Brand Awarness Towards Santro- Hundai

INTRODUCTION Perhaps the most distinctive skill of professional marketers is their ability to create, maintain, protect, and enhance brands. Branding is the art and cornerstone of marketing. The American Marketing Association defines a brand as: a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. Thus a brand denitrifies the seller or maker. “What distinguished a brand from its unbranded commodity counterparts is the consumer’s perceptions and feelings about the product’s commodity counterparts is the consumer’s perceptions and feelings about the product’s attributed and how they perform. Ultimately, a brand resides in the minds of consumers.

A brand can be better

positioned by a associating its name with desirable benefits. A brand is much more than a name, logo, colors, a tagline, or symbol .

These are marketing tools tactics. A brand is essentially a

marketer’s promise to deliver a specific set of feature, benefits and services consistently to the buyers. The marketer must establish a mission for the brand and a vision of what the brand must be and do. Brand nodding occur when customers experience the company as delivering on its benefit promise. The fact is that brands are not built by advertising but by the brand experience. Brands vary in the amount of

power and value they have in the marketplace. At one extreme are brands that are not known buy must buyers then there are brands for which buyers have a fairly high degree of brand awareness. Beyond this are brands with a high degree of brand acceptability. We define brand equity as the positive differential effect that knowing the brand name has on customer response to the product or service. Brand equity results in customers showing a preference for one product over another when they are basically identical. The extent to which customers are willing to pay more for the particular brand is measure of brand equity. A brand needs to be carefully managed a so that its equity does not depreciate.

This requires maintaining or improving brand awareness,

perceived quality and functionality, and positive associations. These tasks require continuous R and D investment, skillful advertising, and excellent trade and consumer service.

IMPORTENCE OF THE STUDY The motive of the any company is to generally acquire larger market share high % of sales the Industry, This could be only achieved by building a higher % of brand loyal customers. Any company can survive through there is a stiff computational the market if its has brand loyal customer. Today many major companies in the market if its has brand loyal customers.

To day many major

companies in the market try to maintain and improve there branded equity. With out creating a proper Brand awareness they cannot build brand image. Strong brands help build the corporate image and also by making it eager for the companies launch new brands. Today brands are treated, as major enduring assets of a company-more over brand equity are major contributor to customer equity. This all can happen only there is proper brand awareness. The light four wheeler industry has been expanding rapidly are gone the day when possessing a small and mid-size cars was seen as a luxury. Now days it is viewed s a mere necessity.

SCOPE OF THE STUDY The overall scope of the present study considers all the variables and factors that have major impact over the customers in considering particular brands.

This especially included how a customer regally

evaluate recognizes the brand and what position particular brand occupies in the customer mind. This includes how a customer gets attracted towards the brands and what makes a brand highly significant over their competitive brand. The study includes how hand awareness among potential customers can be maintained and improves. The project has been done in Visakhapatnam city only. The survey was confined only to Hyundai customers to presently posses only Santro. The survey was especially focused on existing Santro owners for finding how they are influenced by the brand and what made them aware of the brand.

After the survey was done the data was analyzed and also

relevant suggesting were made in order to improve its brand awareness towards Santro

METHODOLOGY OF THE STUDY The study is conducted empirically using both primary and secondary data. Using a well-structured Questionnaire provided by the company collects primary data. Around 100 potential customers were surveyed to understand the customer’s attitude in evaluating the after soled services rendered by AYS Automobiles Pvt. Ltd., All the persons interviewed were in the age group above 25 years. It has been deliberately decoded to conduct the survey among this age group because they are the people who are generally looking ahead for the purchase of a four-wheeler apart from the existing two-wheeler. Many of these persons interested are either businessmen or professionals; few of them are corporate managers also. The secondary data is collected from AYS Hyundai ltd. By going through their corporate records, brochures and annual reports of the company along with their newsletters were used to substantiate the information. The details about the four-wheeler market are collected from a few specialized magazines like Auto India etc.

SOURCES OF DATA: The data has been collected from both primary and secondary sources, to get information regarding the organization and products. PRIMARY DATA: Primary data has been collected through questionnaires. The questionnaire was mostly related to the brand awareness towards Santro of the customers on different feature such as the model, price, effectiveness of the brand etc. Provided by Hyundai motors ltd. SECONDORY DATA: Secondary data has been taken from bellow sources: 1. Reports 2. Pamphlets 3. Advertisement 4. Customer database 5. Newspapers 6. Internet

SAMPLING: Out of few lakes of Hyundai customers spread all over India, the customers of Hyundai motors Ltd., Visakhapatnam city only are taken as target population for the study. SAMPLESIZE: The sample size of 100 is selected from the database of the company. The study requires on in depth survey and teen observation in collecting data regarding the brand awareness levels of Hyundai customers. SAMPLING TECHINIQUE: Only simple random sampling technique is adopted in selection the sample. In this technique, each and every unit of the population has on equal opportunity of being selected in the sample DATA COLLECTION PROCESS: Based on need and objectives ,types of data required for study and other sources of data are identified.

Data was collected with the help of the questionnaires Obseration Primary Data Questionnaire Data

Secondary Data

Inside the Organization

Outside the Organization

News Letters Documents

Libraries, Magazines etc

OBJECTIVES The study has been conducted with the following objectives in mind: 1. To know how brand awareness made customer to purchase product (Hyundai car) 2. What factors and variables of brand influence them to purchase. 3. To know what position does the brands has in the minds of customers. 4. To know how they became aware of the brand (Santro) 5. To know level of satisfaction about the brand awareness ( Santro) offered by Hyundai.

6. To find out the market potential for Hyundai cars ( Santro). 7. To know how maintain and improve brand awareness build brand loyalty.

LIMITATIONS OF THE STUDY

Even though the project has been done without most car, it suffers from the following limitations. 1. Due to lack of time all customers, could not be contracted. 2. The study has been restricted to Visakhapatnam city only. 3. As the project is a simple sample study and is confined to 100 customers only, if may or may not pictures the entire customer feelings. 4. The awareness levels of the customers may change from time to time and so there is a possibility of changes in the research results. Few customers refused to respond or could not respond appropriately due to Lack of time, Ignorance etc.,

INDUSTRY PROFILE

In 1769, a French engineer CAPTIN NICHOLAS built the first load the vehicle propelled by its own power. It was a three-wheeler, fourseatwork vehicle fitted with steam engine. It attained a peed of about 21/2 M.P.H. for 15 minute. In 1880. German & French efforts developed of this vehicle. In 1885, Benz in Germany built a tricycle propelled an internal combustion engine.

In 1885-86, GOTTLEEF DAIMLETpatented an

internal combustion engine. ELWOOD

and

J.HAYNES

In 1895, CHARLES E.DURYES and in

America

developed

experimental

automobile. In this year PANCHARD and LEVAMOR in France also developed a car with minor executions incorporated the chief features of the automobile as we know it today. In 1890-95, the European designers were also active in the development of automobile. In 1900. The design of the automobile so improved that it awakened the public to the fact that it was new form of transportation. In 1906, many of the great names around which the world’s largest manufacturing industry was to be built in America had already begin to manufacture the automobile vehicle, Packard, Auto car –Oldsmobile, white, bulk overland, ford, cadillan-c etc., all these names were, motor vehicles before 1905. Pierce-arrow, locomotive, Maxwell, franking and peerless were also important at that time in the technical and commercial development of the motor vehicle.

In 1920, there was a gradual change and refinement in automobile design. It was clear by the spark ignition gasoline engine, which was the power plant of the modern motor; vehicle water-cooled engine was almost universal.

The sliding gear transmission had established itself as

predominant.

The puppet value was used in almost every engine.

Engines were all located of the chassis. In this period the major developments were made in every carry features. The designers tried to produce a vehicle which will function at all times under all conditions and which were comfortable to ride and easy to operate.

Increased life of tyres, , independent, front wheel

suspension, four wheeler hydraulic brakes, high compressions ratio, higher power, use of new materials and hundreds of other changes have been made. In recent years, the passenger car’s chassis construction has been forced to shape itself and redesigned bodies. While in the field of truck design , body chassis problems now get simultaneous consideration to automatic transmission and many other new feature are in today’s car. The diesel engine was invented only a few years after the spark ignition engine cars came into existence. Cars provided the facility to the owners that are safe, easier to drive, more reliable and comfortable.

