and promotional strategies of HMIL. The case briefs the challenges faced by the company and its marketing plans in future. It also includes a note on the Indian passenger car industry, the leading player and its marketing strategy. The Price Cut In August 2004, a leading business newspaper reported that Hyundai Motors India Limited (HMIL), an Indian subsidiary of the South Korea- based Hyundai Motors Company (HMC) was expected to reduce the price of its flagship car - Santro - by as much as Rs 40,000. Industry experts were expecting a reduction in Santro's price in response to the price war being waged by the market leader in India - MarutiUdyog Limited (MUL), which had reduced the price of its largest selling car in the B segment - Alto - by Rs 58,000 in two price cuts starting from September 2003. This move had resulted in Alto replacing Santro as the largest selling car in the B segment in the period January to June 2004. Objectives 46
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. 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 47
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 2) Taking market share from Maruti.
Distribution STOCKIST to DEALERS to SUB DEALERS to BOOKING 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.
CHAPTER- 5 48
Sales and Marketing strategy of its Competitors About the competitor Product of the competitor and comparison with Product of Hyundai
Comparison of strategy of Hyundai motors and its Competitor.
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Sales and Marketing strategy of its Competitors
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SWOT analysis of Hyundai Motors Strengths of HMIL
Hyundai India has such a brand equity that it is almost assumed to be an Indian brand, with lot of good accolades for being Indias second most selling brand next to MUL in market share Hyundai Motor India limited is the largest car exporter from Asian Market which showed a 10% growth compared to last FY The domestic sales is increasing at an average rate of 19.1% HMIL is known for its quality products which has better performance and it has constantly been ahead in the race with Maruti Udyog limited in many parameters The product length includes around 8 cars, starting from new Eon in small car segment to SUV segment Santa Fe Among the automobile players only HMIL is known for its CSR activities Hyundai products never fail to win laurels in each segment from various automobile ratings ever since its operations in India 52
Hyundai , has the largest network of showrooms and service station next to Maruti in India An article in Economic times quoted that Hyundai Eon launched , treads on Alto territory indicated that Eon will act as a threat to reduction in Altos market share.
Weaknesses of HMIL HMIL took a long time to gain the market share as its not the first mover in India In terms of most reliable and trusted brand; Maruti is more strong in Indian subcontinent Spare parts of Hyundai vehicles are comparatively priced higher and spare parts do not have PAN India presence In SUV segment both Tucson and its next model Santa Fe didnt make a major impact Increase in commodity prices such as steel, aluminium and ancillary parts has affected margins Since HMIL concentrates on both domestic and International sales there are higher risks of exchange rate fluctuations As Hyundai majorly concentrates on quality, most of its product are in premium category in each segment. Hyundai is still struggling to make a better impact in small car segment in terms of cost efficiency like other manufactures Hyundai doesnt have any product match to compete in Corporate orders like Tata Indica V2, Tata Sumo, Tata Indigo, Chevy Tavera, Ford Fiesta etc. These vehicles are most preferred in both cab segment and government booking for bulk orders Opportunities of HMIL SIAM Society of Indian automobile Manufacturers, have stated that there is steady increase in Car sales both Domestic and Indian contributing a valuable share in Indias Gdp The export markets growth rate is 22.30% compared to last fiscal year The saving consumption pattern of India is an added advantage for any segment doing business in India. This was one of the major reason for Indian market to survive amidst global recession There is more scope of HMIL to enter into small car segment as its has dedicated R&D plant in Hyderabad, India. Hyundai is one of the very few companies that has widest R&D network across the world located in Korea, Europe, India, US, Japan 53
Hyundai has very good opportunity in entering into commercial vehicles and Recreational vehicles as they are already doing well outside India. Currently HMIL has its focus only on Passenger car segment Threats of HMIL Though Hyundai claims itself to have no direct competitors other than MUL, there are Indian players like Tata, Mahindra imposing a strong threat for Hyundai Motors India to expand its product category Foreign Direct Investments flowing in Indian automobile space are not good signs for already existing Giants like MUL and Hyundai. Almost all major automobile players have started invading India to open up their market and their manufacturing plant in India.Chennai is referred to as the Detroit of Asia! Hyundai faced a slight decline in market share due to tough competition from Fords Figo and Volkswagen- Polo Many manufacturers have started to concentrate on small car segment as an alternative to Nano. These will slowdown the expected sales of Eon.
TATA MOTORS
ABOUT THE COMPANY: 54
The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use, excavators, industrial shunter, dumpers, heavy forgings and machine tools. The commercial diesel vehicles which were known Tata Mercedes Benz (TMB) is now called Tata vehicles after the expiry of the collaboration agreement with Daimler-Benz AG, West Germany. The company also used to manufacture pulp and paper making machinery.
HONDA MOTORS HSCI was established in December 1995, with Honda Motor Co., (Japan) and Siel Ltd. (India) as the key promoters. Hondas models are strongly associated with advanced design and technology, apart from its established qualities of durability, reliability and fuel- efficiency.
MARUTI SUZUKI Maruti Suzuki has a strategy for the future, says Bhargava The Hindu Business Line New Delhi: Maruti Suzuki which controls slightly over half of the domestic car market in the country has said that it would design small cars suitable for the Indian conditions as a strategy to beat the stiff competition with the entry of global auto makers. MAHINDRA & MAHINDRA It was in early 2004 that Anand Mahindra (Anand), vice chairman and managing director Mahindra & Mahindra (M&M), heard Kenneth Ramsay (owner of Angus Valley Farm Supply in the town of Elm Mott in Texas USA - population 200), rave about his Mahindra tractor - the brand he and his townsfolk preferred to well known US tractor brands like John Deere and New Holland. Anand realized that M&M had a real opportunity to become a 'truly global' brand.
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CHAPTER -6 SALES AND ADVERTISEMENT POLICY Advertising Program Gary Armstrong and Philip Kotler's "Marketing" describe four decisions you have to make. Know what you need to accomplish with your advertising, called advertising objectives, and how much you can spend on your advertising choices, called your advertising budget. Decide what your advertising will say about your product and what media you're going to use, called your advertising strategy. After your advertising strategy has been set into play, you need to consider the effectiveness of your decisions, called evaluating your advertising campaign. Advertising Objectives You should have ideas of what you want from your advertising campaign. There are three types of advertising objectives discussed by Armstrong and Kotler in their book--informative advertising, in which you are letting customers know about your new product; persuasive advertising, in which you try to convince customers why they should choose your product over a competitor's; and reminder advertising, in which you consumers to continue choosing your established product rather than going to a new product. Advertising Budget Armstrong and Kotler have four methods for the advertising budget of the product. The affordable method is simple: The company's management makes a decision about what the company can afford to spend on the product. The percent-of-sales method is based on a percentage of the amount of sales the product is bringing in or is expected to bring in. The competitive-parity method is when you try to match your advertising expenditures to your competitors'. For the objective-and-task method, look at your product's advertising objectives. You will then make a budget based on an estimate of how much attaining those objectives will cost. Advertising Strategy For this, you have to decide what you want your advertising to convey about your product and what types of media you are going to use. You will need a message strategy, which just outline what you want the advertising to point out about your product. After you have a 56
message strategy, you will need a creative concept, the thing about your product's advertisers consumers will remember. After that, you will come up with the execution styles your advertising will use. Examples of execution styles are showing a specific lifestyle, a character for the product, or evidence about the product (such as endorsements or scientific studies). Now consider the media you want to use. You must know how many people you need to see your advertising to decide what type of media to use, as every type of media reaches a different amount of people. After that, consider what vehicles within the media, such as specific TV shows or magazines, would work best for your product. When the vehicle is chosen, you'll run your ads either with continuity, in which the ads are presented evenly in a time period, or by pulsing them, in which the ads are run heavily for short bursts of time. Evaluating the Campaign Now is the time for you to think about what your advertising campaign is doing for your product. Armstrong and Kotler describe two types of advertising results--the communication effects and the sales and profit effects. In communication effects, you look at whether the advertising is presenting the message you want. In the sales and profit effects, you can choose to compare sales and profits with how much money has gone into advertising, or you can conduct experiments to see what the effects of your advertising are (for example, you can vary your advertising in different areas).
