Executive summaryWhy market segmentation? People with similar attributes tend to display similar propensities in their purchasing behaviors. This is often accompanied by social fads and trends that may be specific to certain market segments. Market segmentation is a process that segments a market into smaller sub-markets, called segments. Segments are to be homogeneous or have similar attributes. Purchasing patterns and trends can appear prominently in certain segments. Good market segmentation is to create segments where prominent patterns can emerge. Market segmentation may be used to analyze the followings; Market responsiveness analysis: This is very useful in direct marketing since market responsiveness of product offerings can be readily available. Market trend analysis: Analyzing segment-by-segment changes of sales revenues can reveal market trends. Trending information is vital in preparing for ever-changing markets.Market segmentation for Market trend analysisMarket segmentation creates segments with the same or similar attributes. It normally uses the following attributes to generate market segments. One or more of the attributes may be used to define market segments. Geographical regions: regions, countries, states, zip-codes, counties, etc. Demographics: gender, age, income, education, etc. Psychographics: life style classification. Sales channels, branches, and departments. The study gives in detail the market segmentation and sales trend practices in Hyundai motors. Management of each segment namely Segment A1 (Mini) cars having a length up to 3,400mm Segment A2 (Compact) cars having a length of 3,401- 4,000mm Segment A3 (Mid-size) cars having a length of 4,001- 4,500mm Segment A4 (Executive) cars having a length of 4,501- 4,700mm Segment A5 (Premium) cars having a length of 4,701- 5,000mm Segment A6 (Luxury) cars having a length of more than 5,000mm, is studied permanent to Hyundai motors.The research methodology adopted for the study is mainly from primary source which include questioner , and interview with few of employees in sales department.

INTRODUCTIONThe Indian Automobile Market is expected to grow at a CAGR of 9.5 percent amounting to Rs. 13,008 million by 2010. The Commercial Vehicle Segment has been contributing to the automobile market to a great extent. Many foreign companies have been investing in the Indian Automobile Market in various ways such as technology transfers, joint ventures, strategic alliances, exports, and financial collaborations. The auto market in India can boast of attractive finance schemes, increasing purchasing power, and launch of the latest products. Total sales of major car manufacturers in India registered a figure of 0.674 million units at the end of March, 2007. The number of car exports in India was 39,295 units. General Motors, Hyundai , and Honda accounted for 60 percent of the market sales at the end of April, 2007. There has been an increase in the purchase of motorcycles and cars both, in the rural as well as urban areas. Hyundai is Indias No. 1 customer satisfaction car company. Its sale is more than 50% of care of car market. But now it is getting a good competition with other new car company and foreign companies and its sales is going down because other car companies are trying to present different types of new car in different segments. So in our study in i had tried to study Hyundai segmentation of cars and its sales trend and its effect on customer. This project is all about segmentation and sales trend study of Hyundai . Through our study we are trying to analyze the customer demand in different segments and advancement required in Hyundai s segmentation. I also analyzing Hyundai sales trend. We had visited different dealers of Hyundai in and asked some question and based on that we are tying to analyze the data and sales trend of Hyundai . We had also collected some secondary data of different study done on Hyundai and based on that we are trying to present the sales trend analysis of Hyundai .

OBJECTIVESThe main objective of the study is to recognize the sales trend and segmentation of Hyundai . Special challenges that must be identified and addressed: To know the segmentation and sales trend of Hyundai. To know the impact of market segmentation on Hyundai market share. To suggest some changes in segmentation of Hyundai models according to customer need.

Literature Review

SEGMENTATION

CAR MARKET CLASSIFICATION

It is necessary to understand the car market classification and the segments in which MUL operates.There are two principal systems of classification in the In passenger car industry:A. Price Based ClassificationPrice based classification is the widely accepted classification basis in the Indian passenger car industry.The different price segments used by Hyundai were as follows:1. Segment A cars priced lower than Rs. 300,0002. Segment B cars priced between Rs. 300,000 and Rs. 500,0003. Segment C cars priced between Rs. 500,000 and Rs. 1,000,0004. Segment D cars priced between Rs. 1,000,000 and Rs. 2,500,0005. Segment E cars priced above Rs. 2,500,000 B. Length & weight Based Classification:In April 2002, SIAM introduced a new segmentation of cars on the basis of the length of the cars, in order to establish a uniform industry standard. The new segmentation of passenger vehicles is as follows:1. Passenger cars Segment A1 (Mini) cars having a length up to 3,400mm Segment A2 (Compact) cars having a length of 3,401- 4,000mm Segment A3 (Mid-size) cars having a length of 4,001- 4,500mm Segment A4 (Executive) cars having a length of 4,501- 4,700mm Segment A5 (Premium) cars having a length of 4,701- 5,000mm Segment A6 (Luxury) cars having a length of more than 5,000mm1. Utility vehicles

