Cng Ambassador Detailed Analysis

DECLARATION

I the undersigned hereby do solemnly declare that the work presented in the dissertation/ project on “An-In Depth Analysis Of Ambassador Retail Segment with Special Reference to CNG Ambassador in Delhi Region” submitted for the fulfillment of summer training program, does not breach any copyright nor has been previously submitted to any other university / organization.

Mr. Prashant Chaturvedi PGDM 3rd SEM (2007-2009) Master School of Management

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ACKNOWLEDGEMENT I would like to Sincerely Thank Mr. Amar Singh Rathore (National Head, Sales) who allowed me to do My Summer Training in Hindustan Motors Ltd. at Delhi Office. I sincerely acknowledged the guidance provided to me by Mr. Rohit Verma (T.M Delhi) without his constant support, encouragement and valuable input this work would never possible. I would also like thank to Ashok Motors and Rajiv Motors (Delhi) for giving me such an excellent opportunity to know how the Dealings take place. Finally, I am grateful to HINDUSTAN MOTORS LTD. for giving me such an excellent opportunity to do my summer training in this company, which will enhance my experience and provide a vital thrust to my career. I would also like to extend my heartful thanks to Mrs. Aanchal Amitabh for her guidance in our course which help us getting this project completed by the knowledge given by her. I would also convey our sincere gratitude to all the respondents who gave me their precious time and for cooperating with me to make this study possible. The project gave me immense exposure to the industry and I gained knowledge about the practical side of a Research Study. Prashant Chaturvedi PGDM 3rd Semester

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PREFACE As a part of course requirement and to give exposure to get familiar with the various activities taking place in organization, my institute “MASTER SCHOOL OF MANAGEMENT” granted to do summer training in HINDUSTAN MOTORS Ltd. On the topic “An-In Depth Analysis of Ambassador Retail Segment With Special Reference to CNG Ambassador in Delhi Region” by interacting with Taxi Drivers and Fleet Owners and Other Major Taxi Operators. The valuable experience gained during the course of the project gives me an insight into a Retail segment of the CNG Ambassador. This project gives me the knowledge about how analysis is done from the raw data and emphasizes the strategic importance of market information to business. Such an analysis will provide a clear picture of the competition going on in this Car segment among various Companies and the factors that are important for the Dealers as well as marketers. This project gave me the opportunity to find out the HM’s strengths, weaknesses, opportunities available as well as the threats it will face from its competitors in this particular CNG’s Retail Car segment. I hope that this project is comprehensive and provide realistic insight of competition prevailing in this Car Segment.

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Executive Summary I had undertaken a Marketing Project to have the In Depth Analysis of the Company’s Sales in Ambassador Retail Segment with Special Reference to its CNG Ambassador Model and to know the reasons why the Sales of CNG ambassador is not gearing up and loosing the Market as compared to its Competitors. For the same I focused on Mainly the Taxi Drivers, Tour Operators, Fleet Operators and Places where CNG Ambassador is being used by the Customers. For the same we had a target of 100 Respondents which consisted of all the persons like Taxi Drivers, fleet owners, Taxi Stand owners, and govt officials. To get the responses from the Respondents I adopted the method of Structured Questionnaire. The Findings of the survey were, As a Whole most of the Respondents were using the Ambassador for than 8 Yrs or 10 yrs, which means that maximum of the Respondents were well known and have the better knowledge about the Car and the Problems being faced by them in the present Model Of the car. Many of the Car owners or Users were having strength of Ambassador on an average of 5-6 cars. Most of the Respondents look for the Maintenance Cost, Initial Price, Comfort as the main factors while purchasing any new vehicle, and they look these things in the Ambassador Car as their advantage over the Cars in the market. Most of the respondents have their View that in Ambassador Car is having the Safety as the biggest advantage in Comparison to other cars in Passenger car Segment. Some of the Problems being Faced by the Users at Regular intervals which is making them to face the Critical Situations many times, The problems Include Problem with Suspension, Fast heating Of Car With A/C, Sound problem From various Parts Of the car. Maximum Respondents Wants Some Engine changes In the Car at the priority level, and then they also demand some Shape Changes to be there So that they could have the new looks on the road.

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Respondents See CNG Vehicle as the most important Factor to reduce the Pollution Problem in Delhi Region, and it is Cheaper than other Fuels Available in the market for the Cars. Problems being faced by user of the CNG vehicle include mainly with the Filling of the CNG at CNG filling Stations Where they have to Stand in long queues to get their chance and get the fuel, with this they also face problems with the Pressures in the Cylinders which creates the problem and does not let the gas to be filled to the full capacity of the cylinder. Most of the Respondents have their CNG kits fitted from the Company and they are happy, but new Technology of Valve is creating the problem for them. Many of the respondents think that present prices of the Ambassador are high as compared to the Features being provided and also as compared to other models available in the Market. Respondents are fine with with the response of the dealers and they are getting their delivery of their cars on an average of 5-6 days. Most of the respondents find the Availability of spare parts easily but they say that they are little costlier. Most of the Respondents also get the After Sales Service like Service Camps, Festive Offers etc. Many of the Respondents are not Happy with the Service Showrooms and they had a complaint with Their Services, they are not satisfied with the Quality of the Service Provided by the Service Centers.

Based On the Findings, I Could Recommend that:•

The Company Should Focus on the Shape and Engine Problems Which Customers are Complaining a lot, and company should improve those Faults.

•

The Company Should Work upon the better marketing of the Ambassador Model, in New Looks and With Some New Features.

•

The Company should improve their Dealer network and instruct them to Give and Proper service to Customers so that no customer would remain Unsatisfied.

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Contents Introduction

7

Brief Outline of Hindustan Motors Ltd.