Difference Between Advertising and Sales Promotion Advertising and Sales Promotion are different. They have differences in there use and utility. Will try to explain it with example of HUTCH (Orange) to facilitate our understanding.
ADVERTISING SALES PROMOTION By using a variety of persuasive appeals, it offers reasons to buy a product or service.
Besides giving reasons in the form of different appeals, they offer incentive to the consumers to buy the product or service now. For new users, 1HUTCH no is given 57
Eg: Good Network, Promises and Delivers. free for 1 month &sms is free for 3 months. Appeals are emotional or functional in nature. Eg: the current ad of Wherever you go, our network follows Appeals are rational
It justifies whatever it says. Time-frame is long term. Time frame is short term. The primary objective is to create an enduring brand image. To get sales quickly or to induce trial. Indirect and subtle approach towards persuading customers to buy a product or service. Direct in approach to induce consumers to buy a product or service immediately by temporarily changing the existing price-value relationship of the product or service.
Advertising Methods 1. Appeals to Emotion When advertisers use this technique, they attempt to appeal to those emotional needs experienced by all humans. The text will be worded to emphasize those needs. Some of the common appeals to emotion include:
the need to be accepted by others the need to have membership in an elite group the need for self-acceptance the need for security 58
the need for family the need for change the need for excitement the need to attract sex, be sexy , and/or have sex. 2. Associations When advertisers use association, they attempt to associate their product with the people, values and lifestyles depicted in the ads. Associations are positive and rely heavily on the visual image created in the ad, but the text enforces the association. Products are commonly associated to: wealth / luxury fame / prestige happiness success youthfulness / health excitement / adventure / risk patriotism independence / individuality / non-conformity love / romance / sex 3. Fear Tactics When advertisers use fear tactics, they attempt to sell their product by playing on our fears. The reasoning is that if consumers buy the product the fear is abolished. Ads that use fear tactics rely heavily on the text. Some common fear tactics are: fear of death / aging / sickness fear of failure fear of poverty fear of violence 59
fear of bodily embarrassments fear of sexual failure Fear of failing to provide Fear of aging / sickness It is important to note that the advertising techniques of appeal to emotions, associations and fear tactics may overlap. However, one technique should be dominant. Advertising Example When deconstructing Advertising techniques: The text, visual and layout should all be considered and all should reinforce the predominant advertising technique. Any one product can be marketed in a variety of ways, using a variety of techniques. For example, an ad campaign for a diamond ring could be marketed through: A. An appeal to emotion Suppose the ad contains: a visual of a woman peering longingly at a tray of diamond rings displayed in a store front window while her husband, with a smile on his face, watches from a short distance away. the text reads "Show your love." Then, the add is an appeal to emotion and the need is the desire to please someone you love. B. An association If the ad contained: a visual of a handsome man offering the ring to a beautiful woman a luxuriously furnished apartment a table set with wine and candles; and a text which reads "Love has no price" Then the add 60
would be associating the purchase of the diamond ring to wealth. Depending on the positioning of the male & female, for example, a close embrace, the association may extend to love and romance. C. Fear Tactic If the ad shows: a man and woman warmly embracing while visibly displaying the diamond ring on her finger and the text reads, "He just gave her a diamond. She thinks its absolutely perfect. She thinks he is too" Then the ad technique may be a fear tactic. The fear implied here is fear of failure to provide for a woman as other men do or possibly fear of rejection if the viewer were to buy anything less than what the intended woman thought was a perfect gift. On another note, this type of ad would be considered a stereotype. Why? There may be other ways to interpret these ads but these examples should demonstrate that: products can be marketed through a variety of techniques the visual, the text, the layout, and specific details combine to enforce the message, & these details in an ad will distinguish the techniques of appeal, association & fear tactic. Just because diamonds are generally expensive does not mean that association to wealth is the only technique used to sell diamonds. You must ask yourself: Is this ad creating a need? Is this ad associating the product to a positive image? 61
Is this ad working on our personal fears? . The Message of the Ad Background: Where and when does the advertisement appear? What is the size of the print ad or the length of the TV or radio commercial? What product or service is the ad selling? Target Audience: For whom is this advertisement intended? What is the age, sex, social class, values and life-styles of the intended audience? What details suggest this particular audience? Hook and Story: How does the ad get our attention? What is happening in the ad -- many ads tell stories. What "problems" will the product solve? What are the advertisers trying to get you to believe? Summarize the story briefly. The developmental techniques of the story will be addressed in other sections. Primary Informational Message: Some advertisements provide you with knowledge about a given product, but many ads say nothing about the actual product. What actual knowledge/facts, or lack of, have been provided in the ad?For example, car advertisements focus on mileage, acceleration, comfort and style. Secondary Messages (techniques of structure): These are the messages that are designed to "seduce" the potential consumer. The may take the form of appeals to emotion, associations, or fear tactics. They may appeal to the needs and desires of individuals such as: guilt, security, sensuousness, social interaction, self- improvement, community, cleanliness, get up and do, desire to own, status, power, the need to help others. What are the associations the ad makes with the product. What are the advertisers trying to get you to believe? What messages is the ad trying to send? In car advertisements the seduction may be the use of models, or the most often feature is freedom of the open highway - traveling in comfort and speed alone in one's freedom 62
machine. What is the overall message of your ad? Advertising Claims (techniques of language): What techniques of language have been used in the ad? Identify, name, and discuss the claims. Demonstrate any weaknesses in the claims. What are the claims really saying?
B. Composition of Pictorial and Ad Copy (Techno-Effects) Characters: What people (number, male or female, age, etc), animals, animated characters are used in the ad? Setting: What place, decor, time of day, era, lighting, natural or artificial surroundings mark the ad? Copy: What words ( whether written or spoken), slogans or catchy phrases, and logos are used? How many times does the name of the product appear? Or how many times is it spoken? What is the location and prominence of the product itself in the ad? How are captions used to attract your attention? Sound: What voice (male or female), music, natural noises, special sound effects are used? Visual: How are the elements in the picture arranged? Is there any blank space? Does the ad contain juxtaposition ( seemingly unrelated items placed close together or side by side)? What is the message connected to body language? Who or what is in the foreground? Background? What details may have been left out? Color and Lighting: Every color suggests a mood or tone. Is the color bright and cheerful? Warm and comforting? Cool and professional? What kind of lighting has been incorporated: top lighting, side lighting, bottom lighting, back lighting artificial lighting, or natural lighting? ( Link to camera angles and shots) 63
Point of View: What camera angles have been used -- close up, long shot, looking up (low angle shot) or down (high angle shot), looking in or out, sharing a person's perspective (eye-level shot). (link to cameral angles and shots) Details and Accessories: What clothing, jewelry, price tags and other details are displayed in the ad. Remember that every detail has been chosen for a purpose.
C. Summary Observations Intended and Unintended Effects: What are the intended effects of the ad? What are the products trying to do? Identify the unintended effects of the ad. Imagine a wide spectrum of responses to the ad. What other meanings (oppositional readings) could audiences construct from the ad? What the Ad Does Not Show: What information is withheld from the audience? Labor involved? Resources Used? Environmental Issues? Health concerns? etc... Personal Reaction: How effective is the ad? Why does it work? not work? Does the ad conform to the advertising codes in existence? What codes are violated? Is this ad controversial? Does the ad use shock value through sexual means or by raising social issues?
