Janki Main Project (Skoda)

7/30/2019 Janki Main Project (Skoda)

http://slidepdf.com/reader/full/janki-main-project-skoda 1/88

1 | P a g e

OVERVIEW OF THE INDSTRY

AUTOMOTIVE INDUSTRY IN INDIA

One of the major changes in the industry has been the opening up and growth of several

emerging markets. India is one of the most important emerging car economies in the world

today. The Indian automobile industry comprises of the commercial vehicles, multi-utility

vehicles, passenger cars, two wheelers, three wheelers, tractors and auto components.

The government of India‘s new automobile policies like reduction of excise duty to 40% and

import duties to 50% attracted a large number of automobile companies to India which includes

General motors, Ford, Toyota, BMW, Chrysler, Honda, Hyundai, Fiat, Hindustan motors, Skoda

Auto, Telco and one indo-Japanese venture, Maruti already in the passenger car market with

70% of the market share which makes it the numerous Uno player in automobile market.

In the initial years after the independence Indian automobile industry was plagued byunfavorable government policies. All it had to offer in the passenger car segment was a 1940s

mirrors model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800.

The automobile sector in India underwent a metamorphosis as a result of the liberalization

policies initiated in the year 1991. Measures such as relaxation of the foreign exchange and

equity regulations, reduction of tariffs on imports, and refining the banking policies played a

vital role in turning around the Indian automobile industry. Until the mid 1990s, the Indian auto

sector consisted of just a handful of local companies. However, after the sector opened to foreign

direct investment in 1996, global majors moved in. Automotive industry in India also received an

unintended boost from stringent government auto emission regulations over the past few years.

This ensured that vehicles produced in India conformed to the standards of the developed world.



2 | P a g e

Indian automobile industry has matured in the last few years and offers differentiated products

for different segment of the society. It is currently making inroads into the rural middle class

market after its inroads into the urban markets and rural rich. In the recent year Indian

automobile sector has witnessed a slew of investments. India is on every major global

automobile player‘s radar. Indian automobile industry is also fast becoming an outsourcing hub

for automobile companies worldwide, as indicated by the zooming automobile exports form the

country.

Due to rapid economic growth and higher disposable income it is believed that the success story

of the Indian automobile industry is not going to end soon.

Some of the major characteristics of Indian automobile sector are:

• Second largest two-wheeler market in the world.

• Forth largest commercial vehicle market in the world.

• Forth largest passenger vehicle in Asia and 11th largest in the world.

• Expected to become the world‘s third largest automobile market by 2030. Behind only

china and USA.

• The largest three wheeler market in the world.

• The fifth largest commercial vehicle market in the world.

• The fourth largest tractor market in the world.



3 | P a g e

BIRTH OF THE CAR

In 1769 the very first self-propelled car was built when Nicolas Cugnot, a French

military engineer designed a steam powered road-vehicles

The vehicle was built at the Paris Arsenal, and was used by the French Army to move cannons. It

had three wheels with the engine in the front along with the boiler. While Cugnot's 'car' was

capable of attaining speeds of up to 6cars/hour, it was far too heavy and slow to be of practical

use.

In 1771 he again designed another steam-driven engine that ran so fast that it rammed into a

wall, recording the world‘s first accident.

In 1807 Francois Isaac de Rivaz designed the first internal combustion engine. He to

develop the world‘s first vehicle to run on such an engine, one that used a mixture of hydrogen

and oxygen to generate energy, subsequently used this.

This spawned the birth of a number of designs based on the internal combustion engine in the

early nineteenth century with little or no degree of commercial success. In 1860 thereafter, Jean

Joseph Etienne Lenoir built the first successful two-stroke gas driven engine. In 1862 he again

built an experimental vehicle driven by his gas-engine, which ran at a speed of 3 kms/hour.

These cars became popular and by 1865 could be frequently espied on the roads.

The next major leap forward occurred in 1876 when the four-stroke engine was devised. Gottileb

Damlier and Nicolas Otto worked together on the mission till they fell apart.

Daimler created his own engines that he used both for cars and for the first four wheel horseless

carriage. In the meanwhile, unknown to them, Karl Benz, was in the process of creating his own

advanced tri-cycle, which proved to be the first true car.



4 | P a g e

After all this experiments we can say that the complete car was birth only in 1885 that the first

real car rolled down on to the streets. The earlier attempts, though successful, were steam-

powered road-vehicles.

The season of experiments continued across the seas in the United States where Henry Ford

began work on a horseless carriage in 1890. He went several steps forward and in 1896,

completed his first car, the Quadricycle in 1896. This was an automobile powered by a two-

cylinder gasoline engine. The Ford Motor Company was launched in 1903 and in 1908 he

catapulted his vehicle, Model ‗T‘ Ford to the pinnacle of fame. Continuing with his innovations,

he produced this model on a moving assembly line, thus introducing the modern mass production

techniques of the automobile industry.

BEGINING OF CAR IN INDIA

From the singsong rhythm of the bullock cart to the jet-age, India has traveled a long way. An

average Indian‘s dream car may not be the design Honda or the stately limousine, but he sure can

dream, and afford, the Maruti now.

It was in 1898 that the first motorcar rode down India‘s roads. From then till the First World

War, about 4,000 cars were directly imported to India from foreign manufacturers. The growing

demand for these cars established the inherent requirements of the Indian market that these

merchants were quick to pounce upon.

The Hindustan Motors (HM) was set up in 1942 and in 1944; Premier Autobackmobile (PAL)

was established to manufacture automobiles in India. However, it was PAL who produced the

first car in India in 1946, as HM concentrated on auto components and could produce their first

car only in 1949.



5 | P a g e

It was left to another company, Mahindra and Mahindra (M&M) to manufacture utility

vehicles, namely the American Jeep.

In the 50s, the Government of India granted approval to only 7 car dealers to operate in India

- HM, API, ALL, SMPIL, PAL, M&M and Telco. he protectionist policies continued to remain

in place. The 60s witnessed the establishment of the two-three wheeler industry in India and in

the 70s, things remained much the same.



6 | P a g e

ECONOMIC INDUSTRY ANALYSIS

BACKGROUND

India is considered as a back office of world, but in the last few years we have seen a tremendous

growth in manufacturing sector as well. India ranks 3 rd in GDP as per PPP (purchasing power

parity) in world, India is a member of all the major groups of world like G-20, BRICS, and one

of the founder member of WTO, as per current data of IMF India‘s per capita income is 3694$.

Since India has adopted the LPG policy in 1990 it has grown tremendously, Since than it has

recorded continuous high greet rate and have attracted the investors from all over the world to

become a prime investment destination. Innovation and efficiency are the two keys of India

which is helping them to be competitive among the world. India due to its huge talent pool is

attracting all the major companies from the world who are investing in India for its R&D,

realizing the same, US giant GE in 2000 set up a center for developing products for global

market.

But in last few months India has been facing various problems due to which global rating agencyStandard and Poor‘s downgraded India‘s long-term sovereign rating from stable to negative,

which will affect the way foreign investors see India. This down grading may lead to:

Lower down of Business and Investment sentiment

Cost of borrowing of Indian companies may go up

Foreign money in stock market may slow down

Rupee and bonds may be hit

Contribution in India‘s GDP:



7 | P a g e

Indian GDP growth is being almost consistent; RBI has adopted various monetary policies so as

to maintain a steady growth in the country and to support the Indian economy.

18%

26%55.60%

Sectors Contribution

Agriculture

Industry

Services

Data Source: Wikipedia



8 | P a g e

As we can see that even though there is a decrease in the growth of GDP it is still among one of

the highest growing country of the world.

If we will compare India‘s GDP with world GDP than its still growing at much higher rate than

the

worl

d

GDP

.

One of the biggest problems faced by India is the continuously rising Inflation rate in the

country.

