RESEARCH REPORT ON THE TITLE

“COMPARITIVE ANALYSIS OF HYUNDAI SANTRO”

SUPERVISING PROFESSOR

PROF. PIALI HALDER

PREPARED BY
HIMANSHU SINGHAL
PGDBM 2006-08
2K62A17
Email Id:himanshu_1845@yahoo.co.in
 ASIA PACIFIC INSTITUTE OF MANAGEMENT
3- 4 INSTITUTIONAL AREA, JASOLA, NEW DELHI.
Acknowledgement

I take this opportunity to express our deep sense of gratitude to our respected

mam, Ms. Piali Halder, for the valuable guidance, keen interest and helpful

criticism, during the project work.

I would also like to extend our thanks to Mr. Anmol Juneja of Maruti Suzuki for

providing all the necessary help and support.

Mr. Arvind Saurabh, Hyundai Motors Ltd was also kind enough to provide us with

valuable insights in the project.

Mr. Bakshi of Tata Motors has also been a great help in understanding the

mechanism of market research.

Last but not the least I would like to thank our friends, teaching and non-teaching

staff and others who have directly and indirectly helped in the successful

completion of the project

2
 Index

• Car Industry 4

• Sales Trend of Cars In India 4

• Hyundai – Company Profile 5

• Literature Review 11-13

• Santro Xing 14-18

o Pricing Strategy
o Place
o Promotion

• STP – Hyundai 19

• Market Research 20 - 32

• Competitors 33- 39

• Conclusion 40-42

• Bibliography 43

• Appendix 44-45

3
 Car Industry
If there is one big market that is forcing the global auto majors to think small, it

is India. Until yesterday, all the world's auto-manufacturers expected to create

success out of their mid- size products

The Indian car industry as we know today is relatively recent in origins. Except

the ambassador and the Premiere Padmini’s there was not much moving around

with an Indian Tag. As a result of the liberalization the capacity of car production

has increased substantially in the last four years and is expected to grow

manifold in the coming years. The Indian car industry can be classified based on

the price of the car:

Those automaker and auto marketers having their business in India have to

understand the mindset of Indian customers buying cars. “Automakers are to

think globally and act locally” Indian customers can buy imported cars but

obviously they have to drive on Indian roads.

The factors that have plummeted the sales of car industry in India are the

increase in disposable income of the people. The other major driver of growth is

the easy availability of auto finance. The increase in competition in this industry

has resulted in decline in equated monthly installments (EMI), the increased

tenure, decline in interest rates in retail finance in general and auto finance area.

4
The automobile policy of the Indian Government has also proved to be a major

factor in the growth of sales. With steep decrease in excise duty India is on the

path to be hub for small cars.

5
 Sales trend of cars in India

900000
800000
700000
600000
500000
400000
300000
200000
100000
0
99

00

05
0

0
9

0
0

0
-1

-2

-2

-2

-2

-2

-2
8

4
9

0
9

0
1

There has been a constant rise in the sale of cars. The Indian car industry is on
the way up with the sales reaching 8,20,000 units approx compared to 7,00,000
last year.

6
 Company profile

Hyundai Motors India Limited

“I believe that the primary reason for HMIL's success is that we never
allowed ourselves to be complacent. We were continuously innovating at
the marketplace, taking ourselves head on the competition."

- YS Kim, former Managing Director, Hyundai Motors India Limited

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

Motor Company, South Korea and is the second largest and the fastest growing
car manufacturer in India. HMIL presently markets 35 variants of passenger cars
in six segments namely- the Santro in the B segment, Getz in the B+ segment,
the Accent and Verna in the C segment, the Elantra in the D segment, the
Sonata Embera in the E segment and the Tucson in the SUV segment.

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

some of the most advanced production, quality and testing capabilities in thek
country.HMIL was declared “The Star Company” amongst unlisted companies by
Business Standard this year. Getz got the coveted “Car of the Year 2005” award
twice over. It was declared a winner by both Business Standard Motoring and
CNBC-TV18 Auto car Auto awards.

