RESEARCH REPORT

ON

“CONSUMER PREFERENCE OF
HYUNDAI AND FORD”
HYUNDIA VS. FORD

HIMALAYAN INSTITUTE OF
TECHNOLOGY& MANAGEMENT
LUCKNOW

IN THE PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF
DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (M.B.A.)
(Session: 2012-2014)
Submitted To: Submitted By:
Ms. SweetyKatiyar Mr. Dhirendra sigh
MBA 4th sem
Roll N.1246570038

1
 HIMALAYAN INSTITUTE OF TECHNOLOGY & MANAGEMENT

LUCKNOW

CERTIFICATE

To Whom So Ever It May Concern

This is to certify that DhirendraSingh a student of MBA(marketing &

Finance) at Himalayan Institute of Technology & Management, Lucknow
has successfully completed his Research Report in Marketing Department on
the topic, "CONSUMER PREFERENCE OF HYUNDAI AND FORD"
under my guidance. The produced report is genuine and has not been
submitted else where for any reason what so ever. I am fully satisfied and
appreciate.

During this perioud his learning was good.

I wish good luck for the bright future of candidate.

Ms. SweetyKatiyar Ms. Shilpi Nigam Head / Dean of

(Project Guide) (H.O.D.) Institution

ACKNOWLEDGEMENT

2
I honored to present this project report titled “Consumer Reference Of
Hyundai And Ford”. I would also like to thanks Ms. Shilpi Nigam
H.O.D.), Himalayan Institute of Technology & Management.

I am greatly thankful to Ms. SweetyKatiyar (Project Guide)for her

supportive attitude, Constant encouragement and suggestion from time to
time.

I feel short of words in impressive my regards and gratitude to my parents,

affection, advice, encouragement, helping nature and immense dedication
towards the academic fields instrumental in stream ling this work.

At the end I feel indebted to our almighty God, who blessed and me to
complete.

Dhirendra Singh

PREFACE

3
The RESEARCH REPORT work has an objective to make management
students familiar with real life of business situation and give an opportunity
to the student to understand the theoretical concept of marketing sector in
practical way.

I am extremely happy to present the report before my respected teachers.

The project report entitled to me is “Retail Marketing” in Hyundia & Ford
i.e. finding the knowledge about the Sales & Promotion the products,
Consumer Preference of Hyundai and Ford.

Retail market playa effective role in the consolidation of a national

economy in general and in the development of marketing sector in
particular. It is the most dynamic and organized component of regular
market. Especially, in developing countries like India, the retail market play
a cardinal role in promoting the level of daily usages product sales through
effective terms and offers.

In the project I have the take information from the management of the retail
market and some books and also take help my guide. I have also participated
in the work of the different section ie-(FMCG, Men’s, Ladiesetc).

Dhirendra Singh

4
 CONTENT

INTRODUCTION

COMPANY OVERVIEW

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

CONCLUSION

SUGGESTION & RECOMMENDATIONS

BIBLIOGRAPHY

5
 CHAPTER I

INTRODUCTION

6
Consumer Preference is the buzzword used by the business people for the

success of organization in the present days. Due to the increases of heavy

competition in every product – line it become difficult for the companies to

retain the consumers for longer time. So retain the consumer for longer time

the marketer has to do only one things i.e. consumer preference .If consumer

is fully satisfied by the product it not only rub the organization successfully

but also fetch many benefits for the company . They are less process

sensitive and they remain consumer for a longer period. They buy addition

products overtimes as the company introduce related produce related

products or improved, so consumer preferences is gaining a lot of

importance in the present day. Every company is conducting survey on

consumer preference level on their products .To make the products up to the

preference level of consumers.

Preference arises when an expectation is being fulfilled. Consumer

preference refers to the extent to which consumers are happy with the

products and services provided by a business. It is important to gain high

levels of consumer preference in a business as satisfied consumers are most

likely to be loyal and make repeat orders and continue using the services

provided by a business.

7
MEANING OF CONSUMER PREFERENCE

Consumer happiness can be said as consumer’s preference, fulfillment and

delight towards the service provided. It is a judgment that a product or

service feature, or the product or service itself, provides a pleasurable level

of consumption related fulfillment….. Preference is the consumer’s

evaluation of a product or service in terms of whether that product or service

has met their needs and expectations. Failure to meet needs and expectation

is brought to dissatisfy with the product or service.

Factors influencing consumer preference

 Product and service features

 Consumer emotions

 Attributions for service success or failure

 Perceptions of equity or fairness

Product and service features

Consumer happiness with a product or service is influenced significantly by

the consumer’s evaluation of product or service features. Research has

shown that consumers of services will make tradeoffs among different

service features (price, quality and etc), depending on the type of service

being evaluated and the criticality of the service.

8
Consumer emotions

Actually, there are 2 types of emotion that are given below:

 Positive emotions

 Negative emotions

The emotions can be stable, pre existing emotions e.g. mood state or life

preference. For example, when you are on vacation or at a very happy stage

in your life, good mood and positive frame of mind has influenced, you will

respond positively to that service.

Attributions for service success or failure

Attributions the perceived causes of events influence perceptions of

preference as well, when the consumer has been surprised by an outcome

(the service which is better or worse than expected), consumers tend to look

for the reasons and their assessments for the reasons can influence the

preference.