3.554.06 3.96

1.49

-2.33

4.21

9.32 9.279.82

4.93

9.1 8.81

-4

-2

0

2

4

6

8

10

12

2005 2006 2007 2008 2009 2010

World GDP growth

India GDP growth

As per World Bank

Data

(2011 data not given)



9 | P a g e

Inflation stands out to be at a level of 7.23 in the month of April 2012 which is very high

compared to other growing economies. The average inflation rate in India was 7.99 percent

reaching an historical high of 34.68 percent in September of 1974 and a record low of -11.31

percent in May of 1976.

The Automobile Industry designs, develops, manufactures, markets, and sells vehicles, and is

one of the world's most important economic sectors by revenue.

Automobile Industry, in whole world, as well as in India, is one of the most important sectors of

the economy. As Automobile industry has a very deep forward and backward linkage with many

key segment of economy, it has a very strong effect on Indian economic growth.

The first Motor Car in India was imported in 1898. Later on, the British and wealthy Indians

imported completely-built cars and commercial vehicles. By the end of WW1, 4000 vehicles

were being imported into India per year. Following an encouraging demand forecast, GM and

Ford set up their assembly plants in the early 1920s and 1930s respectively. The number of

automobiles



10 | P a g e

INDIAN AUTOMOBILE HISTORY

Indian Automobile History can be divided in 4 parts:

Pre 1984 period: In this era cars were considered a luxury product, government had full

control over the production, Manufacturers were given the license to produce a

predetermined quantity, and expansion was restricted by government. In this period

market was dominated by six licensed manufacturers: TELCO, Ashok Leyland, Mahindra

& Mahindra, Bajaj Auto, Hindustan Motors, and Premier Automobiles.

1985 – 1990: In this period Maruti Udyog was formed with the joint venture between

GOI and Japanese major Suzuki. This led to give a better choice to the consumers in

India.

1991 – 2000: Economic liberalization started in 1991 in India which later on helped todelicense the passenger car segment in 1993. Hero Honda emerged as a major player in

two wheeler segment. In this era a much sophisticated and unregulated automobile

market started growing with the help of new foreign technology and huge investment

made by international player, as the competition increases advanced technology was

introduced to be competitive in market. A large chunk of money was spent on increasing



11 | P a g e

the service presence so as to support on road vehicles. Auto finance also started as a key

factor to affect the demand for the vehicle.

Post 2000: As the competition increases the government also helps the industry by

removing quantitative restriction and allowing 100 % FDI in Automobile industry. It also

gave helping hand to various Local manufacturers who initiated production of Vehicle.

Manufacturers focused on improving the output keeping in mind Quality and

environment prospects.

Automobile industry is one of the fastest growing Industries in India, Currently India is ranked

as:



12 | P a g e

6th in Commercial and Passenger vehicle manufacturing.

Asia‘s 3rd largest exporter of Passenger cars.

One of the fastest growing market

One of the highest contributor in Indian GDP.

The Indian auto industry grew at 13 per cent in last five years.



13 | P a g e

MARKET OVERVIEW

The Automobile industry revenue is projected to reach US$ 145 billion by 2016.

Automobile production increased from 8.5 million units in 2004 – 05 to 14.1

million units in 2009 – 2010 at CAGR of 10.7 per cent.

Domestic vehicle sales improved at 26.8 per cent y-o-y, from 9.7 million units in

2008 – 09 to 12.3 million units in 2009 – 2010.

Amongst April 2000 and August 2010, increasing foreign direct investment (FDI)

inflow to the automotive sector, including individually automobile and autocomponents, totaled US$ 4,710 million.

Inflow of FDI in 2009 – 2010 for the auto components sector was recorded at US$

1.2 billion, which was 4 per cent of the total FDI inflow in the country in the same

period.



14 | P a g e

This chart shows the % change in production on YOY basis of India and the rest of the world,

it‘s clearly visible that even at the time of downturn of world economy India‘s automobile

production was steady due to high demand in local market.



15 | P a g e

CURRENT STATISTICS

Mainly Automobile Industry includes:

Passenger Vehicles

Commercial Vehicles

Three Wheelers

Two Wheelers

As per latest data of SIAM the automobile industries market is divided as:

(as per SIAM - Society for Indian Automobile Manufacturers)



16 | P a g e

Passenger Vehicles:

Maruti Suzuki is the leader in Passenger Vehicle segment with a huge 38% market share while

the Challenger Hyundai is far behind it.



17 | P a g e

SWOT ANALYSIS OF THE AUTOMOBILE INDUSTRY

STRENGTHS

1. Low labor cost advantage

2. Government subsidies for manufacturing plants

3. Strong designing skills etc.

WEAKNESS

1. Low productivity of labor.

2. High interest and overheads costs make the production less competitive

3. Different forms of taxes increase the overall cost of production

4. Low investment in R&D.

5.

Less Infrastructural development.

OPPORTUNITIES

1. Commercial vehicles: as Supreme Court ban on overloading.

2. Rapidly growing mining and construction activity.

3. Reduction in excise duties.

4. Continuous increasing rural demand.

5. Increase in the per capita income of people.

THREATS

1. A continuous increase in input costs

2. Increasing interest rates

3. High competition



18 | P a g e

REASON FOR HIGH GROWTH

The Indian automobile industry‘s growth is driven by various factors which include:

Reason for Highgrowth of

Automobile

Industry in India

Economic

Growth

Rural

Economy

Disposable

Income

Infrastructure

Development

Low cost

Labor

Large local

demand



19 | P a g e

All these things are helping India so as to become a global hub for automobile industry



20 | P a g e

UNION BUDGET 2012-13 IMPACT

Union Budget 2012-13 Impact on Automobile sector can be seen as:

Finance minister Mr.Pranab Mukherjee while announcing Union Budget has made following

provision for Automobile industry:

Excise duty increased from 22 to 24%

No extra tax for diesel vehicles, which is a big relief to the auto sector.

Basic Excise duty hiked to 12 per cent from 10 per cent Budget 2012 to add additional

revenue of Rs 18,650 crore

Large cars will entitled to up to 27 per cent duty, MUVs, SUVs enhanced

Cars to attract ad valorem rate of 27 per cent

Standard excise duty rate raised from 10 per cent to 12 per cent,

LNG not entitled for customs duty.

Post budget Some of the Companies announced an increase in price of their vehicle and said that

it‘s not a good news for industry though government has not announced extra tax on diesel

vehicle which was considered as a good signal apart from that a much speculated thing of

deregulating diesel prices was also missing from the budget, may be it is due to our excess

amount of dependence on diesel for transportation which will lead to increase in price of

necessary goods.



21 | P a g e

PROBLEMS OF AUTOMOBILE INDUSTRY

As customers feared a rise in price of vehicle they rushed to buy vehicle due to which car sales in

India increases 13.11 percent.

50 basis point cut in repo rate announced by RBI will be good for auto sector as 85% of the

vehicle purchased in India are being financed, so deduction will help the sector

Market Reaction:

All auto companies‘ shares prices in fear of increase in tax had come down but after the

announcement of budget share prices showed a good growth as investors got confidence in the

auto industry.

Current

problems of

Automobile

Industry

Swelling

interestrates

Inflationary

trends

Rising fuel

prices

Lower

growth rate



22 | P a g e

MICHAEL PORTERS 5 FORCE ANALYSIS

(Michael Porter five force analysis of Automobile Industry)



23 | P a g e

Some Important points about Automobile industry:

Supply: Overall Indian Automobile industry has a marginal excess capacity.

Demand: It‘s largely cyclical and dependent on various socio economic factors eg: per capita

income, disposable income, Seasonality etc.

Entry Restriction: Due to high amount of capital involved, Distribution network, Availability

of auto components and higher technological advancement.

Bargaining power of supplier’s: Low, due to stiff competition among rivals.

Bargaining power of customers: Very high, due to high availability of options.

Competition: High competition as technological advancement takes very less time, large no. of

manufacturers.