7
HMIL was also adjudged the “Manufacturer of the Year” two years in a row in
2002 and 2003. ICICI Overdrive Awards declared Hyundai as the “Car Maker of
the Year” in 2003.

Hyundai products with state of the art technology have also been winning many
accolades over the years. Santro bagged top honors in JD Power Asia Pacific for
three years.

The Hyundai Santro was born to meet the typical Indian environment including
road condition, extremely high temperature, tough weather, heavy traffic and
difficult driving conditions.

It is claimed that the Santro would require less preventive maintenance which
means saving of cost, time and efforts to Indian customers. In order to
complement the hi - technology Santro, Hyundai has in place a rapidly
expanding and well structured after sale network across the country.

HMIL has also been awarded the benchmark ISO 14001 certification for its
sustainable environment management practices. The production process is
based on new and updated technology which ensures Total Quality
Management.

8
Milestones on the road to success

• Hyundai Motor India completes a decade of success in the country

• Hyundai Motor takes giant step towards Corporate Social Responsibility

• Hyundai Motor launches Global No. 1 Quality and Brand Image Campaign

• Dekhte Hi Dekhte Dus Lakh – Ten Lac cars sold

• Hyundai Motor makes Delhi road safer

• Tennis Ace Sania Mirza was presented her very own Hyundai Getz by
Hyundai Motor India Senior Vice President, Sales, Mr V D Bhasin, at a
ceremony in Hyderabad today. Getz will be the first car to be driven by Sania
Mirza.

• Hyundai launched Sonata Embera - Drive into a New Age

• Hyundai launched Tucson - Your Spirit of Adventure

• Hyundai Motor India’s Dealer Conference in Istanbul

9
• Hyundai Motor India launched the Accent Viva CRDi on Jan 15, 2004 at the
Auto Expo 2004 organised in Pragati Maidan from Jan 15 - 20, 2004

• Hyundai Motor India rolled out its 500,000th car from its factory near
Chennai on 11th December 2003

• HMI’s Santro Xing marks Europe debut at the Frankfurt Motor Show

• Hyundai Sonata Hole in One Challenge

• Swar Utsav -The Ultimate Music Festival of India

• Hyundai Sonata Maharaj Sir Pratap Singh Polo Cup - 2003

• Launch of the book 'The Automobiles of the Maharajas'

10
 LITERATURE REVIEW

Santro Xing

“A New Shining Dawn. Here Comes the Sun

Again”

Santro has proved to be the best compact car in

India, thanks to its excellent design and extensive testing for over 100,000
kilometers in real Indian road and climate conditions

Santro after being a run away success was renamed as Santro Zip Drive and
then another replacement as Zip Plus. HIML then launched Santro XING with
state of the art technology. Xing had new aerodynamic styling, power-assisted
brakes, the advanced suspensions; the uniquely responsive technology is as
much a magnificent creation to delight as a benchmark in engineering
excellence.

Santro is being produced exclusively in India and the Indian Xing will now drive
the World. The Xing was Tall, wide and uniquely different. While its sleek lines
and pleasing curves and contours pleased the customers. The compact outer

11
dimensions, combined with its sporty stance added some passion for driving.

Santro Xing features the world class McPherson Strut Suspension with a
stabilizer bar in the front and a torsion beam axle with 3-link offset coil springs
and hydraulic dampers in the rear. This provides a smooth ride on the pot-holed
Indian roads and the wider tyres ensure surefootedness even on slippery
surfaces.

The new Santro Xing had all new looking feel exterior and interior styling. That,
coupled with new advanced features, offers the best comfort & luxury in India’s
favorite compact car. New bigger & brighter clear headlamps, smiling radiator
grille, power operated rear windows with child lock and lots of other smart
features like the seat under tray are the hallmarks of your Sunshine Car.

Variants of Santro Xing: Hyundai Motor India has launched three new variants of
the Santro Xing with eRLX technology, new interiors and a cheaper price tag.
The new Santro Xing variants – XK-Non AC, XK and XL – will have the latest 1.1
liter engine with eRLX Active Intelligence technology, which gives class-leading
low-end torque resulting in better pick-up, better fuel efficiency, lower
maintenance and enhanced engine life, claims Hyundai Motor India

Where the Xing scores over other cars is in the engine department. Its 1086 CC
inline-four makes 62 bhp, enough to take the little car all the way up to 145 kph.
The five-speed gearbox is notch-free.