Weight up to 3.5 tonnesa) Seating capacity not exceeding 7 (including driver)b) Seating capacity between 7 and 9 (including driver) Weight up to 5 tonnesa) Seating capacity not exceeding 13 (including driver) Multi-purpose vehicles (Weight up to 3.5 tonnes).

Hyundai s Offering and Competitors in Different Segments:

Manufacturer

Name of theModel

Segment as perlength-basedclassification

Segment as perprice-basedclassification

1.Daimler Chrysler India Pvt. Ltd.

C ClassA6: Luxury

A4: Executive

E `

E 250

A5: PremiumE

S ClassS ClassE

2.Fiat India Automobiles Pvt. Ltd.

Fiat Palio

A2: Compact

B

Fiat SienaA3: Mid-size

C

Fiat UnoA2: CompactB

Palio AdventureA3: Mid-sizeC

3.Ford India Ltd.

FigoA3: Mid-sizeC

IkonA3: Mid-sizeC

MondeoA5: PremiumD

4.General Motors India Ltd.Opel AstraA3: Mid-sizeC

Opel CorsaA3: Mid-sizeC

Opel SwingA3: Mid-sizeC

5.Hindustan Motors

AmbassadorA3: Mid-sizeB

ContessaA4: ExecutiveC

LancerA3: Mid-sizeC

6.Honda SIEL Cars India Ltd.AccordA5: PremiumD

CityA3: Mid-sizeC

7.Hyundai Motor Company Ltd.

I20

A3: Mid-sizeC

Santro, I10

A2: Compact

B

Verna, ElentraA5: Premium

D

8.

Maruti Udyog Ltd.Maruti CelrioA3: Mid-sizeC

Maruti 800A1: MiniA

Maruti SwiftA2 : Mid size

Maruti altoA2: CompactB

DzireA3: Mid-sizeC

Versa

Utility vehicles

C

OmniUtility vehiclesA

9.PAL-Peugeot Ltd.118NE

A3: Mid-size

B

10.Tata Engineering & LocomotiveCompany Ltd

Indica

A2: Compact

B

SECTOR OUTLOOK

Between fiscal 2002 and fiscal 2007, the entire passenger car market had a growth of approximately 9.5%, largely as a result of increasing demand for segment B cars .Segment AThis is the entry-level and the most price sensitive segment. Hyundai is the sole manufacturer in this segment since fiscal 2000. Models like Hyundai santro are the ruler in this segment anybody who is economic wants to buy this model so during the period of 2000-05 this was the hot selling product from Hyundai . Segment BThis segment is shining with a growth of approximately 57.6% of the Indian passenger car market. Due to the present low per capita income in India, the price and cost of ownership of cars are significant factors that affect demand for cars in this segment. Santro, i20, i10, Xscent etc are the models that anyone can find them in any corner of this country. This segment comprise of 69% from the whole sale of Hyundai . This segment is always focused by Hyundai and it is still improving this segment.

Segment C, D, and EThere are 11 manufacturers with approximately 20 models in these segments. These segments typically have low sales volumes; therefore, high growth rates of 11%, 19% and 35%, respectively . But in this segment Hyundai has lesser number of product . New model launches, growth in per capita income levels, high aspirations and status associated with larger cars, are the key factors affecting demand for cars in these segments. Hyundai has to improve this segment to fight with others.