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SALES PROMOTION Sales promotion refers to many kinds of incentives and techniques directed towards consumers and traders with the intention to produce immediate or short-term sales effects. DEFINITION OF SALES PROMOTION Sales promotion includes incentive-offering and interest-creating activities which are generally short-term marketing events other than advertising, personal selling, publicity and direct marketing. The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses of the firms customers. EVALUATION the advertisement has been clipped and sent with the ad deconstruction the analysis has been written in complete sentences and proper paragraphing; headings may be used the message, the composition and the summary of the ad have all been addressed individual topics within the main headings have been addressed as they pertain to the ad the student has attempted to explain the possible reason/s for the the choices made in the actual ad construction; why were these choices made? if the student is unsure of a particular detail, he/she still addressed the concern and offered a possible explanation the analysis reflects application of the advertising information presented in this module the analysis is neat and organized and demonstrates critical thinking
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Sales promotion offers a direct inducement to act by providing extra worth over and above what is built into the product at its normal price. These temporary inducements are offered usually at a time and place where the buying decision is made. Not only are sales promotions very common in the current competitive market conditions, they are increasing at a fast pace. These promotions are direct inducements. In spite of the directness, sales promotions are fairly complicated and a rich tool of marketing with innumerable creative possibilities limited only by the imagination of promotion planners. Sales promotion is often referred to by the names of extra purchase value and below-the-line selling. Today we find companies in almost all sectors offering some sort of a promotion scheme. These sectors range from automobiles to beverages, from financial services to foods, from household durables to services, from household products to business products, from personal care to textiles and apparel. Sales Promotions are activities that affect how and when people buy and thus attract new audiences and increase sales. It's an all encompassing term that covers everything apart from advertising, publicity and direct marketing, although these might also be used to deliver your sales promotions. SalesPromotion offer people (consumers) incentives to buy and so close a sale already made in the consumers mind. Its major strength is its impact and influence, in getting the consumer to make a purchase in response to a message, advertisement, coupon, point-of-purchase device or a special demonstration at the point of sale. For any Sales Promotion to be successful, it must be part of an overall marketing strategy and form part of your marketing mix (ask for our publication on the Marketing Mix for more details). Sales Promotion is often interfaced withprice with discounts being a commoningredient as well as: 1) sampling or learning opportunities 2) joint promotions or collaborations with third parties 3) special events 4) competitions 5) incentives 6) value adding 7) other rewards 66
The techniques of Sales Promotion are used both to motivate people who sell to improve their performance as well as to induce consumers to purchase their goods and services. Sales Promotion works most closely with advertising, but its also connected with all other elements of marketing: production services, packaging, price, and distribution. At the manufacturing and wholesale levels of distribution, the methods used to motivate personnel to meet specific goals usually fall into two categories - sales incentive prizes (such as merchandise, travel, or cash awards) and sales contests. Both are based upon the salesperson reaching an objective above the normal sales budget. Consumer promotions encompass a wide variety of techniques, including: 1) Sampling of goods or services 2) Redeemable "money-off" coupons to encourage the trial or testing of Products 3) Special price-reduced packages 4) Mail-in premium merchandise offers 5) Cash or coupon refunds by mail Promotional activities can be wide and varied and can include: Advertising Public Relations Affinity group promotions Exhibitions National Insurance on Incentives From 6 April 2000, where a third party provides workers with awards in non-cash vouchers as part of an incentive scheme, the third party may pay the national insurance contributions (NICs) rather than employers having to report and pay NICs on incentives they do not control. In those circumstances only, the NICs liability for non-cash vouchers is changed from Class 1 (employee and employer) to Class 1A (employer only) NICs liability. Sales promotion describes incentives and rewards to get customers to buy now rather than later. Whereas advertising is a long-run tool for shaping the markets attitude toward a brand, sales promotion is a short-term tool to trigger buyer action. No wonder brand managers increasingly rely on sales promotion, especially when falling behind in achieving sales 67
quotas. Sales promotions work! Sales promotions yield faster and more measurable responses in sales than advertising does. Today the split between advertising and sales promotion may be 3070, the reverse of what it used to be. The growth of sales promotion reflects the higher priority companies are attaching to current sales than to long-term brand building. It is a return to transaction marketing (TM) rather than relationship marketing (RM). Reasons for Growth of Sales Promotion There are a number of reasons that are favorable to the growth of sales promotion: 1. Increasing Competition The air of change is gaining momentum after the introduction of economic liberalization. Due to increase in competition, companies are finding it increasingly difficult to compete on quality. They are therefore resorting to more innovative methods of sales promotion. In order to have a competitive advantage over its competitors like Levis, Pepe, Killer and others, Spykar Jeans, once a year has a grand sale of upto 50%. 2. Customers Have Become More Price Sensitive This increased price sensitivity is a direct result of rampant inflation. Economic recession is likely to fuel this trend further, as consumers and dealers become more sensitive towards prices. If the customers get branded jeans at half the actual price, then they are definitely going to make huge purchases of Spykar Jeans because they want value for their money, as they are price sensitive. 3. Sales Promotions Generally Create An Immediate Positive Impact On Sales Advertising, personal selling and other methods of promotion produce slower sales response compared to sales promotion. Sales promotions are mostly for short duration, for a specified period, leading to a sense of urgency in consumers to buy now. This creates an immediate positive impact on sales. 4. Products have become more standardized In many product categories, there is a proliferation of brands; many of them are line extensions and me-too brands. Most brands are being perceived by consumers to be more or less similar within a given price range because of the inability of manufacturers to develop truly differentiated products. Under these circumstances, advertising messages are unable to 68
strongly influence the consumers perceptions and create brand franchise. As a result of these perceptions of similarity among brands, marketers have no way but to compete on the basis of extra benefit offered through sales promotion. Competing companies struggle to capture market share by using every tool likely to bring sales success. There are many unbranded jeans sold at shopping malls and places like linking road, bandra which are bought at half the price of actual branded jeans. People who are money conscious buy such jeans. Therefore, Spykar Jeans comes up with such discounts, which helps them in increasing their sales and also in stock clearance, if any. 5. Consumer Acceptance As competition intensifies and promotions proliferate, consumers have learnt to earn the rewards of being smart shoppers. Over a period of time, they have also learnt that brands on promotion are not necessarily of lower quality. Spykar Jeans, if sold at disount rates, are not perceived to be a brand of low quality. Instead, if word is out of a mega discount scheme for Spykar Jeans, then people even time their purchase accordingly. 6. Advertising Has Become More Expensive And Less Effective All the advertising media have become quite expensive. Audio-visual medium, which is considered as the most effective for short-duration ads, may cost in excess of Rs. 1 lakh for a 10 second exposure during prime time. In many cases, consumers have reached a point of boredom due to excessive advertising on TV. Some consumers even consider advertising as an intrusion into their privacy, leading to zapping (surfing channels). Firms with small budgets cannot compete with big companies, which spend huge sums of money on advertising. For these small budget firms, sales promotion is a more cost-effective promotion method to produce sales results. 7.Trade Has Become More Powerful Retailers and wholesalers have become powerful and find themselves in a position to demand extra facilities from the companies. They Channel members demand more incentives to get the desired results. Manufacturers do not seem to have any alternatives but to concede to their demands, keeping in view the competitive market conditions. In shopping malls like Globus 69