12
The new Santro Xing had enhanced security and safety features which included
Child-Safety Rear Door Locks, Seat Belts – Front and Rear. It also had new and
better exteriors like clear lamps for both front and rear side, a new wheel cover
was provided along with the car to enhance the look of the tyres. The car’s
interiors had been changed keeping in mind the new image, they changed the
steering wheel with more spokes on it and also molded roof lining, front and rear
speaker grill, ash tray and room lamp. The instrument panel was also redesigned
with electronic trip meter and a low fuel warning to make users aware of the fuel
level. The seats were made keeping in mind the comfort of the passengers
where the seats in the rear could be folded to accommodate luggage.

13
 Pricing Strategies

The strongest factor that was in favor of the newly introduced Xing was that it
represented excellent value for money. Even though it had the latest technology
and extra features it was priced below the price of its competitors. The strategy
of the company in the initial few years was not to make profit but to gain market
growth.

The New Santro Xing was launched with a cheaper price as compared to its
previous versions Santro Zip and Santro Zip Plus. The Xing was priced at 2.79
lacs (Ex-showroom price New Delhi) for the base model. The car was priced
keeping in mind the middle income group which is in majority in India.

Hyundai Motors had tie ups with different financial institutions like ICICI car loans
and HDFC Bank to provide easy loan facilities to the customers, to get cars on
easy installments. The interest rates were kept low to encourage customers to
buy the cars.

The company offered discounts to reduce the burden on the customers. The tax
paid to the government for the road and registration was done at a discounted
rate with the company paying some amount of it. Even the insurance premium
for the first year was paid by the company so that the customer did not bear the
burden of the charges. The company offered extended warranty which the
customers could avail by paying a nominal amount. These practices of Hyundai

14
Motors assured that the customers got the car at the prices mentioned without
having to pay any extra charges on it.

The increase in the prices of steel and some government taxes on the
manufacture of small cars led to a hike in the price of the cars. The new price
was 3.5 lacs for the base model and moved up depending upon the higher
model. The increase in the price did not affect the demand much as the overall
price was increased by all the companies by some amount.

To regain its lost ground, Hyundai launched a new scheme under which Santro
Xing XE (S) variant would be available for Rs 3,00,001, only between November
8 and November 10 2004 on the occasion of Diwali.
In August 20041, “Hyundai Motors India Limited (HMIL), an Indian subsidiary of
the South Korea- based Hyundai Motors Company (HMC) was expected to
reduce the price by as much as Rs 40,000.

Industry experts were expecting a reduction in Santro's price in response to the

price war being waged by the market leader in India - Maruti Udyog Limited
(MUL), which had reduced the price of its largest selling car in the B segment -
Alto - by Rs 58,000 in two price cuts starting from September 2003. This move
had resulted in Alto replacing Santro as the largest selling car in the B segment
in the period January to June 2004.”

15
Prices of Different variants of Santro

Santro
Model Ex- Registration Insurance On Road
Showroom & Tax Price
XK Non A/C 270,222 7,974 10,273 293,719
XK A/C 327,848 9,127 12,290 354,515
XL 349,432 9,559 13,045 377,286
XO 373,883 10,048 13,901 403,082
AT 418,332 21,303 15,457 460,342

16
Promotion

The company planned to leave no stone unturned to advertise the launch of

Santro Xing. The company had supposedly earmarked Rs 15-20 crores as
marketing budget for the launch phase alone. Various media channels were
applied for the same like broadcast media, print media, banners, hoardings and
holding of events.

Thus, Hyundai has promoted its products through the entire possible medium.
The association of Shahrukh Khan as the brand ambassador of Santro made it a
huge success.

The experts believed that the humorous endorsements of King Khan coupled
with the new technology have catapulted Hyundai as one of the most visible,
talked about and debated brands in the country. The personality of Khan as a
fun-filled and mischievous person was an instant hit with the masses The

17
presence of Khan proudly peddling the Hyundai brand and car as the “Sunshine”
thing has always added a lot of zing to the brand equity of Hyundai.