Even after high growth of industry, India is very less penetrated. As per a survey India has only

10 passenger vehicles, 4 commercial vehicles and 43 two wheelers per 1000 people. while

Globally, these figures are very high. For instance, Germany has 565 cars Korea has 238 cars

and Thailand 57 cars per 1000 population. So there is a huge scope for Automobile Industry.



24 | P a g e

OVERVEIW OF THE COMPANY

HISTORY

Skoda works was established as an arms manufacturer in 1859, but did not develop automobiles.

The origin of what became Skoda auto goes back to early 1890s where, like many long-

established car Manufacturers Company started out manufacturing bicycles. It was 1894, and 26-

year old Vaclav klement, who was a bookseller in Mlada Boleslav, in today‘s Czech Republic,

which was then part of Austria-Hungary, was unable to obtain spare parts to repair his German

bicycle. Klement returned his bicycle to the manufacturers, Seidel and Naumann, with a letter, in

Czech, asking them to carry out repairs, only to receive a reply, in German, stating: ―If you

would like an answer to your inquiry, you should try writing in a language we can understand‖.

A disgusted Klement, despite not having technical experience, decided to start a bicycle repair

shop, which he and Vaclav Laurin opened in 1895 in Mlada Boleslav. Before going into business

partnership with Klement, Laurin was established as a bicycle manufacturer in the nearby town

of turnover.

In 1898, after moving to their newly- built factory, the pair bought a Werner ―motorcyclist‖,

which was produced by French manufactur er Werner brothers. Laurin & Klement‘s first

motorcyclist, powered by an engine mounted on the handlebars driving the front wheels, proved

dangerous and unreliable-an early incident on its cost Laurin a front tooth. To design a safer

machine with its structure around the engine, the pair wrote to ignition specialist Robert Bosch

for advice on a different electromagnetic system. The pair‘s new slavia motorcycle made its

debut in 1899.

In1900, when the company had a workforce of 32, slavia exports begun, with 150 machines

shipped for London for the Hewston firm. Shortly afterwards, the press credited them as makers

of the first motorcycle, the first model, voiturette A, was a success and the company was



25 | P a g e

established both within Austria-Hungary and internationally. By 1905 the firm was

manufacturing automobiles.

After WW1 the Laurin-Klement company began producing trucks, but in 1924, after running

into problems and being hit by a fire, the company sought a partner, and was acquired by Skoda

Works, an arms manufacturer which had become a multi-sector concern and the biggest

industrial enterprise in Czechoslovakia. Later production was under the Skoda name. After a

decline during the economic depression, Skoda was again successful with models such as

popular in the late 1930s.

Skoda auto is a part of international Volkswagen group, one of the premium automobile

manufacturers In Europe. Skoda entered the Indian market in November16, 2001. The company

invested in a plant at shendra, outskirts of Aurangabad, the only manufacturing facility of the

company outside Europe. The brand Skoda Auto is known for its stylish looks, well built exterior

and its constant endeavour to introduce modern technologies.

Till date Skoda Auto introduced twelve luxury models in the Indian market including Skoda

Superb and Skoda Laura. In 2005 the company achieved more than 25% market in the luxury

1segment. In the same year It had set up a network of 41 dealership equipped with 35 facilities

spread across the country. The total sale was close to 27,000.



26 | P a g e

COMPANY PROFILE

Business type Private

Industry Automobile

Established in 2002

Sales volume 500 cars/year (approx)

Employees 45

Revenue 2 crores (approx)

Head quarter Vadodara, Gujarat, India

Parent Skoda Auto

Key people Mr. Satish Bhungaliya (Owner/Director),

Mr. Emish Mali (General Manager)



27 | P a g e

VISION

The most respected Company in the eyes of our people for the care, concern, and the

pride in work that we create and provide.

VALUES

• Satisfy consumers & business associates by providing high quality products and excellent

services

• Development and Growth of people through training, job enrichment and empowerment

• Employees to show high level commitment, ethics and principals

WORK-CULTURE

Quality is an integral part of Torque Auto motive‘s well-defined and dynamic Human

Resource (HR) policy. The company follows a strong value system which is driven by result

orientation, adaptability to change, humility and respect for colleagues and peers. We believe

that investment in human capital is the key source of competitive advantage and sustained

growth.



28 | P a g e

SKODA YETI

SKODA YETI

Logo

Parent company skoda auto

Category sedan, hatchback, suv

Sector Automobiles

tagline/slogan the right of way

Usp tough,off-roader characteristics and features,

comfortable

STP

Segment suv

target group families and off roader drivers

Positioning positioned as a tough car built for rough

terrains but at the same time comfortable for adrive

SWOT ANALYSIS

Strength 1. great driver visibility due to high driving

position

2. well suited for off roads due to great

handling capabilities

3. handy and convenient features to use

4. easy to drive in traffic and in city due to

increased driver visibility

5. also known as skoda sandi in some markets

6. škoda yeti has been awarded a 5-star safety



29 | P a g e

rating by the euro ncap

Weakness 1. skoda has not been penetrating into

emerging economies as some of the other

competitors

2. slightly expensive product but hasn‘t been

able to capture the premium market as per its

potential

Opportunity 1.collaborations with automobile entities to

penetrate deeper in the market through

distribution and servicing network

2. augmenting automobile market

3.attracting more middle income class

customers

Threats 1.rapid technological innovations implemented

in upcoming cars

2. intense competition from national car

manufacturers

3.intense competition in thesuv market

COMPETITION

Competitors 1.hyundai tucson

2.maruti grand vitara

3. tata aria



30 | P a g e

MILESTONES OF THE COMPANY

YEAR

2002 BBC — Best Entry Level Car for Skoda Octavia

2003 NFO — Voice of Customer Award

2004 2nd rank — J D Power India Sales Satisfaction Index Study

2005 CNBC TV-18 Auto car – Best Variant of The Year SKODA RS

Overdrive – Auto Tech Of The Year SKODA RS

J D Power – Initial Quality Study – Best Premium Car of the Year for SKODA

Octavia

J D Power – APEAL Study – Premium Midsize Car for SKODA Octavia

CNBC TV-18 Auto car – The Car of The Year for SKODA Superb

CNBC TV-18 Auto car – Best Design and Style of The Year for SKODA

Superb

CNBC TV-18 Auto car – Viewers Choice Car Of The Year for SKODA

Superb2006 2nd rank — J D Power India Sales Satisfaction Index Study

‗CNBC TV-18 Auto car — best variant of the year for Skoda Superb

NDTV Profit Car India — Executive car of the year for Skoda Laura

Overdrive — Auto Tech of the year for Skoda Laura

Total Customer Satisfaction (TCS) Study by TNS — Best Premium Midsize

Segment car for Skoda Octavia

2007 1st rank in J.D. Power Asia Pacific 2007 India Sales Satisfaction Index

3rd rank in Dealer Satisfaction Study by TNS Automotive for four-wheeler

manufacturers


Segment car for Skoda Octavia

2008 1st rank in J.D. Power Asia Pacific 2008 India Sales Satisfaction Index



31 | P a g e


Segment Car for Skoda Octavia

2009 Active Small Car of the Year

Active Small Car of the Year at the NDTV Profit Car & Bike Awards.

Car of the Year Award

Skoda's Super hatch Fabia wins the "Car of the Year" award at the CNBC

TV 18 Overdrive awards 09 held at Taj Lands End, on the 9th of January in

Mumbai.

Compact Car of the Year

The Super hatch Fabia, known for the practicality along with roominess itoffers, also bagged the award for Best Compact Car of the year.