THE PRE-OWNED CAR MARKET

The size of the pre-owned car market has been estimated to be more then the size of the new car market. The A and B segments account for between 70 and 80% of the total sales volumes in the pre-owned passenger car market in. The proportion of pre-owned cars from segment B is increasing and is expected to form the largest portion of the pre owned passenger car market. Mid-size and large cars are less popular in the pre-owned passenger car market. Here also Hyundai started its own market known as TRUE VALUE. Here the company sell all kind of cars without altering their specification,

COMPARATIVE STUDY OF MODELS OF HYUNDAI AND ITS COMPITATORS IN DIFFERENT SEGMENTS

Maruti TATAHYUNDAIHONDAGMTOYOTAFORDSKODA

AOMNIINDICAEON-----------SPARK----------------------------------------

BWAGON ALTOSWIFTINDIGOSANTROI10I20------------AVEO-UAVLIVA ETIOSFIGO---------

CCIAZDZIRE

SAFARISOMOXCENTVERNACITYAVEOOPTRATRAVERAINNOVACOROLLAFIESTAFUSIONFABIA

D--------SANTAFICIVICCRVCAPTIVECAMRYALTISENDEAVOUROCTAVIA

E-------------------ELENTRAACCORDPRADOFORTUNERLAURASUPERB

This table shows that the Hyundai has larger number of variety in its segment so the sales must be good in this segments

Research Methodology

RESEARCH METHODOLOGYDefinition: Research methodology is a process to systematically solve the research problem. Why a research study has been undertaken, how the research problem has been defined. In what way and why the hypothesis has been formulated, what data have been collected and particular method has been adopted. Why particular technique of analyzing data has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. Statistical method was followed in this research because the data was of descriptive nature and it also enabled accurate generalizations.

SOURCES OF DATA

Primary data:Primary data are those which are collected a fresh and for the first time and thus happento be original in character. It was collected through questionnaire.

Secondary data:The secondary data are those which have already been collected by someone else and which have already been through the statistical process. The data were collected in the form of company profile from the web sites and companys documents. Some of the books were referred for theoretical concepts.

Research methods:Those methods which are used by the researcher during the TheCompanys studying of researchproblem are termed on research methods.

Descriptive research design:The major purpose ofdescriptive research is description of state of affairs on it exists at present. The main character ofthis method is that the researcher has no control threw over the variables. He can report what has happen or what is happening.

Nature of data:In this study primary data are used.

Collection of data:The data were collectedfrom the respondents through the distribution of questionnaire.

Area of the study:This study covers DELHI,GURGAON ,MANESAR

Sample size:The sample size of this study is 50.Non random sampling we are using.

Tools for analysis:With the usual statistical tools such as tables, percentages, bar charts, were used foranalyzing the data and arriving at the conclusion.

QuestionnaireDesignAstandardizedquestionnairetocollectdataonbeliefs,feelingsandattitudesfromthe respondents is being usedandalsotheresearchershavecontributedthiseffortinframingthe questionnaire. The purpose of the study is explained clearly to the respondents. So, nothing about thepurpose of study is concealed from therespondents.

ANALYSIS OF THE DATAThedatacollectedthroughquestionnaireshavebeentabulated.Byusingtheabovementioned statistical tools, the data have been analyzed. Interpretations have been drawn based on the analysis.The findings and observations are the result and outcome of the interpretations made during the TheCompanysse of analysis.

PRESENTATION OF THE REPORTTables and figures have been used wherever necessary to facilitate the analysis and interpretation. Explanations for the tables were given wherever necessary

DATA ANALYSIS

DATA COLLECTIONFor the data collection regarding our project we are using questionnaire method. We had prepared a set of question which are being asked from different dealers present in DELHI & GURGAON. And according to there answer we are tiring to analyze the segmentation and sales trend of Hyundai . For the data we visited the following dealers of Hyundai and based on their view and talk we try to interpret on our own. So the primary data is collected in the form of questionnaire and their data analysis and interpretation is given afterward.

1. From how many years Dealers are selling Hyundai cars.

DATA TABLE

NO OF YEARS % of Response.

More than 5 years65

More than 8 years30

More than 10 years5

DATA ANALYSISFrom the above table it is clear that the most of dealers i.e 65% of them are having more than 5 years experience , 30 % of them are having more than 8 years experience and only 5 % have more than 10 years of experience with them.

DATA INTERPRETATION:So the above query clears that all the dealers are experienced enough to understand the trend of sales and segmentation of Hyundai . And they can also add valuable suggestion to us for the recommendation part.

