mahindra and mahidnra
TRANSCRIPT
A
Summer tanning project report
On
“Consumer buying behavior and their post purchase behavior in the Light Commercial Vehicle segment with special reference to Mahindra &
Mahindra”
Session – 2009-11
Submitted to: submitted by:
Miss. Anshu Sharma Avadhesh Kumar Mishra
Faculty of Management Roll No. 0907070011
MBA – III SEM
College of Engineering & Rural
technology, Meerut
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DECLARATION
I, Avadhesh Kumar Mishra, student of MBA, CERT, Meerut hereby
solemnly declare that the project report titled “Consumer buying behavior and
their post purchase behavior in the Light Commercial Vehicle segment with
special reference to Mahindra & Mahindra” is the out come of my own
research and prepared by me & under the guidance of Ms. Anshu Sharma
(Faculty, Management) and the same has not been submitted to any other
university or institute for the award of any degree or diploma.
Avadhesh Kumar Mishra MBA – III SEM
Roll No. 0907070011
2
Acknowledgement
We would like to avail the opportunity to express our gratitude towards Mr.
Pankaj Malik (Sales Manager) and Ms. Ranjana (Team Leader) for providing
data about the Light Commercial Vehicle with reference to Mahindra &Mahindra.
My sincere appreciation and thanks to Ms. Anshu Sharma , Faculty of
Management, CERT, Meerut, and whose guidance and encouragement has made
it possible to Complete this work.
Last but not the least; we express profound gratitude towards all the people who
have directly or indirectly contributed towards completion of the project work.
I hereby declare that this is my original piece of work.
Avadhesh Kumar Mishra MBA – III SEM
Roll No. 0907070011
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PREFACE
Under the industrial training I was required to prepare a project on “Consumer
Buying Behaviour and their Post Purchase Behaviour to Light Commercial
Vehicle segment with reference to Mahindra & Mahindra.” It was the test of
transforming theory into a practical i.e. a real life experience.
Hence the part of challenge in preparing this report was a fact that the field of
“Consumer Behavior” regarding after purchase is dynamic and its research in
prolific. Keeping this in mind and confidence in hard, I took the initiative to
analyse.
This report is committed to the spirit of diversity.
Diversity of focus
Diversity of method
Diversity of consumer
Diversity of view points
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To make the result as accurate and comprehensive as possible, the study covered
various aspects of the ownership experience, like the sales process, after sales
service, product quality, product performance and design, cost of ownership and
brand image, while ranking the contenders.
Most researchers assume that the better commercial vehicle performs the more
satisfied to owner would be. How even that is not always the case. Satisfaction also
depends on which part of the vehicle performing well. Rate acceleration is an
example of the first type of performance, where there is a direct link between
performance and satisfaction.
The Customer is now Truly King
Starved of choice for so long, the Indian car buyer now has plenty . The spectram
of customer satisfaction efforts today was unheard of a mere five years ago. The
customer now wants immediate attention, quick service and value for money
products . A range of attractive offers awaits him , as both manufacturers and
dealers offer prise competitiveness though special schemes and incentives , in
order to maintain sales levels .These incentives rise to a crescendo during festive
seasons with overseas trips ,gold ,television sets and the like on offer ,along with a
customer ‘s new car .
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Thus , a car dealership’s present day efforts must be directed not merely at
satisfying customers, but at virtually delighting customer – to ensure both repeat
business as well as recommendations . The car salesman’s new role must be that of
a relationship manager. He must be educated on all parameters of the dealership –
product information , loan requirements , exchange deals and servicing
requirements – in order to be a one point contact between dealership and
customer , since to the latter , the person he deals with is , in essence , the entire
dealership .
Herein lies in whole new area of investment for a car dealership – customer
relationship management on an ongoing basis – to retain customers, to win new
customers, to envision what customers will want tomorrow and give it to them
today.
Once the right people are found and the right mindset is achieved, these must be
bolstered through regular training programmes. The focus must be the fact that the
customer is the sole reason for the very existence of the dealership.