2010 The Golden Steering Wheel Awards – 2010 by AutoBild India

• Best Variant of the Year – SKODA Laura

• Best Sedan of the Year – SKODA Superb

Overdrive - CNBC TV18 Awards – 2010

• Midsize Car of the Year – SKODA Laura

Bloomberg UTV-Auto car Awards – 2010

• Best Variant of the Year – SKODA Laura

NDTV Profit – Car India & Bike India Awards – 2010

• Entry Premium Car of the Year – SKODA Superb

BS Motoring Executive Car Of The Year – 2010 SKODA Superb

SKODA Superb - Car of the Year - BBC Top Gear Awards 2010

2011 SKODA Rapid

Vicky. in People's choice Car and Bike awards 2011 - Sedan of the year

Top Gear Awards 2011 - Family Car Of The Year

2011 ET Zigwheels Car of the Year - Premium Compact Sedan of the Year

SKODA Yeti

Bloomberg UTV Auto car Awards 2011 - 4x4 of the Year

Economic Times Zigwheels - SUV of the Year



32 | P a g e

Economics Times Zigwheels - Design of the Year

CNBC Overdrive - SUV/UV of the Year

BBC Top Gear - Car of the Year

Car India - MUV/Crossover of the Year

NDTV Car & Bike award - Compact SUV of the Year

NDTV Car & Bike award - Best Integrated Marketing Campaign

UTVi - Bloomberg Auto car - SUV of the year

CNBC TV18 Overdrive - SUV of the Year



33 | P a g e

SKODA LOGO

1926- 1933

This company has been founded in the year 1895. In Mladá Boleslav cars have been

manufactured under the brand Skoda and though the name brand has been completely changed in

form of novel product logo is visible continuity with previous stage and the logo of this company

has a novel which is of oval shape where the brand name is yet a dominant one in the center

bounded laurels.

1926 - 1990

The first logo of became so popular which is of which is of winged arrow and this particular one

has already been used earlier in 1926.Below is a clear view of logos of Skoda company with

clear description behind the design!



34 | P a g e

OVERVEIW OF COMPETITORS

The following are the major players of automobile industry in the world

1) FERRARI:

Ferrari is a sport car manufacturer based in Maranello, Italy. Founded by Enzo Ferrari in

1929 as Scuderia Ferrari, the company sponsored drivers and manufactured race cars before

moving into production of steel- legal vehicles

in 1947 as Ferrari. Throughout its history, the company has been noted continued participation

in racing, especially in formula one, where it has enjoyed great success.

2) FORD:

The Ford Motor Company is an American corporation based in Dearborn, Michigan, a suburb of

Detroit. The automaker was founded by Henry Ford and incorporated on June 16,1903.ford

introduced methods for large- scale manufacturing of cars and large-scale management of an

industrial workforce using elaborately engineered manufacturing sequences typified by moving

assembly lines.

3) B.M.W.:

Bavarian motor Works (BMW) is a German automobile, motorcycle and engine manufacturing

company founded in 1916. It also owns and produces the MINI brand, and is the parent company

of Rolls-Royce Motorcars. BMW produces motorcycles under BMW Motorrad and Husqvarna

brands. BMW is known for its performance and luxury vehicles.

4) MERCEDES:

Mercedes-Benz is a German manufacturer of luxury automobiles, buses, coaches and trucks. It is

currently a division of the parent company, Dailmer AG (formerly DailmerChrysler AG), after



35 | P a g e

previously being owned by Dailmer-Benz. Mercedes-Benz has its origins in Karl Benz‘s creation

of the first petrol-powered car, the Benz patent motor wagen, patented in January 1886. The

Mercedes automobiles were first marketed in 1901by Dailmer Motoren Geselleschaft. The first

Mercedes-Benz brand name vehicles were produced in 1926.

5) CHEVROLET:

Chevrolet is a brand of automobile produced by General motors‘ company (GM). Founded by

Louis Chevrolet and ousted GM founder William C. Durant on November 8, 1911, Chevrolet

was acquired by General Motors in 1917.



36 | P a g e

RESEARCH METHODOLOGIES

MARKETING RESEARCH

Definition of marketing research research as approved as by the board of directors of the

association of American marketing association is:

―Marketing research is the function which links the customer and public to the

marketer through information – information used to identity and define marketing

opportunities and problems generate define and understanding of marketing as process‖. Simply, marketing research isthe systematic design collection analysis and reporting of data

finding relevant to a specific marketing situation facing the company. Carefully planning

through all stages of the research is a necessity .Objectivity in research is all-important. The

heart of scientific method is the objective gathering of the information. The function as

marketing research with in the company as to provide the information and analytical

necessary for effective.

➢ Planning of the future marketing activity.

➢ Control of the marketing operation in the present.

➢ Evaluation of marketing results. A research may undertake any of the three types of

research investigation depending upon the problem. This type of research included:

1. Basic research

2. Applied research

3. Designated Fact Gathering

BASIC RESEARCH:

It is also known as the pure fundamental research, which refers to those studies, sole purpose

of which is the discovery of new information. It is conducted to extend the horizons on

given area of knowledge with no immediate application to existing problems.



37 | P a g e

APPLIED RESEARCH

It is attempt to apply the various marketing technique, which have been developed as

research, first and later on they become applied research techniques. It is on attempt to apply

the basic principles and existing knowledge for the purpose of solving operational problems.

DESIGNATED FACT GATHERING

It refers to a research where the investigation attempts to gather some pre-determined data.

STEPS IN MARKETING RESEARCH

Marketing research process can be out through following steps. Define the problems and

research objectives Develops the research plan Collect the information Analysis and

interpretation Present the finding.

RESEARCH METHOD

It must be classified on the basis of the major purpose of the investigation. In this problem

description studies have been undertaken, as the objective of the project is to conduct the

market shares study to determine the share of market received by the company to the

competitor.

DATA COLLECTION

The information needed to further proceed had been collected through primary and

secondary data.



38 | P a g e

PRIMARY DATA

It consists of information collected for the specific purpose, survey research was used and he

all the details of Ford and their competitors were contacted. Survey research is the

approached gathering description and information.

CONTACTED METHOD

The information was solicited by administering structured questionnaire to the customer and

dealers, thus getting to know directly from the dealers their sales before and after sales

service.

SECONDARY DATA COLLECTION

The secondary data consists of information that already existing somewhere having been

collected for another purpose. Any researcher begins the research work by first going

through secondary data. Secondary data includes the information available with company. It

may be the findings of research previously done in the field. Secondary data can also be

collected from the magazines, news papers, internet other service conducted by researchers.

METHODS OF DATA COLLECTION

The basic method adopted in conducting the study is a structured questionnaire

.Questionnaire is administered on the sample respondents. However there are certain cases

where personal interactive method is followed with customers to find the satisfaction level.

Descriptive study

A Sampling technique Convenience sampling & judgment sampling

B Sampling unit The consumers and dealer of car in surat city

C Sampling size Consumer 150



39 | P a g e

OBJECTIVES

The study will focus to find out reason for low acceptance of yeti.

Evaluate the parameters which influence the intention to purchase SUV vehicle.

The Research so carried out would help me in understanding the consumer‘s attitude

towards the product and also help me to find out the problem faced by them.

The study would recommend all the suitable strategies to organization which will

enhance the consumer preference for yeti.

This study will also try to find out the areas which need to be improved so as to gain a

competitive advantage.

To understand the triggers used to choose competitors Product as compared to yeti.



40 | P a g e

SCOPE AND LIMITATIONS

SCOPE

Examines and identifies key information and issues about 'SKODA AUTO PVT LTD' for

business intelligence requirements

Study and presents the company's strengths, weaknesses, opportunities (growth potential)

and threats (competition). Strategic and operational business info is accurately stated.

The profile also covers info on business processes, company history, major products and

services, prospects, key challengers, locations and subsidiaries.

LIMITATIONS

Change in certain trends like rise in the price of cars may affect the data.

The research is purely driven by the responses of the Customers.

The research was carried out in only surat Area.

A large number of customers who have bought vehicles in 2012 were included in this

research which may also affect the result.

The sample size of competitors‘ product is not very high due to non-availability of data.