Perceptions of quality or fairness

Always, consumers will ask themselves whether they have been treated

fairly compared with other consumers. Notions of fairness are central to

consumer’s perceptions of preference and happiness with products or

services.

9
Components of consumer preference

The factors that make the consumer satisfy and delighted are given below:

1. Service quality

 Reliability

 Responsiveness

 Assurance

 Empathy

 Tangibles

2. Product quality

3. Price

4. Situational factors

5. Personal factors

Service quality dimensions

Ultimately, consumers judge the quality of services on their perceptions of

the technical outcome provided and on how that outcome was delivered. The

service quality dimensions consist of:

1. Reliability that is ability to perform the promised service dependable

and accurately.

10
 2. Responsiveness that is the willingness to help consumers and provide

prompt service.

3. Assurance that is the employees knowledge and courtesy and their

ability to inspire trust and confidence.

4. Empathy that is the caring individualized attention given to

consumers.

5. Tangibles that are appearance of physical facilities, equipment,

personnel, and written materials.

In the case of airline industry, how consumers judge the 5 dimensions of

service quality is given below:

Reliability: Flights to promise destinations depart and arrive on schedule.

Responsiveness: Prompt and speedy system for ticketing, in-flight, baggage

handling.

Assurance: Trusted name, good safety record, competent employees

Empathy: Understanding of special individual needs, anticipates consumer

needs

Tangibles: Aircraft, ticketing counters, baggage area, uniforms.

Preference normally involves the eliminating problems. It goes beyond to

the concept of delight, which is the positive surprise. It is the highest level of

11
preference and it transfers to better outcomes that can be achieved through

other levels of preference. The consumer is satisfied with a defect rate

of .01%, but if we could eliminate defects altogether, then the consumer

would be delighted.]

Delight leads to behavioral outcomes that are substantially better than mere

preference. A delighted and happy consumer will go for repurchase, will

have a positive word of mouth there be increasing profit and sales of the

organization. Thus consumer happiness will lead to new consumer

generation and retention of the existing consumer.

Why do organizations think about the consumer preference and

delight?

All organizations nowadays consider consumer’s preference and delight for

the reasons given below:

 Repurchasing

 Word of mouth

 Pay less attention to competing brands and advertising

 Buy other products or services of the same company

 Profit increase

 Sales volume increase

12
 Satisfied Delighted  Repurchasing
customer customer
 Word of mouth
 Increasingly Profit
 Pay less attention to competing
brands and advertising
 Buy other products or services of the
same company

How do the consumers form their expectations?

Expectations are formed based on the buyers past buying experience,

statements made by friends and associates, and marketer and competitor

information and promises. If marketers raise expectations too high, the

consumer is likely to be disappointed. On the other hand, some successful

companies are raising expectations and delivering performance to match.

These companies aim high because consumers who are just satisfied will

still find it easy to switch suppliers when a better offer comes along. These

who are highly satisfied are less ready to switch. The fact is that high

preference and happiness or delight creates an emotional affinity with the

brand, not just a rational preference and this creates high consumer loyalty.

13
THE FOUR FUNDAMENTALS OF CONSUMER PREFERENCE:

A) Variables Related To The Products / Service Itself:

What you actually do for consumer is going to be the key determines of

consumer perception. In this case we see that the design of the products

/service is most important. The design of product / service affects consumer

preference in two ways.

The design sends a message to he consumer about the orgs basic values

especially concerning the trade offs between cost and consumer. Little is

more damaging to consumer preference than users perceiving that costs

savings have been made their expenses.

Design can enhance or resist the orgs ability to keep consumer happy during

and often the sales. A strong successful design increase confidence of front

staff, which a poor design makes them defensive, bad design places

constraints on distribution channel choice, it can also to the cost and

difficulty in providing after sales support services.

B) Variables Related To Sales And Promotion:

Three factors affect consumer preference area.

14
MESSAGE: That helps to share consumer ideas about the product or service

benefitsbefore they have experienced them in use.

INTERMEDIARIES: Employee of the org to act on its behalf Ex: Brokers.

ATTITIDUES: Everyone in the frontline roles.

Ex: Receptionist etc. like.

Courtesy and helpfulness

Level of technical knowledge

Are they interested in the needs of the consumer or merely selling?

C) Variables Related To After Sales:

This significant aspect with regard to after sales

Support services covering traditional after sales activity such as warranties,

usertraining etc.

Feedback and restitution – the way org handle complaints etc.

D) Variables Related To Organization Culture:

This depends on the org if it behaves in maximizing consumer preference

hereby paying services to it. One of the must be careful to distinguish

between formal and informal aspects of separate culture in this regard.

Formal values will be only meaningful if they supported by the right

informal culture and these develop over time.

Extent and manner of service management involvement

15
Degree to wish senior management practice leadership

Consistency with which consumer care policies are implemented

Commitment of middle management

Existence of reward system

It is usually these informal values that determine that the true measure of

orgs intentiontowards its consumer.

16
METHDODS OF TRACKING AND MEASURING CONSUMER

PREFERENCE:

COMPLAINTS SUGGESTIONS SYSTEM: A consumer centered org

would make it easy for its consumers to deliver suggestions and complaints

e.g. installing suggestion boxes, questionnaire.

CONSUMER PREFERENCE SURVEY: A Company must not conclude

that it can get a full picture of consumer suggestions system.