In fact, the biggest challenge facing auto dealership in the new millennium is
recruiting, training , developing and retaining people with the right
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attitude .dealership must then have broad vision and look at these people as
business partners rather than as staff.
“customer service means getting to the cause of customer problems rather than
symptoms”.
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CONTENTS
1. Synopsis
2. Objective of the project
3. Introduction
a. About topicb. Company profile
4. Mahindra exclusive product
5. SWOT Analysis
6. Research objective
7. Research Methodology
8. Analysis
9. Findings
10.Suggestions
11.Limitations
12.Conclusion
13.Bibliography
14.Appendix
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Synopsis
(A Brief overview of the study)
The study was carried out at Meerut.
The projections were made on the basis of a set of assumption and policy
statement as practiced by Mahindra & Mahindra Ltd.
To suggest the most suitable media for educating the consumer about the new
product.
Understanding from customer’s satisfaction
Major problems faced by customers.
Consumer post purchase behavior.
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Objective of the project
To study the position of commercial vehicle in Meerut Consumers to forecast the
consumer’s requirement and study consumer’s preference by collecting the data
through questionnaire.
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THE STUDY OF CONSUMER BEHAVIOUR
The study of consumer Behaviour is the study of how individuals
made decisions to spend their available resources (time, money, effort)
on consumption related items. It includes the study of what they buy,
why they buy it, when they buy it, where they buy it, how often they
buy it, and how often they use it.
What features do they look for ? What benefits do they seek ? How
likely are they to replace their old models when new models with added
features become available.
Consumer behaviour research goes for beyond these facets of
consumer bahaviour and encompasses all of the behaviours that consumers
display in searching for, purchasing, using evaluating, and disposing of
products and services that they expect will satisfy their needs.
In addition to studying consumer uses and post purchase evaluations
of the products they buy, consumer researchers also are interested in how
individuals dispose of their once new purchase.
The term consumer is often used to describe two different kinds of
consuming entities; the personal consumer and the organizational
consumer. The personal consumer buys goods and services for his or her
own use. The goods are bought for final use by individuals, who are
referred to as end users or ultimate consumers.
The second category of consumer – the organizational consumer –
includes profit and not – for – profit businesses, government agencies
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(local, state, and national), and institutions (e.g. schools, hospitals, prison),
all of which must buy products, equipment, and services in order to run
their organizations.
End – use consumption is perhaps the most pervasive of all types of
consumer behaviour, for it involves every individual, of every age and
background, in the role of either buyer, user, or both.
The person who makes a product purchase is not always the user, or
the only user, of the product in question. Nor is the purchaser necessarily
the person who makes the product decision. Buyers are not always the
users, or the only users, of the product they buy, nor do they necessarily
make the product selection decisions themselves.
Marketers must decide at whom to direct their promotional efforts,
the buyer or the user. For some products, they must identify the person who
is most likely to influence the decision – who may be neither the buyer not
the user.
Why We Study Consumer Behaviour
Just as consumers and marketers are diverse, the reasons why people
study consumer behaviour are also diverse. The field of consumer
behaviour holds great interest for us as consumers, as marketers, and as
students of human behaviour.
As consumers, we benefit from insights into our own consumption –
related decisions what we buy, why we buy, how we buy, and the
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promotional influences that persuade us to buy. The study of consumer
behaviour enables us to become better, that is, wiser, consumers.
As markers and future marketers, it is important for us to recognize
why and how individuals make their consumption decisions, so that we can
make better strategic marketing decisions. If marketers understand
consumer behaviour, they are able to predict how consumers are likely
to react to various informational and environmental cues, and are able
to shape their marketing strategies accordingly. Without doubt,
marketers who understand consumer behaviour have great
competitive advantage in the marketplace.
As students of human behaviour, we are concerned with
understanding consumer behaviour, with gaining insights into why
individuals act in certain consumption – related ways and with learning
what inernal and external influences – related human bahaviour has led to a
diversity of theoretical approaches to its study.
Consumer behaviour was a relatively new field of study in the mid-
to-late 1960s, many early theories concerning consumer behaviour were
based on economic theory on the notion that individuals act rationally to
maximize their benefits (satisfactions) in the purchase of goods and
services.