41 | P a g e

SUV ANALYSIS

The growing consumerism in Indian market has made the customer to have various options

which has improved the customer bargaining power too. Indian companies like Mahindra &

Mahindra, Tata have head on head competition among Mahindra Scorpio & Tata Safari.

Surrounded by the foreign players who occupied Indian automobile industry only Toyota had a

main impact in the SUV division with hot selling models like yeti, Innova & Fortuner.

Additional players like Hyundai Motors India limited, Maruti Suzuki, Ford, Mitsubishi have a a

smaller amount of market share. Mahindra leads the SUVs division ever since the takeoff of itsScorpio from Mahindra which has its own victory stories. Mahindra XUV 500 which is

established indigenously by M&M was a hit because of the confidence that the customers had in

Scorpio. The lists of SUVs in Indian market are listed below.

Company Products

TATA Safari, Aria

Maruti Ertiga

Toyota Innova, Fortuner

Skoda Yeti 4*2

Renault Duster, Koleos

Force Force One

Mitsubishi Pajero, Outlander

Nissan X trail

Mahindra Scorpio, Bolero, XUV 500, Thar

Ford Endeavour, Eco Sport

Audi Audi Q3

Chevrolet Captiva

Volkswagen Touareg



42 | P a g e

BMW BMW X3

Land Rover Range Rover Evoque

The year 2012-13 will be the year of SUVs for India; all international auto players have their eye

on emerging Indian market. The regular age of a consumer buying an SUV has reduced from 39

to 31 years, which reflects the market prospective of Indian SUV market is prosperous due to

increase in buying power of young generations. This year‘s Auto expo in New Delhi there were

more than 1500 contestants from 23 nations. New contestants in the Indian SUV are Mercedes

ML class, Renault Koleos, SsangYong Korando, Mahindra W201, Force one Safari Merlin,

Touareg, Audi Q3etc.

The growing craze for SUV market has hindered the growth of Indian small car segment. While

there are countless SUVs arriving Indian market; M&M after occupying the Indian markets has

started entering US markets; it exported more than 11000 SUVs and targeting to be the biggest

exporter in this division. The much awaited XUV 500 is a hit with 25,000 bookings received

since its launch. SIAM report says that India has the largest proportion of the residents who are

below 35 years in that 70% are probable buyers; which can be only a myth in any other part of

the world.

The factors favoring the growth of SUV segment:

1. Developing Indian economy

2. Growth in disposable income

3. Easier financing choices

4. Transforming consumer life style

5. Sporting appeal

6. Great performance engine

7. Low Price of diesel compared to petrol



43 | P a g e

8. Desire of Middle class societies

9. Local manufacturing decreases price

10. Representation of status

11. Growing brand conscious among individuals

On the contrary side the increase of SUVs will cause a significant destruction to the environment

with their fuel consumption and carbon discharge. The diesel price which is given in a backed

price is consumed in a greater quantity by SUVs which is possessed by high end of the society.

The rise of SUVs market will again increase diesel consumption causing fuel price hike. Hence

SUV manufacturers face an unlimited contest ahead in manufacturing ECO friendly vehicle

improved performance without compromising the ―mileage‖; which is the utmost key deciding

issue in Indian context.

Sports-utility vehicle (SUV) division which recorded the fastest progress rate in the last year.

SUVs, which cost closely three times (or even more) what an entry-level car does, grew a huge

32% in the year, powered by higher demand for both India-made and imported models.

The year also saw that, while the market faced a slew of negatives like high interest rates and

increase in petrol prices, the demand for costlier cars was not reduced. Sedans (market share

19%) saw demand increase by 15%, and this was powered by superior models like the Hyundai

Verna, VW Vento and Chevrolet Cruze.

The rapidly-improving road structure and the gradual love of Indian people to travel together

between cities are fuelling the demand. Also, the existence of diesel engines plays an important

part here. Another reason behind the success of the SUVs is that the quantity of offerings in this

segment is rising rapidly.

Certain models like Toyota Fortuner & Mahindra‘s latest launch XUV500 have the distinction of

a long waiting list for them. Other companies that are set to unveil new SUVs include Ford,

Renault, and Audi. The SUV division has witnessed a fantastic progress in India over the last

few years and holds the maximum potential in terms of demand.



44 | P a g e

At present-day SUV accounts for 15% of total passenger car market which are expected to

develop up at 25% in next three years. AS Finance Minister also declared a hike in import duty

to 75 per cent from 60 per cent for assembled SUVs and MUVs costing more than $40,000. The

declared increase in excise tax for cars made in India to 27 per cent would only have a minor

impact on car costs.

Shares in Mahindra & Mahindra, India's prominent SUV maker, whose entire model range runs

on diesel, increased as much as 6.1 per cent. Diesel car sales have improved to account for about

40 % of new buying in India, compared to less than 20 per cent a few years ago. The diesel

model of Maruti Suzuki's common new Swift hatchback has a waiting list longer than six

months. A hurry to buy vehicles before the budget increased car sales in February to their highest

level.

Cutting the subsidy, which makes the fuel about 50 per cent reasonable than petrol, is a political

move due to diesel's extensive use in India's huge farming business.



45 | P a g e

REASON FOR LOW ACCEPTANCE OF SKODA YETI

Reason for low

Acceptance of yeti

Low Brand

(Aria)

Awareness

Less satisfied

Current

owners Low Brand

Recall

Low

Motivation

to sales team

Unclear

Positioning



46 | P a g e

SKODA YETI PROMOTION

Following are the promotional strategies of Skoda Yeti

ADVERTISING

Advertising is promoting a product via/through the media. Advertising must reach the target

audience. It has to emphasise the characteristics of the product that will appeal to the

potential consumer. In advertisement that can refer to the unique selling proposition of the



47 | P a g e

product and if that is not available company can promote by brand imaging. Advertising can

be done by different kind of media are as follow:

- Newspapers

- Magazines

- Direct mail letters

- Radio

- Television

- Billboards

- Posters

- Internet

The advertise needs to have a specific target group and should get the attention of the

potential customers. In the end the company want with advertising is the customers attention

and create the desire of the customer to buy the product instead they buy the product of the

competitor.

Yeti get promoted by Skoda by different kind of advertising because it has different target

groups. It gets promoted on the website of Skoda. The website includes all the features of

the car. It also gets promoted in the business line, they put it in a magazine which especially

business people read. The basic line promotion of Skoda is to get it promotes on television

because everybody is watching television and not only business man. So with television

their target group is wider.

In one of the television commercial of Skoda we can see some of the unique selling points.

Like speed, design, where we can buy it. In the commercial we also see a beautiful

landscape with this they also try to link that the car is better for the environment than other

cars



48 | P a g e

CRM - Customer Relationship Management

CRM is the abbreviation for customer relationship management. CRM entails all aspects of

interaction that a company has with its customer, whether it is sales or service-related. CRM is

often thought of as a business strategy that enables businesses to:

Understand the customer

Retain customers through better customer experience

Attract new customer

Win new clients and contracts Increase profitably

Decrease customer management costs

While the phrase customer relationship management is most commonly used to describe a

business-customer relationship, however CRM systems are used in the same way to manage

business contacts, clients, contract wins and sales leads.

CRM solutions provide you with the customer business data to help you provide services or

products that your customers want, provide better customer service, cross-sell and up sell more

effectively, close deals, retain current customers and understand who the customer is.

Technology and the Web has changed the way companies approach CRM strategies because

advances in technology have also changed consumer buying behavior and offers new ways for

companies to communicate with customers and collect data about them. With each new advance

in technology -- especially the proliferation of self-service channels like the Web and

smartphones -- customer relationships is being managed electronically.

Many aspects of CRM relies heavily on technology; however the strategies and processes of a

good CRM system will collect, manage and link information about the customer with the goal of

letting you market and sell services effectively.



