Project Report Final

EXECUTIVE SUMMARY: This project was undertaken at Shree Automotive Pvt Ltd. to understand the market potential & people’s perception of Mahindra Renault Logan at Kolkata,through an extensive field survey under the guidance of Ass. Sales Manager Dibyendu Bhattacharya.  Objectives: The main objective of the study was to find (i) market potential (ii) popularity, (iii) acceptability of Mahindra Renault Logan among the people.  Limitation: ✔

Time was the major limitation that I have faced during the study, vast area was to be covered in the period of one month.

✔

The samples taken may not be conforming to the actual population.

✔

Personal or personal error of the interviewer might also have cropt in some cases, while interpreting the respondents.

✔ Certain questions which are not properly responded by the respondent.

 Finding: ○ ○ ○

Half of the people said Mahindra automobile produces good vehicles. People want more variety of cars from Mahindra. Most of the people were upset with the look of Logan. 1

○ ○ ○

50% said Logan is extremely high priced, 45% said its ok. There is a mixed response about the after sales service of Logan, where 40% said it is good, & 40% said it is average & the rest said it is bad.

 Recommendation:



It is high time for Mahindra to include more Varity of cars in its portfolio.



Mahindra should enter the small car segment which occupies a major share in the passenger car market.



With respect to people’s perception about Logan, Mahindra Renault should think of having a modified (exterior& interior) version Logan in the market.

 Extraordinary placements of power window switch making the passenger uncomfortable. It should be changed.

 Price of Logan should be reduced to boost up the sales of it.

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

The location of Shree Automotive Pvt Ltd (V.I.P) is in such a way that the showroom gets completely hidden by the fly over near Haldiram’s as a result people lose the sight of the showroom & as such showroom looses the attention of the people.

1. INTRODUCTION: The project is based on the market survey of Mahindra Renault Logan, which is a joint venture of Mahindra & Renault in India.

1.1 Indian Automobile Industry: History: The Automobile Industry emerged in India in the 1940s. However, the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Present Scenario: The Indian Automotive Industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and 3

Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which attracted significant India-specific investment by multinational automobile manufacturers. The Automobile Industry in India is the ninth largest in the world with an annual production of over 2.3 million units in 2008. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand.

Some achievements of the industry area as follows: • • • • •

India has the fourth largest car market in the world India has the largest three wheeler market in India. India is the second largest producer of two wheelers in the world India ranks fifth in the production of commercial vehicles Hyundai Motors India ranks second in car production in the world.

An Overview:

Automobile industry of India can be broadly classified under: (i) passenger vehicles, (ii) commercial vehicles, (iii) three wheelers and at last (iv) two wheelers. With two wheelers having a maximum market share of more than 75%. Automobile companies of India, Korea, Europe and Japan have a significant hold on the Indian market share. Tata Motors produces maximum numbers of mid and large size commercial vehicles, holding more that 60% of the market share. Motorcycles 4

top the charts of two wheelers, with Hero Honda being the key player. Bajaj by far is the number one manufacturer of three wheelers in India. Some achievements of the companies operating in different sectors of the Indian automobile industry: Hero Honda is the largest manufacturer of motorcycles. • • •

Hyundai Motors is the second largest player in passenger car market. Tata Motors is the fifth largest medium heavy commercial vehicle manufacturer in the world Bajaj Auto is ranked as the world's fourth largest two- and three- wheeler manufacturer.

Key Players Indian Automobile Industry: Some of the key players of the industry are as follows: ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢

Maruti Suzuki Hero Honda Tata Motors Bajaj Auto Ltd Mahindra Group Ashok Leyland Yamaha Motor India TVS Hyundai Motors India 5

➢ Toyota Kirloskar Motor Pvt Ltd ➢ Honda Seil Cars India Ltd

Key Players of Indian Passenger Vehicle Sector : Passenger vehicle section is majorly ruled by the car manufacturers capturing over 82% of the total market share. Maruti since long has been the biggest car manufacturer and holds more that 50% of the entire market. Some of the key players of this industry are as follows:

➢

Maruti Suzuki 6

➢

Tata Motors

➢

Hyundai Motor India

➢ Mahindra & Mahindra

➢

Honda

➢

Toyota

➢ Ford

➢

Chevrolet

➢

Fiat

1.2 Mahindra & Mahindra, Renault & Mahindra Renault

Mahindra & Mahindra Ltd: 7

Mahindra & Mahindra Limited is a flagship company of the Mahindra Group, and is an automotive firm. Company was set up in 1945 as Mahindra & Mohammed. Later name was changed from Mahindra & Mohammed to Mahindra & Mahindra in 1948. Initially set up to manufacture general-purpose utility vehicles. Mahindra & Mahindra was first known for assembly under license of the iconic Willys Jeep in India. The company later branched out into manufacture of light commercial vehicles (LCVs) and agricultural tractors. M&M expanded its operations from being a manufacturer of army vehicles and tractors to an automobile major with a growing global market. At present, M&M is the leader in the utility vehicle (UV) segment in India with its flagship UV’s like the Armada, & Bolero and the SUV’s like the Scorpio & Xylo. At present M&M is India's largest SUV maker.

RENAULT: Renault S.A. is a French automaker producing cars, vans, buses, tractors, and trucks. The company was founded in the year 1899 by three brothers Louis, Marcel & Fernand Renault. Due to its alliance with Nissan, it is currently the world's fourth largest automaker. Headquartered in Boulogne-Billancourt, Renault owns the Romanian automaker Automobile Dacia and the Korean automaker Renault Samsung Motors. Carlos Ghosn is the current CEO. The company's most successful car to date is the Renault Clio, and its core market is France. The company is known for numerous revolutionary designs, security technologies, and motor racing. 8

Mahindra Renault: In February 2005Mahindra & Mahindra and Renault decided to join forces to produce and commercialize the Logan in India. The joint venture is a 51:49 partnership between M&M and Renault. The state-of-the-art Logan facility in Nashik offers a body shop, stamping shop, a paint shop with a top quality pre-treatment and an assembly line specific for the Logan. The joint venture Mahindra-Renault produces and sells Logan. The first Logan left the Nashik plant in 2007, badged as a Mahindra-Renault vehicle.

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1.3 Company Profile: History: Shree Automotive Pvt Ltd is a part of kedia group of companies which has primary interests in Automobile dealerships.

Shree Automotive Pvt Ltd, which is located in Ved Bhumi, Koyla Bihar, Kolkata-59, besides VIP road, started its journey in the year 2004 with the dealership of Mahindra & Mahindra Automotive. Shree Automotive have been affiliated with M&M for about half a decade. The business is family owned, but professionally managed.

The Managing director of the company Mr. Sharad Kedia who has been in the automobile industry for past 25 years, and is past chairman of the Motor Industry Association.

Mr. Saurabh Kedia, director of the company, has been involved in the growth of the company since 2005. Other key people are Mr. Sumanta Basak, Mr. AK Dubey & Mr. Jyotirmoy Basu, who have been with the Group for over 15 years each.

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From its emergence in 2004 up to February 2009 Shree Automotive Pvt Ltd, was only engaged in dealership of Mahindra &Mahindra automotives prosper/ commercial vehicles. It was in February 2009 when Shree Automotive entered into the dealership of M&M automotives personal vehicles. Now, Shree Automotive Pvt. Ltd, Ved Bhumi has a dealership of Mahindra & Mahindra, Mahindra & Mahindra international, and Mahindra Renault Ltd.

Organization Structure (Marketing):

General Manager

Sales Manager

Assistant Sales Manager (Personal vehicles)

Team Leader

Assistant Sales Manager (Prosper/commercial vehicles)

Team Leader 11

Sales Personnel

Sales Personnel

Goals & Objectives: The goals & objectives of the company which are clearly defined are as follows:     

To assist better customer handling. To provide easier mode of financing for the products. To have proper planning in its organizational structure. To provide better after sales service. To provide the best automotive solutions to customers.