The initial thrust of consumer research was from a managerial
perspective : marketing managers wanted to know the specific causes of
consumer behaviour. This approach has come to be known as positivism,
and consumer researchers primarily concerned with predicting consumer
behaviour are known as positivists.
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The study of consumer behaviour form the point of view of
understanding consumption behaviour and the meaning behind such
behaviour is called interpretivism (sometimes referred to as
postmodernism). Interpretivists have expanded the boundaries of study to
include many subjective aspects of consumer behaviour, such as the efforts
of modes, emotions, and types of situations on consumer behaviour, the
role of fantasy, of play, of rituals, even of the sensory pleasures that certain
products and services provide. Many interpretivists consider each purchase
experience unique because of the diverse set of variables at play at that one
particular moment in time. Because of its focus on the consumption
experience, the interpretive approach is also known as experimentalism.
The Role of Consumer Research :
Consumer research is the methodology used to study consumer
behaviour. Given the fact that there are two major theoretical perspectives
concerning the study of consumer behaviour it is not surprising to find that
there is a divergence in theoretical assumptions and to some extent, in
research methodology between the positivist approach and the interpretive
approach. Broadly speaking positivists and to be objective and empirical, to
seek causes for behaviour, and to conduct research studies that can be
generalized to larger populations. The early consumer researchers, with
their strategic management perspective, were largely positivist in their
approach.
The research done by interpretivists, on the other hand, tends to be
qualitative and based on small samples. Although they tend to view each
consumption situation as unique and nonreplicable, interpretivists seek to
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find common pattern of operative values, meanings, and behaviour across
consumption situations.
Ethics in Marketing :
The primary purpose for studying consumer behaviour as part of a
marketing curriculum is to understand why and how consumers make their
purchase decisions.
The aim of marketing is to meet and satisfy target customers needs
and wants. The field of consumer behaviour studies how individuals,
groups, and organizations select, buy, use, and dispose of goods, services,
ideas, or experiences to satisfy their needs and desires.
Understanding consumer behaviour and knowing customers is never
simple. Customers may say one thing but do another. They may not be in
touch with their deeper motivations.
Not understanding your customers motivations, needs, and
preferences can hurt. Studying customers provides clues for developing
new products, product features, prices, channels, messages, and other
marketing mix elements.
Influencing buyer behaviour :
A consumer's buying behaviour is influenced by cultural, social,
personal and psychological factors.
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Cultural factors :
Culture, subculture, and social class are particularly important in
buying behaviour. Culture is the fundamental determinate of a person's
wants and behaviour. The growing child acquires a set of values,
perceptions, preferences, and behaviours through his or her family and
other key institutions.
Each culture consists of smaller subcultures that provide more
specific identification and socialization for their members. Subcultures
include nationalities, religions, racial groups, and geographic regions.
Virtually all human societies exhibit social stratification.
Stratification sometimes takes the form of a caste system where the
members of different castes are reared for certain roles and cannot change
their caste membership. More frequently, it takes the form of social classes,
relatively homogeneous and enduring divisions in a society, which are
hierarchically ordered and whose members share similar values, interests,
and behaviour.
Social classes differ in dress, speech patterns, recreational preferences
and many other.
Social classes have several chrematics. First, those within each class
tend to behave more alike than persons from two different social classes.
Second, persons are perceived as occupying inferior or superior positions
according to social class. Third, social class is indicated by a cluster of
variables - for example, occupation, income, wealth, education, and value
orientation – rather than by single variable. Fourth, individuals can move
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up or down the social — class ladder during their lifetimes. The extent of
this mobility varies according to how rigid the social stratification is in a
given society.
Social classes show distinct product and brand preferences in many
areas, including clothing, home furnishings, leisure activities, and
automobiles.
Social Factors :
In addition to cultural factors, a consumer's behaviour is influenced
by such social factors as reference groups, family, and social roles and
statuses.
A person's reference groups consist of all the groups that have a
direct (face-to- face) or indirect on the person's attitudes or behaviour.