2. Which segments of cars you are selling more?

DATA TABLEDIFFERENT SEGMENTS% OF SALES

A12

B69

C13

D5

E1

DATA ANALYSISFrom the table we can conclude that % of sale of Segment is 12, segment B is 69, segment C is 13 , Segment D is 5 and segment E is only 1 %.

DATA INTERPRETATIONHere we see that Hyundai is market leader in B-segment car , So the models Like Santro , I10, Grand I10 & I20 are the hot selling product of It. However, it is lacking in the segments like D and E. Cars like Verna, Elentra & Santafi should be improved in accordance with the customers need.

3. Is customer is price sensitive?

DATA TABLEPRICE SENSITIVITY% OF RESPONSE

YES62

NO38

DATA ANALYSISThe above data table shows that 62% of customers are price sensitive and rest 38% are not price sensitive.

DATA INTERPRITATION:-We can conclude that most of Hyundai s customer is price sensitive. They buy its cars care fully in accordance of their budget. And they also like some discount or festive offers. But the rest people are not price sensitive. They buy the models like Verna, Elentra & Santafi they buy according their choice and specification.

4. What is competitive advantage of Hyundai over other cars companies.

DATA TABLEFEATURES% OF LOYALITY

PRICE38

QUALITY22

SERVICE35

OTHERS05

DATA ANALYSISThe above table shows that according to the dealers the 38 % of customers are buying the Hyundai product for its quality, 22 % buy them due to their price. 35% think that after sale service is beautifully provided by Hyundai . And 5% people buy them due to other reasons like style , look etc. DATA INTERPRETATION:We can conclude that most of the people think that Hyundai pricing are economical so they are loyal to his brand. While other people give emphasis to the after sale service . Quality and other features are also a trait for the buyers.

5. Which version of the models are mostly demanded by the customer

DATA TABLESVERSION% OF DEMAND

PETROL36

DISEL45

LPG19

DATA ANALYSISFrom the above table we can conclude that according to the dealers 45 % of the customer ask for the diesel variants while 36% support the petrol variants and 19 % wants the CNG variants of different models.

DATA INTERPRETATIONThe demand for the diesel variant is more for most of the models but the firm has limited number of the models having diesel variants. The customers are also looking for the gas models which will suitable for LPG and CNG. So the firm should think for the diesel and gas variants.

6. What is its sales position of Hyundai ?

DATA TABLE

SALES POSITIONS

% OF RESPONSE

GOING UP065

GOING DOWN32

REMAINS CONSTANT3

DATA ANALYSIS

The above table shows that 65% of the dealers told that Hyundai s sales position is going up while 32% of the dealers said that it is going down and 3% of dealers said that the sales position is remaining the same.

DATA INTERPRITATIONS

Here we can conclude that the sales position of Hyundai is going up and up . So Hyundai should always maintain this. But the reason why it is lacking behind than its competitors should be corrected. In this way HYUNDAI can maintain its growth rate.

SALES TREND

SALES TREND STUDY OF HYUNDAI

Since inception, Hyundai has produced and sold over 7 million vehicles including 500,000 units in exports markets. The company sold a record 764,842 vehicles in 2012-14 including 53,024 units of exports.Hyundai 's revenue has grown consistently over the years. In 2006-07, it recorded turnover of INR 145,922 million which rose to INR 178,603 million in 2012-14, displaying a growth of over 20% vis--vis the previous year. At the end of fiscal 2012-14, it had a market share of over 50% of the In passenger car market.

(CHART SHOWING SALES AND PROFIT OF HYUNDAI )

(GRAPH SHOWING THE OVER ALL MARKET SHARE OF HYUNDAI )Hyundai is maintaining its reputation among the customer since it come to In Delhi & Gurgaon. If we analyze the total market share of Hyundai then we will come to know that it captures 51.4% of passenger segment while the total share of this segment is 78% , it captures 89% of multi purpose vehicle while the total share for this segment in In market is 6% , It also capture 1.6% of utility vehicles from the total of 16% for this segment.

OVERALL PERFORMANCE OF HYUNDAI IN 2012-14The above figure shows that in the year 2012 -14 Hyundai has sold around 711,818 cars and exported 53,024 numbers of cars. It also gains a total income of INR 188,238 Mn maintains a profit of INR 17,308.Hyundai s large sales outlets (600 in 393 towns) with a larger number of employees (7090) are responsible for Hyundai s success.