The promotion of Santro Xing started with the teaser ads showing Shahrukh
Khan handing over the keys of Santro to Mr. Kim of Hyundai. Khan is left
stranded on the street alone just when Mr. Kim returns with the all new Santro
Xing and hands over the keys to him.

In another advertisement, Shahrukh Khan is seen asking his family members

about their choice of colour of the Santro. A little girl gives away her piggy bank
saving for a ‘maroon car’. Where the whole family wants the black car, Khan gets
a maroon car for the little girl and the baseline is “hoga har sapna sakaar”

Segmentation, Targeting and Positioning (STP) of Hyundai

HMIL has divided its customers on the basis of age and income group. They
distinguish between car buyers who are primarily seeking a luxurious driving
experience, and those seeking driving thrills and performance.

HIML recognized the needs of the middle income groups and their likes and
dislikes about the car.

Xing attracts the customers through “Niche marketing segment”. In this the
customers are first divided into segments and then sub-segments. A basic model
of the car which is XL Non AC caters to the customers who are brand conscious
but do not care much about the comfort a car provides.

18
The other models are also according to the taste of the customers, their
importance to luxurious driving etc.

Once HIML decided the different segments, it then focuses upon the target
customers and brought about price variants on models. The target customers
were then offered discounts, scratch cards and other promotional schemes.

The positioning was done in the market seeing the customers and HIML’s
positioning is well placed that can easily be derived from the fact that 33% of the
total market is captured by Hyundai.

19
 Market Research

Problems, decision alternatives and objectives:

The problems identified are

• the stiff competition Hyundai faces from its competitors

• to increase the customer satisfaction

Research Plan:

Data Sources:

• Primary: Company Survey, Questionnaire

• Secondary: Internet, Magazine*, Newspapers and Journals*

(* Details given in bibliography)

Sample unit:

We targeted those people who had small cars and were looking to buy a
new one

Sample Size:

We Surveyed 50 people.

Sample Procedure:

Probability: We used the random method to conduct our survey.

20
Information:

We have collected their response and gathered them together. Every

person’s opinion has been counted in our survey

Analyze Information:

Based on the information collected we have analyzed the facts

32 % people said that Hyundai is the first name that comes to their mind when
they talk about cars as compared to 52% said Maruti.

Brand Frequency
Others 6
Maruti 52
Hyundai 32
Tata 10

21
Customer care and better service is what attracts the customers to the
showroom. 21% people said that the customer care provided by the Hyundai
was the best.

Responsible
Employees Valid
1% Better Service Valid
13%
20% Better Service
No Idea
Customer Care
6%
Genuine Spares
No difference
More Trusted
15% Customer Care
21% No difference
No Idea
More Trusted Genuine
Spares Responsible Employees
23%
1%

(Factors that matters to Hyundai customers)

22
39% of the customers said that the car should be luxurious to drive and the other
major driving force was the size, meaning small attractive model.

Comfortable
2%
Easy
Maintainance
14% Luxurious Luxurious
39% Small attractive
Cost effective
16% Cost effective
Easy Maintainance
Comfortable

Small attractive
29%

(Factors that decide the purchasing of car)

23
Advertisement on TV was the main source of information while the other print
media has been catching up fast.

Word of
mouth TV
23% 26% TV
Websites
Websites New spapers
5% Magazines
Magazines
24% New spapers Word of mouth
22%

(The Information Media)

24
 Findings:

1. In the ranking for main purpose of the car the factor that scored the
highest importance were:
1. Necessity
2. Convenience
3. Comfort

2. 16.9% biased towards Hyundai due to its driving convenience and AC.
Hyundai was being perceived only by 11% customers who were in the
age group of 31-40

3. 48.5% consumers of cars (even other brands) found the pricing of

Hyundai cars to be satisfactory and reasonably priced. On an average, we
could conclude that the customers were satisfied with the pricing structure
of Hyundai cars.

