CUSTOMER PERCEPTION TOWARDS OF BIJJARAGI MOTORS

CONTENTS

Chapter 1  Executive Summary  Introduction  Automobile Industry 

Chapter 2

 Bijjaragi History and concerns  Organization Profile  Benefits of employee & customer  7 P’s

Chapter 3  HR department  Service department  Sales department

Chapter 4  Findings  Suggestion  Conclusion  Questionnaire  Bibliography

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EXECUTIVE SUMMARY This project mainly concentrates on the

“ORGANISATION STUDY & TO STUDY OF CUSTOMER PERCEPTION

TOWARDS TO STORE & LOYALTY OF BIJJARAGI MOTORS”

A consumer may have set of interests, benefits, attitudes and life style before purchasing a product. But there might be a major change in his taste of preference after the purchase has been made. In such a position it is difficult for the marketer to know the behaviour of the consumer. With this view in mind the research study will be conducted to find out the consumer preference towards store and loyalty. To carry on the study the research has been conducted as per the marketing research process. As the study requires the customer (potential) opinion it will also help to know the awareness level of store and loyalty in Bijapur district and also the opinion regarding the vehicle as well as the overall performance of bijjaragi Tata motors. The study will also help us to identify the factors that influence to buy the store and loyalty which will helpful to company for better improvement of the vehicles & stores. For this study I had collected the primary data through questionnaire and the company catalogues, brochures are collected for secondary information. To collect primary data survey is conducted on individuals (potential customers) this study is limited to the Bijapur district only. The sample size that I had taken is 50.

This study will also help company to know the customer like as well as there need, want & satisfaction in stores. (Like bijjaragi motors, manikbag motors, bhagyodaya motors.

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INTRODUCTION

Market area in India has been witnessing several changes in charter and Complexity since the last few years. These changes include a higher reach of mass media, particularly due to an increased penetration of satellite Channels, availability of a greater assortment of products and services. Higher level of consumer spending on items other than basic necessities, more discerning choice behavior exhibited by consumers, and a clear Indication of consumer preference for better value in products and services.

The passenger vehicle segment in the automobile industry plays a vital role in India .The present day market is such that the passenger vehicle is affordable by Middle class people in urban and semi-urban areas; it is also more convenient for traveling short and long distance. Over the years the sales figured of the four wheelers has increased to a very large extent. The sale of the four-wheeler in 1950 was nearly 300 units whereas now the sales have shot up to millions.

The Indian automobile industry is now striding inroads into the rural middle class after its inroads into the urban markets and rural rich. It is trying to bring in varying products to suit requirements of different class segments of customers.

Vehicles that can be considered automobiles were demonstrated as early as 1769 and 1885 marked the introduction of gasoline powered internal combustion engines.

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History of Automobile Industry

The history of the automobile industry in India actually began about 4,000 years ago when the first wheel was used for transportation. In the early 15th century, the Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By the 1600s, small steam-powered engine models were developed, but it was another century before a full-sized engine-powered automobile was created.

The dream a carriage that moved on its own was realized only in the 18th century when the first car rolled on the streets. Steam, petroleum gas, electricity and petrol started to be used in these cars.

India's transport network is developing at a fast pace and the automobile industry is growing too. The automobile industry also provides employment to a large section of the population. Thus the role of automobile industry cannot be overlooked in Indian Economy. All kinds of vehicles are produced by the automobile industry. It includes the manufacture of trucks, buses, passenger cars, defence vehicles, two-wheelers, etc. The industry can be broadly divided into the car , two-wheeler manufacturing and heavy vehicle- manufacturing units.

The major car manufacturers in India are , Maruti Udyog, Fiat India Private Ltd., Ltd., Pvt. Ltd., Honda Siel Cars India Ltd., Hyundai Motors India Ltd., Skoda India Private Ltd., Ltd., to name just a few.

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RATAN TATA

Chairman of Tata Sons and major Group companies, including Tata Motors, Tata Steel, Tata Consultancy Services, Tata Power, Tata Tea, Tata Chemicals, Indian Hotels, Tata Tele-services and Tata Auto Company.

Vision Statement “To be the Most Sought after Organization for Enabling Tata Group Companies Achieve Industry Leadership”

Values “Credibility, Integrity, Excellence & Continuous Learning and Sharing” The Tata Group is one of India's largest and most respected business conglomerates, with revenues in 2005-06 of $21.9 billion (Rs 967,229 million), the equivalent of about 2.8 per cent of the country's GDP, and a market capitalisation of $62.2 billion as on July 12, 2007. Tata companies together employ some 2, 46, 000 people. The Group's 28 publicly listed enterprises — among them stand out names such as Tata Steel, Tata Consultancy Services, Tata Motors and Tata Tea — have a combined market capitalisation that is the highest among Indian business houses in the private sector, and a shareholder base of over 2 million. The Tata Group has operations in more than 54 countries across six continents, and its companies export products and services to 120 nations. Products of TATA Motor Heavy Vehicles.