Groups having a direct influence on a person are called membership
groups. Some membership groups are primary groups, such as family,
friends, neighours, and co-workers, with whom the person interacts fairly
continuously and informally. People also belong to secondary groups, such
as religious, professional, and trade – union groups, which tend to more
formal and require less continuous interaction.
People are significantly influenced by their reference groups in at
least three ways. Reference groups expose an individual to new behaviours
and lifestyles and incluence attitudes and self-concept they create pressures
for conformity that may affect actual product and brand choices.
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Reference groups appear to strongly influence both product and brand
choice only in the case of automobiles and colour television.
The family is the most important consumer - buying organization kin
society, and family members constitute the most influential primary
reference group. The family has been researched extensively. We can
distinguish between two families in the buyer's life. The family or
orientation consists of parents and siblings. From parents a person acquires
an orientation toward religion, politics, and economics and a sense of
personal ambition, self-worth, and love. A more direct influence on
everyday buying behaviour is the family of procreation namely, one's
spouse and children.
A person participates in many groups – family, clubs, organizations.
The person's position in each group can be defined in terms of role and
status. A role consists of the activities a person is expected to perform.
Each role carries a status. A Supreme Court justice has more status than a
sales manager, and a sales manager has more status than an office clerk.
People choose products that communicate ;their role and status in society.
Company presidents often drive Mercedes, wear expensive suits, and drink
Chivas Regal Scotch, Marketers must be aware of the status – symbol
potential of products and brands.
People buy different goods and services over a lifetime.
Consumption is shaped by the family life cycle, nine stages of the
family life cycle are listed in along with the financial situation and typical
product interests of each group.
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Occupation also influences consumption patterns.
Product choice is greatly affected by economic circumstances : spend
able income (level, stability, and time pattern), savings and assets
(including the percentage that is liquid), debts, borrowing power, and
attitudes toward spending and saving. Marketers of income - sensitive
goods continuously monitor trends in personal income, savings and interest
rates. If economic indicators point to a recession, marketers can take steps
to redesign, reposition and re-price their products so they to offer value to
target customers.
People from the same subculture, social class, and occupation may
lead quite different lifestyles. A lifestyle is a person's pattern of living in
the world as expressed in activities, interests, and opinions. Lifestyle
portrays the "whole person" interacting with his or her environment.
VALS classifies all U.S. adults into eight primary groups based on
psychological attributes and key demographics. The segmentation system is
based on responses to a questionnaire featuring 4 demographic and 35
attitudinal questions.
Each person has personally characteristics that influence his or her
buying behaviour. By personality, we mean a set of distinguishing human
psychological traits lead to relatively consistent and enduring responses to
environmental stimuli. Personally is often described in terms of such traits
as self-confidence, dominance, autonomy, deference, sociability,
defensiveness, and adaptability. Personality can be a useful variable in
analyzing consumer brand choice. The idea is that brands also have
personalities and that consumers are likely to choose brands whose
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personalities match their own. We define brand personality as the specific
mix of human traits that may be attributed to a particular brand.
A person's buying choices are influenced by four major psychological
factors – motivation, perception, learning, and beliefs and attitudes.
Thus in conclusion I can say that consumer behaviour deals with
following questions?
What they buy ?
Why they buy it ?
When they buy it ? Where they buy it ?
How often they buy it ?
How often they use it ?
What features do they look for ?
What benefit do they seek ?
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Stage Model of the Consumer Buying Process
Problem Recognition
Information Search
Evaluation of alternatives
Purchase Decision
Postpurchase Behaviour
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The Indian Automobile Industry Growth Driver of the Economy
Globally, as well as in India, the Auotmobile Industry is one of the largest
industries. It has deep forword and backward linkages with the rest of the
economy, and hence a strong multiplier effects. Moreover it is the leader in the
product and process technologies.