4. Hyundai’s outlet (HMP) is believed to be trustworthy for the service being

provided compared to other dealers. This was the opinion of 23%
consumers. 21% perceived that customer care would be much better own
outlets rather than the dealers

5. About 27.2% of the consumers preferred to buy Hyundai in future followed

by 17.6% of them preferred to buy Maruti brands and 13% were will to buy
other cars

25
6. Auto magazines are the primary media sources. Majority of the people
refer to them to gather information about cars.

26
 Competitors and their Strategies

The Hyundai faces tough competition from the following brands:

• Maruti Suzuki, Wagon R

• Tata Motors, Indica
• Fiat, Palio

27
 Comparative Table of the competitors (Cost)

Xeta GLG WagonR Lxi Santro Xing XL

Cost Cost Cost
Price Ex-showroom
320800 356548 348191
factors price
Insurance 11842 13105 12661
Registration 9220 10216 0
Num
plate/Other 0 750 400
charges
Under body
2530 2530 2530
treatment
Paint
2900 2900 2900
protection
Sub Total 347292 386049 366682

Freebies Cost Cost Cost

Seasonal
NO 0 YES -35000 NO 0
discount
Extra Central NO,
locking NO 4200 NO 1400 dealer 0
w/remote gift
NO,
OEM MP3
dealer 0 NO 9000 NO 9000
Player
gift
NO,
Car Cover dealer 0 NO 400 NO 400
gift
NO,
Seat Cover NO 2500 NO 2500 dealer 0
gift
Exchange
NO 0 YES 0 YES -3500
bonus

28
 Corp Discount NO 0 YES -2000 NO 0
Full set mats YES 0 YES 0 YES 0
Mud flaps YES 0 YES 0 YES 0
Addi.
6700 -23700 5900
Cost/Discounts

Santro
Net on Xeta WagonR
Cost Cost Xing Cost
road GLG Lxi
XL
Ex Cost + Reg
347292 386049 366682
+ Ins + etc.
Min. Added
Benefits/Costs 6700 -23700 5900
(see above)
Net on road 353992 362349 372582

29
 (Strategies of the Competitors)
Tata Indica Maruti WagonR Fiat Palio
Promotio More car per Car” “Made in India”. Sachin Tendulkar, the
n “More dreams per car” major architect of sales.
“Forget small cars, we “the peoples car”
even make big cars
Fiat introduced a new
feel small”
“tall boy design” range of Palio with
“50cc moped, 100cc
Sachin’s signature on
bike 800cc car. Time
you asked for more.” top.

Price Indica offers a vast Price range Price Range: Palio

range of price for its between Rs.
Diesel EL Rs. 4,19,500.
customers. The petrol 325612 for the
version ranging from base model of – Rs. 6,99,000
Rs. 252,458 to Rs. WagonR to 408937
4,11,792 for the top for the fully loaded
model of the diesel top model
version.
Interest rates as
Tie ups with different low as 9%4 and
banks and financial financing up to
institutions to provide 90% of on - road
hassle free loans at prices.
lowest possible interest.
Tie up with State
bank of India to
provide loan facility

30
Place Has a well maintained Huge dealer Limited dealers and
and integrated dealer network and has service stations
network and retailers to the biggest and installed along with the
reach the remote areas. after sales service. showrooms
Its service station
expands to the
length and breadth
of country

31
 Market Share of Hyundai and Competitors

Others
9%
Tata
Hyundai Xing
10%
32%
Hyundai Xing
Maruti
Tata
Others

Maruti
49%

Hyundai Xing has a 32% market share with only Maruti as a competitor

32
 Maruti Udyog Limited
WagonR

Customer Service

After-sales service for cars is as critical as showroom deals. Maruti services its
2million customers through an army of 174 dealers spread across the length and
breadth of the country. It will be impossible for a company to duplicate such
infrastructure, particularly with investments in a metro-based showroom going up
to Rs 4 crores.

The problem of price war is evident with Auto majors as much as with dealers. In
a bid to woo the customers, Maruti dealers, particularly in non-prime locations,
are cutting their margins.

33
Doing so will benefit all the three constituents in the marketing chain: the OEM,
the dealer, and the buyer. The carmaker can expand his reach without expensive
investment; the dealer can increase his revenue; and the customer gets a variety
of models under one roof.