Company Mission: To continuously deliver superior business results through warm customer interaction without losing sight of our core values of Honesty, Integrity and Passion. Company Vision: “To be the largest automobile dealer in Eastern India” Distribution Network: Distribution is mainly done in West Bengal through an organized distribution network comprising of branches/ showrooms. The showrooms are located in: Kolkata Vedbhumi, Kyola Vihar Near: Haldirams, VIP Road 12

Kolkata-700 052

Barasat 58 J.RODE Sethpukur, Barasat, Kolkata-700124

Howrah NH 6, P.O. Argora Jungalpur (Near Alampur) Howrah-711 302

Hoogly 58 G.T. Road, Sreerampur

In automobile sector, the distribution network does not only include an organized and efficient distribution network of its products, but at same time involves an equal & efficient chain of organized service centers. For Shree Automotive they located at: Kolkata & 24 Parganas: 4 Ghulam Jilani Khan Road, P.O. Tiljala, Topsia. Kolkata-700 039

North 24 Parganas: Khilkhapur, P.O. Nawpara on NH 34, Barasat, 13

Kolkata-700 126

Howrah: NH 6, P.O. Argora Jungalpur (near Alampur) Howrah-711 302

Hoogly: 58 G.T. Road, Sreerampur

Product list: (1)3WHEELERS- 20* 12 Alfa, Alfa passenger (2) LCV- Bolero (3)PICK UP- Maxxi truck, DI 3200 (4)SUV- Scorpio, Xylo (5)SEDAN- Logan

1.4 Product Profile: Mahindra-Renault LOGAN: Logan is the car which generally comes under the belt of Renault. But in India it is launched as a joint venture between M&M and Renault. As a result it comes out to the market as the first sedan which is having the name of M&M with it. Similarly Logan has also got different names like Renault Logan, Nissan Aprio, Renault Tondar 90 while launching in different parts of the world (Romania, Columbia, Russia, India and S.A). 14

Logan was launched in India with the tag of “The wide bodied Logan”. The newly launched is the Logan edge CONNECT. In India the car has got three engine variants: 1.4- petrol, 1.6- petrol, 1.5diesel. The car is available in four variants (2 in petrol & 3 in diesel): 1.4GLX, 1.6GLSX, 1.5DLX, 1.5DLS and 1.5DLSX. Some key features are as follows: ✔ ✔ ✔ ✔ ✔ ✔ ✔

Wide body. Leather & wood upholstery. Wood finish & attractive dash. LCD display with Driver Information System Bluetooth, USB & Reverse parking sensor Length (4247mm), Width (1740mm), Height (1534mm) Largest boot space in its segment (510 ltr.) Price of Logan ranges between 5 to 8 lacs.

Competitors of Mahindra-Renault LOGAN: Some of the key competitors of Mahindra Renault Logan are as follows: 15

1. 2. 3. 4. 5. 6.

Swift Dzire (Suzuki) Indigo XL, CS, Manza (Tata Motors) Accent (Hyundai) Ikon , Fiesta (Ford) Aveo (Chevrolet) Linea (Fiat)

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2.1 OBJECTIVE: 1.

To explore the perception of Mahindra Renault Logan in mass.

2.

To find the popularity of Logan in today’s generation.

3.

To find the market acceptance of Logan

4.

To find the selling potential in Logan the market.

5.

To find the price acceptability of Logan.

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2.2 LIMITATIONS: •

Since the survey was conducted with 50 randomly selected respondents from which maximum were corporate employees compared to other segments of respondents therefore the result was mostly indicative.

•

The samples taken may not be conforming to the actual population.

•

Time was the major limitation that I have faced during the study, vast area was to be covered in the period of one month.

• Personal or personal error of the interviewer might also have cropt in, some cases, while interpreting the respondents. • Certain questions which are not properly responded by the respondent. • Unwillingness of the people to respond to the questionnaire was a major obstacle faced during the survey.

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2.3 RESEARCH METHEDOLOGY:

➢

Sampling: Sampling is based on the technique of simple random sampling. ○ ○ ○

➢

Sample Area: Kolkata Sample Size: 50 Segments Covered: Corporate employees, Business man etc.

Method of Data Collection: Since the research was conducted on present market & current prospects so the focus was on primary data collection. Hence the method that was used for collecting primary data was Interview through a structured Questionnaire.

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➢

Personal Interview: Personal Interviews were conducted with several employees of various corporate houses, interviews were also conducted with many business man & some prospective customers. Questionnaire 2, which was meant for existing customers of Logan consist of 7 closed questions & 2 open end questions.