9-15

Research Methodology Framework

17-19

Research Analysis & Findings

21-43

Findings

46

Marketing Strategies

48-49

Recommendations

51

Bibliography

53

Annexures

55-58

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Introduction As the Automobile Industry in India is growing with the rate of 15% on an average, and every year in India the number of vehicles are increasing day by day. This leads to much better market for all the Automobile Companies in India. With the increasing number of Population there is a subsequent increase in the Vehicles also whether private or public. Need of both the modes of transport is increasing. Out of the Total Growth of the automobile Industry the growth of the Taxi Segment is 15% of the total Market growth of Automobile Industry. Which means that need for public is great in India, these Taxis basically include Cars like Ambassador, Esteem, Indica and many others. On an Average in Delhi Region only 1000 Vehicles Come on Road Daily and out of that around 250 gets registered as Taxis in Delhi region, In India the around 763 people out every 1000 are capable of Buying a vehicle, but only 120 could at last convert their capability to actual Potential and ability to buy the Vehicle. The share of the Hindustan Motor’s Ambassador Share is 0.5% to 0.9% of the Total market of Automobile Industry. After doing all this Analysis I had taken this Marketing Research and Decided to make An in Depth Analysis on the ambassador retail segment with special reference to CNG Ambassador in Delhi region. And find out the reasons That why the market of the Ambassador is not Growing with so much growth in the Automobile Market and also such a wide scope of Taxi segment. Thus, the main issue is to know the reasons behind the Problems being faced in Maintaining the Growth of Sales of the CNG Ambassadors in the Taxi segment in Delhi Region. This Study will help in identifying the weaknesses and the problems regarding the Retail Segment in taxi Segment in Delhi Region.

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Brief Outline of HINDUSTAN MOTORS Ltd.

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Automobile Industry While automobiles were introduced to India in the late 1890's, the manufacturing industry only took off after independence in 1947. The protectionist economic policies of the government gave rise in the 1950’s to the Hindustan Motors Ambassador, based on a 1950’s Morris Oxford, and, are still ubiquitous in the roads and highways of India. Hindustan Motors and a few smaller manufacturers such as Premier Automobiles, Tata Motors, Bajaj Auto, Ashok and Standard Motors held an oligopoly until India's initial economic opening in the 1980's. The maverick Indian politician Sanjay Gandhi championed the need for a "people's car"; the project was realized after his death with the launch of a state-owned firm Maruti Udyog which quickly gained over 50% market share. The Maruti 800 became popular because of its low price, high fuel efficiency, reliability and modern features relative to its competition at the time. Tata Motors exported buses and trucks to niche markets in the developing world. The automobile industry in India is the eleventh largest in the world with an annual production of approximately 2 million units. India is expected to overtake China as the world's fastest growing car market in terms of the number of units sold and the automotive industry is one of the fastest growing manufacturing sectors in India.

Founder’s profile Birlas are not only known as India's premier industrialists, they are equally well known for large philanthropic endowments in the country. These include Research and Educational Institutions, Hospitals, Rural Development Programmes, Recreation Centres, Museums, Art Galleries, Planetariums, Temples etc.G.P-CK Birla Group was established by late Mr. Braj Mohan Birla, a great visionary and one of India's most outstanding business leaders of all time. The mantle of his rich legacy is presently being carried forward by his grandson Mr. C.K. Birla, son of Mr. G.P. Birla. The group has a track record of successful partnerships and collaborations with global technology leaders like General Electric (GE), General Motors (GM), Caterpillar, Mitsubishi, Isuzu Motors, NTN, to name a few. The G.P - C.K Birla Group: Companies & Institutions

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• • • • • •

National Engineering Industries Limited Birlasoft Limited Hindustan Motors Limited Orient Fans Rivers Vegetable Oil Company Limited, Nigeria Birla Institute of Technology, Ranchi

•

BM Birla Science and Technology Centre, Jaipur

Company Profile Hindustan Motors was the first Indian Car Company to start production In India. Hindustan Motors limited, pioneers in Indian automobile sector is one of the C.K.Birla groups of companies. The company came into existence in 1942 at port Okha, later the company was shifted to Uttarpara (West Bengal), near Kolkata. It started production of the Landmaster in 1954, and in 1957 began the production of the Ambassador. At present, it is a one billion turnover company manufacturing Passenger Cars, Utility Vehicles, Power Products and Earthmoving Equipment. The manufacturing facilities of the company are spread across India: Uttarpara in West Bengal, Pithampur in Madhya Pradesh, Thiruvallur and Hosur in Tamil Nadu, and Pondicherry. The latest model, Mitsubishi Lancer, is manufactured in their state - of - the - art manufacturing facility at Thiruvallur, Tamil Nadu. Hindustan Ambassador has a vast service network. The Passenger Car and Utility Vehicle market is being attended by a 115 strong dealer network, 50 Service and Parts dealers and additional 60 exclusive Parts dealers. 4 Regional Offices and Nation-wide Territory Offices support it. Two dealers serve the Earthmoving Equipment and Power Products market from 25 locations spread across the country. In a bid to streamline the after sales service, three divisions have been made, namely red, blue and green. The Red will handle the new Mitsubishi Lancer, Blue, the Ambassador and Contessa Classic, while the Green caters to the rural market with the Trekker and the HM RTV. Hindustan Motors Limited has been the pioneers in the manufacture of factory fitted CNG/LPG vehicles in India. CNG/LPG as fuel is approved, economical and absolutely safe due to its low inflammability. The latest version of the Ambassador is perfect for those on an economy drive. Compressed Natural Gas (CNG) is a substitute for gasoline (petrol) or diesel fuel. It is considered to be an environmentally "clean" alternative to those fuels. It is made by compressing methane (CH4) extracted from natural gas. It is stored and distributed in hard containers, usually cylinders. 10

In subsequent years it kept on giving different models viz., Hindustan-10, Hindustan-14, Baby Hindustan, Hindustan Landmaster, and Hindustan Ambassador Mark-1 to Mark-4, Ambassador Nova, Contessa Classic and Rural Transport Vehicle (RTV).