The advertisement of Maruti emphasized the availability of service centers

across the country with service centers even in remote areas of Ladakh.

34
 Fiat – Palio

Promotion Strategy

Fiat has a fantastic image internationally. The heritage is more than a 100 years
old and has a big history and a big brand. Fiat believes that Sachin will help
convey this image of Fiat to the people of India. Also, Sachin's image of
dynamism and excellence matches that of the Palio. He is passionate about cars
and so FIAT is looking forward to working with Sachin Tendulkar to promote the
Palio. The Company used Sachin’s status to great effect when it launched the
New Signature series which were signed by Sachin Tendulkar himself and these
were a huge success as the people took a great liking for it.

“Three beauties from Fiat, for the three beauties of India” is how Mr. Bianchi
summed up the event.

Fiat India, organized a special function at their Kurla plant to felicitate the
winners of the Fa Femina Miss India contest, 2002. On the occasion, Mr. M.P.
Bianchi, Managing Director, Fiat India Pvt. Ltd presented the three beautiful
ladies, Neha Dhupia, Shruti Sharma, and Reshmi Ghosh, with Fiat Palio’s. Over

35
2000 members of the Fiat team gathered together on the lawns in front of the
factory to witness the handing over ceremony.

Pricing Strategy

The Palio Diesel is offered in three versions - The Palio Diesel EL, Palio Diesel
ELX and the top of the line, fully loaded Palio Diesel ELX SP. The new range of
diesel cars is competitively priced and continues Fiat’s tradition of offering its
customers true value-for-money.

The Palio Diesel EL was launched at the price of Rs. 4,19,500. The other
variants were priced according to the different features. The diesel cars
were launched at the following rates Palio Diesel ELX – Rs. 4,49,500,
Palio Diesel ELX SP – Rs. 4,75,000, Adventure Diesel – Rs. 6,99,000

36
37
 Tata Engineering and Locomotive Company (TELCO)

Promotions

The Indica advertising made interest for the car go into overdrive. The campaign
revolved around the premise that the Indica would not just meet people's
expectations, it would exceed them. Every advertisement has a story to tell

Pre launch Campaign

The Indica campaign began in the right earnest in December 1998. It was
advertised as the launch of a car that will spell doom for the small cars. It was
directly aimed at Maruti 800. The ad line used in the first campaign was “Car
makers will suddenly remember all the things they forgot to give you”.

This hinted that Indica would have more features than any of the existing small
cars. Indica used the catch lines like “More car per Car” “More dreams per car” to
suggest that Indica will be bigger in size to the existing small cars yet be in the
small car category. It competes with the mid size cars on size and give them a
run for their money with its cheaper price tag.

At the launch of the car TELCO claimed that the people would never have to
suffer from a small car again and the end of the year (1998) would be the end of
the small cars.

Launch Campaign
38
The launch campaign of Indica focused on the many advantages that it offered
over other cars in the same segment. It promised the customers more than the
current offerings. Its first advertisement carried the following catch line “50cc
moped, 100cc bike 800cc car. Time you asked for more.”

It then concentrated its efforts on criticizing the negative aspects of Maruti 800
and highlighted how Indica has removed those very defects and presented a
very sophisticated and modern car to the Indian customer. It even pointed out
that the shape of Maruti was very unconventional and that people would prefer
the shape of Indica to Maruti 800. The advertisement read “Box shaped, bubble
shaped, wedge shaped. But then Gentlemen prefer curves”

The launch campaign also focused on the roomy interiors of Indica, a feature not
offered by Maruti at that point of time. Also the expertise of TATA in diesel
engines and fuel efficiency of these were the highlight of the launch campaign of
Tata Indica.

Post Launch Campaigns

39
While the Launch campaign focused on the features of Indica the post launch
advertisements focused on the superior after sales service and longer warranty
periods offered by Indica.