Responsive companies obtain direct measure of consumer preference by

conducting periodic surveys. They send questionnaire or make telephone

calls to find out how they feel about the rating aspects of the company’s

performances. They will also solicit buyer view on competitor’s

performance.

GHOST SHOPPING: Another way to measure consumer preference is to

hire persons to pose as potential buyers to report their findings okay strong

and weak point they experienced in buying the company and competitor’s

products. Managers can themselves pose as shoppers and experience

firsthand, the treatment they receive as consumer.

LOST CONSUMER ANALYSIS: A Company should contact consumer,

who have stopped buying, or who have switched to another suppler to learn

17
what happened. Not only is it important to conduct exit interview but also to

monitor the indication that the company is falling to satisfy it consumer.

Total Consumer Preference:

In general, preference is a person’s feelings of pleasure or

disappointment resulting from comparing a product’s perceived

performance(or outcome) in relation to his or her expectations. If the

performance matches the expectations, the consumer is satisfied. If the

performance exceeds expectations, the consumer is highly satisfied or

delighted. At a very low level of consumer preference (level one),

consumers are likely to abandon the company.

CONSUMER PREFERENCE PROCESS

The paramount goal of marketing is to understand the consumer and to

influence buying behavior. One of the main perspectives of the consumer

behavior research analyses buying behavior from the so-called “information

processing perspective". According to the model, consumer decision-making

process comprises a need-satisfying behavior and a wide range of motivating

and influencing factors. The process can be depicted in the following steps:

18
•Need recognition – realization of the difference between desired situation

and the current situation that serves as a trigger for the entire consumption

process.

•Search for information - search for data relevant for the purchasing

decision, both from internal sources (one's memory) and/or external sources.

•Pre-purchase alternative evaluation - assessment of available choices that

can fulfill the realized need by evaluating benefits they may deliver and

reduction of the number of options to the one (or several) preferred.

•Purchase - acquirement of the chosen option of product or service.

Consumption - utilization of the procured option.

Post-purchase alternative re-evaluation - assessment of whether or not and to

what degree the consumption of the alternative produced preference.

Divestment - disposal of the unconsumed product or its remnants.

Besides the information processing perspective, marketing analyses

consumer behavior by employing a psychologically grounded concept of

attitudes. It is consumer attitudes that are usually named as the major factor

in shaping consumer behavior and a wealth of studies is available on the

topic of how attitudes can predict behavior.

19
 CHAPTER II

COMPANY OVERVIEW

20
 FORD

Fortune Ford opened its doors for the first time in November 2004. It is in

business of selling and servicing of Ford vehicles. Fortune Ford is a

50:50% Joint Venture set up between Bashir BabuKhan and NiravModi.

The Ford Motor Company is an American multinational corporation based

in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by

Henry Ford and incorporated on June 16, 1903. Ford is currently the second

largest automaker in the U.S. and the fourth-largest in the world based on

number of vehicles sold annually, directly behind Volkswagen.

Ford is the seventh-ranked overall American-based company in the 2008

Fortune 500 list, based on global revenues in 2008 of $146.3 billion. Ford

ended 2009 with a net profit of $2.7 billion. Five of Ford's vehicles ranked at

the top of their categories and fourteen vehicles ranked in the top three.

The Ford Motor Company was launched in a converted factory in 1903 with

$28,000 in cash from twelve investors, most notably John and Horace

Dodge (who would later found their own car company). Henry's first attempt

21
under his name was the Henry Ford Company on November 3, 1901, which

became the Cadillac Motor Company on August 22, 1902. During its early

years, the company produced just a few cars a day at its factory on Mack

Avenue in Detroit, Michigan. Groups of two or three men worked on each

car from components made to order by other companies. Henry Ford was 40

years old when he founded the Ford Motor Company, which would go on to

become one of the world's largest and most profitable companies, as well as

being one to survive the Great Depression. As one of the largest family-

controlled companies in the world, the Ford Motor Company has been in

continuous family control for over 100 years

Members of the board as of early 2007 are: Chief Sir John Bond, Richard

Manoogian, Stephen Butler, Ellen Marram, Kimberly Casiano, Alan Mulally

(President and CEO), Edsel Ford II, Homer Neal, William Clay Ford Jr.,

JormaOllila, Irvine Hockaday Jr., John L. Thornton and William Clay Ford

(Director Emeritus).

The main corporate officers are: Lewis Booth (Executive Vice President,

Chairman (PAG) and Ford of Europe), Mark Fields (Executive Vice

President, President of The Americas), DonatLeclair (Executive Vice

President and CFO, Mark A. Schulz (Executive Vice President, President of

22
International Operations) and Michael E. Bannister (Group Vice President;

Chairman & CEO Ford Motor Credit). Paul Mascarenas (Vice President of

Engineering, TheAmericas Product Development)

Today, Ford Motor Company manufactures automobiles under several

names including Lincoln and Mercury in the United States. Ford plans to

discontinue the Mercury brand at the end of 2010. In 1958, Ford introduced

a new marque, the Edsel, but poor sales led to its discontinuation in 1960.

Later, in 1985, the Merkur brand was introduced to market Fords from

Europe in the United States; it met a similar fate in 1989.

Ford has major manufacturing operations in Canada, Mexico, the United

Kingdom, Germany, Turkey, Brazil, Argentina, Australia, the People's

Republic of China, and several other countries, including South Africa

where, following divestment during apartheid, it once again has a wholly

owned subsidiary. Ford also has a cooperative agreement with Russian

automaker GAZ.