and Lifestyle, decent margins have to be paid to them in order to have shelf visibility for your brand. 8. Emphasis On Sales Volumes Towards achieving the long-term profit goals, manufacturers try to attain high sales volume. Brand managers and product managers find themselves under pressure to achieve short-term sales results for the sake of their careers. Compared to any other promotional method, sales promotion is a more effective method to generate short-term sales volume. 9. Sales Promotions Maximize Profits A number of economic theories conclude that a company can maximise profits by using sales promotion. Such promotions can permit price discrimination by allowing the brand to compete in 2 or more different market segments. Sales promotion may allow a premium brand to compete with a lower tier brand among price sensitive consumers. For example, a premium brand of toilet soap may be on promotion in some price sensitive markets, while in the remaining markets it is sold at its normal price. 10. Introducing An Element Of Interest: There are a number of promotions, which are often called interest promotions. Some of the more popular interest promotion techniques are samples, contests, and sweepstakes, free premiums and mail-in premiums. These promotions create an element of interest and excitement, and consumers enjoy these and response enthusiastically to such contests and sweepstakes, etc. 11. Impulse Buying Is Increasing The number of marginal customers is increasing. Displays at the point of purchases lead to impulse buying by consumers, more so if the items on display are not expensive. There is a popular saying in Hindi, jodikhtahai, vohbiktahai. 12. Sales Promotion Specialists Are Available As a result of economic liberalisation, the number of management institutions has increased. This has lead to the availability of specialists, who are not only well paid but can handle this specialised work more efficiently in the current market conditions, where sales promotion has become more important. 70
13. Excess Stocks Because of increasing number of brands, it is difficult for manufacturers and dealers to anticipate future sales. This, at times, leads to excessive inventories, and the quickest way to clear that is to go for sales promotion. Advantages of Sales Promotion Sales promotions have a significant effect on the behaviour of consumers and trades people. Such promotions can bring in more profits for the manufacturers because they permit price discrimination. 1. Price discrimination: Producers can introduce price discrimination through the use of sales promotions. They can charge different prices to different consumers and trade segments depending on how sensitive each segment is to particular prices. Coupons, special sales events, clearance sales and discounts are examples to explain the phenomenon. Often such price discrimination are offered in specific cities in the country, Bajaj Auto Ltd. started the scheme on 20th august 2001, where by if you buy a Bajaj Spirit two-wheeler you get Rs.3000/- off, valid only in Ahmadabad. 2. Effect on consumer behaviour: As sales promotions are mostly announced for a short period, customers may feel a sense of urgency and stop comparing the alternatives. They are persuaded to act now rather than later. With every 500g pack of Tang, you get a free Tang glass. Offer valid only till stocks last. 3. Effect on trade behaviour: Short-term promotions present an opportunity and encourage dealers to forward buy. This forward buying ensures that retailers wont to go out of stocks. As dealers have more than the normal stocks, they think it advisable to advertise in local media, arranged displays and offer attractive promotion deals to consumers. These actions help in increasing the store traffic. Buy 2 dozen shampoo sachets & get 2 sachets free. 4. Regional Differences: The South is generally characterised by greater degree of going out and people tend to drink outside the house. The Tamilian, consumer in particular, is value oriented, rational and looks 71
up to film stars, while the Keralite is more international in his outlook. The Bangalorean is as cosmopolitan as his Mumbai or Delhi counterpart. Such factors have to be taken into consideration while providing incentives to the customers. Disadvantages of Sales Promotion While sales promotion is a powerful and effective method to produce immediate short term positive results, it is not a cure for a bad product or bad advertising. In fact, a promotion is speed up the killing of a bad product. 1. Increased price sensitivity Consumers wait for the promotion deals to be announced and then purchase the product. This is true even for brands where brand loyalty exists. Customers wait and time their purchases to coincide with promotional offers on their preferred brands. Thus, the routine sales at the market price are lost and the profit margin is reduced because of the discounts to be offered during sale-season. The Diwali Bonanza Offers on electronic goods. 2. Quality image may become tarnished: If the promotions in a product category have been rare, the promotions could have a negative effect about its quality image. Consumers may start suspecting that perhaps the product has not been selling well, the quality of the product is true compared to the price or the product is likely to be discontinued because it has become outdated. The Smyle Powder offer of Buy 1 and get 2 free went on and on. Ultimately people stopped asking for the product as the on-going sales promotion strategy made the customers perceive it to be a cheap and an inferior product. 3. Merchandising support from dealers is doubtful: In many cases, the dealers do not cooperate in providing the merchandising support nor do they pass on any benefit to consumers. The retailer might not be willing to give support because he does not have the place, or the product does not sell much in his shop, or may be he thinks the effort required is more than the commission/benefit derived. 4. Short-term orientation: 72
Sales promotions are generally for a short duration. This gives a boost to sales for a short period. This short-term orientation may sometimes have negative effects on long-term future of the organization. Promotions mostly build short-term sales volume, which is difficult to maintain. Heavy use of sales promotion, in certain product categories, may be responsible for causing brand quality image dilution PULL STRATEGY In case of using a pull strategy, marketing efforts are directed at the ultimate consumer and consumer promotions such as consumer contests and sweepstakes, rebates, coupons, free samples, consumer premiums, etc are used. If this strategy is also chosen to include advertising, then, there are large advertising expenditures. The objective of such promotional efforts would be to create sufficient consumer demand to pull the product through the channels, that is the consumers are encouraged to demand the product from retailers who in torn place orders with wholesaler or manufacturer to meet the consumer demand. This strategy may require little promotional efforts from the resellers except to stock input the product on shelves. A pull strategy is appropriate when The product demand as high. It is possible to differentiate the product on the basis of real or emotional features. Brand consumers show high degree of involvement in the product purchase, There is reasonably high brand loyalty and Consumers make brand choice decision before they go to the store. Push Strategy for Sales Promotion If a firm decides to use push strategy, its efforts are directed at resellers and the manufacturer becomes very dependent on their personal selling abilities and efforts. The promotional efforts are focused at pushing the product through the distribution channels; the resellers may be required to display, demonstrate and offer discounts, to sell the product. The communication to resellers is generally through trade circulars or the sales force. 73
Push strategies generally appropriate for Product categories where there is low brand loyalty Where many acceptable substitutes are available in the market. Relatively new products are to be launched When the brand choice is often made in response to displays in the stores, The product purchase is unplanned or on impulse and The consumer is familiar and has reasonably adequate knowledge about the product. Manufacturers, who cannot afford to engage in sustained mass advertising, often use push strategy and offer effective incentives to dealers. Retailer promotion: Buy Cadburys products worth Rs.3000/- and get any 30 chocolates worth Rs.5 each free. Through this offer the company is pushing its product to the retailers and now that the retailer has enough incentive the retailer stocks more and thus it becomes essential for the retailer to push the product to the consumers. Techniques of Sales Promotion Sales promotions directed at the end-user, whether by the manufacturer or the retailer, are called consumer sales promotions. Manufacturer announced promotions to consumers are based on Objectives of consumer market sales promotions The following basic objectives can be pursued with sales promotions in the consumer market: 1. Stimulate trial purchase: When a firm wants to attract new users sales promotions tools can reduce the consumer Consumer Sales Promotion and Methods of Promotion Price discounts or price-off deals: Price deals are probably the most commonly used promotional techniques. A price deal for a customer means a reduction in the price of the promoted product and the consumer saves money on purchase. 74
Example: Colgate fresh energy ice blue gel (Colgate India) 50 gm pack, Rs. 5.50 off on normal price, now available at Rs. 12.50 only. Price discounts are communicated through POP advertising, window displays, sales people, advertising in newspapers, magazines and TV ads.Such promotions work very well in gaining the attention of consumers, particularly at the point of purchase among similar brands and may also encourage unplanned or impulse buying. Price pack deals Price pack deals are also called value packs. They can take any of the two forms: 1. Bonus pack In case of a bonus pack, an additional quantity of the same product is offered free when the standard pack size of the product is purchased at the regular price. Example: Godrej Colour Gloss triple action shampoo, offers 20% extra free. 100ml +20ml. Sunsilk shampoo (HLL) 400ml bottle gives 33% more free. Dettol shaving cream get 40% extra free. Bisleri 20% extra free (Bada Bottle, Same price) The Banded pack is when the marketer develops special packs of the product containing more quantity but the price is proportionately low. This is a method to load the consumer up with the product. This technique is often used to introduce a new large size of the product or to encourage continued usage and also to increase consumption. The offer is termed as banded pack when 2 or more units of the products are sold at a reduced price compared to the regular price. Another variation of this technique is buy 1 get 1 free or some similar offer, it could be same for less or more for the same. Example: Fairglow soap buy 3 get 1 free, 75
The main advantage of this tool is that extra product may encourage increased usage and help sustain the habit. Also among other similar brands, a bonus pack stands out at the point of sale.