The Automotive Research Association of India, Pune set up in 1966, is a cooperative industrial Research Association of the Automotive Industry. The objectives of the Association are Research and Development in automotive engineering for industry, product design and development, evaluation of automotive equipment and ancillaries, standardization, technical information services, execution of advanced courses on the application of modern technology and conduct of specific tests. Developmental testing and certification, especially as per Euro norms is one of its major activities.

COLLABORATIONS Hindustan Motors Limited's (HML) collaboration with overseas automobile manufacturers has brought models in keeping with the present trend in the automobile arena. Besides vehicles, HML has entered into collaboration with foreign companies for its manufacture of automobile parts and transmissions as well.

Chennai Car Plant (Tiruvallur, Tamilnadu) Collaboration: Mitsubishi Motors Japan in the year 1998 Products: The Lancer and Pajero range of cars

RTV Plant (Pithampur, Madhya Pradesh) Collaboration: OKA Motor Company Australia in the year 1998 Products: Road Trusted Vehicles

Past Collaborations: Isuzu Motors Ltd. Japan from 1983 –1993 Vauxhall Motors U.K. from 1980 - 1990 Ricardo Consulting Engineers Ltd U.K. from 1989-1993

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HM’s Product Line 1) Ambassador i) Petrol (a) 1800 ISZ MPFI ii) Diesel (a) 1.5 E2 DSL (b) Classic 2000 DSZ iii) CNG/LPG (a) 1.5 E2 CNG/LPG (b) 1800 ISZ with CNG/LPG

2) Avigo 3) Contessa 4) Grand 5) Pajero 6) Lancer 7) Cedia 8) Pushpak 9) Trekker 10)Porter

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Ambassador Model The Hindustan Ambassador is a model of car manufactured by Hindustan Motors of India. It has been in production since 1957 and is based on the Morris Oxford model first made by the Morris Motor Company at Cowley, Oxford in the United Kingdom. This car made by Hindustan Motors at its Uttarpara plant near Kolkata. When the Birlas wanted a new model to replace their already old Hindustan models, they scouted for the then-new Morris Oxford Series III. The Amby, as it is affectionately called, has been in continuous production since its inception, with very few changes to its frame. In 1957 all the tooling of the British Morris Oxford Series III was transferred to India. The car was renamed the Ambassador and series-production started in 1958. Styling changes from the Morris Oxford series II (Landmaster) to Morris Oxford series III (Ambassador) included deep headlamp cowls and small rear wing "tail fins" -all the rage in 1956. The dashboard and steering wheel were completely redesigned. The Landmaster's flat-plane two spoke steering wheel gave way to a stylish dished steering wheel with three spokes made-up of four wires per spoke, for the Ambassador. In the early 1990s, the old petrol engine was replaced in favour of an Isuzu 1.8 litre engine and became the fastest production car in India, beating Fiats, and the Maruti Udyog cars at that time. The engines currently available are a 75 bhp petrol engine and a 80 bhp (59.8 kW) Isuzu turbocharged and intercooled diesel engine. All the cars manufactured by Hindustan Motors conform to Euro-1 emission norms. This has been achieved by the upgrading of the Ambassador 1800 ISZ with multi - point fuel injection. The Ambassador was always in conformance with these norms.

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Product Classification

Ambassador Petrol

Diesel

CNG

1.8 MPFI 1.5 DSL

LPG

1.8 CNG

2.0 DSZ Classic

Classic

Grand

Classic

Classic

Grand

Classic

Grand

Grand

All Models are available in BS II & BS III version

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Sales and Market Share of Automobile Companies

The above Pie Shows that Maruti is the Market Leader in the Automobile Segment in India, whereas, Hyundai takes the second place in the market 17.1% share of the Total Automobile Market, Rest 31.65 market is Fulfilled by 9 companies which include many Overseas companies like GM, Mercedes Benz, Skoda. Among these big Players Hindustan Motors is having only 0.8% Share in the Total Automobile

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Industry, which shows that how the pioneering Company of India is being smashed by other Companies.

Research Methodology Framework 16

1. Title of the Research Project:

An in-Depth Analysis of Ambassador Retail Segment with Special Reference to CNG Ambassador in Delhi Region.

2. The Issue Inspite of a growth in the Automobile Industry Ambassador is loosing its stake in the market to other competitors.I choose this subject to analyse the reasons behind theDecrreasing sale of CNG Ambassador in the Retail Segment where it is one of the Most liked Cars among others.

3. Research Objectives 1.

To find out the reasons behind the reducing market share.

2. To find out the reason as to find out why CVI of ambassador have

gone down. 3. To find out whether there has been any shift in user driven. 4. To understand the consumer perception from the vehicle and which

brands fulfill which needs.

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5. To suggest marketing strategies to be followed to tap the potential

market segment.

4. Assumptions of the Study •

Consumers of the Delhi Region are well known about the CNG Ambassadors Cars.

•

The Products of the Competitors are also in Competence with all the Norms required for Taxi Segment in Delhi Region.

5. Research Design: Descriptive research design has been used.

6. Research Plan a) Data sources: i) Primary Data: Primary data has been collected from dealers, Taxi Drivers & Tour Operators. ii) Secondary Data: Secondary Data has been collected from Internet, Brochures and Earlier Reports. b) Research Approaches: Type of research approaches used is: o Survey Research c) Research Instruments: i. Questionnaires (closed end as well as open ended Questions have been used) ii. Interviews iii. Schedules

d) Research Technique: i. Pie Charts ii. Bar Graphs

7. Sampling Plan: (b) Sampling Unit: Taxi Owners, Our Operators and Car owners.

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(c) Sample Size: The total Sample Size of 100 respondents was been taken, 36 were Taxi Drivers, 27 were Tour Operators, 20 Fleet Operators, 17 Govt. officials. (d) Sampling Area: Delhi City (e) Sample Type: Stratified random Sample (f) Time Taken For Research: 8 Weeks

(g) Geographical Area: The Study has been Carried Out in Delhi City, Especially in These Areas. (a) Cannaught Place (b) Bhikaji Cama Place (c) Indira Gandhi Airport (d) Palam Airport (e) New Delhi Railway Station (f) Old Delhi Railway Station (g) C.G.O Complex (h) Taxi Stands at Hotels like-Hyatt, Le Meridian, Shangri La, Oberoi, Intercontinental, Taj Palace, and Taj Mansingh.