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INDIAN AUTOMOBILE INDUSTRY

The Indian auto industry has grown at an impressive 16.82 per cent over the last year with total sales of vehicles reaching around 10 million vehicles till November 2006 as against 8.5 million in 2005. Spurred by a huge demand from the market, the increase in production is set to improve further driven by a buoyant economy, with increasing purchasing power, new product launches, coupled with attractive finance schemes from automobile manufacturers and financial institutions. The domestic passenger car market recorded a historic 22.66 per cent growth in April-December, 2006, second only to the 28.56 per cent in fiscal 2003-04. Analysts believe the industry will close fiscal 2006-07 with around 22-23 per cent growth, against just 16 per cent in 2005-06.

Destination India : India is on every major global automobile player's roadmap, and it isn't hard to see why:

• India is the second largest two-wheeler market in the world • Fourth largest commercial vehicle market in the world • 11th largest passenger car market in the world • Expected to be the seventh largest by 2016

Robust production: The cumulative growth of passenger vehicles segment during April-February 2007 compared to the corresponding period in the last year was 22.91 per cent, while that of passenger cars in the same duration was 24.76 per cent, says the Society of Indian Automobile Manufacturers (SIAM). The commercial vehicles segment grew by 36.12 per cent during the April-February 2007 period, while three wheeler sales grew by 14.5 per cent, it added.

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Ashok Leyland HMT Tractors Audi AG Honda Motors Co. Ltd. San Motors Hyundai Motors Scooters India Ltd BEML Indofarm Tractors Skoda Auto India BMW Kinetic Motor Co. Ltd. Sonalika Tractors Bentley Motors Limited Lamborghini Suzuki Motors Chevrolet LML India Swaraj Mazda Ltd. Mahindra & Mahindra Daewoo Motors Tafe Tractors Ltd. India Ltd. Tata Motors Escorts Ltd. Mercedes Benz Telcon Fiat India Pvt Ltd Mitsubishi Motors Terex Vectra Force Motor Monto Motors Toyota Kirloskar Motors Ford Motors Nissan Motors TVS Motor Co. General Motors Porsche Volvo Hero Honda Reva Electric Co. Yamaha Motor Hindustan Motors Rolls-Royce Motor

Economic Survey 2007-08 says: The installed capacity of the has been growing at a compounded annual rate of over 16 per cent since 2001-02. It produced a wide variety of vehicles including 1.7 million four wheelers (passenger cars, light, medium and heavy commercial vehicles, multi-utility vehicles such as jeeps), and over 8 million two and three wheelers (scooters, motor-cycles, mopeds, and three wheelers) in 2006-07.

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India is the second-biggest market for small cars after Japan. It accounts for 60% of the domestic market.

Facts Figures It seems that India has finally arrived in the big league of Asian car markets. Steady and impressive annual growth rate, presence of international automakers, relaxation of foreign exchange and equity regulations, reduction of tariffs on imports and few others are the components of its booming auto market. The country has now come to be recognized as a potential emerging auto market. The perception of foreign investors has changed, everybody wanting to be here.

For the first time, in the financial year end in 2005, the total sales of passenger vehicles - cars, utility vehicles and multi-utility vehicles - crossed the one-million mark to touch 1.06 million, with exports of 166,000 vehicles.

Study says that by 2010 India will take over Germany in sales volumes and Japan by 2012. And by 2050, Indians will buy every sixth car produced in the world. Apart from serving the domestic market, the auto sector has turned as a sourcing base for the global auto majors. The auto component market is also in its full swing. As per the research of RNCOS, one of the leading industry firms, the Indian automobile component industry is estimated to triple from USD 63 billion to USD 190 billion within a span of six years by 2012.

Indian Automobile Industry Estimation:

Estimated turnover USD 12 billion, plus components revenue USD 3 billion, this is the vastness of Indian automobile industry. Industry analysts predict this industry to touch USD 13000 million marks by 2010, a cumulative growth of 9.5% annually. It is said that for every Re 1 spent, the auto sector returns Rs. 2.24 to the Indian economy.

Automobile Dealers Network in India

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In terms of Car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The other leading automobile manufactures are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in tern pass it on to the customers in the form of reduced interest rates.

Automobile Export Numbers

Category 1998-99 2004-05 (Apr-Dec) Passenger Car 25468 121478 Multi Utility Vehicles 2654 3892 Commercial Vehicles 10108 19931 Two Wheelers 100002 256765 Three Wheelers 21138 51535 Percentage Growth 16.6 32.8

The industry has adopted the global standards and this was manifested in the increasing exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and- a-half times the export figure for 2001-02.

EVEN Growth

Opposing the belief that the growth in automobile industry has catered only to the top income-stratum of society, Growth of exports of 32.8 % in the first three quarters of 2004-05, the fastest growth in volumes has come from commercial vehicles as against passenger car.

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Between 1998-99 and 2003-04, output of commercial vehicles has grown 2.8 times compared to the 2.2 times increase in passenger cars. Furthermore, two-wheeler output continues to dominate the volume statistics of the sector. In 2003-04, for every passenger car turned out by the sector, there were 7 two-wheelers produced. In the two wheeler segment, there is a greater preference for motorcycles followed by scooters, with both production and domestic sales of motorcycles increasing at faster rates than for scooters in the current and previous years. However, mopeds have registered low or negative growth. Export growth rates have been high both for motorcycles and scooters.

THE KEY FACTORS BEHIND THIS UPSWING:

Sales incentives, introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. The risk of an increase in the interest rates, the impact of delayed monsoons on rural demand, and increase in the costs of inputs such as steel are the key concerns for the players in the industry.

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