2. Refunds And Rebates: Refund is the repayment of total money paid for purchase, while the rebate represents repayment of only part of the money paid for the purchase. Refund offers seems to work very well in guaranteeing the trial of a product or service since there is no risk involved for the customer because of the promise of total refund of the purchase amount. Refunds and After having launched it new product Whisper Ultra Thin, confident about the product quality and confident about offering the promised product, to increase its trail and usage, had started the money back offer. 3. Coupon: A coupon entitles a buyer to a designated reduction in price for a product or service. Coupons are the oldest and most widely used form of sales promotions. Coupons bear an expiry date and cannot be redeemed after the cut off date. The main Advantages of coupons are: 1.Encourage brand switching 2.Stimulate trial for a product 3.Take off the attention from price Fair and Lovely dark circle removal cream to create more product trials has coupons in the newspapers and magazines which avail you of Rs.10/- off on a 40 gm pack. 4. Contests and Sweepstakes: Contests and sweepstakes can draw attention to a brand like no other sales promotions technique. A contest has consumers compete for prizes based on skill or ability. Winners in a contest are determined by a panel of judges or based on which contestant comes closest to a predetermined criterion for the contest. 76
5.Sampling: Getting consumers to simply try a brand can have a powerful effect on future decision- making. Sampling is a sales promotion technique designed to provide a consumer with an opportunity to use a brand on a trial basis with little or no risk. Saying that sampling is a popular technique is an understatement. Sampling is particularly useful for new products, but should not be reserved for new products alone. It can be used successfully for established brands with weak market share in specific geographic areas. Sampling Techniques 1.In-store sampling Lakme has in-store trail products. Since it in the cosmetics market it is very essential to provide samples, many stores in Mumbai from time to time have Lakme sampling offers. Where they allow you to try the product and then buy it. 2.Door-to-Door sampling Whisper have done door-to-door sampling, sampling through schools, newspapers, etc. even now after so many years of its launch it does sampling because of the new target base that gets added every year. 3.Newspaper sampling align="justify">Again Whisper and Pantene have done sampling through the newspapers. 4. On-package sampling Fair glow, a lot of free Fairglow soaps were available with many other products, especially other HLL products. 5.Mobile sampling Many road shows and mobile vans distribute free products or offers. Free Movie tickets, disco passes, pensare often distributed. 6.Trial offers Trial offers have the same goal as sampling to induce consumer trial use of a brand- but they are used for more expensive items. Exercise equipment, appliances, consumer 77
electronics, etc. the expense to the firm of course can be formidable. Segments chosen for this sales promotion technique must have high sales potential. Premiums are items offered free or at a reduced price, with, the purchase of another item. Many firms offer a related product free.The main advantage of Premiums is that they offer not only that one product but also another product, which may influence the customer, a lot to buy the product, especially if the other product is worth it. Also new products are given free with established brands to stimulate trial of the new brand. Ponds Buy Ponds cold cream 100ml and get a ponds body lotion 50ml pack free. Pepsodent toothpaste buy 100gm and get 4 Clinic Plus sachets free. Popular advertising specialties are caps, t-shirts, toys, mugs, mouse pads, pens, calendars, etc. The message gets placed on a useful icon, and is given to the consumers with no obligation. Pepsodent toothpaste 100gm pack get free dental insurance worth Rs.1000. Buy a Fairglow fairness cream and get a mirror free. Many other kids products are influence a lot by such specialties especially liked by the kids like tattoos, masks, tazo, cricket bats etc. hence products that have such offers sell more than the other brand available. Ruffles lays, get free Tazo,Rasna, get free Prankies Continuity/frequency Programmes In recent years, one of the most popular sales promotion techniques among consumers has been frequency Programmes. The main objective of such Programmes is encouraging repeat purchases or repeated visits to particular retail shops. Frequency Programmes offer consumers discounts or free product rewards for repeat purchase or patronage of the same brand or company. Shoppers stop started the First Citizens Club and enrolled customers as members of the shoppers club by charging a fee of Rs.150. The customers were entitled to a variety of benefits by collecting points. Brand placement Brand placement often referred to, as product placement is the sales promotions technique of getting a marketers brand featured in movies and television shows. The use of a brand by 78
actors and actresses or the mere association of the brand with a popular film/ television show can create a positive image and have a huge impact on the sales of a brand. Coke in Yaadein , Pepsi in Khushi, ICICI Bank in Baghbaan Event sponsorship When a firm sponsors or co-sponsors an event such as a rock concert, a cricket match, etc. the brand featured in an event immediately gains credibility with the event audience. The audience attending an event already has a positive attitude and affinity for the contest that they choose to attend. When this audience encounters a brand in this very favourable reception environment, the brand benefits from the already favourable audience attitude. Samsung & LG keep sponsoring cricket matches. Exchange offers Consumer durables market is the one where exchange offers are used the most. Almost all the TVs, Refrigerators, Washing Machines, etc. have exchange offers. Samsung - On exchanging old TV for a new Samsung Plano, uptoRs. 5000 off. On exchanging old TV for a new Samsung Hitron Digital, uptoRs. 3000 off. On exchanging old refrigerator for a new Samsung refrigerator, uptoRs. 8000 off. Internet promotions They are the most recent form of sales promotions. They are promotions that are done via the Internet. It is becoming increasingly popular because of the large use of Internet. But still it has a lot to develop. Information on Product Advertising A product is anything that can be presented to a market, so a product is not only an item you can buy in stores, but also a brand, an organization, a service or even an idea, and you need to advertise your product to get your consumers to notice you.