8.

Contact Methods: 1) Personal Interactions with the Dealers and Fleet owners. 2) Interviews with the Taxi drivers and the Tour operators.

9. Survey Research has been used because of the following Reasons: 1. Can accommodate large sample sizes and generalize results 2. Ease of administering and recording questions and answers 3. Ability to use statistical analysis 4. Factors and relationships not directly measurable can be studied

10.Limitations of the Study

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• As the information was collected from different source the data gathered sometimes vary. •

Certain potential location may not be covered due to lack of time.

• Disinterest of respondent on answering the questionnaire. • The findings of the survey may not be true representative of actual market.

Research Analysis And Findings 20

Q1. From how long you are using the ambassador car?

No. of Years

No of Years

8-6 yrs 6-4 yrs 4-2 yrs 2-1 yrs

2-1 yrs

2

4-2 yrs

3

6-4 yrs

No. of Respondents 79 16 3 2

16

8-6 yrs

79 0

20

40

60

No of Respondents

21

80

100

The above Graph Shows that 79% of the respondents are using the CNG car from last 8 to 6 years or more than that, 16% of the respondents were using from last 6 to 4 years, and 3% and 2& respondents are the users from Last 4-2 years and 2-1 yrs respectively.

Q2. No. Of cars do you currently have?

No. of cars 1-4 cars 5-9 cars 10-14 cars 15-19 cars More than 20 cars

7%

% of Respondents 38% 27% 21% 7% 7%

7% 1-4 cars 38%

21%

5-9 cars 10-14 cars 15-19 cars More than 20 cars

27%

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1-4 Cars: Maximum respondents are having car strength of 1 car to 4 cars, 38% of total Respondents are having the no. Of cars ranging from 1 to 4 cars at the max. 5-9 Cars: Then the next big strength is of those respondents who are holding the cars ranging between 5-9 Cars. This group comprising 27% of all the respondents. 10-14 Cars: 21% of the respondents hold Ambassador Car ranging between 10-14, this group includes fleet operators and other Taxi Stand Owners. 15-19 Cars: 7 % of the Respondents have got the Strength of Ambassador car between 15-19 cars. More than 20 cars: Only 7% of the Respondents holds car more than 20, these include majorly Govt. Dept, and Institutions. Q3. Which make/model of ambassador car do you currently have and which you purchased last?

Make/Model Petrol Diesel CNG

% of Respondents 33% 11% 56%

Ambassador model

33% Petrol Diesel

56%

CNG

11%

The above graph shows that 56% of the respondents are using the CNG Model of Ambassador which include mainly the taxi Drivers and tour operators, while 33% of the respondents were using the petrol version of the Ambassador that is MPFI model these were mainly the Government Official and Fleet Operators, whereas, only 11% of the 23

Respondents were using the Diesel Version of the Ambassador which include the general people and tour operators.

Q4. What factors do you consider while purchasing the new vehicle?

Factors % of Respondent s

Initial Comfort Safet Price y 73.5% 77.76% 75%

Brand 49.73 %

Space Fuel Average Maintenance Others Type Cost 67.5 35% 74% 84% 35% %

35%

Others

84%

Major Factors

Maintennace Cost

74%

Average

35%

Fuel Type

67.50%

Space

49.73%

Brand

75%

Safety

77.76%

Comfort

73.50%

Initial Price 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Percentage of Respondents

• • •

Initial Price: It is the Factor, which is considered 73.5% times while purchasing the vehicle, it means that Indian consumers are very price consciousness. Comfort: Another factor which respondents highly consider while purchasing the vehicle, it is shown that Safety: 75% of the respondents have their view that Safety is the most important Factor, which they consider while purchasing the vehicle.

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• •

• • • •

Brand: For around 50% respondent’s brand is not that much important in taking a buying decision of any vehicle. Space: For the customers like taxi Drivers and tour operators Space is Considered as the one of the important factor, it is showed in the above graph that 67.5% respondents take decision in keeping view the space n the vehicle they are buying. Fuel Type: 35% of the Respondent consider the Type of fuel while buying any vehicle, they look for CNG, Petrol, or whether they Taking the diesel vehicle. Average: Average of the vehicle is considered as the most important factor while purchasing any new vehicle, 74% respondent represents this that they consider the factor of Average while purchasing any new vehicle. Maintenance Cost: 84% respondents were very conscious about the Maintenance Cost to be incurred after purchase. They look for less maintenance cost vehicle. Others: There are other factors also considered while purchasing the vehicle by 35% respondents like Demand of Tourist, Govt. officers Liking Etc.

Q5. Had this model not been available which other model you would have considered and what are the reasons to buy that?

Other Model Indica Esteem Indigo Innova Tavera Omni Others

% of Respondents 22% 24% 12% 16% 14% 7% 5%

Other Preferences

7%

5%

22%

14%

Indica Esteem Indigo Innova

24%

16% 12%

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Tavera Omni Others

Apart from Ambassador People preferences lies in these Cars. Out of which people mostly like the Esteem(26%) and indica(24%), these cars are the preferences of Taxi drivers and tour operators, others like fleet operators and other tour operators like to have Innova(17%), Tavera(15%),Indigo(13%),Maruti’s Omni is also one of the preferences by the customers, and apart from these cars others cars are also liked such as Qualis,Sumo,Swift,Logan,Marina.

Q6. What are the advantage ambassadors has over the other models available?