49 | P a g e

LITERATURE REVIEW

Consumer Behavior and IMC

To get a better knowledge about product and dealership services I read many of the published

books/leaflets of Tata Motors, apart from that I even went through the training material provided

by Tata Motors to Dealers sales advisors – Winning every prospect.

An extensive literature study about product was carried out so as to know all the features of car

which will helped me to convince customer while interacting with them.

The existence of the customer is integral to the existence of the retailer/dealership. The ability to

understand the customers is the key of developing a successful retail strategy. To be able to

satisfy the customers, it is necessary to understand him, his needs and how he responds to the

various marketing efforts which have been undertaken by the organization. An integral part of

understanding the customers for the product or service i.e., the target segment, and the

demographics of this segment, their needs and buying behavior. The decision making process by

the customer is extensively examined. The consumers can be studied in a variety of ways

including through observations, electronic surveillance, interviews and surveys, experimentation

etc.

The most important application of consumer behavior study is the development of the marketing

strategy. The firms and organizations improve their marketing strategies by understanding issues

such as how-

The psychology of how consumers think, feel, reason, and select between different

alternatives (e.g., brands, products);

The psychology of how the consumer is influenced by his or her environment (e.g.,

culture, family, signs, media);



50 | P a g e

The behavior of consumers while shopping or making other marketing decisions;

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome;

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer.

Hence, Integrated marketing communication channels depends completely on the behavior of the

consumer and the effective promotions are advertising campaigns are formulated based on a

careful study on these.



51 | P a g e

PROJECT ANALYSIS

A survey was carried out for a sample of 150 consumers (75 current & 75 potential) to

understand their expectation from the vehicle and even for getting feedback about yeti and

dealership. The survey gave the following results:-

1) What do you think is more important to you before buying product.

Loyal towards Percentage of respondents

Brand/Company 67%

Dealers/ Service provider 33%

67%

33%

Loyalty

Company/Brand

Dealer/Service provider



52 | P a g e

ANALYSIS:

As we can see that a large no. of people around 67% of our sample agreed to consider Brand as

important factor while purchasing any product. Still almost one third of Customers prefers to buy

it from a specific dealer rather than Brand.

torque Automotive being the oldest dealer of SKODA has gained a huge loyalty base because of

its presence in many residential Areas.

SUGGESTION:

Though it‘s not a big issue but we should try to make people more brand loyal than dealer loyal

so that in case the dealer chose to go with competitors product we should not lose our customer

base.

2) Which factors do you consider while buying a car.

Purchase Influencing Factors % of respondents

Price 19.50%

Mileage 14.5%

ROI 9.50%

Resale 13.50%

Dealer network 14%

Service reach 15.50%

Others 13.50%



53 | P a g e

ANALYSIS:

As we all know India is a price sensitive country, pricing of the product affects the buying

decision of a customer, a large no. of customers agree that the presence of dealer network and

resale value of product is also one of the driving factors which affect the buying decision of Cars.

SUGGESTION:

Company can adopt a better value chain model so as to reduce the cost of product and price them

which attracts a customer and also profitable for seller. SKODA-AUTO with a network of more

than 800 dealer across India has a good presence; still company has a large scope in Tier 3 and

Tier 4 cities.

19.50%

15%

9.50%

13.50% 14%15.50%

13.50%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Factors Influencing Purchase

Factors Influencing Purchase



54 | P a g e

3) Please tick the appropriate reasons for your decision of purchasing SUV vehicle:

Reasons for purchasing SUV % of respondents

Safety 22.6%

Off-roading 16.7%

Comfortable/Spacious 21%

Powerful 23.4%

Style statement 9.2%

Others 7.1%

ANALYSIS:

Reasons for purchasing SUV have increased now a days because customer want a powerful,

comfortable/spacious car as from the above graph we can see that.

22.60%

16.70%

21%

23.40%

9.20%7.10%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Reasons for purchasing SUV

Reasons for perchasing SUV



55 | P a g e

4) How did you come to know about skoda:

Awareness % of respondents

Reference 21%

Dealer 9.5%

Newspaper Ad 16%

Leaflets/Banners 17%

Demo activity 8%

Online 19.5%

Others 9%

ANALYSIS:

A large number of potential customers has not even heard of YETI, a large number of Customers

came to know about Aria from various websites and references which is not a good things.

0%

5%

10%

15%

20%

25%21%

9.50%

16.00%17%

8.00%

19.50%

9%

Awareness about YETI



56 | P a g e

SUGGESTION:

SKODA should promote yeti as the segment to which skoda is targeting for yeti are upper

middle class or higher class people who have a large no. of options available in the market. If

people themselves are searching for vehicle and current customers are referring yeti to potential

customers than obviously there is a market pull for the product but due to lack of awareness of

product it‘s not being converted in final sale.

5) Feedback for yeti

Rating for Looks of yeti % of respondents

1 13.5%

2 30.5%

3 16%

4 13%

5 27%

13.50%

30.50%

16%

13%

27%

Looks

1

2

3

4

5



57 | P a g e

ANALYSIS:

Looks is considered to be one of the most important things while buying any SUV, After

interacting with so many customers and even sales advisors, I realized that yeti lacks in giving a

sporty and attractive look. Though many of the customers prefer the look of yeti, they considered

it as a brand identity of skoda vehicle.

SUGGESTION:

A vehicle is designed after taking review from many people, and so many of qualified engineers

and designers design in keeping in mind various things. But I would suggest that a small

modification in its front look can be done so as to make it look different from a regular skoda

Car.

Rating for Comfort of yeti % of respondents

1 3.5%

2 2.5%

3 9.5%4 23.5%

5 61%



58 | P a g e

ANALYSIS:

When a person is investing a huge amount to buy SUV he definitely expects it to be a

comfortable vehicle, yeti customers are not just happy but delighted with the comfort of yeti.

More than 80 percent people consider yeti as one of the best vehicle when it comes to comfort.

SUGGESTION:

Almost all the current and potential customers are happy with the comfort of yeti; skoda can

promote its car keeping in mind this point which can prove to be biggest differentiator from other vehicles.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

1 2 3 4 5

3.50% 2.50%

9.50%

23.50%

61%

Comfort

Comfort



59 | P a g e

Rating for Power of yeti % of respondents

1 9.5%

2 19.5%

3 25.5%

4 21.5%

5 24%

ANALYSIS:

Yeti with its engine has amazed so many people but a large no. of people think that the power

output of yeti can further be increased.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

1 2 3 4 5

9.50%

19.50%

25.50%21.50%

24%

Power

Power



60 | P a g e

Ease of maintenance of YETI % of respondents

1 12%

2 37%

3 23%

4 16%

5 12%

ANALYSIS:

Only owners feedback was taken for this question, we can see that a large no. of customer thinks

that it‘s not easy to maintain YETI, while interacting with them I realized it‘s not the vehicle but

the dealership which is causing them problem. As it takes too long for them to get back their

vehicle, no pickup drop facility, Parts not available with dealer, low level of product knowledge

to servicing staffs etc.

12%

37%

23%

16%

12%

Ease of Maintainance

1

2

3

4

5



61 | P a g e

SUGGESTION:

A dealer earns money once while selling the cars but through servicing a major chunk of money

comes, so all dealers should be advised to give preferences to all yeti when it comes for

servicing, they should keep the an appropriate stock of parts with them, maximum one day of

servicing time should be taken for Yeti vehicles, proper reminder of Servicing should be sent to

customers from servicing managers/staffs.

YETI FUEL EFFIENCY % OF RESPONDENTS

1 23%

2 16%

3 39%

4 6%

5 16%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1 2 3 4 5

23%

16%

39%

6%

16%

Fuel Efficiency

Fuel Efficiency



62 | P a g e

ANALYSIS:

Fuel efficiency differs from person to person due to driving habit, road and traffic conditions,

fuel quality, loading pattern and maintenance practices so many of the customers are getting

average of 12 in city and 13 on highway while some of them are getting 10 in city and 11 in

highway.