Ford acquired British sports car maker Aston Martin in 1989, but sold it on

March 12, 2007, retaining a small minority stake, and Volvo Cars of

Sweden. In November 2008 it reduced its 33.4% controlling interest in

Mazda of Japan, to a 13.4% non-controlling interest. It shares an American

23
joint venture plant in Flat Rock,Michigan called Auto Alliance with Mazda.

It has spun off its parts division under the name Visteon.

Ford sold the United Kingdom-based Jaguar and Land Rover companies and

brands to Tata Motors of India in March 2008.

Also in 2008, Ford Motor is in negotiations with Shanghai Automotive

Industry Corporationto sell its Volvo cars division.

Ford's FoMoCo parts division sells aftermarket parts under the Motorcraft

brand name.

Ford's non-manufacturing operations include organizations such as

automotive finance operation Ford Motor Credit Company. Ford also

sponsors numerous events and sports facilities around the US, most notably

Ford Center in downtown Oklahoma City and Ford Field in downtown

Detroit.

Overall the Ford Motor Company controls the following operational car

marques: Ford, Lincoln, Mercury, and Volvo Cars.

Ford India Private Limited manufactures and markets automobiles. The

company offers passenger, luxury, sports utility, and urban activity vehicles.

Ford offers its vehicles under Ikon, Mondeo, Endeavour, and Fusion brand

24
names. Additionally, the company offers sale and purchase of used

vehicles.Ford India Private Limited is a wholly owned subsidiary of the Ford

Motor Company in India. Ford India Private Limited's headquarters are

located in Chengalpattu, Tamil Nadu. It currently is the 8th largest car maker

in India after Hyundai Suzuki, Hyundai, Tata Motors, Mahindra, Chevrolet,

Honda and Toyota. The modern Ford India Private Limited began

production in 1996, although the roots trace back to 1907 when the Model A

was launched. Its manufacturing facilities are in Maraimalai Nagar near

Chennai. Ford India Private Limited began production in 1926, but was shut

down in 1954. Production began again with the joint venture Mahindra Ford

India Limited (MFIL) in October 1995, a 50-50 venture with Mahindra &

Mahindra Limited. Ford Motor Company increased its interest to 72% in

March 1998 and renamed the company Ford India Private Limited.

For the month of April 2010 FIPL sales increased 269% at 7,509 units,

compared with 2,034 units in April 2009. The recently launched Ford Figo

has been a big draw for the company. Since its launch in March, more than

15,000 bookings have been completed. For the month of May 2010, the

company reported an over three-fold jump in sales to 8,080 units on the back

of a good response for its latest small car, Figo. The company sold 2,168

units during the same month last year. Figo already has received over 20,000

25
bookings in the last two-and-a-half months. The company announced all its

models, such as the Ikon, Fiesta and Endeavour, performed well during

April. The company planned to start a second production shift at its Chennai

facility from July to meet demand for the hatchback. The Chennai facility

has a production capacity of 0.10 million units, which is now being

increased to 200,000 units as part of the company's $500 million investment

plan. The facility also has a capacity to produce 250,000 engines per annum.

For the month of June 2010, the company reported a 267% jump in its sales

to 7,269 units as compared to 1,982 units in the same period last year on the

back of a good response for Figo. Revenues were driven mainly by the

popularity of the Figo. The company sold 22,858 units from April to June

this year, as compared to 6,184 units in the same period last year.

Fortune Ford is the largest dealer in Andhra Pradesh in both Sales &

Service, which has retailed over 5000 cars and services over 70 cars per day

across its there service locations. It has 5000 sft centrally air conditioned

showroom, located in the heart of the city in Somajiguda, adjacent to Eenadu

office and just opp. to Khairtabad RTA. The Tolichowki showroom is

strategically located to cater the needs of corporate sector working or

residing in and around Madhapur&Gachibowli and also parts of Jublee

26
Hills. This makes convenient for almost every one residing in and around

Hyderabad and Secunderabad.

27
 Hyundai Motors Profile

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of

Hyundai Motor Company, South Korea and is the second largest car

manufacturer and the largest passenger car exporter from India. HMIL

presently markets 54 variants of passenger cars across segments. The

Santro in the B segment, the Getz Prime, i10,Eon and the Premium

hatchback i20 in the B+ segment, the Accent and the Verna in the C

segment, the Sonata Embera in the E segment and the Tucson in the

SUV segment.

Hyundai Motor India Ltd, continuing with its tradition of being the

fastest growing passenger car manufacturer, registered total sales of

616,039 units vehicles in the calendar year (CY) 2011, an increase of

41.6% percent over CY 2010. In the domestic market it clocked a

28
growth of 13.6%percent with 30402 units in 2011, while overseas sales

grew by 11.2 percent, with exports accounting for 240,25 units in 2011.

HMIL's manufacturing plant is located near Chennai which has

advanced production quality and testing capabilities in the country.

Inorder to provide the Indian customer with global technology, HMIL

started its second plant in February 2008 which produces an additional

300,000 units per annum, raising HMIL's total production capacity to

600,000 units per annum. Apart from expansion of production capacity,

HMIL currently has 329 strong dealer network across India.

The production management processes at Hyundai

Motor India are overlaid with an organization-wide

implementation of manufacturing best practices like

Just-in-time inventory management, Kaizen, TPM and

TQM, that help us in making the world's best cars, right

here in India.