Advantages

Safety Engine Luggage Seating Maintenance Mileage Others Capacity Capacity Capacity Cost 82.5 26% 30% 53% 19% 13% 30% %

82.5 53 30

ile ag e

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M

M

os t C

ai nt en ne nc e

Ca pa cit y

C e

Se at in g

ap ac it y

ty ap ac i C

En gi ne

30 19

O th er s

26

Lu gg ag

100 90 80 70 60 50 40 30 20 10 0

Sa fe ty

No. of respondents

% of Respondent s

Advantages

•

Safety: 82.5% respondent sees safety as the major advantage in the ambassador due to its Strong body and Shape.

•

Engine Capacity: 26 of the respondent have the view that the engine of the ambassador is very good and very powerful as compared to others.

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•

Luggage Capacity: As compared to other vehicle Ambassador has more luggage space is what 30 of the Respondent say.

•

Seating Capacity: Advantage of rear seat comfort and overall comfort in seating in the car is more people feel in the ambassador as compared to other.

•

Maintenance Cost: Only 19% of the respondent feels that maintenance is low in ambassador and see it as the advantage over the other vehicle.

•

Mileage: Only 13 respondents out of 100 feel that mileage of ambassador is better than the other cars.

•

Others: 30 out 100 respondents has their own view and they other things as advantage of ambassador over the other cars like-it’s an OLD vehicle, it is regarded as the status symbol by the Govt. officers, it is smooth.

Q7: What are the problems Faced with the Ambassador cars?

Problems Suspension Water Seepage Poor Door Pads Defenser Improper Working of Wipers Compressor Fast Heating of Car Malfunctioning of A/C Gear Box Problem Sound From various parts Others

% of Respondents 55% 37.5% 23% 13% 7% 2% 42% 27% 2% 27% 5%

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Others

5% 27%

Sound from Various Parts Gear Box Problem

2% 27%

Malfunctionong of A/C

42%

Faast heating Compressor Wiper Defenser

2% 7% 13% 23%

Door Pads

37.50%

Water Sepage

55%

Suspension

•

Suspension: 55% of the Respondents had a problem with Suspension of the Ambassador Car, which they are facing, at regular intervals. This is the most common and frequently occurring problem, which customers are facing.

•

Water Seepage: Water seepage problem is being encountered by 37.5% Respondents.

•

Door Pads: Another Problem, which customers are prompting, is of the Bad quality of Door Pads. This gets torn in short span of time.

•

Defenser: 13% respondents who are using the ambassador car also face Problem with the Defenser.

•

Wiper: Improper Working of the Wiper is also being reported by the 7% of the Respondents.

•

Compressor: Only 2% of the respondents facing the problem with Compressor.

•

Fast Heating: It is another Major Problem faced by the customers, 42% of the Respondents reports that their cars gets Heated sooner when use to be with their A/C working.

•

Malfunctioning of the A/C: 27% of the respondents are not satisfied with their A/C, they are continuously facing the problem with A/C.

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•

Gear Box Problem: 2% of the respondents say that the gear Box of the Ambassador is very hard and it creates a problem for them. They face problem with the Working and while changing of the Gears.

•

Sound from various Parts: 27% respondents say that Ambassador creates Sounds from Various Parts after some days of the Purchasing the new Vehicle. They are not happy with the Sounds Coming out from the Various Parts.

•

Others: 5% respondents are unhappy with the Other problem regarding the ambassador which they Frequently faces like less average as compared to other cars, Hard Clutch, Plastic Bumpers, Weak Shaft, Bad Lock Quality, High Maintenance etc.

Q8: What more you Expect (Features) you want from the current model of Ambassador? Expectations Shape Changes Engine Changes Price Changes Others

% of Respondents 55% 70% 43% 30%

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43%

Price Changes

70%

Engine Changes

55%

Custome rs Expe ctations

30%

Others

Shape Changes 0%

20%

40%

60%

80%

100%

Percentage of Respondents

Shape Changes: 55% of the Respondents are in favour of Changing the Shape of the Ambassador Car, they get bored and Expects Ambassador in a new look so some Shape Changes should be brought, and Ambassador should be repositioned in New Shape and Size. Engine Changes: 70% of the Respondents are not happy with the regular problems faced by them frequently, so they demand the Engine Changes in Ambassador Car. Price Changes: 43% of the respondents expect some changes in the prices of the Ambassador car. Other: 30% respondents Expects some other changes in the Present Model of the car like There Should be Better A/C, Average Should be better, and same old Steel Bumpers Should be kept on.

Q9: How do you compare CNG driven vehicles with petrol/diesel vehicles? Comparison factors Mileage Smoothness Less Power Engine Life Emission rate Limited Availability

% of Respondents 63% 2% 33% 3% 73% 67%

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Others

75%

Others

75%

Comparison factors

Limited Availability

67%

Less Emission

73%

Longer Life of Engine

3% 33%

Less Power Smoothness in Engine

2% 63%

More Mileage 0%

10%

20%

30%

40%

50%

60%

70%

80%

90% 100%

Percentage of Respondents

• • • • • • •

More Mileage: 63% respondents say that CNG driven cars give more Mileage than the Petrol/Diesel driven cars. Smoothness in Engine: only 2% of the respondents feel Engine of the CNG cars smooth than the Petrol/Diesel cars. Less Power: 33% respondents have their view that CNG driven Cars have Less power than Petrol/Diesel Driven cars, they feel that CNG car gives less Power with A/C on than Petrol/Diesel cars. Longer Life of Engine: only 3% of the respondents feel that CNG Driven Vehicle has longer life of their Engine than Petrol/Diesel cars. Less Emission: 73% of the Respondents feel that CNG vehicle is best Suited for the Environment because it gives Less Emission than Petrol/Diesel Cars. Limited Availability: 67% of the respondents told that Availability of Gas for the CNG vehicle is very limited than Availability of Petrol/Diesel. Others: Maximum Respondents Told about the Cheapness of the CNG for the CNG Vehicle, 75% of the respondents feels that CNG is more economical than Petrol/Diesel.

Q10 (A): what all problems do you face with CNG vehicles?