HISTORY OF AUTOMOBILES IN WORLD SCENARIO

In 1769, a French Engineer Captain Nicholas built the first load vehicle propelled by its own power. It was a three-wheeler four-seater vehicle fitted with steam engine. It attained a speed of about 2 Y2 MPH for 15 minutes. In 1880, German & French efforts developed an internal combustion engine vehicle. The present day automobile is the development of this vehicle. In 1885, Bent in Germany built a tricycle propelled by an internal combustion engine in Germany In 1885-86, Gottlief Daimlet patented an internal combustion engine in Germany. In 1895, Charles E. Duryes and Elwood and J.Haynes in America developed an experimental automobile.

In this year pan chard and

elevator in French also developed a car with motor execution and incorporated, the chief features of the automobile as we know it today. In 1890-95, The European designers were also active in the development of the automobiles. In 1895, European designers purchased from France had the engine placed in front of chassis, housed on to a sliding gear transmission and incorporated brake pedal clutch and accelerator.

In 1900, the design of the automotive was so improved that it awakened the public to the fact that this new form of the transportation was really practical form. In1906, many of the great name around which the world’s largest manufacturing industry was to be built in America had already begin to manufacture the automobile vehicle Packard, autocarolds mobile, while, Bulk Overland, Ford, Cadillac-C etc., all these names were on motor vehicles before 1905. pierce-Arrow, Locomotive, Maxwell, Franking and peerless were also important in that time in the technical and commercial development of the motor vehicle. In 1920, there was a gradual change and refinement in automobile design It was clear by that the spark ignition gasoline engine was the power plant of the modem motor vehicle water-cooled engines were almost universal. The sliding gear transmission had established itself as predominant. The puppet value was used in almost every engine design. Engines were also located in the chassis . In this period the major improvements were made in very carry feature. The designers tried to produce a vehicle which will function at all times under all conditions and which were comfortable to ride and easy operate.

Increased life of tires, independent front wheel suspension, four wheel hydraulic breaks, high compression ration, higher power, use of now materials and hundred’s of other changes have been made. In recent years, the passengers car chassis construction has been forced to shape itself tore-designed bodies, while in the field of truck design, body-chassis problems now get simultaneous consideration to a greater than even before. Fluid play wheels, freewheeling over drives, automatic transmission and many other newer features are in the today’s car. The diesel engine was invented only a few years after the spark ignition engine car had engine in the years had provided the owner with cars that are afe, easier to drive, more reliable and comfortable.

AUTOMOBILES IN INDIAN SCENARIO One of the most visible signs of entry of automobile multinational companies (MNC’s) into India is the hue of multi colored cars seen on Indian roads, of courses this does not mean that the changes effected but those MNC’s are only cosmetic. The truth is that their entry has led to far reaching changes in both manufacturing marketing of automobiles.

The transition has been

necessitated by the entrance of international companies accompanied by the infusion of modem technology. These manufactures continued to maintain their monopoly as to regulations then exist in the country did not permit any reputable automobile manufacturer to establish company here. While elsewhere in the world survival for automakers depended on introduction of cars with better technology at that time was a mute spectator to all these technological advances were protected and monopolist regime. The Indian automobile industry is at the threshold of a transition that will affect all the segments from two wheelers to tractors. This tradition has been necessitated by the entrances of MNC’s modern technology.

by the infusion of

In the coming years all segments in the industry will face challenges on account of either over supply price was or a shifty in consumers preferences. This is likely to be felt more intensively in passenger car segments than in other segments in the industry with a 25% present growth of $8 billion. Indian automobile is one of the fastest growing industry in the world. The major automobile industry is one of the fasted growing world. The major auto manufacturers are well aware of the galloping growth rate and most of them have rushed to set up company in India to

slice of the

potentially gigantic market. The automobile industry long stifled in the era of the controls, is emerging as a driving force for the engineering sector with almost all the global leaders in the industry setting up a company in India. There is an old saying” take a pan with some water, put frog in it and start heating it, frog will never realize that with the rise in temperature in is nearing its death but if you put the frog in a pan of hot water, it will at once jump out.” Indian industries are in a similar situation, before liberalization, hey never realized that they are nearing death. liberalization they realized.

It was only after the

In the coming years all segments in the industry will face challenges on account of either over supply price wars or a shift in consumers preferences. This is likely to be felt more intensively in the passenger car segments of the industry. The trend in India is being changed by the so-called statues, need and necessary the people who previously went on bikes now go on cars not just one particular car but a variety of choicer among them. So, the result is upgrade in the salad of cars in India which was pretty low. The automobile not only an issue of consumption. It is regarded by the government as a sector that drives an entire economy. LIBERALIZATION POLICY In 1991, the Government of India, announced an economic policy package and initiated measures which may be said to have brought about a qualitative change in the pattern of government business relationship and statically altered the character of business of environment. With the entry of MNC’s and growth of foreign companies, domestic product markets are being increasingly subjected to forces of competition. It was in July, 1991 that the liberalization of economic policy started in real terms. India opened it’s gated to foreign investors who were seriously looking fore untapped markets to prop up the sagging global passenger car segment.

Most of this automobile MNC’s entered into joint ventures with existing Indian automobiles manufacturer and simply used up the existing facilities to assemble their cars. So, the entry of Mac’s into the Indian protected market created a wide range of choice for the buyers with latest models for the ultimate satisfaction of the customers. Very soon one can expect a multitude of years specially designed and priced for Indians to hit the market. The new competitors are offering product technologies that are far more advanced than the Maruti of 80’s vintage. Many say that competition brings out the best in the people posing challenges for all the old and new in the automobile industry. In1769, a French engineer CAPTIN NICHOLAS built the first load the vehicle propelled by its own power. It was a three-wheeler, four-seatwork vehicle fitted with steam engine. It attained a peed of about 21/2 M.P.H. for 15 minute. In 1880. German & French efforts developed of this vehicle. In 1885, Benz in Germany built a tricycle propelled an internal combustion engine.

In 1885-86, GOTTLEEF DAIMLETpatented an

internal combustion engine. ELWOOD

and

J.HAYNES

In 1895, CHARLES E.DURYES and in

America

developed

experimental

automobile. In this year PANCHARD and LEVAMOR in France also developed a car with minor executions incorporated the chief features of the automobile as we know it today. In 1890-95, the European designers were also active in the development of automobile.

In 1900. The design of the automobile so improved that it awakened the public to the fact that it was new form of transportation. In 1906, many of the great names around which the world’s largest manufacturing industry was to be built in America had already begin to manufacture the automobile vehicle, Packard, Auto car –Oldsmobile, white, bulk overland, ford, cadillan-c etc., all these names were, motor vehicles before 1905. Pierce-arrow, locomotive, Maxwell, franking and peerless were also important at that time in the technical and commercial development of the motor vehicle. In 1920, there was a gradual change and refinement in automobile design. It was clear by the spark ignition gasoline engine, which was the power plant of the modern motor; vehicle water-cooled engine was almost universal.

The sliding gear transmission had established itself as

predominant.

The puppet value was used in almost every engine.

Engines were all located of the chassis. In this period the major developments were made in every carry features. The designers tried to produce a vehicle which will function at all times under all conditions and which were comfortable to ride and easy to operate.

Increased life of tyres, , independent, front wheel

suspension, four wheeler hydraulic brakes, high compressions ratio, higher power, use of new materials and hundreds of other changes have been made.

In recent years, the passenger car’s chassis construction has been forced to shape itself and redesigned bodies. While in the field of truck design , body chassis problems now get simultaneous consideration to automatic transmission and many other new feature are in today’s car. The diesel engine was invented only a few years after the spark ignition engine cars came into existence. Cars provided the facility to the owners that are safe, easier to drive, more reliable and comfortable.