29
Hyundai Motor Company was established in 1967, Hyundai Motor Co.

has grown into the Hyundai-Kia Automotive Group which was ranked

as the world’s fifth-largest automaker in 2007 and includes over two

dozen auto-related subsidiaries and affiliates. Employing over 75,000

people worldwide, Hyundai vehicles are sold in 193 countries through

some 6,000 dealerships and showrooms.

Hyundai Motor Company, S.Korea, the parent of HMI, has been doing

considerable work on sustainable Environment Management . The

company has a well defined framework in place for developing

products that reduce pollutant emissions and processes for preservation

of natural resources and energy along all the stages of the product

lifecycle from production, sales, use to disposal and has been awarded

the ISO 14001 certification for all its three major plants in Ulsan, Asan

and Jeonju in S.Korea.  

30
Cars of Hyundai

Hyundai deals in wide variety of cars which includes

Atos/Atoz/Santro

Coupé/Tiburon/Tuscani

Dynasty

Elantra/Avante/Lantra

Eon

Equus/Centennial

Excel

Scoupe

ix20

Genesis

Genesis Coupe

Getz/Click/Getz Prime/TB

Grandeur/Azera/XG

i10

i20

i30/i30cw/Elantra Touring

Hyundai i40

31
Lavita/Matrix

Pony

Santamo

Sonata/i45

Stellar

Veloste

32
 HISTORY OF INDIAN AUTOMOBILE INDUSTRY

PRE- LIBERALIZATION PERIOD

Since Independence The Car Industry was closely monitored and

controlled by the government till 1981. Limited choices were available

to the car buyers due to the limited manufacturers and tight supply.

Hindustan Motors (HM) and Premier Automobile (PAL) that were set

up in 1940's dominated the vehicle market and industry. In the 1950s,

the arrival of Tata Motors, Bajaj Auto, and Mahindra & Mahindra led

to steadily increasing vehicle production in India, while the 1960s

witnessed the establishment of the two- and three-wheeler industry in

India.

But between 1970 to the economic liberalization of 1991, the

automobile industry continued to grow at a slow pace due to the many

government restrictions. However, the automotive industry witnessed

tremendous growth after the entry of Maruti Udyog in the 1980s.

In 1981 the government decided to review their car industry policy and

found that the segment was neglected and there was a big market

available for cars. The existing cars available in the market were costly

33
and technically less sound with compare to international standard. Then

government initiated dialogues with Suzuki Motors, a Japanese car

manufacturing company, finalized a joint venture, and formed a

company named Maruti Udyog Limited (MUL). The initial venture was

between Government of India with a share of 74% and Suzuki Motor

with a share of 26%.

That was a revolutionary step taken for the car industry in India. In

1983 MUL launched its first car in India (Maruti 800) with a price tag

of Rs.40,000/-.

This development was a big shock to the existing car manufacturers

and they also rushed to improve and increase their product line.

After the lifting of licensing in 1993 by government, 17 new ventures

came up, of which 16 are for manufacture of cars.

Today, almost all of the major global players are present in India. The

automotive industry is today a key sector of the Indian economy and a

major

foreign exchange earner for the country.

34
Government

1981 was the year when government taken a revolutionary initiative to

review and reform its policy related to car industry. Now getting

permission to produce cars in India is easier and new entrants are

coming almost every year. Government has also imposed heavy

imposed heavy import duties on imported vehicles to safeguard the car

manufactured locally.

POST- LIBERALIZATION PERIOD

Following the economic reforms of 1991, the automobile section

underwent delicensing and opened up for 100 percent Foreign Direct

Investment. A surge in economic growth rate and purchasing power led

to growth in the Indian automobile industry, which grew at a rate of

17% on an average since the economic reforms of 1991.

India's automotive components industry is being urged by the

government to partner with overseas firms with the aim of making

India a platform for outsourcing as well as a global R&D hub. As the

Indian vehicle production industry has grown, so has the domestic

supplier industry. But the global auto industry's search for lower cost

35
and more international outsourcing has led to a sharp growth in

component output and exports in recent years.

The positive demographic factors, stable macro-economic environment

and pro-reform policies of the government, low manufacturing costs,

availability of skilled labor has attracted almost all major global auto

players making their way into India like GM, Ford, Daewoo, Honda

and Toyota The intense competition has compelled the manufacturers

to launch the latest global offering in India as early as possible. It has

also enabled to keep the prices of the vehicles under check. The

consumers, in turn, have benefited from wide choice of models,

technologically advanced cars and better service from the car

manufacturers.

36
Major Manufacturers in Automobile Industry and their Cars

Maruti Udyog Ltd.

Cars:-

800,Omni,Gypsy,WagonR,Alto,Swift,Estilo,SX4,Grand Vitara,Swift

DZire,A-star,Ritz,Eeco,Alto K10,Kizashi,Maruti Ertiga

Tata Motors.

Cars:-

Aria,IndicaV2,IndicavistaIndigo,IndigoCS,IndigoManza,IndigoMarina,

Indigo V series,Indigo XL,Nano,Safari,sumo,Sumo Grand MK II,

Sumo Victa,

Hyundai Motor India Ltd.