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CHAPTER- 7
Customer relationship management and satisfaction survey
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Acknowledgement Before we embark upon the details of this project, let me take this opportunity to express our heartiest gratitude towards the people who have provided invaluable help & support through the entire duration the project. I am thankful to our facilitator MS. YOGITA SHAINI for his continuous guidance & support. I would like to thank her for giving us excellent suggestion and affectionate, encouraging through development of project and for devoting their precious time. We offer thanks to them for co-ordination and grateful to all our well-wishers who extended their support and for their valuable help throughout the work. OBJECTIVE To understand the CUSTOMER RELATIONSHIP MANAGEMENT in automotive industry (in passenger cars) & than sync it with CRM of HYUNDAI MOTORS. INTRODUCTION OF TOPIC To understand the real business scenario about the practice of CRM in Indian Automotive industry & than compare it with HYUDAI motors in passenger cars. The automobile industry in India is the tenth largest in the world with an annual production of approximately 2 million unitsis expected to become one of the major global automotive industries in the coming years. A number of domestic companies produce automobiles in India and the growing presence of multinational investment, too, has led to an increase in overall growth. Following the economic reforms of 1991 the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. The monthly sales of passenger cars in India exceed 100,000 units. According to Society of Indian Automobile Manufacturers in 2008-09 the cumulative growth of the Passenger Vehicles segment during April 2008 March 2009 was 12.17 percent. Passenger Cars grew by 11.79 percent, Utility Vehicles by 10.57 percent and Multi Purpose Vehicles by 21.39 percent in this period. BRIEF ABOUT COMPANY The Hyundai Motor Company is one if not the most dynamic automobile producer in any developing country. This is remarkable considering that the company is closing in on 40 81
years of existence. To outline its history one must also look into the life and times of its founder Chung Ju-Yung. It cannot be told without outlining the founders rise from the rice fields of Korea to the circumstances that let him to acquire the knowledge and determination that led to the creation of one of the fastest growing family owned businesses into a global competitor. His creation of numerous companies eventually let to the establishment of the Hyundai Group. The Hyundai Motor Company was one of these. He created it and transformed it from a mere assembler of Ford models to a designer and exporter of its own cars and engines in less than four decades. It has already become a major global player with plants and dealerships that span six continents. The company is one of the largest and most diversified business organizations with 45 affiliated domestic companies and 254 overseas companies in nearly 200 countries. The Hyundai Motor Company is but one which the Group is active in such as shipbuilding, steel, petrochemicals, heavy machinery, aerospace, electronics and financial services. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 30 variants of passenger cars across segments. HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. In continuation of its commitment to provide the Indian customer with global technology, HMIL has set up its second plant, which produces an additional 300,000 units per annum, raising HMIL's total production capacity to 600,000 units per year. HMIL has invested to expand capacity in line with its positioning as HMC`s global export hub for compact cars. Apart from the expansion of production capacity, HMIL currently has 271 strong dealer network across India, which will be further bolstered in 2009. PRODUCTS OF HYUNDAI COMPANY Tucson: Veracruz: Hyundai Verna Sonata: Getz 82
i30: METHODOLOGY We collected information from both primary & secondary data. I visited various dealers showroom HYUNDAI and asked their respective relationship managers about the companys offerings, to get detailed knowledge of CRM applications & practice in real business scenario. Findings & Analysis: BUSINESS STRATEGY & CRM Three key phases: Customer Acquisition. Customer Retention. Customer Extension. Three contextual factors: Marketing Orientation. Value Creation. Innovative IT. Customer Acquisition This is the process of attracting our customer for their first purchase. We have acquired our customer. Customer Retention Our customer returns to us and buys for a second time. We keep them as a customer. This is most likely to be the purchase of a similar product or service, or the next level of product or service. Customer Extension - Our customers are regularly returning to purchase from us. We introduce products and services to our loyal customers that may not wholly relate to their original purchase. These 83
are additional, supplementary purchases. Of course once our loyal customers have purchased them, our goal is to retain them as customers for the extended products or services. Marketing Orientation - Means that the wholes organization is focused upon the needs of customers. Customer needs are addressed by the Three Levels of a Product whereby the organizations not only supplies the actual, tangible product, but also the core product and its benefit, and also the augmented product such as a warranty and customer service. Marketing orientation will focus upon the needs of consumers for all three levels of a product. (N.B. 'market' orientation and 'marketing' orientation are not the same). Value Creation - Centres on the generation of shareholder value based upon the satisfaction of customer needs (as with marketing orientation) and the delivery of a sustainable competitive advantage. Innovative IT - is exactly that - Information Technology must be up-to-date. It should be efficient, speedy and focus upon the needs of customers. Whilst IT and/or software are not the entire story for CRM, it is vital to its success. CRM software collects data on consumers and their transactions. Huge databases store data on individuals and groups of individuals. In some ways, CRM means that an organization is dealing with a segment of one person, since every consumer displays different purchasing habits and preferences. Organizations will track individuals, and try to market products and services to them based upon similar buyer behaviour seen in other individuals (e.g. When Amazon tells you that customer that viewed/bought the same product as you, also bought another product). AUTOMOTIVE industry , Companies focus upon the needs of customer, not only providing the tangible product i.e. CAR but also augmented product such as warranty, customer service, providing more services than competitors, distributing free gifts, free vehicle check-up, etc & now-a-days almost every big company use CRM software in collecting data on consumers & their transaction, providing them customized service . After every new launch of a car, companies give information about that same product to their loyal customers. Not only companies stick to that car only but tries to sell accessories also like seat covers, Alloy 84
wheels, music system so that customer doesnt have to go to several places & quite often dealers give discount also in these items as a CRM business strategy . Hyundai Motors has taken a phased approach to the implementation, with the goal of achieving success in each phase before moving forward. Phase 1, currently under way, focuses on capturing customer and vehicle data and automating routine tasks. Phase 2 will focus on leveraging data to improve customer interactions and streamline product development and planning. Phase 3 will focus on tuning the system and delivering additional value-added services to customers. To address its competitive challenges, Hyundai Motors began standardizing its customer-facing business processes companywide, laying the foundation for stronger dealer relationships, improved operational efficiency and effectiveness, and a better customer experience. This has posed numerous challenges, as it involves working with 250 dealer organizations and more than 1,600 locations staffed by more than 10,000 salespeople across India. CUSTOMER KNOWLEDGE Customer knowledge refers to understanding your customers, their needs, wants and aims is essential if a business is to align its processes, products and services to build real customer relationships. Customer knowledge can be approached from two ends. Firstly, you could say that customer Knowledge is the "collection of information and viewpoints that an organization has about its customers". Using this definition, the role of customer knowledge management is to capture and organize this data to allow it to be shared and discussed throughout the organizational alternative definitive of customer knowledge is that it is the "collection of information and insight that you need to have to build stronger customer relationships". From this point of view what you currently know about your customers may not be sufficient. You may need to put in processes and systems to gather more information and data about who your customers are, what they do and how they think. CUSTOMIZATION: Customization bonds approach suggest that customer loyalty can be encouraged through intimate knowledge of the individual customers and through the development of one-to one 85
solutions that fit the individual customers needs. HYUNDAI MOTORS believes in 'Customer is THE KING', and also knows well how to make them feel One. They have an extensive follow up programme and prompt service. This helps them to change their strategies and customize their services to fit developing customer needs. For this purpose, they always request the customers to fill in their feedback form that follows the service/repair visit. If a low score is received on their feedback form, they would go out of the way to apologize for the error. Simultaneously, they provide technicians who visit their home place in order to attend the issues and rectify them to their satisfaction level. Follow up calls are made to ensure that how efficiently their problems were resolved. RELATIONSHIP POLICY: The customer is tied to the company primarily through financial incentives lower prices for greater volume purchases or lower prices for customers who have been with a firm a long time. As we know, the acquisition cost is not the only cost one faces when buying a car. it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Hyundai Motors provides very good after sale services to its customers. It is in the economy segment that the affordability of spares is most competitive as compared to others. It also provides its long term customers either with stable prices or lower price increases as compared to the new customers. HYUNDAI motors provides financial incentives and rewards to the customers who bring more business to their service station by recommending and spreading good word of mouth to others about their services. CRM Systems and Implementation These are some of the key features for which AUTOMOTIVE SECTOR applies CRM software: Sales management shares customer information between sales, service and parts departments Vehicle management gives complete vehicle data along with sales, service and financial history, as well as dealer and license information and owner and contact information 86
Recommendations Many organizations operating in automobile market still do not differentiate their CRM activities at the segment level. They contact each prospect with the same Frequency instead of applying a level of effort consistent with the cost of acquisition and profit potential. Their unrefined use of resources not only leads to wasted investment but can cause annoyance among customers who are either being oversupplied or undersupplied with attention. Companies keep the name of financing company as the owner of the vehicle and in many cases does not have the record of effective owner of vehicle who was responsible for the purchase decision. In CRM Indian Automobile industry has to learn much from other service industries such as airline industry. Each time a customer approaches a service agent, his entire history was flashed on screen. Customer knowledge can be used to give customer specific offer on purchase of second vehicle in family. CONCLUSION Hyundai Motors has proven excellence over the years through its technologically advanced products, market expansion, customer satisfaction and increasing sales. Hyundai Motors consistently strives to increase shareholder value, build stronger customer relations and work with its business partners to provide the best value for money. The company is also involved in accelerating the countrys economic growth and protecting the environment. With the initial financial backing of the giant parent company, Hyundai Group, the division has built a strong business over the past 60 years and continues to show strong financial results. The continual improvement and introduction of new products in the market have allowed it to successfully enter as well as dominate the automobile industry in India. With increasing sales, employees, product offerings, manufacturing facilities and distribution centres along with expansion in India, the company seems to have a promising future.