The first passenger car in the India was made in early 1940's and India has one of
the oldest Automobile Industries in Asia. The Automotive Policy was inward
looking Policy, based on import subsitution, for two wheelar and light commercial
vehicles from 1940 to1990 and for passenger cars between 1940 and till the mid
1980's after the liberalisation of the Indian economy in 1991 the investment
climate in India has improved. Moreover attract by "India's burgeoning middle
class," many multinational OEMs have invested in auto manufaturing facilities in
India. The auto sector has received the maximum share, Rs.47.72 billion and
acconting for nearly 8%, of the total FDI flow into India. The 1990's have been
truly momentous yeas for the Indian Automobile industry, influenced by global
foroes of change comprising environmental imperatives, safety requirments,
customer preference and competitive pressures.
During the first of the 1990's the Indian Automobile Industry experienced fairly
rapid rates of growth. By the beginning of the second half, however, there were
clear signs of deceleration in growth. Whereas this deceleration may be related to
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overail economic slowdown characterising this period, there have been some
doubts expressed about the ability of the Auto Industry to grow at the same pace as
in the mid-1990's, in the absence of the right kind of policy framework.
Despite the Indian economy's relative resilience amidst the global financial
turmoil, its prospects remain clouded by domestic factors. Demand has failed to
fulfil expectation of the major OEMs who started making investment in India in
the mid- 1990's.
While there is no doubt about the long-term potential of the Indian market, the
industry is plagued by uncertain policy environment, high taxes, overcapacity and
fierce competition. Several significant projects are coming on stream and crowding
almost all segments.
However, we expect recovery in 1999-2000. The commercial vehicle market
should finally emerge out of three-year recession and the passenger car demand
will get a boost from the launch of new small car models and intense competition.
The Indian Automobile industry has been characterised by a high degree of
concentration and a dismal perfomence of exports with focus mainly on the
domestic market. In response to the liberalisation and growing global challenges,
not only have a large number of firms. Both domestic and multinationals entered
the market but the industry has started focussing on exports with thrust on quality,
customer preference and technology improvements.
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The Indian Automobile industry is large with and estimated sales turnover of
Rs.37, 700 carors. The renowned consultants, A. T. Kearney’s global experience
shows that the Indian auto industry is at the threshold of the take -off stage from
where it can become a growth driver of the GDP by rapidly increasing it's growth
multiplier on the economy.
The collective turnover of the automobile and auto component industry during the
last five years gives a measure of the phenomenal growth achieved by the auto
sector and it's importance in the national economy. To give an idea, the colloective
turnover of the auto sector in 1966-97 was the order of Rs.4, 800 crores, which
accounts for about 4.5% of the GDP.
Multi- utility Vehicle Segment
The multi-utility Segment has traditionally been viewed as an intermediate
Segment between passenger cars and commercial vehicles . The recent entry of
global majors may lead to overcapacity and stiffer competition.
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The industry feels that fiscal and other forms of incentives along with a time –
bound scrappage programme would provide tremendous boost to segment .The
industry also feels that it is important to focus on export to enveloping countries.
Commercial Vehicle segment
The Commercial Vehicle segment is large in terms of volume but has relatively
lower value. Poor road infrstrastructure , unwillingness and inability (due to high
cost of financing ) of users to purchase better products are some of the factors
affecting this segment . negligible scrappage leads to high cyclicity. All these
factors have been partially responsible for the technology gap in safety and
emission with international standards .
Technology upgradadion without modernisation of Indian transportation industry
can not be achieved . there is a need to selectively mandate improved technology
standards and simpultaneously promoting scrappage. With the right structure and
policies, this sector poses tremendous potential.
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Indian Automobile Industry
An Indian car as one which has been conceived and designed in India, has at
least 85% of its components 'Made in India', by an Indian company. The Indian
passenger car industry as we see today is relatively recent in origins. Except the
ubiquitous Ambassador and the Premier Padmini there was not much moving
around with an Indian tag.
The official mascot of the Indian political system, the Triassic-era
Ambassador has little Indian-ness in it. To start with, the name isn't Indian and
that's only the tip of the iceberg. The design came from Morris Motors and the
present petrol power plant and drive train are Isuzu throwaways. The diesel version
has a BMC engine. Of course everything is made in India now, but do you call a
tree your own if its roots are in someone’s courtyard.