Cars:-

Atos/Atoz/SantroCoupé/Tiburon/Tuscani,Dynasty,

Elantra/Avante/Lantra, Eon,Equus/Centennial,Excel,Scoupe,ix20,

Genesis,GenesisCoupe,Getz/Click/Getz,i10,i20,i30/i30cw/Elantra

Lavita/Matrix,Pony,Santamo,Sonata/i45, Stellar,Veloste

37
Honda

Cars:- Honda Brio,Jazz, City, Civic, Accord,CR-V

BMW

Cars:- 1 series,3 Series, 5 Series, 6 Series, 7 Series,X1, X3,X5,X6 and

Z4.

Other Automobile Companies are:-

Skoda

Toyota

Hindustan Motors

Ford

Toyota

Mahindra and Mahindra

General Motors

Mercedes

38
PRODUCTS

39
 HYUNDAI

1.1 ABOUT HYUNDAI MOTORS INDIA LIMITED

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of

Hyundai Motor Company (HMC), South Korea and is the largest

passenger car exporter and the second largest car manufacturer in

India. HMIL presently markets 6 models of passenger cars across

segments. The A2 segment includes the Santro, i10 and the i20, the A3

segment includes the Accent and the Verna, the A5 segment includes

the Sonata Transform.

HMIL’s fully integrated state-of-the-art manufacturing plant near

Chennai boasts of the most advanced production, quality and testing

capabilities in the country. To cater to rising demand, HMIL

commissioned its second plant in February 2008, which produces an

additional 300,000 units per annum, raising HMIL’s total production

capacity to 600,000 units per annum.

40
In continuation with its commitment to providing Indian customers

with cutting-edge global technology, HMIL has set up a modern multi-

million dollar research and development facility in the cyber city of

Hyderabad. It aims to become a centre of excellence for automobile

engineering and ensure quick turnaround time to changing consumer

needs.

As HMC’s global export hub for compact cars, HMIL is the first

automotive company in India to achieve the export of 10 lakh cars in

just over a decade. HMIL currently exports cars to more than 110

countries across EU, Africa, Middle East, Latin America, Asia and

Australia. It has been the number one exporter of passenger car of the

country for the sixth year in a row.

To support its growth and expansion plans, HMIL currently has a 290

strong dealer network and 580 strong service points across India,

which will see further expansion in 2010.

To support its growth and expansion plans, HMIL currently has a 290

strong dealer network and 580 strong service points across India.

41
1.2 COMANY’S HISTORY

The beginning of Hyundai Motor Company dates to April 1946 when

founder, Ju-Yung Chung  established Hyundai Auto Service in Seoul, South

Korea at The age of 31 years.   The name Hyundai was chosen for its

meaning which in English translates to “modern.”  The Hyundai logo is

symbolic of The Company's desire to expand. The oval shape represents The

Company's global expansion and The stylized "H" is symbolic of two people

(The Company and customer) shaking hands.

Hyundai Motor India Limited was formed in 6 May 1996 by The Hyundai

Motor Company of Korea. The first production plant was established in

Irrungattukotai near Chennai, India.

HMIL's first car, The Hyundai Santro was launched in 23 September 1998

and was a runaway success. Within a few months of its inception HMIL

became The second largest automobile manufacturer and The largest

automobile exporter in India.

Hyundai sells several models in India, The most popular being The Santro

Xing, i10 and The i20.OTheR models Include Getz Prime, Accent, Verna

TRANSFORM, Tucson, and The Sonata Transform. 

42
PRODUCTS

43
 DATA ANALYSIS

1. CONSUMER PROFILE

TABLE: 1(a)

Table showing age wise classifications of customerss

COMPANY FORD HYUNDAI

Age (in year) Percentage Percentage

(%) (%)

25-35 33 50

36-45 27 20

46-55 17 13

56 & above 23 17

Total 100 100

44
Analysis:-

The above table shows that majority i.e. 50% of Hyundai customerss,

33% of Ford customerss and customers, 27% of Ford customers and

20% of Hyundai customers are in age group of 36-45, 17% of Ford

customers and 13% of Hyundai customers are in age group of 46-55,

23% of Ford customers, 17% of Hyundai customers.

45
GRAPH: 1(a)

Graph showing age wise classifications of customerss

Hyundai Ford
43

33
30
27
23

17
13 13

25-35 36-45 46-55 56&ABOVE

Interpretation:-

Majority of the customerss of Ford and Hyundai fall under the age

group of 25-35, because this is the age when people want to enjoy

their earnings and also oriented towards luxury.

46
TABLE: 1(b)

Table showing Occupation Wise Classifications of customerss

COMPANY FORD HYUNDAI

Occupation Percentage (%) Percentage

(%)

Services 23 13

Businessman 20 30

Professional 40 50

Others 17 7

Total 100 100

Analysis:-

From the above table it can be found that 23% of Ford customerss and

13% of Hyundai customerss are Servicemen, 20% of Ford customerss,

and 30% of Hyundai customerss are Businessman, 40% of Ford

customerss, and 50% of Hyundai customerss are Professional and

17% of Ford customerss and 7% of Hyundai customerss fall in others.

