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Project Report Symbiosis Centre for Management Studies (UG) A Project Report Symbiosis Centre For Management Studies (UG) A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 1 A COMPARATIVE STUDY ON THE EFFECT OF MARKETING TECHNIQUES OF VOLKSWAGEN & TOYOTA A Project Report Submitted in Partial Fulfilment of the Requirement for the Degree in Bachelors of Business Administration By Pranshu Sahni 3032 TY-A 08020621181 February 2011 Symbiosis Centre for Management Studies (UG) Symbiosis International University Pune Project Report Symbiosis Centre For Management Studies (UG) A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 2 Acknowledgments The concepts learnt in academics are of no importance until they are practically applied. In today¶s world it is imperative for the students of any Under- Graduate course to keep pace with the changing technology innovations taking place across the world. In alignment with this, I prepared a Research Project Report after my 5th semester of BBA. I am heartily thankful to my Project Guide, Mrs. Ahuti Mishra whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of the subject. I express my thanks to the Director of Symbiosis Centre for Management Studies for allowing me to work on this project. I wish to express my deep sense of gratitude to the Sales Managers of both Volkswagen and Toyota for their support and guidance. I would also thank my Institution and my faculty members without whom this project would have been a distant reality. I also extend my heartfelt thanks to my family and well wishers. Project Report Symbiosis Centre For Management Studies (UG) A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 3 CERTIFICATE This to certify that the Research work incorporated in the report ---------------------------------------------------------------------------------------------------------------- is a bonafide work done by Mr. / Ms.---------------------------------------------------------. It was carried out by the candidate under my guidance and supervision. The materials from other sources have been duly acknowledged by him / her in the research report. This work is submitted in partial fulfilment of the requirement for the degree Bachelor of Business Administration in the academic year 2010-2011. Dr. Anupama Suresh Director, SCMS (UG) Project Guide Place: Date: Project Report Symbiosis Centre For Management Studies (UG) A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 4 STUDENT̉S UNDERTAKING I Mr. / Ms.______________________________________hereby certify that the Research work incorporated in the report _____________________________________________________ __________________________is a bonafide work done by me. The materials from other sources have been duly acknowledged by me in my research report. This work is submitted in partial fulfilment of the requirement for the degree Bachelor of Business Administration in the academic year 2010-2011. Signature : __________________________________ Name of the student: __________________________________ Division : __________________________________ Exam Seat No. :___________________________________ Date : __________________________________ Project Report Symbiosis Centre For Management Studies (UG) A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 5 Abstract The Indian Automobile Industry is on overdrive. The rapid urbanization, coupled with an overwhelming growth in the middle class population, has created an Indian market that is extremely conducive for the automobile industry to flourish. Indian automobile industry recorded a growth of 16.07% in 2006-2007.Automobile industry contributes 4% of the national GDP and accounts for 5% of the industrial output in India. It is moreover, a major employment generator in the country. The Indian automobile industry provides employment to around 13 million people directly or indirectly at present, a number that is likely to double by 2016. The following report is a comparative study of two automobile giants tries to establish their respective brands of cars in the minds of the Indian Consumer. The Purpose of the study is effect of their marketing campaigns on the Indian consumer which tries to find value for their money. Volkswagen being who entered the Indian Market in the year 2005 with its brand Skoda had lot success in the recent years. Toyota has a partnership with Kirloskar and entered the Indian Market in the year 1997 and is able to establish their name in the Indian Market. As both of these companies have already launched their specialised cars for the Indian Consumer, it would be interesting to find which manufacturer is able to understand the Indian consumer completely. Project Report Symbiosis Centre For Management Studies (UG) A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 6 Table of Contents Chapter No. Contents Page no. 1. Introduction.................................................. 8 1.1 Introductory Paragraphs................................. 8 1.1.1 State of Indian Economy...................................... 9 1.1.2 Current State of Indian Auto Market................... 9 1.1.2.1 Small Vehicle Market............................................ 10 1.1.2.2 Indian Exports........................................................ 10 1.2 Statement of Problem.............................................12 1.2.1 Market Strategy and Consumer Behaviour....................12 1.3 Objectives................................................................14 1.4 Significance of the Study.......................................14 1.5 Hypothesis...............................................................15 2. Background..........................................................16 2.1 Literature Review......................................................16 2.1.1 Volkswagen.............................................................. 16 2.1.1.1 History of Volkswagen............................................. 18 2.1.2.1 Volkswagen in India.................................................. 30 2.1.2.2 Volkswagen marketing India.............................. 32 2.2.1 Toyota.................................................................... 37 Project Report Symbiosis Centre For Management Studies (UG) A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 7 3. Methodology 3.1 Research and Design................................................. 60. 3.2 Research Process...................................................... 60 3.3 Exploratory Research............................................... 61 3.3.1 Primary Data.............................................................. 61 3.3.2 Secondary Data......................................................... 61 3.3.3 Data Collection........................................................... 61 3.2 Population and Sampling.............................................. 62 3.2.1 Sample Size.....................................................................62 3.3 Time Frame...................................................................62 3.4 Validity and Reliability.................................................63 3.4.1 Questionnaire error..................................................... 63 3.5 Assumptions............................................................... 63 4 Finding Interpretation and Conclusion 4.1 Conclusion.................................................................... 84 4.2 Hypothesis Testing........................................................84 5 Limitations and Recommendations............................ 85 Bibliography.................................................................. 86 Annexure.................................................................... 87 Project Report Symbiosis Centre For Management Studies (UG) A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 8 Chapter I ± Introduction 1.1 Introductory Paragraphs India ranks just behind China with the world¶s second largest population at over 1 billion people. Less than 1 percent of the population currently owns automobiles, which is a much smaller proportion than the rest of the Southeast Asia region. For example, the regional average of ownership is 16.45 percent. Nonetheless, sales of passenger vehicles in India have more than doubled since 2001 to over 1.5 million units. India also has one of the fastest growing economies, and many U.S. companies view India as a potentially lucrative market. It is expected that the automotive industry will play an important role in helping the economy to continue this growth. Not only are domestic sales expected to grow dramatically, but India will play a significant role in the global automotive market. The world¶s top manufacturers, General Motors, Ford, Toyota, Honda, and others, have a significant share of already established manufacturing bases. These manufacturers hope to not only capture an emerging market, but also to use these bases as export hubs to serve the region and the global market. Though not to the same extent as the telecom sector, the automobile and auto- component industry has also emerged as one of the recent success stories. As in all other countries, the Indian automobile industry is one of the key drivers of industrial growth and employment which will further gain in importance in the coming years. Its recent
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