SUGGESTION:

Customers can be given guidance so as to give them a proper knowledge about the driving habit

which will help them in getting high average.

COST % of respondents

1 22%

2 18.5%

3 22%

4 13%

5 24.5%

0%

5%

10%

15%

20%

25%

1 2 3 4 5

22%

18.50%

22%

13%

24.50%

COST



63 | P a g e

ANALYSIS:

A customer should always feel that he has made a right decision by buying the car, as the price

of Yeti has been rising consistently due to increase in tax and other things many people who

bought Yeti previously are very happy, but the current buyer and potential customer thinks that

the vehicle is overpriced and they expect it to be lowered down.

SUGGESTION:

Many people are not aware of product because of which they feel it doesn‘t worth the price its

charging, we should give them proper information regarding project.

ASTHETIC FEATURE % OF RESPONDENTS

1 3%

2 6.5%

3 11%

4 30.5%

5 49%



64 | P a g e

ANALYSIS:

Yeti has done a tremendous job in adding features to yeti, the fit and finish of Yeti is

tremendous, as we can see that more than 75% of people are very happy with the cosmetic

features offered by yeti.

SUGGESTION:

Though the customers are very happy with the features given in Yeti but many of them are not

happy with the quality of plastic used as some of them are facing problem with low quality of

plastic, this can be improved, some of them even raised question on the excess no. of roof utility

box provided which was not necessary in the vehicle.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1 2 3 4 5

3%6.50%

11%

30.50%

49%

Asthetic features

Cosmetic features



65 | P a g e

LUGGAGE SPACE % OF RESPONDENTS

1 6.5%

2 6.5%

3 29%

4 18.5%

5 39.5%

ANALYSIS:

Yeti has been provided with ample space for luggage so almost every customer was happy with

that though some owners who are using it as a cab suggested that they could have given a

company fitted roof racks/ cargo carrier.

SUGGESTION:

Yeti provides enough space for luggage, though it can offer roof racks to customers while buying

car at some discounted price.

6.50%

6.50%

29%

18.50%

39.50%

Luggage Space

1

2

3

4

5



66 | P a g e

SAFETY FEATURE % OF RESPONDENTS

1 8%

2 13.5%

3 23.5%

4 16%

5 39%

ANALYSIS:

Yeti is equipped with so many of the safety features For other variants mostly all the customers

were satisfied with the safety features offered. This will be good for customer from safety pointof view.

8%

13.50%

23.50%

16%

39%

0% 10% 20% 30% 40% 50%

1

2

3

4

5

Safety Features

Safety Features



67 | P a g e

6) Feature importance:

ABS/EBD % OF RESPONDENTS

1 8%

2 6.5%

3 22.5%

4 27%

5 37%

ANALYSIS:

Majority of people thinks that ABS/EBD is one of the most important features of SUV and Yeti.

As is helps in controlling the vehicle at the time of emergency while driving at a high speed.

ABS/EBD0%

10%

20%

30%

40%

1 2 3 4 5

8%6.50%

22.50%

27%

37%

ABS/EBD

ABS/EBD



68 | P a g e

Now days almost all the vehicles are installing ABS in their vehicle due to demand from

customers side.

MORE THAN 2 AIRBAGS % OF RESPONDENTS

1 24%

2 14.5%

3 19.5%

4 13.5%

5 28.5%

ANALYSIS:

Airbags are considered to be one of the important passive safety features of any car; many

respondents think that two Airbags are more than enough for any vehicle while a large chunk of

0%

5%

10%

15%

20%

25%

30%

1 2 3 4 5

24%

14.50%

19.50%

13.50%

28.50%

More than 2 AIRBAGS

> 2 AIRBAGS



69 | P a g e

customers are in favor of more than 2 airbags in vehicle so as if there is any side impact

passengers sitting at back row also should not have any injury.

SUGGESTION:

An option to customers can be given who want to add additional airbags in car at the time of

booking itself by paying additional cost.

CRUISE CONTROL % OF RESPONDENTS

1 33.5%

2 26.5%

3 13%

4 15.5%

5 11.5%

Cruise control

0.00%

10.00%

20.00%

30.00%

40.00%

1 23

4

5

33.50%

26.50%

13% 15.50%

11.50%

Cruise control

Cruise control



70 | P a g e

ANALYSIS:

Cruise control helps a driver to drive vehicle at a constant speed without giving acceleration to

vehicle, it is a growing trend in India but due to non-availability of good roads and heavy traffics

this feature is also not of a much use.

SUGGESTION:

Due to low usage on Indian roads Cruise controls are not very much in demand, but we should

try to create awareness about it, as it‘s very useful on highways, it helps to differentiate Yeti

from other vehicles.

GLOVEBOX CHILLER % OF RESPONDENTS

1 7%

2 13%

3 33%

4 22.5%

5 24.5%



71 | P a g e

ANALYSIS:

Chiller Box is considered to be a must for all high end class cars, as Yeti is meant for long

journey and family journey purpose; it helps in keeping some drinks and chocolate for children.

Even customers who are using Yeti for taxi purpose thinks it‘s an important feature and it makes

customer more comfortable while going for long journeys.

FOG LAMPS % OF RESPONDENTS

1 11.5%

2 9.5%

3 19%

4 22%

5 38%

0%

5%

10%

15%

20%

25%

30%

35%

1 2 3 4 5

7%

13%

33%

22.50%24.50%

Chiller Box

Chiller Box



72 | P a g e

ANALYSIS:

The people consider fog lamps to be an important feature, as a large number of customer visits

hill stations for lamps help them in clear visibility.

SUGGESTION:

Fog Lamps is largely used feature of any vehicle, we should try to promote it as it helps in clear

visibility.

ALL WHEEL DRIVE % OF RESPONDENTS

1 21.5%

2 8.5%

3 33.5%

4 19.5%

5 17%

11.50%9.50%

19%22%

38%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

1 2 3 4 5

Fog lamps

Fog lamps



73 | P a g e

ANALYSIS:

SKODA-AUTO has introduced 2 wheel drive version of Yeti. Then Yeti was launched in an

All-wheel drive version but not so many people are fond of all wheel drive in India

SUGGESTION:

Many people are still thinks that AWD is not necessary for them and it‘s a less used feature but

in Indian roads where roads are uneven and at many places where there are no roads, it is a very

useful feature, so people should be given proper knowledge about this feature.

ASTHETIC FEATURE % OF RESPONDENTS

1 15.5%

2 19.5%

3 27%

4 13.5%

5 24.5%

21.50%

8.50%

33.50%

19.50%

17%

AWD

1

2

3

4

5



74 | P a g e

ANALYSIS:

People consider Reverse sensors and camera as auxiliary feature, for some of them it‘s very

important as it helps them in parking bigger vehicle.

SUGGESTION:

As Yeti is a big vehicle reverse parking camera/sensors help in parking vehicles, so people

should be informed about this feature and we should tell them about the advantage of this

feature.

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

1

2

3

4

5

15.50%

19.50%

27%

13.50%

24.50%

Reverse parking sensor/camera

Reverse parking sensor/camera



75 | P a g e

TWIN EXHAUST % OF RESPONDENTS

1 8%

2 7%

3 16.5%

4 29%

5 39.5%

ANALYSIS:

Twin Exhaust helps to reduce engine strain and helps engine to perform better, it is also

considered as an accessory by customer to enhance the looks of vehicle.

SUGGESTION:

Yeti has 1900 cc engine and dual exhaust helps the vehicle to give a better performance, so dual

exhaust is a must for Aria irrespective of variants.