HEAVY INDUSTRIES With strengthened self-confidence thanks to straight success in construction and automobiles, Honarary Chairman Chung Ju Yong again made a challenge to the ship building industry. This challenge received cold reaction from developed countries when Hyundai asked them for funds and technology which were necessary for the construction of a dockyard. They judged Korea to be a weak country to carry the ship building industry. After important attempts and negotiations with some countries, Hyundai finally borrowed loan amounting to 100 million US dollars from British and Swiss bank. The construction of the Uslan Dockyard started under the command of Honarary Chairman Chung Ju Yong and was completed in 2 years and 3 months. The ceremony for the completion and the christening ceremony for the 2 ships order were held together. This record of simultaneous ceremonies remains as a unique event in the history of ship building industry. Hyundai Dockyard Company Limited was later renamed as Hyundai Heavy Industry Company Limited and has been persistently playing the pivotal role in domestic heavy industry. With all these achievements it has staged itself a long side world wide business giants with its extended operations in the fields of Hyundai Industries Companies LNG carries Hyundai precision and industry company, a

magnetic levitation trains and Hyundai Electronics Company to name a few. ELECTRONICS (1983): High technology is the key to success in 21st century business world. We have to acquire a new knowledge before others and we have to do what others cannot do, since its opening in 1983 it concentrated on the HITECH industry. Its efforts were specially focused on semiconductor production technology and development of latest technologies as a result it has grown into the top corporation in the industry. Hyundai Electronics Company Limited recorded over 80% annual growth rate on average. It also founded Mabukri Research Institutes. In this way the Hyundai Group has been active and persistent in research activities playing the role of locomotive for the progress of Korean Economy. OTHER ACTIVITIES: The top corporation is not obsessed with its growth. A corporation can become the No.1 only when its returns its profits to the society. The Hyundai Group has been taking the initiative in giving the profits back to the society. Hyundai encourages the young people who give up their dreams due to financial difficulty. The Asian Foundation was found in 1977 for such public undertaking Honorary Chairman Chung Ju Yong invested private funds work of 50 billion in the foundation which was a portion in the medical care, scholarships and cultural projects besides that

Asian Education Foundation includes Hyundai Middle School. Hyundai High School and University of Uslan in dedicating itself to educating young people full of dreams who will lead the future. Honorary Chairman Chung Ju Yong has also been the president of Federation of Korean Industries in 1977 and held this title for the longest period among all the other presidents, devoting himself to the development of Korean economy. Honorary chairman Chung Ju Gang was also appointed as the chairman of Seoul Olympic committee in 1981 which were held in Nagoya city in Japan. Korea held the 88 Seoul Olympics successfully and had a chance to upgrade its position in the world. The Hyundai Group which has the top in Korea not being satisfied with it made all arrangement for growing into the No.1 Corporation in the world. The new chairman of the group Chung Mong Koo in 1996 declared value management to enhance its value through the services reduced by the company to service in the age of limitless competition. It further extends its business operations to the space and aircraft steel and Banking sectors. Hyundai group preparing to meet the advancement of Korean economy into other countries and to become a world corporation dedicated to human welfare and happiness. Hyundai Group is actively investing in the development of product and technologies, which can be used for the societal development. Hyundai Motor India Limited is a wholly owned subsidiary of $8.24 billion.

Hyundai Motor Company that was set up in 1967 as a part of Hyundai business group of South Korea. With strong emphasis on performance safety and product quality, Hyundai has a presence in 168 countries across the world. The corporate philosophy of the company is to develop mutually beneficial relationship with nations and communities. Hyundai Group repeated its growth even during the age of constructions with the indomitable Hyundai spirit of the past half-century and it celebrated its 50th anniversary in 1997, encouraging all directions and employees to work in concert. GLOBAL NEWS: Hyundai’s Accent named “ Best Value” by US Consumers. U.K Customers give top marks to Accent’s reliability. Hyundai shines at the Moscow motor show. Hyundai Santro, Peak of popularity in the Indian market. Hyundai reveals its newest concept car at the Paris Motor show. Santro Fe proves excellence at the Crete test drive. HMC to expand the Hyundai name in Turkey. Hyundai on its way to build its second plant in China. Mighty II to serve the Indonesia market for 5 years.

OVER VIEW OF THE INDIAN CAR MARKET

Automobile industry in India is currently experiencing demand for the vehicles of different types. This is due to volcanic increase in the number of the vehicles of all categories and all types of the vehicles. The reason for this is the Indian economy which was closed till then. This is the sectors of the economy which benefited greatly by globalization and liberalization. The face of the industry has changed to such an extent just a decade age one would fail to recognize it as the Indian auto industry. Today the Indian market does not witness just as Ambassador Fiat competition. Rather it has become a battle field for it is witnessing cut throat competition between the world from this brands like FORD, HONDA, MERCEDES, HYUNDAI, DAEWOO. Infact the leading market leader MARUTI has lost a sizable crunch of its market share from a magical mesmerizing 80% to 66.2% during the same period. Hyundai plant was setup in Sriperambundur, 30km outside Chennai in a record time. This shows a commitment to the Indian customer and Indian auto industry. The first Hyundai Santro was launched on October 20, 1998. Santro was set to be the best package for the budget car buyer.

Y.S.KIM (Yang. Soo.Kim) is the Managing Director of Hyundai Motor India. The Korea and Indian Engineers pore their efforts for the efforts for the production Santro prototypes. The manufacturing style of

Hyundai Santro has not been the same as Maruti Udyog, which initially imported C.K.D kits for the first Maruti 800. The manufacturing process begins with coiled steel arriving from South Korea. The entire auto industries in India rely on imported steel to manufacture vehicle body structure, as locally available steel cannot be effective. The assemble of the car is mostly manual HMI has set up a allimem foundry on site to produces cast components like cylinder heads and gear box casings. The reasons for Hyundai rapid implementation were wholly owned subsidiary HMI could speed up the decision making process. It did not have to conduct a local partner which might have slowed things down. This points towards two things the market has become competitive and dynamic 1. Even the market leader cannot take its market share and the customers 2. The changing tastes and loyalty of the customers and subsequently the ultra competition nature of the auto market.

The advent of the two Korean giants HYUNDAI’S SANTRO and DAEWOO’S MATIZ marks an important turn in the Indian car scenario.

The success rate of the former teaches us what good marketing and advertising of a good product can achieve. Santro is just in months has become prime competitive for the car segment.

HYUNDAI MOTOR COMPANY A number of players have come in the car industry in few years, many new models, new services and benefits according to the customer taste and preference. A new category continuous to be dominated by the leader like Maruti Udyog, Hyundai, Daewoo, Fiat, Suzuki, Tata etc., but the consumers may soon be able to pick up the models of different companies. In recent years passenger’s car chassis construction has been forced to shape itself redesigned bodies. While in the field of truck design, body chassis problem now get simultaneous consideration to a greater extent than ever before. Cars provided the facility to the owners that are safe, easier to drive, more reliable and comfortable. HISTORY OF PASSENGER CARS IN INDIA: The passenger car in India has been considered as luxury item. Only a rich and the super rich could afford a car. In the 50’s and 60’s owning a car was the ultimate statement of having made it in life. There were just 3 major players namely Hindustan motors, Premier Automobiles and Standard Motors. The models they offered were the Baby Hindustan, its later version called the Ambassador, the Fiat 1100 and the Standard Herald, which fought for market share in a fairly stagnant market. The Ambassador and the Fiat were the front-runners with the coming of the third.

There were other players in other segments like the Wily Jeep and Mahindra & Mahindra offerings. The late 70’s saw a movement to produce a people car an attempt to bring the less rich into the fold of the more fortunate ones. And so a seed was sown called the Maruti 800. DIFFERENT CARS SEGMENT There has evidently been a major shift in focus, world wide, to small cars offers the most logically and cost effective means to combat traffic congestion and air pollution in metropolitan cities. The global vehicle giants are seriously contemplating entry into the big way. For instance world class leaders like Mercedes Benz and Ford feel confident about making mid size and luxury cars. The newly floated joint ventures started producing luxury cars, completely ignoring the past vast multitude of average buyers whose purchasing power in an inflation ridden economy is very limited. All the three companies Telco, Hyundai and Daewoo Matiz are confident enough of successfully marketing their respective vehicle in the market that is sure to hot up in the coming and later years. The entry of the manufacturers has posed a big threat to MUL whose monopoly in the car segment has remained unchallenged so far. Well altered MUL is busy remodeling its Maruti 800 and may introduce a new model Maruti 900 a cross between Maruti 800 and Zen in order to meet the competition.

When the MNC rushed to the Indian market and started producing high technology vehicle, the prediction among the automobile experts was that the Indian market wont have that much capacity to absorb the entire production. A similar situation may arise if the market is crowded with small cars. Also to be considered the fact that the road infrastructure facilities and emission control regulation are most inadequate. THE NEW ENTRANTS The economic reforms of 1991-92 began to dismantle the policies that had isolated and pushed the country’s growth rate from 4% to 7%. India is now being routed as the new Asian tiger and this could be the order of the day. The first multinational car to enter the Indian market was the South Korea major DAEWOO. Its Cielo was in a direct competition with the just launched Esteem. This was followed by Peugeot 309, manufactured by the Premium Automobiles in collaboration with Peugeot of France. The industry truly took of as in a flurry of activity, nearly all the major players announced plans to enter the market. Mercedes tied up with Telco to produce E-220 and D-250. General Motors tied up with Hindustan Motors to manufacture the Opel Astra. Ford tied up with Mahindra & Mahindra and established Mahindra Ford. Hyundai entered India through 100% owned subsidiary to manufacture Santro followed by Mitsubishi Lancer. Honda recently tied up with Hero Honda launched its own indigenous car the Indica.