Problems Leakage problem Filling problem No Proper Supply Reduction in Mileage Affects Engine capacity

% of Respondents 0% 63% 33% 12% 20%

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Others

100% 90% 80% 70% 60% Percentage of 50% Respondents 40% 30% 20% 10% 0%

74%

74% 63%

33% 20%

12% 0% Leakage Filling No Proper less Problem Problem Supply Mileage

Affects Engine Capacity

Others

Problem With CNG Vehicle

Leakage Problem: No respondent faces any problem regarding leakage of the gas. Filling Problem: 63% respondents have the problem regarding filling, according to them CNG Cylinders Could not Contain the Gas to its full capacity. No Proper Supply: 33% respondents who have bought new Standard vehicle faces the Problem with Proper Supply, they had a problem with the Valve System which is being kept in newer models which hinder the proper supply to the engine. Less Mileage: 12% of the respondents feel that CNG vehicle give them Less Mileage. Affects Engine Capacity: 20% respondents feel that CNG affects the Engine capacity. Others: 74% of the respondents face problems at the CNG filling Stations, because they have to stand and wait in long queues to get their vehicles CNG filled. Q10 (B): Whether your car has CNG fitted from company or is it retrofitted? Which one you find better?

CNG Fitment Company Fitted Retrofitted

% of Respondents 74% 26%

32

26%

Company f itted Retro f itted

74%

74% of the respondents have their CNG KIT fitted from the Company, and they are very much satisfied with that. These respondents feels that Company fitted CNG Kit is Convenient for them as they don’t have to again get the work done in their vehicles and Company fitted CNG kit engines are well tuned as per the CNG kit. But at the same time they face problem with New Valve technology which is being put in new vehicles as it hinders the proper supply to the engine. On the other hand 26% OF the respondents have their RETROFITED CNG KITS, Which were installed in old Cars, in which they were regularly facing the problems with engine or the other things.

Q11: Are you getting your value for money by the present models of ambassador car, if not then what extra features you want to get your value for money? Are present prices high?

Yes No

62% 38%

33

No 38%

Yes 62%

62% of the respondents Thinks that present prices are high and they needs to be Changed and they feels that they are not getting their Value for Money, and they want some Changes in the present Model of the Car which will make them more happy and make them feel their Value for Money, Some of the Common Changes which maximum Respondents Wanted was that Change in technology and introduction of some new features like Air Bags, ABS, Defogger, Better A/C, MP3 Player. Then On the other Hand 38% respondents don’t think that present prices are high, but they also need Some Technical Changes that could be useful for them like Engine should be much better than now, More power should be there, Average should increase, Regular faults which they are facing must be corrected, than apart from all these things other changes like better quality of Door pads must be there and availability of Better Parts Should also be look after.

Q12: Are you satisfied with the procedures followed by the dealers in completing all the formalities from the time of Booking till the Final Delivery?

Satisfied Unsatisfied

46% 54%

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46%

Unsatisfied 54%

Satisfied

Its only Around Half of the respondents were happy with the Procedures followed by the Dealers in completing all the Formalities from the time of Booking till the date of Delivery, Its only 54.5% respondents who are satisfied with the proceedings of Dealership in Delhi region, otherwise Some of them were complaining about the lateness of the Delivery of the car, some say that Dealers do not provide After Sale Service To them, some of the Respondents were not happy with Work Done by Authorized Service Stations. These are some of the Basic problems faced by the customers and they are turning towards other Models of the car in the Same Segment.

Q13: How much time Dealers usually takes in completing all the formalities till delivery? Time Taken by dealers 0-5 Days 6-10 Days 11-15 days 15 or more days

% of Respondents 36% 30% 20% 4%

35

4%

22% 41%

0-5 days 6-10 days 11-15 days 15 and more days

33%

Maximum Respondents get their Delivery of their Cars on Time or within 5 Days of their Delivery, 41% of the respondents were happy with the Delivery process Of the dealers they get their cars within 5 Days of time, or On the Spot They being Given Delivery. 33% of the respondents get their delivery in 6-10 days of period due to some Formalities or Some Extra Work to done by the customers it or this Delay is also due to unavailability of Stock. 22% of the Respondents are Getting their delivery In period of 11-15 days of time, this Delay is due To unavailability of Stock with the Dealers, which must be look after and Corrected that Dealers Must have the Sufficient Stock and Customers do not turned back. 4% of the Customers are not happy with the Delivery Process because they got their delivery in more than 15 days of time from the time of delivery. Q14:

Can you cover more places outside Delhi with your CNG model of Ambassador? Yes No

88% 12%

36

Yes 12%

No 88%

s

89% of the respondents have their View that they could not cover more places outside Delhi with the Present model of CNG Ambassador Car, they are complaining about the in availability of CNG outside the Delhi and they are not getting the sufficient Average so that they can cover more places outside the Delhi. 12% of the respondent who could cover more places outside the Delhi say that they can cover outside Delhi only till Gurgaon or at the most till Faridabad, or if they could cover more places outside Delhi than they could do so with the help of 40 Liters of petrol tank which is being provided in the present model.

Q15:

Do you get any service/offers after sales also? After Sale Services Service Camps Regular Check-ups New Scheme Information Festival offers

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% of Respondents 65% 12% 19% 4%

Percentage of Respondents

100% 90% 80% 65%

70% 60% 50% 40% 30% 20%

19%

12%

4%

10% 0% Service camps

Regular Check-ups

New Scheme Information

Festival offers

After sale Services

Service Camps: 65% of the respondents are happy and they get regular Service camps at their Sites by the Company, these respondents include mainly the Taxi stand owners, tour operators, and many govt. officials and their departments. Regular Check-ups: 12% of the Respondents are getting their cars regularly checked up by company official and mechanics when and ever they wanted that. New Schemes Information: Company’s New Scheme Information is reached only to 19% of the respondents, rest they are not aware about the new scheme information. Festival Offers: only 4% of the respondents Get festival Offers from the Company, which needs to be increased as compared to the Competitors offers to their Customers.