Telco was the first company to offer an 18-month warranty period on engine
parts. The most famous line used during this campaign was “We could go on and
on about service or give you the one word summary. TATA.” While their main
adversary was the Maruti 800, Telco felt that it could also tap the mid size
segment using the selling point of space given by Indica. They carried a
campaign, which said “Forget small cars, we even make big cars feel small”

It then went on to highlight the fact that Indica was Euro II compliant even before
it was legally binding upon car manufacturers to do so. It also highlighted the
concrete wall safety test that Indica withstands and tried to showcase the car as
a safe and strong car.

40
 Conclusion

Since idea was to analyze the marketing stratergy of Hyundai Santro so by the
intensive study carried out with car owners and marketers of different brand I
come at specified conclusions on four P’s of marketing.

People
Talking about people targeted by Santro is a class who would look for
“Value for Money”. It not only comprises of those middle class segment but also
of some special class like me and others who are looking for buying their first
ever car.

Price
Santro has been priced very specifically due to it being on straight
competition with all time tough competitor Maruti, as it has a very unique mind
set of economical vehicle. Giving Santro at this affordability with higher features
marks its presence in this segment really well.

Promotion
What well it could be if one of the best endorsers in the industry comes
himself showing that this what now one would dream of. Shahrukh Khan has a
presence which would ask his fan following to trust the brand he trusts.

Product
If Santro still requires any introduction then we would say a car which has
eaten up a huge share of running cars on the road especially of Maruiti’s

41
monopoly. Then this car has given all what customer would look for cars in this
segment.
General analysis
The demand for the small car will continue to drive growth for the next five years.

In the US, auto demand rises by 4 per cent for every 1 per cent increase in the
real Gross Domestic Product but this is irrelevant for India as only the top 1.50
per cent of the population can afford a car. The demand can shoot up if the
income levels of the top 5 per cent continue to rise in future.

It is stagnant at 1.70 cars per 1,000 people for decades. However, in the post-
liberalization period, the motorization level has leaped to 3.70 cars per 1,000.
Although it is still lower than the levels in the developed markets, motorization is
bound to rise further in the coming years.

Falling imports and excise duties coupled with competition will continue to boost
demand and the prices are likely to fall further at least in the short run.

Over 60 per cent of customers opt for consumer finance. That figure could go up
if interest rates continue to fall.

Traffic congestion and bad roads could deter potential buyers from going for
small cars particularly in small cities of India. The future is not very heartening in
this aspect.

42
As manufacturers shift their attention to the small car, more and more people will
be able to afford it and demand will only rise in the future period of time.

There is a sharp contrast in the buying behavior of Indian Consumer compared

to their western counter parts, yet there is no doubt that Indian car market is
going to increasingly resemble the latter. In the West, the industry is likely to be
dominated by three or four major players.

The market will consolidate to a few segments. The carmaker has to make
diverse models based on diverse and flexible platforms. For the price-sensitive
customers, there can be a no-frills version; a loaded version for the middle
customer and luxury car manufacturers can target the high-end customers.

The fortunes of the automobile industry will continue to hinge on the large, price
sensitive customers, who will graduate to the higher end of the market over a
period of time.

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 Bibliography

Marketing Management – Philip Kotler and Keller

Marketing Research – Aaker Kumar Dey

Websites:

Hyundaimotorindia.com
Santroxing.com
Indianinfoline.com
Hindubusinessline.com
Autoindia.com

Magazine:

AutoIndia
Business World
Overdrive
Auto Car
4 P’s of marketing

Newspapers:

The Economic Times

The Financial Express

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 Appendix
Questionnaire

1. Which car do you own?

Santro Xing WagonR Tata Indica Fiat Palio

2. What is main purpose of having a car?

Necessity Convenience Comfort

3. Are you satisfied with the driving convenience and other features of car?

Yes/No

4. Do you think Hyundai cars are satisfactory and reasonably priced?

Yes/No

5. Are you satisfied with after sales service of the car company?

Yes/No

6. Would you buy Hyundai in future?

Yes/No

7. How did you come to know about Xing?

Auto Magazine_________________________________________
Newspapers____________________________________________
TV advertisement_______________________________________
Word of Mouth_________________________________________

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Please provide your name and address:
Title: Mr./Mrs./Ms.____________________ Telephone
no._________________ Name
______________________________________________
Address_____________________________________________

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