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Chapter- 8 Social corporate activity of the company Hyundai Social Corporate activity of the company Social Corporate activity has become the key issue in company-society relations. SCR has taken a position of the core pillars of Hyundai Motor as the company strives to establish a new Sustainable Business Management System based on its five primary business principles.
The Conceptal Areas Hyundai Motor socially responsible management covers three conceptual areas: economic responsibility, social responsibility, and environmental responsibility.
- - - Area of strategic focus 88
Corporate social responsibility covers three areas: trust-based management, environmental management..
In 2007, a year dedicated to global social contribution, Hyundai Motor Company prepared its infrastructure to execute corporate social responsibility , as well as social contributions. It established the 'Hyundai Motor Global CSR Network' with primary production and sales subsidiaries around the world, and will establish a network covering all its subsidiaries worldwide, by continuously extending the network. Hyundai also laid foundations by promoting global CSR (Corporate Social Responsibility) activities, and by developing and opening the 'Global CSR Web site' for information exchange.)
Corporate Social Responsibility (CSR) India Corporate have Social Responsibility (CSR) targets to help improve community living. In India, though the corporate understand their accountability towards the society and are willing to take initiatives for the betterment, it becomes difficult for them to reach the grassroots level. 89
We thus join hands with the corporate to help them advance their welfare initiatives to the needy families and save on their time and human resources. We help the corporate meet their Corporate Social Responsibility targets through NGOs with expertise in the respective field.
The very foundation of TKF was laid on the realization of a group of young corporate professionals that it was their social responsibility to give back to the society. Achieve your Business Social Responsibility Goals Support some of our programs and social service initiatives. Adopt a child, family, school, or a village to meet you social responsibility. Corporate can sponsor a vocation training program through our Sponsor a Skill drive. Buy greeting cards from our partner NGOs. With Corporate Social Responsibility in India having acquired a new dimension in the recent years, more and more companies are increasingly realizing that it is a good hearted investment, which brings manifold benefits to the company. Thus, all CSR activities are being designed in alignment with the corporate business strategies. 90
Once you register with us for your CSR activities, you can come online at any time even after years and get the collated record of all the work done by you and all the people who have benefited from your support. CSR is not new to India; companies like TATA and BIRLA have been imbibing the case for social good in their operations for decades long before CSR become a popular cause. Inspire of having such life size successful examples, CSR in India is in a very nascent stage. It is still one of the least understood initiatives in the Indian development sector. It is followed by a handful of public companies as dictated by the very basis of their existence, and by a few private companies, with international shareholding as this is the practice followed by them in their respective foreign country. Thus the situation is far from perfect as the emphasis is not on social good but rather on a policy that needs to be implemented. A lack of understanding, inadequately trained personnel, non availability of authentic data and specific information on the kinds of CSR activities, coverage, policy etc. further adds to the reach and effectiveness of CSR programmes. But the situation is changing. And CSR is coming out of the purview of doing social good and is fast becoming a business necessity. The business case for CSR is gaining ground and corporate houses are realizing that what is good for workers - their community, health, and environment is also good for the businesses. Corporate Social Responsibility Practices - the survey on CSR is timely and apt. The survey is expected to facilitate formation of an alliance of CSR initiatives so that such initiatives can be further stream lined, focused and converged to a powerful force of intervention. One of the major objectives of the survey is to bring out in open the current status of CSR thereby giving both the NGOs and the common man an understanding of the various initiatives undertaken by corporate and the role that is played by the government in the field. The survey underlines the various issues - current CSR policies, major stakeholders - their current and future plans, geographical areas covered, role of civil society and government, challenges, recommendations etc. Eco-friendly i30 Blue makes Hyundais Blue Drive TM concept a production reality (Offenbach, April 07 th 2009) A new derivative has joined Hyundais successful i30 range, as the first examples of the i30 Blue today rolled off the production line at the companys factory in the Czech Republic. Fitted with the innovative Idle Stop and Go (ISG) system, 91
i30 Blue offers reduced fuel consumption and CO 2 emissions and is the first model to be launched under the companys Blue Drive TM eco-initiative.
RSPCA
In WA and NSW, Hyundai supports the 'Million Paws Walk' which is the RSPCA's major national fundraiser. Every year over 60,000 people and 25,000 pets hit the pavement to raise much needed funds for the RSPCA. Children's Hospital at West mead, Sydney Hyundai Sydney metro dealers support the Children's Hospital at West mead in Sydney, which is a stand-alone service dedicated to pediatrics. Wesley Hospital Kim Walters Choices In Queensland, Hyundai supports the Wesley Hospital 'Kim Walters' Choices Program (Choices) which offers support for women and men diagnosed with breast cancer, and women diagnosed with gynecological cancers and their families. For more information visit: Royal Childrens Hospital Foundation In Queensland, Hyundai supports the Royal Childrens Hospital Foundation through its sponsorship of the 'Hyundai Harmony Cup', a multicultural community football competition.