ENTRY OF PREMIUM CARS The premium car segment was chosen by the new entrants as a market entrant as part of a market entrance strategy to create brand awareness. Today we have the unusual spectacle of too many cars chasing too few Indians for a country, which used to manufacture 1.81 lakh cars per annum in 1991. India today produces over 4 lakh cars per annum. The Indian market has now changed from sellers market to buyers market. The first MNC car to enter into the Indian market was South Korean major DAEWOO. The premium car segment was chosen by the new entrants as part of the market entrance to create brand awareness. Customers tend to hold back their purchase decisions in anticipation of new car launches, price cuts, the glamour of millennium car and other factors. For the average Indian car buyer the entry on MNC’s is definitely a big boom. The customer is getting the best technology on a part with other developed countries.

COMPANY PROFILE Hyundai Business Group is a South Korean company, which entered into business activities way back in 1947 seeing the rapid

industrialization and modernization-taking place around the world. It brought an international recognition to its country through its operations round the world and paved its way to modern economic growth. Hyundai group is composed of 50 subsidiaries like Ship Building, Engineering & Construction, Heavy Industries, Machinery, Iron and Steel, Electronics,

Aerospace,

Telecommunications,

Information

and

Technology, as well as Financing petrochemicals energy trade and service sectors. In 1960’s it involved in the construction industry. In 1970, it concentrated on shipbuilding, automobile, steel and machine industries and laid a foundation for Korean heavy industry. In 1980, it launched high tech industries such as electronics robot petroleum, space and aircraft. In 1990, developed new technologies reformed management and stressed training human resources, with the aim to become the No.1 Corporation in the world. AYS Automobiles Pvt, Ltd., started the dealership of Hyundai cars at Rajahmundry for West Godavari Districts April, 1999. So far, AYS sold about 309 Santro’s and 100 Accents and 2 Sonato’s. The company’s turnover till date is around 16 crores. The company has earned an amount of Rs. 72 lakhs by way of dealer margins and sale of spares & accessories; by earning profit in the first two years of operations.

The workshop is equipped with the latest technology equipments as per Hyundai specifications and is contributing Rs. 25 lakhs of revenue to the company. The total value of Machinery & Equipment is worth Rs. 25 lakhs. The workshop also has an emergency road service to attend complaints 24 hours a day anywhere in the territory. The show room is on the NH-5 and is designed as per the Hyundai Motor India’s standard pattern and is well lit to display the cars.

HISTORY IN CONSTRUCTION FIELD Hyundai group started from a small construction company named Hyundai Land and Construction in 1947 has a growth under difficult conditions. Hyundai Engineering & Construction Company Limited enjoyed continued business growth after it was renamed from Hyundai Land And Construction. The repair of Koryong Bridge in particular, put financial status of Hyundai Group in a deep trouble owing to a severe inflation in addition to its infant equipment and skills. However Honorary Chairman Chung Ju Yong of Hyundai Group and employees of Hyundai Engineering & Construction Company Limited willingly submitted to a deficit and completed the bridge construction work successfully. This success has left a vivid impression of Hyundai Group all over the industry thereafter. Hyundai Engineering & Construction Company Limited conducted the restoration work of the Hans River Bridge then it undertook lots of construction works for the US army stationed in Korea. Hyundai Construction Group later achieved an outstanding improvement of technology by adopting mechanized construction methods and advanced techniques and accumulated know-how in the management of human resources. Later in 1995 it became the very first construction company in Korean to advanced into overseas sites. This has taken place when Korea economy was in a depressed state, when Korea was under such circumstances, a small company with a short history of a little over 10

years made its first entry into giant overseas market, any way Hyundai Engineering & Construction Company

Limited, let its challenge it a

success. In a led for a highway construction in Thailand in 1965, it defeated developed countries with long experience in construction and won the bid, which was a victory for a small country from the east. Thereafter, Hyundai Engineering & Construction Company Limited stepped into the Vietnamese market and earned reputation as a construction company. It further marched to Alaska Guam, Australia, Indonesia and many more countries. Hyundai

Engineering

&

Construction

Company

Limited

constructed the Juveil Industrial Port in Saudi Arabia, the largest scale in the world and surprised everyone. Their entry into the Middle East was decisive in revitalizing Korean economy, which was depressed due to shortage of foreign currency at that time. Moreover advancement into Iraq and Libya paved the way for establishing diplomatic relations with those nations. Hyundai Engineering & Construction Company Limited, continued seeking overseas market and stepped into regions of North America and South East, the name and fame of technology of Hyundai were known worldwide. HYUNDAI SPORTS Hyundai World Rally team, best ever in the Australia Rally Hyundai Motor Company joins in the Fun of the Fustal 2000 promoting

the Hyundai name through South American Qualifying Games for the World Cup 2002. Hyundai operates overseas road service vehicle program Hyundai Motor Company (HMC) has started its operations of the world wide Overseas Service Program for its customers as part of the Company’s commitment to provide the very best vehicle maintenance service to its global customers. HMC made its first shipment of 300 overseas service vehicles to 30 countries including Japan, Australia, New Zealand, Mexico etc and will increase its shipment to dealers in 160 countries the following year. As technology, quality, and reliability, improve amongst all cars makers, this program can help difference Hyundai amongst existing and potential customers, enabling to further raise Hyundai’s brand awareness as well as boost the image of Hyundai Motor Company in the global markets. Santa Fe wins the good design product award Hyundai’s Santa Fe received the prestigious Presidential Award at the 2000 Good Design Products Exhibition held by the Korea Institute of Industrial Design Promotion by the Ministry of Commerce Industrial and Energy.

Out of 985 products from 292 companies exhibited, 320 products were selected as “Good Design Products” and only 39 products were awarded prizes during the annual competition. Hyundai’s Santro Fe won the most covered and honored award, the Presidential Award in the Automotive section. By winning such a glorious award as thus once, it has indefinitely proven Hyundai’s constant pursuit of excellence and dedication to the development of beautiful styled cars for its potential customers. HMC tops list in customer satisfaction survey, 7 years straight For the seventh consecutive year in 2000, HMC topped the list of customer satisfaction in a survey conducted by Korea Management Association

Consultants,

Korea’s

largest

management

consulting

company. According to the KCSI (Korea Customer Satisfaction Index), HMC won first place in the passenger car manufacturing field for giving the most satisfaction to its customers for the seven straight years. Hyundai vehicles were praised for low NVH, stability-driving comfort, engine and transmission performance, fit and finest and design of the exterior and interior, maintenance service and the market reliability. To heighten the awareness of Hyundai to world wise customers HMC has come up with a brand new 2000 Corporate Image Campaign, a long term strategy; in brand image development to steadily build up

Hyundai’s brand image and corporate image throughout the world market. Diesel Engine to penetrate the export market HMC has successfully developed a common rail direct injection 2.0 diesel engine for passenger cars, becoming the first Korean car maker to be applying his technology. Hyundai develops large commercial diesel engine: Using the latest technology, power tech engine increases the output while attains maximum fuel efficiency, marking it a low consumption engine. The power-tech engine has been developed with the design targets improving the performance, reducing fuel consumption, lowering noise and vibrations and reducing emissions. It has passed over 1 million kilometers of various durability tests successfully providing its low noise and vibration levels vastly improved compared to the previous large sized commercial vehicle and bust engines. Hyundai Accent named “ Best Value” by US Consumers Hyundai Motor’s subcompact Accent was proudly named as the best value car in the small car category in a survey of US consumers. The survey was conducted by strategic vision a renowned consulting and market research organization based in San Diego California.