Q16: How do you compare Ambassador’s CNG model with other CNG driven Models? Comparison factors % of Respondents

Mileage

Smoothness

46%

45%

Engine Capacity 57%

38

Cylinder Capacity 56%

Others 0%

Comparison Factors

others

0%

Cylinder Capacity

56%

Engine Capacity

57%

Smoothness

45%

Mileage

46% 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Percentage of Respondents

Mileage: 46% of the Respondents have the view that Mileage of the CNG Ambassador Is below Average than other CNG driven Cars. Smoothness: Respondents also doesn’t feel in the CNG ambassador as compared to the other vehicle. Engine Capacity: From the above graph it could be clearly inferred that Respondents feel that CNG Ambassador’s Engine has more capacity than other vehicle in this segment. Cylinder Capacity: In respondents view 56% rating is being given to the Cylinder capacity as compared to the other Vehicle.

Q17 (a): How you find the spare parts in terms of availability and cost? Availability-Easy Availability-Difficult

79% 21%

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Availability Of Parts

21%

79%

Customers are satisfied with the availability of the spare parts of the Ambassador in the market. This could be inferred from the above graph that 79% of the customers find the availability of the spare parts very easily or nearby.

Q17 (b): How you find the spare parts in terms of availability and cost? Cheap Costlier

37% 63%

40

Cost Of Parts

37% Costlier Cheap 63%

From the above Graph it is clearly arrived that respondents feel that the Spare parts available in the Market are little Costlier than the Spare parts of the other cars or than the spare parts of local quality. They are getting the spare parts at comparatively higher prices which need to be concentrated upon.

Q18 (A): How you find the service showrooms for maintenance in terms of availability of service? Far Near

65% 35%

41

Availability of Service Showrooms

35% Far Near

65%

Availability of showrooms is being rated as 65%, which means that Service showrooms are far away from the most of the customers from their point of parking or their place of Work. Respondents have to travel for long to find the service showrooms in the Delhi city. Being In Delhi with Long Distances Customers have to travel a lot in search of Service Showrooms of CNG Ambassadors.

Q18 (B): How you find the service showrooms for maintenance in terms of quality of service? Excellent Poor

46% 54%

42

Quality of Service Showrooms

46%

54%

excellent Poor

Respondents feel that service given by the service centers is not good, and they are not satisfied with the services which they experiences after getting the car. They complaint that they have to make certain rounds to service centers for getting the small fault corrected.54% of the respondents had a bad experience at service centers.

Q19:

Are you satisfied with the CNG cylinder provided with the Present Model of 12 Kgs? If not then what should be the size of the cylinder? Yes No

22% 78%

43

Yes 22%

No 78%

Maximum Respondents are not at all satisfied with the Present Cylinder Provided by the Company in the Present Model of The CNG Ambassador Car, They had a complaint that with this much Capacity the can not cover more places and they have to wait in long queue for filling the CNG.On an Average they Demand for Bigger Cylinder Than presently provided, Respondents have a View that They Ned a 15Kg-16Kg cylinder on an average. Only 22% Respondent is satisfied with the present capacity of Cylinder being provided by the Company.

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FINDINGS

45

SWOT ANALYSIS Strength

Weakness

 Oldest Car in the Market.

 Pricing Policy, comparatively higher price of products.

 Most Trusted in Government

 Few advertisement

Institution.  Customer Satisfaction

 Need improvement in designing part of the product.

 High Brand Value

 Regular Faults being faced by

 Only car with dedicated CNG

Users in engines.

engine.

 Poor spare parts and service

 Status symbol for Government

network.

officials.

 Non availability of features i.e.

 Only car suitable for Bullet

heating, defogger, ABS, Air Bags,

Proofing.

Rear wiper etc.

Opportunity

Threat  New and Better model in comparison to Ambassador.

 By just Improving Few engine Problems Company can tap a larger retail market.

 New models are being approved for Taxi Segment and also in the Govt. Departments.

 Company should improve its service station so that customers could get better service and HM can earn from there.  With slight changes in its pricing Policy and providing better and improved fault free model to customer, HM will Certainly rule the market.  Discontinuation of Maruti Esteem in due course. 46

 No change in model looks and engine making it outdated in the eyes of customers.  Introduction of new technologies i.e. CRDI Engine, Automatic gears etc. by competitors.

Marketing Strategies

47

After having the experience of the whole present scenario and competition prevailing in the market, I can recommend some Marketing Strategies so that the Ambassador’s Retail Segment could increase it’s in the automobile market. I would like to recommend Some Strategies on the basis of 5P’s, i.e. Product, Price, Place, promotion and process.

Product: • On the basis of product I would like to recommend that Company should go for product differentiation by changing the model a bit and giving some new features in the CNG Ambassador model. • As HM is the is only company giving the Company fitted CNG kit till now so Company should also focus to differentiate its CNG product on the basis of Its Performance Quality by emphasizing on the performance and provide better and consistent Performance Quality to Customers.

Price:•

On the basis of prices, I would like to recommend that Company should go for low interest rate financing for their customers especially for the Taxi drivers who are using the CNG Ambassadors for taxi purpose.

• To gain the market share in Taxi Segment Company needs to adapt the Price reduction policy as other competitors are having their Products at lower costs.

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Place:•

Company should go for proper Advertising and marketing of CNG Ambassador Should be done those areas where CNG as a fuel is available like at some places of Rajasthan, and in U.P also.

Promotion:•

As Ambassador is a well established brand and everyone knows about it, but people have its old image in their mind which needs to be changed with its presently changed model, so for that there is a strong need for some good Advertising of the Product and proper awareness about the CNG’s present Ambassador Model in the minds of People. Presently there is very less promotional activities are being carried on by the Company. so that has to be emphasized and More promotional activites should be encouraged by the Company.

Process:• As the Customers are not satisfied with the responses which they are getting from the Dealers and Service Centers, so that has to be monitored and company should provide better training to their Workshop mechanics so that they could provide better services to the customers. • Company should ensure that Dealers are having a proper stock every time so that customers won’t turn back.