➢ Questionnaire Design: The questionnaire was developed in consultation with the marketing & sales department of Shree Automotive Pvt. Ltd. Two Questionnaires were prepared one for prospective customers and another for collecting the feedback of existing Logan customers. Questionnaire 1, which was meant for prospective customers consist of 16 closed end questions.

➢

Field Work Details: Field work was done between 23rd July 2009 to 25th July 2009, which included obtaining appointments from many respondents, meeting them, collecting data. Field work also involved showing cars to many prospects, convincing them to have a test drive & recording the important feedback.

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3.DATA ANALYSIS AND INTERPRETATION:

According to Questionnaire: 1

Q1.What type of car do you prefer?

According to the data obtained, 40% the respondents like smallcars / hatchback , 34% of the respondents thought that sedan will suit them & 26% respondents preferred the SUV’s. 21

Q2. What is your perception about Mahindra Automobile’s product?

As per the chart we can see that 50%of the respondents believe that Mahindra’s products are good, 25% of them think that their product are average, 21% think that their product are very good & rest 4% felt that Mahindra’s product are bad.

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Q3.If you are going to be a customer of M&M cars in future, what will be your expectation?

From the bar chart we get the information that 45% of customer want that more Varity in cars is needed, 25%customer thought that the quality improvement is more needed, 20% of the customer thought that no, after sales service is more important. &rest 10% customer thought that they need more value for money from Mahindra cars.

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Q4. Which brand according to you is giving the most competition to? Mahindra Automobiles in India?

According to the figure 40% respondents told that they that Maruti Suzuki is the biggest competitor of M&M, 25% respondents said Hyundai motor gives a better competition, 20% thought no it is TATA motor&15% said it is Ford Company who is giving a tough time to Mahindra &Mahindra.

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Q5. What about the price of Mahindra cars?

According to the chart 65% respondents thought that the Mahindra cars are highly price & 35% respondents thought that they are moderately priced.

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Q6. Do you think that the cars of Mahindra are capable to attract today’s generations?

As per the chart 55% of respondents said yes they will be able to attract the customer 30% said no Mahindra need to innovate more to attract today’s generation and 15% are little confused about the outcome.

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Q7. What is the best thing in Mahindra cars?

As per the bar chart 40%of the respondents thought that the style design are the best attractive part of a Mahindra cars , 25% vote goes for both quality &service respectively.& finally 10 % respondents fell that no the price is the most attractive thing in a Mahindra cars.

Q8. Do you like the Mahindra Renault Logan? 27

As the chart shows that 15% of the respondents liked Logan very much, 65% of the respondents voted the car in average segment. & 20% did not like the car much.

Q9.What do you think about the design & style of Mahindra Renault Logan (Edge Connect)?

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As the chart shows that the 18% of the respondents said it is good, 14% voted in very good segment, 46% of other respondents give their responses in average part, &rest 22% respondents did not like the design& style of Logan (Edge Connect) very much.

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Q10. What do you think about the interior of Logan (Edge Connect)?

As per the chart 15% of the respondents thought that its interior is very good, 40% of them thought that it is good, 35% of them feel that it is average &rest 10% feel that it is not so good rather bad.

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Q11.New technologies such as Bluetooth, DIS, Reverse parking sensor are given in the new Logan- is it good & going to make you feel comfortable while driving?

According to chart 48% of respondents thought that yes the new technologies are very good, 26% feel it is good, 24% of them find it is excellent & rest 2% felt that it is average.

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Q12. The extraordinary placement of the indicator switch, power window switches, is going to make the driver feel?

As per the chart 20% of respondents thought it to be more comfortable, 28% of them found it comfortable& rest 52% of them felt it was uncomfortable.

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Q13. What do you think about the space available in Logan?

According to the chart 50% of the respondents thought the Logan is moderately spacious, 46% feel that yes it is extremely spacious, and rest 4% fell that it is less spacious.

Q14. Logan has got the largest boot space n its segment, what do you think about it?

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As per the chart 55% of respondents thought that the boot space of Logan is very good, and unique, 35% of them thought that it is good, but 10% of them feel that it is bad.