Hyundai Santro, peak popularity in the Indian market Hyundai is on a roll in the Indian market, emerging as top selling import and posting sales of 75,843 units for the first 10 months of 2000.the Santro proudly proved its success at being the top selling model for five consecutive months since June. It has distinguished itself with a total sales figure of 60,516 units between January and October. Also the Accent has been the top selling model in the premium segment for 5 months altogether where its sales reached a total of 15,327 units for the first 10 months. Thanks to the strong performance of both the Santro and Accent. Hyundai has set higher goal for the future in the Indian market. Hyundai Accent award Australia’s Best Small Car The Accent was selected as Australia’s best small car for 2000 by mix leading automotive consumer organizations in Australia. Hyundai Motor Company joins in the fun for Futsal 2000 Hyundai Motor Company has proudly become the exclusive automotive sponsor of the 4th FIFA Futsal World Championship Guatemala 2000, held between November 18 to December 3. Hyundai took this golden opportunity to leap into another area of the world market and promote its brand name through various marketing activities and advertisement.

Hyundai Motor India Limited is a wholly owned subsidiary of the Hyundai Motor Company (HMC), Korea, a part of the Hyundai Motor Group comprising Hyundai Motor Company, Kia Motors, Hyundai Mobis and other affiliated companies, with a combined turnover of over US$ 50 Billion. Hyundai motor vehicles are sold in 166 countries through 4,504 dealerships and showrooms, Hyundai has a combined annuals sales of over 3 million units and is one of the fastest growing auto manufacturers in the world. Hyundai and Kia together have R&D centers in the United States, Europe, and Japan apart from the global R&D headquarters at Ulsan, Korea. The Hyundai Motor Group has recently dedicated an annual R&D spend of close to US$ 2 Billion, up from US$ 1.2 Billion to enhance its thrust on new product development and achieve global quality benchmarks by year 2005. This includes the $30 mn Hyundai-Kia Design and Technical Center in Irvive, California. Focus The R&D team focuses on the development of new products and technologies

that

include

interior

and

exterior

design

changes,

development of new generation engines and alternate fuel systems, concept vehicles and advanced passenger safety and comfort systems, in line with evolving customer preferences across the globe. Recent successes of the team include the development of the Hyundai patented Common

Rail Direct Injection (CRDi) engine in association with Detroit Diesel and the award winning Fuel Cell Santa FE. Efforts Some of the ongoing projects that the Hyundai R&D team is involved in include the development of the ‘World Engine’ in association with Daimler Chrysler and Mitsubishi and the development of Automotive Telematics in association with IBM. That the efforts of the Hyundai R&D team has paid great dividends to the company is evident from the fact that the company’s newly engineered products like the Santa Fe and the Getz have made waves in the global automotive markets and the ‘US Consumer Reports’ magazine has ranked Hyundai cars in level with that of Honda in its recent quality rankings Hyundai Motor India has been awarded the benchmark ISO 14001 certification for its sustainable environment management practices. Living up to is commitment of providing global standards of quality and process management in India, Hyundai had put in place an Environment Management System (EMS) at its manufacturing plant in Chennai right from its project stage. The certification process was completed in a record time of 10 months with ‘Zero NCRs’. The assessment was done by TUV SUDDEUTSCHLAND and covered areas like Awareness Training, Technology Upgradation, Recycling, Waste Management and fulfilling Government Regulations.

HMI is also working on a backward integration strategy that will support vendors of the company in implementing EMS. Hyundai Motor Company, S. Korea, the parent of HMI, has been doing considerable work on sustainable Environment Management. The company has a well defined framework in place for developing products that reduce pollutant emissions and processes for preservation of natural resources and energy along all the stages of the product lifecycle from production, sales, use to disposal. The company has also been in the forefront development of environment friendly technologies like Hybrid Electric Vehicles (HEV’s), and Fuel Cell Electric Vehicles (FCEVs) and has been awarded the ISO 14001 certification for all its three major plants in ULSAN, Asan and Jeonju in S. Korea. Social Responsibility Hyundai, as a responsible corporate citizen is committed to sustainable social development and the preservation of the environment. All the company’s key manufacturing units, including the Indian plant have the ISO 14001 certification for its Environment management practices. As a part of its social responsibility programs, the company conducts various campaigns to spread awareness of in-car safety and safe driving practices, particularly targeted against drunken driving, speeding, etc. As a part of its community development projects, the company has adopted a few villages around its factory in TamilNadu and has been

working towards the social and economic development of these villages, assisting them in the areas of primary health care, education, basic amenities and employment opportunities The production management process at Hyundai Motor India are overlaid with an organization-wide implementation of manufacturing best practices like Just-in-time inventory management, Kaizen, TPM and TQM, that help us in making the world’s best cars, right here in India.

HYUNDAI MOTOR INDIA LIMITED Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, S. Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets over 18 variants of passenger cars across four models, the Santro in the B segment, the Accent in the C segment, the Sonata in the E segment and the Terracan in the SUV segment. The company recorded combined sales of 150,741 units during calendar year 2003 with both Accent & Santro emerging leaders in their respective segments. HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. The company is investing an additional US$ 220 Mn to expand capacity at this plant to 250,000 units a year in line with its recent designation as HMC’s global export hub for small cars and to cater to its upcoming product launches India. HMIL has sold over 500,000 cars in a record time of just over 5 years since commencement of commercial production in September 1998 and is all set to emerge as one of largest exporters of passenger cars and components out of India. HMIL was recently awarded the benchmark ISO 14001 certification for its sustainable environment management practices.

Hyundai’s fully integrated manufacturing capabilities include: The Press Shop A computer controlled line that converts sheet metal to body panels of high dimensional accuracy and consistency. The Body Shop A hi-tech line that builds full body shells from panels. Automated robotic arms are used for intricate welding operations that ensure superior and consistent build quality. The Paint Shop This is one of the most modern paint shops in the country and uses the environment friendly water based process for superior and lasting exterior. A unique process management system followed here helps us deliver the most extensive colour range, independent of minimum batch requirements, helping customers get their preferred colour anytime. The Aluminum Fondry Forges the engine cylinder blocks for our cars to exacting design specifications. The Engine and Transmission Shop One of the biggest engine shops in the country, this unit is equipped with the most modern tooling and testing facilities to make a wide range of engines in house.

The Plastic Extrusion Unit Moulds the dashes, bumpers and other plastic components to perfect fit and finish. The Plastic Paint Shop One of the very few manufacturing units in India to have this facility in-house, Hyundai’s plastic paint shop delivers a high grade finish on exterior plastic components. The Test Track With comprehensive performance testing facilities like rattle testing and ABS brake testing, this track is designed to meet pre-delivery (PDI) certification standards to exacting Euro specifications.

AYS AUTOMOBILE PVT. LTD. The liberalization of Indian Economic Policy in the Finance Budget has opened gates for renowned international carmakers to establish their business/manufacturing units in our country and thereby created opportunities in all spheres. Hyundai Motor India Limited, a Korean Car Giant, has utilized the above opportunity and started its manufacturing operations in Chennai with an initial production capacity of 50000 cars/annum and increased its capacity to 200000 cars/annum. Hyundai Motor India Limited is the pioneer in introducing to Indian customers the “first-of-its-kind” concepts like Hyundai Finance, Contemporary

Technology,

Tall-boy

Design

etc.

Through

their

“leadership through listening” strategy, have been upgrading their products to suite customer requirements. They believe in value addition to their cars rather than selling on discounts. All their three cars viz., SANTRO, ACCENT & SONATA are No. 1 in their respective segments, in terms of quality and volumes. This liberalization has helped the salaried and upper middle class to opt for a car which was hitherto a luxury. The low rates of interest and easy processing procedures also helped these segment customers to buy cars for their family needs.

AYS Automobiles Pvt Ltd., is the dealer for Hyundai Motor India Limited, in the five north coastal districts viz., Srikakulam, Vizianagaram, Visakhapatnam, East and West Godavari Districts and started serving the customers of these districts since October’ 1998. AYS Automobiles Pvt Ltd., has 3300sft state-of-the-art showroom located in Siripura, the heart of Visakhapatnam City and a customer care center in Industrial Estate, 104 Area, with trained man power and latest equipments to cater to the after-sales service of its customers. AYS Automobiles Pvt Ltd., had sold nearly 2000 cars, through their two outlets in Visakhapatnam and Rajahmundry till July’2003. In view of the increasing sales and service volumes, they have opened a new sales & service outlet in Bhimavaram and Kakinada. They have also opened another customer care center at HPCL Millenium Auto Care in Siripuram. This customer care center is opened exclusively to meet the growing customer base and also to facilitate the customers living in Beach Road, Pandurangapuram, Daspalla Hills, Kirlampudi Layout, CBM Compound, MVP Colony etc., who will have paucity of time. The customer care centers of AYS Automobiles Pvt Ltd., at HPCL Auto Care and Industrial Estate has the facilities like Wheel Balancers, Wheel Aligners, Thermax Paint Booths, Dent Sucking Machine, Emission Control Equipment etc.,

AYS Automobiles Pvt Ltd., had won several awards during 2000 and 2003 namely, No-1 Dealer in AP for Customer Satisfaction, Top Performer in South Region for Hyundai Finance, No.1 Dealer for Sales Satisfaction etc., The growth of AYS Automobiles Pvt., Ltd., shouldn’t have been possible without the support of its associates, who have been extending all their help ever since its inception and the success is attributed to their dedicated, loyal and customer friendly staff. We sincerely thank all the customers, who had patronized us.

