A study of consumer behavior towards small and medium car segment with special reference to Maruti Suzuki India

Ltd.

Presented by :- Vinay Khatri MBA (RTU) 3rd sem International school of informatics and management

Industry Introduction
Indian automobile industry - Composition - Core industry - Competition

Maruti Suzuki at a glance

1970 1981 1982

1983 1989 2003

2007 2012

Maruti suzuki technical private LTD launched Converted to Maruti Udyog Limited Joint agreement between Maruti udyog Ltd and suzuki and become Maruti Suzuki Production started with launching of Maruti 800 car Maruti Suzuki joint venture , 50-50 partnership IPO of 25% ,held by Governmet of India ,offered in market Company totally sold to private sector Maneser violence hit production

Consumer behavior

Consumer behavior is the mental and emotional processes and the observable behavior of consumers during searching purchasing and post consumption of a product .

Consumer purchases are influenced strongly by cultural, social, personal and psychological characteristic.

Objective of study

To know consumer preference regarding small & medium cars.

To know what features and services attract the customers.

Effect of brand image and advertisement (Maruti Suzuki) in buying behavior of consumer. Effect of family & friends in buying behavior (Focus group).

Research methodology

Title of study

Duration of study Type of research Sample size Method of sample Data collection Type of research -

Study of consumer behavior in special reference to small & medium Maruti Suzuki cars 45 Sample survey 120 respondents of jaipur Survey at various Maruti Suzuki car dealer showrooms Primary and secondary Descriptive and explorative

Theoretical Framework

Consumer behavior:- It is the study of when, why, how, where and what people do or do not buy products. It blends elements from psychology, sociology, social, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer

Boston Analytics
According to this report consumer preferably think about the following aspects while making decision of purchasing a car . Price Color preference Fuel efficiency Looks Car size Service centers Sales service Brand Image Resale value

Analysis and interpretation

For this research project, I choose the questionnaire as research tool and take 120 participants who either willing to buy a car or having a car in small and middle segment. So the findings are as follows Q. 1 Do you use cars?

Among 120 participants, 100 respondents are currently having car .

Q.2 Which car do you use?

Interpretation : -

43% participants are having Maruti Suzuki 29% are owning Hyundai, 19% are having Tata, 7% are owing Gm and rest are the customer of Honda Motors

Q.3 Is the present car up to your expectations?

Approx 79% participants are satisfied with their current car i.e. their expectation are fulfilled by the car and rest are unsatisfied with their car performance Some factor like mileage ,performance and easy servicing fulfill their expectations.

Are you planning for a new car?

Every person wants to buy a car for himself or for his family. My research is focus on middle income prospects and thus 74% respondents are planning to buy a new car 26% respondents are not willing to buy new car in near future

If u will like to buy , which brand will you prefer?

Q. 5
TATA 17% GM 10% Honda 3% Ma ruti

Hyunda i TATA GM Hyunda i 25% Honda

Interpretation:- Among 100 participants 54%of respondents prefer to buy a car of Maruti 30% participants like to purchase a car of Hyundai 20% respondents prefer TATA brand 12% and 4 % are preferring ratio for respectively GM cars and Honda cars

Ma ruti 45%

Q. 6 Why you preferred the above mentioned car?

Others 2%

Factors influencing consumer behavior

Facts and Findings

In present Maruti is leading in small & medium car segment followed by Hyundai Existing customer are satisfied with their present car performance like mileage ,servicing etc In current scenario Maruti will be market leader followed by Hyundai(This research is conducted before launching TATA Nano) Middle class segment like to buy any brand due to mileage followed by looks & style They change their cars after 4 to 5 years or more, due to fed up with car and for new advance technology They highly influenced by family and friends while making purchase

Conclusion

From the analysis of the responses received from the customers in Jaipur, overall findings show that Maruti Suzukij is the most prefered brand among the participants. Maruti Suzuki and Hyundai,Tata Motors are the biggest competitor in the small & medium car market.. Among the five attributes ( which we considered important for customers purchasing decision ) customers gave highest consideration to mileage followed by the looks and style. Other attributes like comfort, service and spares were considered later. Servicemen still would like to go for small & medium car but with mileage with the first considerable thing followed by looks and style and power. Study shows that middle class segment highly influenced by family & friends while purchasing the car. So companies should advertise their product targeted to families Gradually Hyundai & TATA captured the market of Maruti due to their new launching in small cars like TATA nano.

Apendix

Questionnaire Objective: Consumer buying behavior towards small & medium car segment. Q. 1 Do you use cars? 1.Yes

2.No

Q.2 Which company car do you use? Maruti Honda GM TATA Hyundai OthersModel Q.3 Is the present car up to your expectations? 1.Yes 2.No Elaborate (Why Yes / Why No) _____________________________________________________________________________________ _____________________________________________________ Q. 4 Are you planning to buy a new car in the near future? 1. Yes 2. No Q. 5 Which brand would you prefer? 1. Maruti 2.Honda 3.GM If other, then please specify..

4. TATA

5.Hundai

Q. 6 Why would you prefer the above mentioned car? 1.Mileage 2. Looks and style 3. Comfort 4. Service and spares 5.Other , then please specify.. Q.7. How frequently do you change your car? Why? 1. 6-12 Months 2. Up to 2 years 3.More than 2 year

4. Till the life of the bike

5.

Q.8. Reasons 1.Statusn 2. Trend 3.Fed up & Reseal 4. Advance Technology 5. If other, then please specify.. Q.8. How you know about the particular car ? 1. Family or Friends 2. Advertisement 3. Brand 4. Style & Features Advancement 6.Other Issue If other, then please specify.. Personal Information: Name : Occupation : Age : 1. (26-35) 2. (36-45) Date :

5. Fashio

5. Technical

3. (Above 45)

Suggestion

Mileage and comfort should be maintained in upcoming products these are more preferred . Friends and family members should be targeted, as consumer behavior is highly influenced by these . Sales force who can take initiative should be increased instead spending on advertisement as product is good and people wants to buy. Supply requirements should be meet effectively Sale supportive plans (e.g good financing scheme etc) should be created .

Bibliography

NEWSPAPERS Economic Times. Business Times. Business Standard Times of India WEBSTIES http://www.tatamoters.co.in http://www.maruti.co.in. http://www.google.com/ http://www.valueresearch.com/ http://www.autojunction.com/ http://www.moneycontrol.com/ http://www.honda.co.in/