47
GRAPH: 1(b)

Graph showing Occupation Wise Classifications of customerss

50
45
40
35
30
25 FORD
HYUNDAI
20
15
10
5
0
SERVICES BUSINESSMAN PROFESSIONAL OTHERS

TABLE: 1(c)

Table showing Income Wise Classifications of customerss

COMPANY FORD HYUNDAI

Income Percentage (%) Percentage (%)

Less Than 27 7

25000

25000-50000 30 30

51000-100000 30 50

100000 Above 13 13

Total 100 100

48
Analysis:-

The above table shows that 27% of Ford customerss, and 7% of

Hyundai customerss are in Less Than 25000 income level group, 30%

of Ford customerss and 30% of Hyundai customerss are of 25000 -

50,000 income level, 30% of Ford customerss, and 50% of Hyundai

customerss are of 51,000-100000 and remain 13% of Ford

customerss, and 13% of Hyundai customerss are above 100000 of

income level.

49
CHART: 1(c)

chart showing Income Wise Classifications of customerss

50
45
40
35
30
25 FORD
20 HYUNDAI

15
10
5
0
Less Than 25000-50000 51000- 100000 Above
25000 100000

50
 TABLE: 2

Table showing the factors that the consumers give more

preferences when they think about a car.

COMPANY FORD HYUNDAI

Factors Percentage (%) Percentage (%)

Price 13 13

Safety 13 14

Quality 7 30

Fuel 27 33

Efficiency

Durability 3 0

Design 7 3

Reliability 23 4

Creative 7 3

Look

Total 100 100

Analysis:-

51
From the above table we infer that 27% of ford customerss give

preference to Fuel Efficiency, 23% customerss for reliability, 13%

each of ford customerss to Price and Safety, 7% each for Quality,

Design and Looks and 3% for Durability.

14% to Price, 13% to Safety, Fuel Efficiency and Design, 10% to

Durability, 7% to Reliability and 3% to Looks.

In case of Hyundai we find 33% customerss give preference to Fuel

Efficiency, 30% to Quality, 14% to Safety, 13% to Price, 4% to

Reliability and 3% each to Design and Looks.

52
CHART: 2

Chart showing the factors that the consumers give more

preferences when they think about a car.

35

30

25

20

15
FORD
10 HYUNDAI

0
ice fe
ty
ali
ty cy ilit
y
sig
n
ilit
y
ok
Pr Sa u ic en b e b Lo
Q ffi ra D le ia e
lE Du R tiv
e ea
Fu C r

Interpretation:-

When we think about a particular product there are some aspects

which influence consumers in purchasing and there are some

preferences given by the consumers to certain features of the product.

Through analysis we come to know that majority of Hyundai and

Hyundai customerss give preferences to Quality, whereas Ford

customerss give preferences to Fuel efficiency and Reliability.

Through this we infer that Quality, Reliability and Fuel Efficiency are

the first thing which comes into consumer’s mind when they think

about a car.

53
 TABLE: 3

Table showing consumer preference towards the car.

COMPANY FORD HYUNDAI

Percentage Percentage

(%) (%)

YES 100 100

NO 0 0

Total 100 100

Analysis:-

The above table shows that 100% of the consumers of Ford, Hyundai

and Hyundai were satisfied with their respective cars.

54
CHART: 3

Chart showing consumer preference towards the car.

100
90
80
70
60
FORD
50 HYUNDAI
40
30
20
10
0
YES NO

Interpretation:-

All the customerss of Ford and Hyundai approached were satisfied

with their respective cars and you don’t find even a single consumer

who is dissatisfied with the car.

55
 TABLE: 4

Table showing the general factors effecting consumer preference

COMPANY FORD HYUNDAI

Factors Percentage Percentage

(%) (%)

Feature 50 50

Low Maintenance 27 30

Looks 7 7

After sales service 16 13

Total 100 100

Analysis:-

The sample drawn on the probability basis clearly shows that majority

i.e. 50% of Ford, and 50% of Hyundai customerss have the opinion

that feature is the factor leading to their preference and 27%, 20% and

30% of Ford,and Hyundai customerss view Low Maintenance as a

vital factor for consumer preference. Followed by Looks which

corresponds to 7%, 10% and 7% each of ford and Hyundai, and with

16% of ford customerss and 13% of Hyundai customerss of them

view that After Sale Service as preference factor.

56
 CHART: 4

Chart showing the general factors effecting consumer preference

50
45
40
35
30
25 FORD
HYUNDAI
20
15
10
5
0
Feature Low Maintenance Looks After sales service

Interpretation:-

Majority of the Hyundai customers i.e. 57% are of the idea that

Feature of the Hyundai contributing to their preference whereas only

50% customerss of Ford and Hyundai satisfied with the feature of the

car they own, followed by Low Maintenance where you find 30%

customerss of Hyundai are satisfied which is better compared to Ford

and Hyundai. Ford takes first place pushing behind the Hyundai and

Hyundai in After Sale Service by satisfying 16% of their consumers.