THEORETICAL FRAMEWORK What is a Brand? A Brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one sellers or group of sellers and to differentiate them from those of competitors. Most of the marketers say that “ Branding is the art and cornerstone of marketing”. In essence, a brand identifies the seller or maker. It can be a name, trademark, logo or other symbol. Under trademark law, the seller is granted exclusive rights to the use of the brand name in perpetuity. Brands differ from other assets such as patents and copyrights, which have expiration dates. A brand is essentially a seller’s promise to deliver a specific set of features, benefits and services consistently to the buyers. The best brands convey a warranty of quality. But a brand is an even more complex symbol. It can convey up to six levels of meaning. Attributes: A brand brings to mind certain attributes. By its well built, well engineered, expensive, durable, high-prestige automobiles.

Benefits : Attributes must be translated into functional and emotional benefits. For example, the attribute “ durable” could translate into the functional benefit. The people says that “I won’t have to buy another car for several years”. The attribute “expensive” translates into the emotional benefit “the car makes me fell important and admired”. Values: The brand also says something about the producer’s values. Mercedes stands for high performance, safety and prestige. Culture: The brand may represent a certain culture. Personality: The brand can also project a certain personality. User: The suggests the kind of consumer who buys or uses the product. If a company treats a brand only as a name, it misses the point. The branding challenge is to develop the deep set of positive associations for the brand. Marketers must decide at which levels to anchor the brand identity.

Promoting the brand only on one benefit can also be risky. Suppose Mercedes touts its main benefit as “high performance”, then several competitive brands emerge with high or higher performance. Or suppose the car buyers start placing less importance on high performance as compared to other benefits. The most enduring meanings of a brand are its values, culture and personality. The Mercedes stands for high technology, performance and success. Mercedes must project this in its brand strategy. Mercedes must resist marketing an inexpensive car bearing the name; doing so would dilute the value and personality Mercedes has built up over the years. Brand Equity: Brands vary in the amount of power and value they have in the market place. At one extreme are brands that are not known by most buyers. Then there are brands for which buyers have a fairly high degree of brand awareness. Beyond this are brands with a high degree of brand acceptability. Then there are brand that enjoy a high degree of brand preference. Finally there are brands that command an high degree of brand loyalty. The following are the 5 levels of customer attitudes toward his/her brand from lowest to highest:



Customer will change brands, especially for price reasons, not brand loyalty



Customer is satisfied. No reason to change the brand.



Customer is satisfied and would incur costs by changing brand.



Customer values the brand and sees it as a friend.



Customer is devoted to the brand. Brand equity is related to how many customers are in classes 3,4

or5. It is also related to the degree of brand-name recognition, perceived brand equity, strong mental and emotional associations and other assets such as patents, trademarks and channel relationships. Companies do not normally list brand equity on their balance sheet because of the arbitrariness of the estimate. But clearly brand equity relates to the premium the brand commands times the extra volume it moves over an average brand. The world’s 10 most valuable brands in 1997 in rank order were coca-cola, Marlboro, IBM, McDonald’s, Disney, Sony, Kodak, Intel, Gillette and Budweiser. High brand equity provides a number of competitive advantage: 

The Company will enjoy reduced marketing costs because of consumer brand awareness and loyalty.



The Company will have more trade leverage in bargaining with distributors and retailers because customers expect them to carry the brand.



The Company can charge a higher price than its competitors because the brand has higher perceived quality.



The Company can more easily launch extensions because the brand name carries high credibility.



The brand offers the company some defense against price competition. A brand name needs to be carefully managed so that its equity

doesn’t depreciate. This requires maintaining or improving brand awareness perceived quality and functionality, and positive associations. These tasks require continuous research and development investment, skillful advertising and excellent trade and consumer service.

AN OVERVIEW OF BRANDING DECISIONS Branding

Brand Sponsor

Decisions

Brand Name

Decisions

• • •

Brand No Brand

• •

Manufacturers Brand Distributors (Pvt) Brand

Brand Strategy Decisions

• • • • •

•

Line Extension Brand Extension Multi-Brands New Brands Co-Brands

• •

Individual Names Blanket Family Name Separate Family Company Individual Names

Brand-Repositioning Decisions

• •

Repositioning No Repositioning

Branding Decisions: The first decision is whether the company should develop a brand name for its products. In the past, most products went unbranded, producers and intermediaries sold their goods out of barrels, bins and cases without any supplier identification. Buyers depended on the sellers integrity. Today branding is such a strong force that hardly anything goes unbranded. In some cases, there has been a return to “ no branding” of certain staple consumer goods and pharmaceuticals. Generics are unbranded, plainly packaged, less expensive versions of common products such as spaghetti, paper towels and canned peaches. They offer standard or lower quality at a price that may be as much as 20% to 40% lower than nationally advertised brands and 10% to 20% lower than retail private label brands. The lower price is made possible by lower quality ingredients, lower cost labeling and packaging and minimal advertising. Why do sellers brand their products when doing so clearly involves costs? Branding gives the seller several advantages: 

The brand name makes it easier for the seller to process orders and track down problems.



The sellers brand name and trademark provide legal protection of unique product features.



Branding gives the seller the opportunity to attract a loyal and profitable set of customers. Brand loyalty gives sellers some protection from competition.



Branding helps the seller segment markets.



Strong brands help build the corporate image, making it easier to launch new brands and gain acceptance by distributors and consumers. Distributors and retailers want brand names because brands make

the product easier to handle, hold protection to certain quality standards, strengthen buyer preferences, and make it easier to identify suppliers. Consumers want brand names to help them identify quality differences and shop more efficiently. Brand-Sponsor Decision: A manufacturer has several options with respect to brand sponsorship. The product may be launched as a manufacturer brand (sometimes called as National Brand), a distributor brand (also called reseller, store, house or private brand), or a licensed brand name. Another alternative is for the manufacturer to produce some output under its own name and some under reseller labels. Manufacturers brands dominate, large retailers and wholesalers have been developing their own brands by contracting production from willing manufacturers.

The private brands offer two advantages. First, they are more profitable. Intermediaries search for manufacturer with excess capacity who will produce the private labels at a low cost. Other costs, such as research and development, advertising, sales production and physical distribution are much lower. This means that the private brands can charge a lower price and yet make a higher profit margin. Second, retailers develop exclusive store brands to differentiate themselves from competitors. Brand Name Decisions: Manufacturer and service companies who brand their products must choose which brand names to use. Four strategies are available: 1. Individual Names: A major advantage of an individual names strategy is that the company does not tie its reputation to the product. If the product fails or appears to have low quality, the company’s name or image is not hurt. The strategy permits the firm to search for the best name for each new product.

2. Blanket Family Names:

A blanket family name also had advantage. Development cost is less because there is no need for “name” research or heavy advertising expenditure to create brand name recognition. Further more, sales of the new product are likely to the strong if the manufacturers name is good. 3. Separate Family Names for all Products: Where a company produces quite different products, it is not desirable to use one blanket family name. Companies often invent different family names for different quality lines within the same product class. 1. Company trade name combined with individual product names:

Some manufacturers tie their company name to an individual brand name for each product. Once a company decides on its brand name strategy, it faces the task of choosing a specific brand name. The company could choose the name of a person, location, quality, life style or an artificial name. Among the desirable qualities for a brand name are the following: 

It should suggest something about the product’s benefits.



It should suggest product qualities. Such as action or color.



It should be easy to pronounce, recognize and remember. In this case short names help mostly.



It should be distinctive.



It should carry poor meanings in other countries and languages.

Brand-Strategy Decisions: A company has five choices when it comes to brand strategy. There are line extensions, brand extensions, multi-brands, new brands and cobrands. 1. Line Extension: Line Extensions consist of introducing additional items in the same product category under the same brand name, such as new flavors, forms, colors, added ingredients and package sizes. 2. Brand Extensions: A company may use its existing brand name to launch new products in other categories. 3. Multi-Brands: A Company will often introduce additional brands in the same product category. Sometimes the company is trying to establish different features or appeal to different buying motives.