0%

5%

10%

15%

20%

25%

30%

35%

40%

1 2 3 4 5

8% 7%

16.50%

29%

39.50%

Twin Exhaust

Twin Exhaust



76 | P a g e

7) Relative Brand Rating: please rank the vehicles as per your preference (1 being the best)

RELATIVE BRAND RATING % OF RESPONDENTS

YETI 17%

CAPTIVA 23%

ARIA 12%

OUTLANDER 26.5%

XUV500 21.5%

ANALYSIS:

Captiva and Outlander are being considered as the top sought brand by customers while Xuv is

on third rank followed by Yeti, Aria is not being considered as a Family car as many people

17%

23%

12%

26.50%

21.50%

0%

5%

10%

15%

20%

25%

30%

Yeti Captiva Aria Outlander Xuv 500

Rated as No. 1

Rated as No. 1



77 | P a g e

consider it as a tourist vehicle. Yeti is being ranked on an average position where many people

think that this is one of the best product offering from SKODA-AUTO.

8) How will you rate the service offered at SKODA-AUTO PVT LTD dealerships: (1 being

lowest and 5 highest)

DEALERSHIP RATING % OF RESPONDENTS

1 48.5%

2 27%

3 9%

4 9.5%

5 6%

48.50%

27%

9% 9.50%6%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

1 2 3 4 5

Dealership rating

Dealership rating



78 | P a g e

ANALYSIS:

A large number of customers are not happy with the service provided by dealership,

before/during and even after the sale is done. Many of customers are facing various issues with

vehicle due to negligence of dealers.

SUGGESTION:

Yeti customers are totally a different segment, they should be given preference in servicing of

vehicle, An Yeti servicing should not take more than a day, dealership service centers should

keep a track on the stock of parts of Yeti as many of customers keep on waiting for parts for

more than 2-3 months.

9) Are you satisfied with the Information/Demo/Test drive given to you:

INFORMATION FROM SALES ADVISOR % OF RESPONDENTS

YES 57% NO 43%



79 | P a g e

ANALYSIS:

We can see that around 57% of people are not satisfied with the demo/ test drive given to them,

the basic reason which I have identified is lack of maintenance of Test drive vehicle.

57%

43%

Information

Yes

No



80 | P a g e

FINDINGS

Torque motors do communication from their customers by the way of telephone.

Secondly they stand there employees to the place of the customer to take their

feedback

They send their employees for the insurance paperwork, to take their car from

their place to the service station.

The main tool of the communication are face to face, telephone, and through

message remainders.

SKODA at the time of launching Yeti has taken help of various promotional tools

and tried to make an impact on customers mind, but after some time their focus

started changing.

Due to low promotion Yeti has a very less awareness in Market; moreover

SKODA has been sceptical about the positioning of Yeti.

SKODA-AUTO is an extremely well established brand.

Further initiatives and efforts could see SKODA-AUTO at the very top for the

entire range of products dealing with high class comfortable vehicle.

Current owners are facing a lot of problem relating to service of vehicle and even

with the low availability of parts.

One of the main problem is that customer advisors directly focus on price rather

than showing them vehicle and its features.

Yeti has a huge potential in the market as almost all the current owners are well

satisfied with vehicle and its performance.

The biggest issue with yeti is its look which is not being accepted by customers.



81 | P a g e

RECOMENDATIONS

PRODUCT RELATED:

Yeti is being designed by Top designers of SKODA-AUTO keeping in mind the expectation and

also the financial constraints, no doubt it‘s a master piece created by them. But as per my

personnel opinion after interacting with costumers, I would like to suggest some important

concerns of customer

Positioning is one of the very critical aspects of any product, just by labeling the

product as a crossover does not make it a crossover. The brand should producesufficient evidence that it belongs to a new breed.

Skoda should promote yeti as a large number of owners are happy with the

product but due to low awareness the sale of yeti is low.

Skoda should also take part in vehicle exhibition of premium cars which is

organized by various organizations.

All the promotional offers/ discounts of month should be informed to dealers as

soon as possible because a large number of inquiries which is being made on first

week of month are lost to competitor



82 | P a g e

DEALERSHIPS/ SERVICE RELATED

Sales Advisors should be motivated so as to sell Yeti.

Dealerships should give preference to yeti owners in service, not more than 24

hours should be taken to service the vehicle.

Dealers should also maintain a proper stock of parts of Yeti, if they don‘t have

any part available they should arrange for it.

Sales advisors should focus on customers rather than filling up green forms.

Test drive vehicles should be maintained carefully as almost every dealerships

vehicle has some problem.

Sales Advisors should use the Video player which is provided to them while

dealing with Yeti Customers.

Various kinds of Rally/ Events related to Yeti could be organized in a particular

city.



83 | P a g e

LEARNING FROM SIP

Dealing with different types of customers.

Various procedures to be followed while closing any deal.

Consumer insights about SUVs

Various ways of contacting customers and increasing inquiries for vehicle.

Essential things which should be kept in mind while organizing events.

Patience.

Various stages of sales and action required at that stage.

How to deal with dealerships/ service provider.



84 | P a g e

BIBLIOGRAPHY

WEBSITES:

www.data.worldbank.org

www.skoda-auto.co.in

www.siamindia.com

www.carwale.com

www.managementpunditz.com http://planningcommission.nic.in/data/datatable/index.php?data=datatab

www.newskodayeti.co.in

Magazines/ Books/Newspaper:

Times of India

Business world‘s, ‗The Marketing White book‘; 2011-2012

Marketing management

Philip Kotler, 13th Edition, Pearson Education

Marketing management, N. D. Gami.

http://www.data.worldbank.org/

http://www.siamindia.com/

http://www.carwale.com/

http://www.managementpunditz.com/

http://planningcommission.nic.in/data/datatable/index.php?data=datatab

http://www.newskodayeti.co.in/

http://www.newskodayeti.co.in/

http://planningcommission.nic.in/data/datatable/index.php?data=datatab

http://www.managementpunditz.com/

http://www.carwale.com/

http://www.siamindia.com/

http://www.data.worldbank.org/



85 | P a g e

ANNEXURE

QUESTIONNAIRES:

Understanding Consumer Insights of skoda yeti

1. What do u think is more important to you before buying product

o Company/Brand

o Dealer/Service provider

2. Which factors do u consider while buying a car

o Price

o Mileage

o ROI

o Resale

o Dealer network

o Service reach

o Other specify………….

3. Please tick the appropriate reasons for your decision of purchasing SUV vehicle:

(You can select multiple options)

o Safety

o Off-roading



86 | P a g e

o Comfortable/Spacious

o Powerful

o Style statement

o Other please specify ………………………….

4. How did you come to know about YETI:

Reference

Dealer

Newspaper Ad

Leaflets/Banners Demo activity

Online

Others please specify __________________

5. Feedback for YETI: (1 being Lowest and 5 Highest)

Sr.No. Parameters 1 2 3 4 5

1. Looks

2. Comfort

3. Power

4. Ease of Maintenance

5. Fuel efficiency

6. Cost

7. Cosmetic Features

8. Luggage space

9. Safety features



87 | P a g e

6. Features Importance :

Sr.

No.

Features Not

Important

Least

Important

Neutral Highly

Important

Utmost

Important

1. ABS/EBD

2. More than 2

Airbags

3. Cruise Control

4. Chiller box5. Fog lamps

6. Reverse parking

sensor/camera

7. Twin exhaust

8. AWD

7. Relative Brand Rating: please rank the vehicles as per your preference (1 being the best)

---------------------------------------------------------

YETI

CAPTIVA

ARIA

OUTLANDER

XUV500

8. How will you rate the service offered at SKODA-AUTO PVT LTD dealerships:

(1 being lowest and 5 highest)



o 1

o 2

o 3

o 4

o 5

9. Are you satisfied with the Information/Demo/Test drive given to you:

o Yes

o No

10. Any other concerns / Valuable suggestions:

11. Personal details:

Name: …………………………………………..

Profession: ……………………………………..

Contact No. : …………………………………….

Model purchased/Interested: ……………………………………..

Dealership Name:

Janki Main Project (Skoda)

Documents

Transcript of Janki Main Project (Skoda)