57
 TABLE: 5

Table showing the general factors influencing purchasing decision

(Strongly Agree-5, Agree-4, Neither Agree nor Disagree-3, Disagree-2,

Strongly Disagree-1)

COMPANY FORD HYUNDAI

Factors 5 4 3 2 1 5 4 3 2 1

Quality 63 3 4 0 0 3 50 20 0 0

3 0

Price 37 4 2 0 0 1 63 13 11 0

3 0 3

Product 37 3 2 0 0 1 66 17 0 0

Features 6 7 7

Brand Name 53 3 1 4 0 1 50 17 17 3

3 0 3

Advertiseme 7 3 3 1 10 0 17 50 30 3

nt 0 6 7

Family 20 4 1 3 17 1 50 20 17 3

Members/Pe 7 3 0

er Group

58
 FORD

70
60
50
40
30
Strongly Agree
20 Agree
10 Neither Agree Nor
0 Disagree
s t Disagree
ali
ty ice re am
e
en ou
p
u Pr atu N em r Strongly Disagree
Q e d s rG
ctF r an erti
P ee
u B v /
od Ad rs
Pr be
em
M
ily
m
Fa

HYUNDAI

70
60
50
40
30
Strongly Agree
20 Agree
10 Neither Agree Nor
0 Disagree
t Disagree
lit
y ice es e
en up
a Pr tur a m
m ro Strongly Disagree
Qu Fe
a
nd
N
tis
e r G
ct ra v er P ee
u B /
od Ad rs
Pr be
em
y M
il
m
Fa

59
FINDINGS

60
 FINDINGS

1. Young people prefer Ford and Hyundai cars than other cars.

2. When it comes to brand, Hyundai is considered to be luxurious Car

compared to Ford.

3. Quality, Reliability and Fuel Efficiency are the first thing which

comes into consumer’s mind when they think about a car.

4. Majority of customers are satisfied with the physical features of the

Hyundai car.

5. Majority of customers are satisfied with the maintenance of Hyundai

car compared to Ford.

6. The after sale service offered by Ford satisfied majority of its

consumers compared to Hyundai Cars

7. Quality as influenced majority of Hyundai customers in purchasing

decision. But Ford has attracted many of its consumers through its

Brand name, Product features and Price; whereas Hyundai is able to

attract many of its consumers through its Advertisement and Product

Features.

8. Ford has been success in creating its brand name and even in

attracting those consumers also who are price sensitive’s.

61
9. Majority of Hyundai consumers were satisfied with the product

performance as compared to Ford.

10.There was not even a single consumer of Ford and Hyundai who is

Dissatisfied with their service providers.

11.Majority of the consumers have gained awareness through their

Family/Friends/Relatives. Hyundai has been successful in creating the

awareness of their brand through their aggressive advertisement and

through their dealers.

12.Majority of Hyundai customers are satisfied with Quality and Price

whereas Ford consumers are satisfied with the space availability in the

car and Hyundai customers are satisfied with the safety and comfort

feature of the car.

13.Majority of the customers of Ford and Hyundai expect quick service

and informative salesperson from their respective dealers.

62
SUGGESTIONS

63
 SUGGESTIONS

1. Ford should improve the promotion strategy of product.

2. Ford should know its consumers preference level through periodic

surveys. Periodic surveys can treat consumer preference directly.

3. Ford should not only concentrate on the consumer preference but also

led to monitor their competitor’s performance in their areas of

operations.

4. Ford should make changes according to the other competitors &

according to the consumer’s expectations.

5. As a promotional measure Ford should go for many free service

camps. This will increase the consumer’s loyalty.

6. Ford can go for more offers in order to retain their consumers.

7. The consumers should be provided with enough information regarding

effective maintenance of the Car so that the consumers get the best out

of the Car.

8. Expertise technical person should attend the vehicle during the visit

for a service as the problem of the vehicle is discussed properly.

9. Should ensure the availability of the accessories at the service station.

10.Price on accessories should be reduced.

64
11.Should speed up the service in order to ensure that there is no delay in

attention towards the consumers.

12.Should increase the comfortness inside the car so that consumers feel

comfortable while driving without causing any physical pain.

13.The company should also benchmark the performance of Ford car

with its nearest competitor i.e., Hyundai and Hyundai so as to

improve quality and bring about necessary changes

65
CONCLUSION

66
 CONCLUSION

‘FORD is acting as pioneer in the market of automobile industry. The

company has grown progressively and shown tremendous profits since from

its inception regardless to the state of economy. The company has spread its

roots and branches to all over India. The company maintains well trained

qualified employees, which is big asset of the company. The company is

really performing very well earning good profits and even it is named Car of

the year for Ford Figo. To conclude, the company is the leader in the market

producing highly qualitative products and earning good profits and thus

attracting the investor.

As the research, has shown the comparison between consumer preference

regarding Ford, Hyundai and Hyundai cars. It has been observed that most

consumers are satisfied with pre sales services similarly most with the post

sales service. Ford, Hyundai and Hyundai needs to improve some parts of

products, services in order to satisfy consumers as high consumer preference

level helps the company to retain its existing consumer as well as generate

new consumer through word of mouth publicity. When we measured the

preference level of the customerss no matter which brand they use majority

gave the positive response that they are just satisfied or highly satisfied with

their brands there are very few in negligible amount who said that they will

67
change their brand. So this shows that it is not an easy task for one car brand

to capture the market of other car brand. Consumer preference index is a

good tool to make improvements in the products and services of the

company. And therefore should utilize carefully & kept as Confidential as

possible.

So company should keep close eye on the market situation yet, consumer

were price sensitive, but the changing market trend and consumer view and

preference shown that consumer are now quality sensitive. They want

quality product, good services, easy availability of product and better

performance by the product. People are more brands conscious and they are

satisfied with the range of products available.

It has become a good practice in the academic work of this nature and

analyzes and come out with some conclusion that tends to pass judgment on

the efficiency and effectiveness of organization under study.

68
 BIBLIOGRAPHY

WEBSITES

 WWW.HYUNDAI.COM

 WWW.FORD.COM

69