4. New Brands:

When a Company launches products in a new category, it may find that none of its current brand names are appropriate. 5. Co-Brands: Co-Brands are also called as dual branding, in which two or more well known brands are combined in an offer. Co-branding takes a variety of forms. One is ingredient co-branding, Second one is same company cobranding, Third one is joint venture co-branding. And finally there is multiple-sponsor co-branding. Brand Repositioning: However well a brand is currently positioned, the company may have to reposition it later when facing new competitors or changing customer preferences. Brand Awareness: Nine Brand Strengtheners: As Companies become more aware of the importance of brand power, they wonder how they can strengthen their brands. Most managers think the answer lies in increasing the advertising budget. But advertising is expensive and it is not always effective. Advertising is only one of nine ways to build more brand awareness and brand preference.



Develop creative advertising.



Sponsor well-regarded events.



Invite your customers to join a club .



Invite the public to visit your factory or office



Create your own retail units.



Provide well-appreciated public services.



Give visible support to some social causes.



Be known as a value leader.



Develop a strong spokesperson or symbol to represent the Company.

AGE GROUP TABLE: - 6.1 Total Number of Customers Surveyed: 100 AGE GROUP

NO.OF CUSTOMERS

PERCENTAGE

25-45

52

52%

45-65

40

40%

65 And Above

8

8%

Total

100

100%

Interpretation: From the above table, we can observe that 52% of the people belongs to 25 – 45 age group, 40% of the people belongs to 45 - 65 age group and 8% of the people belongs to 65 and above. The analysis shows that most of the people belongs to 25 – 45 age.

60 50 40 25-45 45-65 65 And Above

30 20 10 0

NO.OF CUSTOMERS

TABLE:-6.2 Total number of Customers surveyed: 100

NO. OF CUSTOMERS

GENDER

PERCENTAGE

Male

87

87%

Female

13

13%

Total

100

100%

Interpretation: From the above table we can observe that among 200 customers 87% are Males and 13% are Females.

13%

87%

Occupation TABLE: - 6.3 Total Number of Customers Surveyed: 100 OCCUPATION

NO.OF CUSTOMERS

PERCENTAGE

Business

38

38%

Professional

30

30%

Student

7

7%

Employee

25

25%

Total

100

100%

Interpretation: From the above table, we see that 38% of the people belongs to Business, 30% of the people from Professionals, 7% of the people from students and 25% of the People belongs to Employees. The analysis shows that major part of the people belongs to Business category.

40 35

38 30 25

30 25 20 15 10

7

5 0

NO.OF CUSTOMERS

Business Professional Student Employee

INCOME STATUS (PER ANNUM) TABLE:- 6.4 Total number of Customers surveyed: 100 NO. OF CUSTOMERS

PERCENTAGE

< 20,000

34

34%

20,000-40,000

52

52%

40,000 & above

14

14%

Total

100

100%

INCOME

Interpretation: The income status reveals that 34% of them are having less than 20,000 and 52% of them were between 20,000-40,000 and the remaining 14% were above 40,000. The analysis shows that the people who having income per annum in between 20,000-40,000 are more.

14% 34%

52%

FAMILY SIZE TABLE:-6.5: Total number of Customers surveyed: 100

NO. OF CUSTOMERS

PERCENTAGE

1-2

10

10%

3-5

78

78%

5 & above

12

12%

Total

100

100%

FAMILY SIZE

Interpretation: Family size reveals that 10% of the people are having 1-2 family size, 78% of the people are having 3-5 family size and 12% of the people are having above 5 family size. The analysis shows that the family size having 3-5 are using more.

90 80 70 60 50 40 30 20 10 0 1 to 2

3 to 5

PURPOSE OF PURCHASE TABLE:-6.6

5 & above

Total number of Customers surveyed: 100 NO. OF CUSTOMERS

PERCENTAGE

Utility

45

45%

Necessity

51

51%

Status

4

4%

Total

100

100%

PURPOSE

Interpretation: From the table, we can observe that 45% of the people purchase the car for the purpose of utility, 51% of the people purchase for necessity and 4% people purchase for status. The analysis shows that most of the people that is 51% purchase for necessity.

51 45

60 50 40 30

4

20 10 0

Utility

Necessity

Status

WHAT FACTORS INFLUENCE TO BUY SANTRO TABLE: - 6.7 Total Number of Customers Surveyed: 100

FACTORS

NO.OF CUSTOMERS

PERCENTAGE

Style

14

14%

Price

18

18%

Brand image

30

30%

Performance

20

20%

Publicity

18

18%

Total

100

100%

Interpretation: From the table, we can examine that 14% of the people prefer style, 18% of the people prefer price, 30% of the people opt for Brand image, 20% of the people have a preference on Performance and 18% of the people opt for Publicity for buying the Santro Car. The analysis shows most of them consider Brand image while buying.

30 25 20

Style Price Brand image Performance Publicity

15 10 5 0 NO.OF CUSTOMERS

WHO INFLUECNE TO PURCHASE THE CAR TABLE:-6.8

Total Number of Customers Surveyed: 100 FACTORS

NO.OF CUSTOMERS

PERCENTAGE

Myself

20

30%

Family Members

15

15%

Friends

22

22%

Relatives

5

5%

Advertisements

34

34%

Others

4

4%

100

100%

Total

Interpretation: From the table, we can observe that 20% of the people are decided to purchase the car on themselves, 15% of the people are influenced by family members, 22% of the people are influenced by relatives, 34% of the people are influenced by advertisements and rest of the people are influenced by other factors. The analysis shows that major portion of the people are influenced by advertisements.

35%

34% 30%

30% 25% 20%

22% 15%

15% 10% 5%

5%

4%

Myself Family Members Friends Relatives Advertisements Others

0% PERCENTAGE

IMPACT OF SHAHRUKH KHAN ON SALES TABLE: -6.9 Total number of Customers surveyed: 100

NO. OF CUSTOMERS

PERCENTAGE

Yes

56

56%

No

44

44%

Total

100

100%

IMPACT

Interpretation: From the table, we see that 56% of the people say that Sharukh Khan has the impact of increase in sales whereas 44% of the people say that Sharukh Khan has no impact of increase in sales.

44% 56%

GOOD VALUE TABLE:- 6.10 Total number of Customers surveyed: 100 NO. OF CUSTOMERS

PERCENTAGE

Yes

92

92%

No

8

8%

100

100%

GOOD VALUE

Total

Interpretation: From the table, we observe that 92% of the people feel that Hyundai products give Good Value for money whereas 8% of the people feel that Hyundai products do not give Good Value for money.

92

100 80 60 8

40 20 0 Yes

No

PRICING OF THE CAR TABLE:- 6.11 Total number of Customers surveyed: 100 NO. OF CUSTOMERS

PERCENTAGE

Excellent

5

5%

Good

64

64%

Satisfactory

31

31%

Not satisfied

-

-

100

100%

PRICING LEVEL

Total

Interpretation: From the table, we observe that 5% of the people feel that the Price of the car is Excellent, 64% of the people feel that it is Good, 31% feel it is satisfactory and none of them are dissatisfied with the Price of the product. The Highest % of the people feel that the Price of the car is Good.

Not Satisfied

Excellent

Satisfactory

Good

SUPERIOR TO COMPETITORS CARS TABLE:-6.12 Total number of Customers surveyed: 100 SUPERIOR

CUSTOMERS

PERCENTAGE

Yes

89

89%

No

11

11%

Total

100

100%

Interpretation: From the table, we can observe that 89% of the people say that Santro car is superior to competitors cars and 11% says that it is not.

100 90

89

80 70 60 50 40 30 20

11

10 0 Yes

No

SUMMARY The market of Hyundai cars (Santro, Accent and Sonata) is growing at rapid speed. Hyundai being one of the dominating and leading players in passenger car market is expected to attract significant attention among the investors. In this Automobile segment there has been heightened competition with other leading players like Maruti, Honda, Ford and many others. As there was competition in small car industry, there was reduction in prices of the cars and modifications done with the existing product (e.g., Santro to Santro Xing) and were introduced in the market. Hyundai small car segment has occupied second position in the market share. Majority of the people have informed Brand Awareness toward Santro. Most of the customers are very much satisfied with the services offered by the company while few of them are not satisfied due to minor problems of the car. Many of the students rated the Brand Awareness as excellent very few of them have rated as satisfactory. All the respondents are very happy with the warranty period given for the cars by the company but many of them have complaints with the mileage and seating comfort of the car.