CONCLUSION

CONCLUSION FROM THE STUDY

The research work was successfully identifying the different segmentation of Hyundai and also the sales trend. The conclusion can be drawn from this study may be:- Hyundai is In Delhi & Gurgaons one of the leading auto mobile manufactures and also the leader of the market both in terms of volume and revenue generated. HMIL (Hyundai Limited) has segmented the market in to A, B, C, D and Eon the basis of price and length and weight. Between fiscal year 2002 and 2007 the market of automobile grew at rate of 9.5%. In segment A price always plays a vital role was the sole manufacture till 2000, Hyundai 800 was the hot seller till 2005. In segment B growth of automobile was 57.6% where Hyundai captures a share of 69%. Its products like Santro and I20 are two role models with these segments. In C,D and E segment Hyundai has number of competitors and has a less growth . In this segment also HMIL lack of more models than other company. Taking the sale trend in to account HMIL sold a record number of vehicle 7, 14,842 in 2012-14 including 53,024 units of export. In 2012-14 it record a turnover of INR 145,922 million which rose to 178,603 million in 2012-14 showing a growth of 20%. HMIL has also captured 51.4% of passenger car segment while the total share of this segment is 78%. It also captures 89% of multi purpose vehicles. And 1.6 % in sports utility vehicle segments. So in every segment Hyundai has shown its presence. Hence Hyundai Limited has captured over all share of 46% in the In car market.

RECOMONDATIONS

RECOMONDATIONS

Initially Hyundai was operating in the market which was a part of closed economy but with opening of market, the scenario has changed dramatically and at an international juncture where both challenges and opportunity are immense. With such immense growth In auto mobile sector attracts the global players, who want to make their name a house hold name in auto mobile sectors. Hence Hyundai has a tough competition from the companies like Maruti Suzuki, GM, Honda, Tata, ford etc. So Hyundai should improve its segments like :-1. Segment B whose maximum market share is captured by Hyundai is facing a tough competition from players like Maruti Suzuki; it lunched its Alto K10 and Celerio to give more excitement in this segment. So Hyundai should improve this segment by lunching newer models with better facilities.2. Almost 12 years the Santro is on its last stage. So Hyundai should think a replacement of this model or should improve this model, otherwise it will face a tough competition from the Maruti Alto.

3. Over the years HYUNDAI brand value had begun to erode as it is known as the market leader of small car segments but as the market is open now and the purchase power of people is increased HYUNDAI should look in the segments such as D and E. In this segment players like Honda, Toyota and Ford has more models than Hyundai . So Hyundai should lunch more vehicles in this segment.

4. A industry where the models are given numbers of features every year Hyundai is still lacking of the features in its models. So Hyundai should renew its models. . 5. Hyundai is offering the diesel variant in a less numbers of models. As this variant is more demanded by the customer HYUNDAI should look into this matter. It should also offer the CNG enable models to take newer market share. 6. By taking these recommendations HYUNDAI should improve its image and market share.

BIBLIOGRAPHY

BIBILIOGRAPHY

TITLEMarket ResearchMarket Management

AUTHORSPhilip KotlerLeon G. Schiffman & Lesilazar KanarAditya Saxsena

MAGAZINESAuto WorldOver DriveBusiness TodayAuto India

WEB SEARCH:www.hmil.co.inwww.google.comwww.wikipedia.comwww.yahoosearch.com

ANNEXURE

SAMPLE QUESTIONNAIRE(As a part of our management program project we have taken the initiative of conducting a survey to know the Market segmentation and sales trend of Hyundai . Your unbiased and sincere feed back would add value to this survey.)

{Please take your time to fill this form} NAME OF THE DEALER:

ADDRESS:

1. From how many years you are selling Hyundai cars ?

a)More then 5 yearsb) More then 8 Yearsc) More than 10 Years

2. Which segments of cars you are selling more?

a)Ab) Bc) Cd) De) E

3. Is customer is price sensitive.a) Yesb) No

4. What is competitive advantage of Hyundai over other cars companies.

A) Priceb) Qualityc) After sales service d) Other

5. Which version is the customer prefer more.

a) Petrol b) diesel c) LPG or GAS

6. What is its sales position of Hyundai ?a) going up b) going down c) remains constant

Thank you

1