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Recommendations

50

 Company should focus on the Car’s design and engine to remove the regular faults.  Company should strengthen and improve their dealer network to give prior satisfaction to its customers.

 Company should add some new features like Defogger, ABS, Air bags to compete better with competitors. So that customers could get their Value for money.  Company should revise their Prices According to their Competitors Price to capture a good Market, Especially in Taxi Segment.

 There’s a Strong need of good marketing of Company product, though it’s a well known Brand and trusted by people but to attract new and untapped customer company should increase their Advertising through various modes like through newspapers, Television, Glow signs. Personal interactions.  Company should attend their customers in much better way so that a good word of mouth could be spread and benefit of that could be received.

 As per the Requirements of the Customers company should think on increasing the size of CNG cylinder to on an average of 15 kgs.  There should be Ready stock with Dealers Always so that Customers Get on time Delivery and he don’t get turned to Competitors cars.

 Company Should Reposition their BRAND and Product in the Market with new and improved versions of the present models, to attract the 51

customers and give the Ambassador same old Grand and Sturdiness image in the market.

Bibliography

52

Websites Visited WWW.GOOGLE.COM WWW.HINDUSTANMOTORS.COM WWW.CARWALE.COM WWW.AUTOJUNCTION.COM

Books Referred Marketing Management by Philip Kotler

Other References Company Brochures Previous Reports Company Presentations

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ANNEXURES

54

QUESSTIONNAIRE TOPIC: - An In-Depth Analysis of Ambassador Retail Segment with Special Reference to CNG Ambassador in Delhi Region.

NAME :

____________________________________________

AREA :

____________________________________________

OPERATOR:

____________________________________________

MOBILE:

________________________

Q1:

From how long you are using the ambassador car? Which Model? a. 8-6 yrs b. 6-4 yrs c. 4-2 yrs d. 2-1 yrs e. New Customer

Q2:

No. Of cars do you currently have? (Ambassador Car)

Q3:

which make/model of ambassador car do you currently have and which you purchased last? 1. Petrol A. 2005-2006 2. Diesel B. 2006-2007 3. CNG C. 2007-2008 D. Recently

Q4:

what factors do you consider while purchasing the new vehicle? (On scale of 1 to 10)…. (1 for least and 10 for highest) a. Initial price ……………………… b. Comfort ……………………… c. Safety ……………………… d. Brand ……………………… e. Space ……………………… f. Fuel type ………………………

55

g. Average ……………………… h. Maintenance cost ……………………… i. Others__________________

Q5:

Had this model not been available which other model you would have considered and what are the reasons to buy that? a. Indica b. Esteem c. Indigo d. Innova e. Tavera f. Omni g. Others ______________________ Reasons: -______________________________ Q6:

what are the advantage ambassadors has over the other models available? a. Safety b. Engine capacity c. Luggage space d. Seating Capacity e. Maintenance Cost f. Mileage g. Others ________________________

Q7:

What are the problems Faced with the Ambassador cars? a. Suspension b. Water seepage c. Poor Quality of Door pads d. Defenser e. Improper working of wipers f. Compressor g. Fast heating of car h. Malfunctioning of A/C i. Problem with gear box j. Sound from various parts k. Others ______________________________

Q8:

What more you Expect (Features) you want from the current model of Ambassador? a. Shape should Change b. Engine Changes should be made c. Price d. Others ______________________________

Q9:

How do you compare CNG driven vehicles with petrol/diesel vehicles? a. CNG gives you more mileage than petrol/diesel. b. CNG has the smoothness in the engine performance. c. CNG has less power than petrol/diesel.

56

d. e. f. g.

CNG makes the life of engine longer then petrol/diesel. CNG has less Emission than Petrol/diesel. CNG availability is limited than petrol/diesel. Others __________________________________________

Q10:

what all problems do you face with CNG vehicles? Your car has CNG fitted from company or is it retrofitted? Which one you find better? a. Leakage Problem b. Filling Problem c. No Proper Supply d. Reduction in Mileage e. Affects the engine Capacity f. Others ______________________

Q11:

Are you getting your value for money by the present models of ambassador car, if not then what extra features you want to get your value for money? Are present prices high? 1. ____________________ 2. _____________________ YES 3. _____________________ NO 4. ______________________

Q12:

Are you satisfied with the procedures followed by the dealers in completing all the formalities from the time of Booking till the Final Delivery? (Rate on the scale of 1 to 10)… (1 for least and 10 for highest) Satisfaction-

Least______________________highest

Q13:

How much time Dealers usually takes in completing all the formalities till delivery? Time Taken- 0-5 Days 6-10 Days 11.15 Days More than 15 Days

Q14:

Can you cover more places outside Delhi with your CNG model of Ambassador? YES NO

Q15:

Do you get any service/offers after sales also? a. Service Camps b. Regular Checkups c. New scheme information d. Festival offers e. Others ______________________

Q16:

How do you compare Ambassador’s CNG model with other CNG driven Models? (Rate on the scale of 1 to 10, 1 for least and 10 for highest)? A. Mileage B. Smoothness C. Engine Capacity

57

D. Cylinder capacity E. Others _____________________

Q17:

How you find the spare parts in terms of availability and cost? (Rate them on the scale of 1 to 10) a. Availability -Minimum______________________________Maximum b. Cost -Cheap______________________________Costlier

Q18:

How you find the service showrooms for maintenance in terms of availability and quality of service? (Rate them on the scale of 1 to 10) A. Availability – Very Near __________________________ Very Far B. Quality - Excellent ___________________________ Poor

Q19:

Are you satisfied with the CNG cylinder provided with the Present Model of 12 Kgs? If not then what should be the size of the cylinder? Give your Suggestions YES NO __________________________ (Suggestions)

Q20:

Are the Accessories provided with the Ambassadors better and attractive or of other models?

Q21:

Any Advice for future Improvements?

THANK YOU FOR YOUR VALUABLE TIME

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