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(i) Health Care It will benefit the overall general public by preventive and curative health care programs, related medical research and training programs, including awareness and campaign programs through hospitals, medical schools, colleges, universities and institutions etc. (ii) Education & Vocational Training (iii) Road Safety It will benefit the overall general public by road safety programs, related research and training programs, including awareness and campaign programs through schools, colleges, universities and institutions etc. (iv) Arts, Science & Technology It will benefit the overall general public by science and technology, promoting performing arts and crafts, architecture, culture, heritage and cuisine, related research and training programs, including awareness and campaign programs through schools, colleges, universities etc. dge and insight you need to improve decision making, leverage partnerships, manage risk, and measure performance. Who Is Right for the Program The program is specifically designed for senior executives who direct corporate social responsibility programs or oversee departments such as public affairs, philanthropy, sustainability, environmental health and safety, or community affairs. Senior officers with profit-and-loss responsibilities will benefit from attending. What You Can Expect Improving Your Organization's Performance Corporate social responsibility (CSR) is integral to long-term business success. Today's organizations must be increasingly mindful of the impact that their operations have on society at large, and this requires much more than isolated measures. In a climate of heightened social awareness and instant access to information, CSR must be a fundamental part of your company's targeted practices, broad objectives, and overall culture. 93
Taking Your Skills to the Next Level In this program, you will enhance your ability to set priorities, measure results, and communicate the value of CSR efforts across your organization. Specifically, you will learn how to: Create competitive advantage through CSR Assess risks and opportunities before making capital investments or other business decisions Align CSR strategies with organizational goals and capabilities Evaluate current initiatives and consolidate efforts around key objectives Present a business case for CSR initiatives Implement CSR at all levels of the company Understand how CSR directly affects current and future regulatory practices Foster successful interaction with key internal and external stakeholders as well as Managing Risk and Decision Making Evaluating complex environments and potential impacts before investing capital or making business decisions Interacting successfully with governments, NGOs, and stakeholders Decentralizing CSR to allow for local differences and optimizations across the organization Who Is Right for the Program This program is designed for senior executives who direct CSR programs or oversee departments such as public affairs, philanthropy, sustainability, environmental health and safety, or community affairs. Senior officers with profit-and-loss responsibilities will benefit from attending. 94
Past Participants Represented: Industries Nationalities 3%
Chem/Pharm/Bio 4%
Africa 22%
Consumer Products 7%
Asia 14%
Financial 14%
Europe 31%
Nonprofit Services 20%
Latin America 3%
Other Services 7%
Middle East 6%
Professional Services 48%
North America 17%
Raw Materials/Energy
3%
Retail Services
3%
Utilities/Telecommunications
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Chapter-9
Findings
Suggestions
Learning My Experience Bibliography
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FINDINGS
Examines the production, sales, and export growth rates of the sector, along with a mention of the major manufacturers. Identification of the opportunities for foreign companies in terms of exports, technology transfers, strategic alliances, financial collaborations and JV's, in the Indian vehicle sector. The component-wise share of production is assessed. Assessment of the implications of vehicle emissions Demand forecasts till 2011. Major changes occurring in the Indian market A study of the market access strategies for companies An insight into the profiles of big players of the Indian automotive sector.
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Suggestions
Hyundai should improve after sale service to its customers. Instead of focusing upper class customers Hyundai should focus on consuming class. Hyundai should launch new models for youth generation. It should increase its show rooms in rural areas also. Products knowledge and demo services can be improved Initial Services to new customers must be provided to make the new customers familiar with the product.
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MY LEARNINGS FROM THE PROJECT No doubt that a field work or training can change ones attitude and behavior. In between training course I have come to recognize my own potential and skills taking into mind my dreams. Which has given me a right platform to make my career in corporate sector; there I can utilize my skills and knowledge in a better way. Planning and organizing: Planning about the given task and complete it within the time boundary and try to put optimum utilization of available resources in the work. Customer Focus: Understanding the customer focus planning and respond them appropriate and satisfactory answer for making long term relationship with them. Negotiations: How to build internal commitment and external credibility, through effective negation and suitable influencing styles based on a clear understanding of organizational decision making dynamics. Team effectiveness: Ability to lead the team members and ability to get the work done from them. Personality Development: Working under the guidance of Mr. Vikas goel has been a rewarding experience threw picking up some charismatic points from his personality I tried to put on the customers. It enhances my confidence & presentations skills. Achievement Orientation: Ambition to achieve the target within the given period enhances my capability and helps in to overcome obstacles and give outstanding result or outcomes. Corporate Exposure: The achievements which I got from this training, will be helpful in my professional life by this I learnt how I can do smart work with minimum efforts. I have gained several experiences in the field of marketing. I have got the opportunity to meet various people, which fluctuate in different situation and time. This summer training project has given me the opportunity to have first experience in the corporate world. I could understand the working culture of corporate. 99
Making plan for the next day and finding the concern person allowed me to increase my communication ability, written as well as verbal. My confidence to meet people has tremendously gone up.
I also attended the customer demonstration which gave me the knowledge about how the customer can be convinced, how there queries are handled.
I also learnt very small-small things in the organization which is very necessary in any flat organization like photocopying, fax the documents.
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M MY Y E EX XP PE ER RI IE EN NC CE E W WI IT TH H K KR RR RI IS SH H M MO OT TO OR RS S P PV VT T L Lt td d. . These seven weeks with Krrish Motors Pvt. Ltd. are unforgettable for me. The experience, which I got during these days, was tremendous. I have made good relationship with so many people in frontline division & other division. Everybody over there I found nice & helping. I also made some good friends of other B-schools who were also management trainee there. I faced the odd situation in working life & got the adoption quality. The main thing I got from my project was how to interact with various people. Really, the experience I have got from my project will be very helpful to enrich and nourish my career.
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BIBLIOGRAPHY BOOKS: 1) AUTHER: BERI G.C TITLE: MARKEING REASEAARCH PLACE OF PUBLICATION: DELHI-110092 PUBLISHER: PEARSON EDUCATION DATE OF PUBLICATION: 2007
2) AUTHOR: KOTLER PHILIP TITLE: MARKETING MANAGEMENT PLACE OF PUBLICATION: DELHI PUBLISHER: TATA MCGRAWHILL DATE OF PUBLICATION: 2007 NO. OF PAGES: 18 TO 24
Websites: www.hyundaimotors.com Date of site visited: 25 th June,1 st July,3 rd July,5 th July,6 th July to 14 th July www.carwala.com Date of site visited : 28 th June, 29 th June,1 st July,3 rd July,7 th July www.ifbeam.com Date of site visited: 24 th June, 25 th June,1 st July,5 th July , 14 th July www.solvepappers.com Date of site visited: 24 th June, 25 th June,1 st July,3 rd July,5 th July www.hayway.com 102
Date of site visited: 24 th June, 25 th June,1 st July,3 rd July,5 th July www.kotaksecurities.com Date of site visited: 29 th June, 30 th June,,3 rd July,5 th Jul 12 th July www.driveincide.com Date of site visited: 25 th June, 27 th June,1 st July,3 rd July,7 th July to 14 th July www.scribed.com Date of site visited: 26 th June, 27 th June,1 st July,3 rd July,7 th July
(3) Reasons for purchasing Hyundai Cars? (a) Manufacturer Reputation (b) Availability of Service (c) Cost of the Vehicle (d) Looks of the Vehicle
(4) Awareness about the car (a) Television Advertisement (b) Newspaper Advertisement (c) Friends & Relatives (d) Other Sources
(5) How car is being purchased? (a) Through Loan (b) Direct Payment 104
(6) What parameters do you consider while purchasing the Hyundai Cars? (a) Looks (b) Price (c) Colour (d) Engine Capacity (e) Pickup (f) Accessories
(7) Further Plans of the customers towards new car? (a) Hyundai (b) Opel (c) Hindustan Motors (d) Maruti (e) Ford (f) Honda
(8) Purpose of buying the car? (a) Own Use (b) Company Use (c) Taxi Service
(9) What is your opinion regarding the price of Hyundai Cars? (a) Highly priced (b) Reasonably priced (c) Approximately priced (d) Below Level priced
Any Suggestions 105
WORD OF THANKS This project report is a result of endless effort & immense degree of toil. I would like to thank all those people who graciously helped me by sharing their valuable time, experience & knowledge. I would like to express heartiest thanks to our chairman sir Dr. D. K. GARG (Chairman), Mr. M. K. VERMA (Dean) and placement head Mr. T. K. GUHA for lending me their kind support for completion of my project. I thank all those who directly or indirectly supported me morally, financially and through providing knowledge by which I could complete my project as well as summer training. I thank to all those readers who will study this project in the future. Last but not the least I am thankful to the management of Krrish motors Pvt. Ltd., Patna (Bihar) & especially to my guide Mr. Rakesh kumar (sales Manager) whose Co-operation and guidance was a milestone in completion of my project. Who influenced me to work positively at each step by giving his precious time to discuss and to provide relevant information and providing me co-operation and cordial environment for making me comfortable during my stay in company? Lastly, I express my gratitude to my parents and elders who financed this project and have been a moral support to me during the project.