Many of the respondents have stated that the prices charged on services are high when compare to other company’s services (e.g. Maruti) Finally the customers are very happy about Brand Awareness toward Santro.

FINDINGS The following details can be inferred after analysis with a simple size of 100, which included customers, by questionnaire method to find out the brand awareness towards Santro with reference to AY S HYUNDAI.  Most of the customers relating to Hyundai belong to the category of employees as they occupy 30% of the entire customers. The next to them comes industrialists as they occupy 24% of the customers.  Most of the customers have bought the car 2 years back.  The promotional strategy of Hyundai is advertisement of which electronic media and by press media are playing a vital role.  Out of the models of Hyundai the most popular brand is Santro because it is possessed by 45% of the customers.  Most of the customers are aware of educational programs that are being conducted by Hyundai to the maintenance of the car.  Though the customers are having good awareness levels regarding the programs being conducted by Hyundai, they are not attending the programs because of various reasons.  The customers find some problem’s regarding the mileage of Santro while comparing with the remaining models.

SUGGESTIONS  Basing on the survey findings and analyzing the attitudes of respondents, the following suggestions can be given regarding the Brand Awareness towards Santro.  The company has to pursue the complaints of the respondents about the performance of the car’s engine. This suggestions has been given basing on the complaints of customers regarding its problems like low mileage.  Transaction and value based loyalty programs can be conducted.  Making the Driving seat and Passenger seat more comfortable so that the driver and passengers could have a comfortable drive. Analyzing the complaints given by many customers regarding uncomfortable seats has made its suggestion.

QUESTIONNAIRE (With Reference to Hyundai Santro) 1. NAME OF THE RESPONDENT: 2. ADDRESS OF THE RESPONDENT: 3. PHONE NO: 4. AGE GROUP: (a) 25-45

(b) 45-65

(c) 65 & above

5. GENDER: (a) Male

(b) Female

6. RESPONDENTS QUALIFICATION: _________________________ 7. OCCUPATION: (a) Business

b) Professional

(c) Student

(d) Employee

8. INCOME PER ANNUM: (a) < Rs. 2,00,000/-

b) Rs. 2,00,000/- to Rs. 4,00,000/-

(c) Rs. 4,00,000 and above 9. FAMILY SIZE: (a) 1-2

b) 3-5

c) 5& above

10. PURPOSE OF PURCHASE OF THIS CAR:

(a) Utility

(b) Necessity

(c) Status

11. WHAT INFLUENCED TO BUY SANTRO a) Styling

b) Pricing

(d) Performance

(c) Brand Image

(e) Publicity

12. WHO INFLUENCED YOU TO PURCHASE THE CAR? (a) Myself

(b) Family Members

(d) Relatives

(e) Advertisements

c) Friends (f) Others

13. WHY DID YOU PURCHASE ONLY SANTRO INSTEAD OF ANY OTHER SMALL CAR? (a) Quality

b) East to drive

(c) Comfort

d) Technically good

14. DO YOU FEEL THAT BRAND AMBASSADOR SHARUKH KHAN HAS AN IMPACT ON THE INCREASE IN SALES? (a) Yes

(b) No

15. DO YOU FEEL THAT HYUNDAI PRODUCTS GIVE GOOD VALUE FOR MONEY? (a) Yes

(b) No

16. HOW DO YOU FEEL THE PRICING OF THE CAR?

(a) Excellent

b) Good

(c) Satisfactory

(d) Unsatisfactory

17. DO YOU FEEL THAT SANTRO IS SUPERIOR TO COMPETITORS CARS IN THIS SEGMENT? (a) Yes

(b) No

18. DO YOU RECOMMEND SANTRO TO YOUR FRIENDS AND RELATIVES? (a) Yes

(b) No

19. YOUR COMMENTS/SUGGESTIONS IF ANY? __________________________________________________________________ __________________________________________________________________

BIBLIOGRAPHY • MARKETING MANAGEMENT PHILIP KOTLER • COMPANY BROUCHERS & MANUALS • MAGAZINES: • OVERDRIVE • BUSINESS TODAY

CONTENTS Page No. CHAPTER – 1      

1-10

Introduction Importance Scope Research Methodology Object Limitations

CHAPTER – 2

11-32

INDUSTRY PROFILE  History of the Automobiles  Automobiles History in World Scenario  Automobiles History in Indian Scenario  Automobiles History 1967 CHAPTER – 3

33-50

COMPANY PROFILE  History in construction field  Hyundai motor India Limited CHAPTER – 4

51-63

 Theoretical Frame Work CHAPTER – 5

64-87

 Data Analysis and Interpretation CHAPTER – 6

88-91

 Summary, Findings & Suggestions CHAPTER – 7

92-94

 Annexure CHAPTER – 8

95

 Bibliography

CHAPTER – 1 o o o o o o

Introduction Importance Scope Research Methodology Object Limitations

CHAPTER – 2 INDUSTRY PROFILE  History of the Automobiles  Automobiles History in World Scenario  Automobiles History in Indian Scenario  Automobiles History 1967

CHAPTER – 3 COMPANY PROFILE

• History in construction field • Hyundai motor India Limited

CHAPTER – 4 o Theoretical Frame Work

CHAPTER – 5  Data Analysis and Interpretation

CHAPTER – 6  Summary, Findings & Suggestions

CHAPTER – 7 • Annexure

CHAPTER – 8  Bibliography

ACKNOWLEDGEMENT At the outset, I would like to express my gratitude to Dr. S. SARABANDHI, Director, Pydah college (P.G.courses), for permitting me to take up this project at AYS HYUNDAI AUTOMOBILE PVT. LTD. I owe my special thanks to Mr. RAMA RAO, Sales Manager, for providing all the facilities and guiding me where every necessary. My sincere thanks to my guide Mrs. LUBZA NIHAR, Faculty Member, for her invaluable co-operation and suggestions at every stage of this project without whom this would not have been completed. I am grateful to my parents and all my friends for their help and cooperation.

(S. SRINIVASA RAO)

DECLARATION I hereby declare that this project work entitled “BRAND AWARENESS TOWARDS SANTRO with Reference to AYS HYUNDAI AUTOMOBILES PVT. LTD., VISAKHAPATNAM” written & submitted me towards partial fulfillment of my Masters Degree in Business Administration

under the guidance

of

Mrs. LUBZA NIHAR is a original work done by me. This work has not been previously submitted by any one else for the award of any other degree or diploma in any other Institute or University.

(S. SRINIVASA RAO)

BRAND AWARENESS TOWARDS SANTRO With special reference to AYS HYUNDAI AUTOMOBILE PVT. LTD., VISAKHAPATNAM

A Project Report Submitted to Andhra University, Visakhapatnam, in Partial fulfillment for the Award of Degree of

MASTER OF BUSINESS ADMINISTRATION By Mr. S. SRINIVASA RAO Under the guidance of Mrs. LUBZA NIHAR. M.Com.M.Phil., FACULTY MEMBER

DEPARTMENT OF MANAGEMENT STUDIES PYDAH COLLEGE (P.G.COURSES) (Affiliated to Andhra University) VISAKHAPATNAM 2003-2005

CERTIFICATE

This is to certify that the project entitled

“BRAND

AWARENESS TOWARDS SANTRO with Reference to AYS HYUNDAI AUTOMOBILES PVT. LTD., VISAKHAPATNAM” is a bonafide work done by Mr. S. SRINIVASA RAO in partial fulfillment of her MASTER OF BUSINESS ADMINISTRATION, Department of Management Studies, Pydah College of P.G. Courses, Affiliated to Andhra University.

Place : Visakhapatnam Date :

Mrs. LUBZA NIHAR Faculty Member

CONTENTS Page No. CHAPTER – 1      

1-10

Introduction Importance Scope Research Methodology Object Limitations

CHAPTER – 2

11-36

INDUSTRY PROFILE  History of the Automobiles  Automobiles History in World Scenario  Automobiles History in Indian Scenario  Automobiles History 1967 CHAPTER – 3

37-54

COMPANY PROFILE  History in construction field  Hyundai motor India Limited CHAPTER – 4

55-67

 Theoretical Frame Work CHAPTER – 5

68-91

 Data Analysis and Interpretation CHAPTER – 6

92-95

 Summary, Findings & Suggestions CHAPTER – 7

96-98

 Annexure CHAPTER – 8

99

 Bibliography