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Q15. What do you think about the price of Logan?

As the bar chart 50% of the respondents thought that Mahindra Logan is extremely high priced 20% of them felt it is average priced and for 10% of them it is low priced.

Q16. If you want to have a car of mid level sedan, will you go for Logan? 35

As per the Bar chart 18% of the respondents will go for Logan, 30% of them will not go for Logan & rest 52% of them are confused.

According to Questionnaire 2 (customer feedback):

Q1. Are you satisfied with Logan?

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As per the chart 100% customer said that yes they are satisfied with Mahindra Renault Logan.

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Q2. Has it serve the purpose of purchasing?

According to the chart 55 %( approx) of the customer felt that yes Logan served the purpose of buying & 45 %( approx) customer felt that it served the purpose in average manner.

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Q3. Is Logan comfortable for driving & journey?

According to the chart 80% 0f the customer felt that Logan is comfortable for journey & 20% 0f the customer felt that no it average on the part of comfort & journey.

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Q4. Is safety precaution of Logan sufficient? /do you feel safe while driving?

According to chart 53% of customer felt that Logan is very safe for driving. & 47% felt that it is average on the part of safety.

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Q5. How is the after sales service of Logan?

As per the chart saying 40% customer felt that Logan’s after sales service is good, other 40% customer felt that it is average, & remaining 20% felt that the after sales service of Logan is not good.

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Q6. How is the Maintenance cost of Logan?

As per the chart we come to know that 85 %( approx) customer felt that maintenance cost is very high. &15% (approx) customer felt that the price they paid is moderate for maintenance of Logan.

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Q7. Do you think it worth the value of money?

As per the chart 80%of the Logan customer thinks yes they are getting the true value of money& 20% of them feel that they are getting an average return.

Q8.What do you think is bad in Logan, and should be changed? Looks, especially front look. ○ Front show should be a bit modern. ○ Interior, especially dash board. ○ Oil consumption is more, so it should be looked after. ○ Not comfortable with the Indicator device. ○

Q9.What do you think Logan is lacking & should be included in it?  Modern styling.  Central locking system.  Integrated music system.

4.1 FINDINGS:



Half of the people said Mahindra automobile produces good vehicles. 43



People want more variety of cars from Mahindra.



Most of the people said that Logan will attract today’s generation.



Maximum people said the new technologies in Logan are going to make the drive more comfortable.

 Most of the people were upset with the look of Logan.



At least half of the respondents said it is good & advantageous to have such a large boot space.



50% said Logan is extremely high priced, 45% said its ok.



100% customers said they are satisfied & it has served the purpose of purchasing.



Most of the customer said Logan is comfortable.



There is a mixed response about the after sales service of Logan, where 40% said it is good, & 40% said it is average & the rest said it is bad.



85 %( approx) customers said it has high maintenance cost but still 80% said it served the purpose of purchase.

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4.2 RECOMMENDATION: •

It is high time for Mahindra to include more Varity of cars in its portfolio.

•

Mahindra should enter the small car segment which occupies a major share in the passenger car market.

•

With respect to people’s perception about Logan, Mahindra Renault should think of having a modified (exterior& interior) version Logan in the market.

• Price of Logan should be reduced to boost up the sales of it.

• With respect to customer opinion, looks specially the front view and the dash board should be modernist. •

The location of Shree Automotive Pvt. Ltd. (V.I.P) is in such a way that the showroom gets completely hidden by the fly over near Haldiram’s as a result people lose the sight of the showroom & as such showroom looses the attention of the people.

•

Shree Automotive Pvt. Ltd. should organize more events among public (corporate houses, societies, fairs, gatherings) so as promote its image & the products, which may boost the sales, to bring some more revenue.

•

After a detailed analysis of the data collected during the survey, it can be concluded that “there is market potential for Logan, but some changes have to be made as mentioned above & some promotion activity should be undertaken so to grab that market share”. 45

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BIBLIOGRAPHY: Marketing research (G.C. Beri) II. Marketing research (SL Gupta) III.Company database IV.Product Booklet V. Internet sites (Goole.com, Wikipedia.org) I.

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6.APPENDIX

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