The other pre-Cambrian relic, the Premier Padmini, which till a few months
back was adorning showrooms throughout the country. Its in the market since my
grandpa learnt driving and at the time of its going to grave, the Padmini was a
completely made in India product. But again, there's very little Indian-ness about
the car, except maybe the name Padmini. The entry of Maruti Udyog Ltd, a GoI JV
with Suzuki of Japan, in 1983 with a so-called "peoples" car and a more favorable
policy framework resulted in a growth rate of 18.6% in car sales from FY81-FY90.
After witnessing a downturn from FY90 to FY93, car sales bounced back to
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register 17% growth rate till FY97. Since then, the economy slumped into
recession and this affected the growth of the automobile industry as a whole. As a
result car sales remained almost stagnant in the period between FY97 and FY99.
However, with the revival in the economy, FY2000 turned out to be a significant
year for the industry in which it recorded volume sales of 638,815 units as against
409,951 units in the previous year. Thus, the CAGR for the period FY96 - FY2000
stands at 16.6%.
The present day stunner from HM is the Lancer. As with HM products from
the past, the Lancer is a borrowed from abroad product. The saving grace is only
that this Lancer is a contemporary model and not some. The erstwhile Premier
Auto Ltd. no longer exists. The nearest thing to it in the present is Ind Auto Ltd.
Ind is an acronym for India or Indian, but the products are all borrowed from Italy.
The Uno came to India after the Mafiosi had their fill with it. The Siena is a very
contemporary model. It being a good car and all, but I always wonder why Fiat
doesn't launch it in their motherland. What's this 'special' car for India, Brazil,
Africa, Latin America inc.
Ford did take the pains to design an India specific car, the Ikon. So does the
quest for an Indian car end with the Ikon. No I don't think so. First thing, the
company is American. Secondly, the Ikon's platform is that of the Fiesta, nothing
else. So the only thing Indian about the car is the 'Josh' advertising gimmick.
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Starting with the official one, i.e. Maruti, the company, since its inception
has changed the automobile scene in India completely. It's has been the number
one manufacturer, churning out close to 300,000 cars last year. At last count it held
a 64% market share in the passenger car market with four out of every five cars .
on Indian roads being Marutis. Every year it rakes in multi-billion rupee profits,
and, yet the company is nothing more than Suzuki India Ltd.
Telco is a completely Indian carmaker with no major foreign collaborations.
Their Indica was much touted as 'The Indian car', but it was styled by I.D.E.A of
Italy. The engine technology had inputs from 'Moteur Modern' of France. In effect
it was the case of an Italian body being wrapped around Indian mechanicals.
Frankly I would have preferred an Indian body wrapping an Indian platform.
India is also the largest manufacturer of agricultural tractors, motor scooters
and the world's fifth largest commercial vehicle manufacturer. Each of these
sectors experienced rapid growth during the last three years Demand in these
sectors is driven by industrial, individual and agricultural consumers respectively.
The increases have resulted from improved overall economic trends in India
including large doses of foreign investment a more liberalized economy and higher
productivity.
The fortune of the Auto component industry is inextricably linked with that
of the automobile industry which in turn is influenced by the general economic
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trends of the country the country's economic growth is projected to grow at more
than six percent per annum in the coming years. The estimated growth will
automatically emphasize the need for better transport infrastructure facilities. This
means demand for automobiles and hence for auto components, is bound to grow
accordingly. Therefore, good growth prospects are assured for the automobile
industry.
World-wide, cars are segmented on the basis of their size. However, in India,
price is the main factor determining the choice of car. Hence, cars are segmented
on the basis of price into three segments :
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Segment
Price
Range
(Rs.
‘000)
Main ModelsFeatures of
the segment
Approximate
Market
Share of the
Segment
Economy < 250
M-800, Omni,
Uno,
Ambassador
Price, Fuel
Efficiency46.9%
Medium 250-500
Zen, Uno, 118-
NE,Ambassador
1800 ISZ,
Contessa,
Indica, Santro,
Matiz
Price,
Performance,
Diesel
Option
43.1%
Premium500 &
above
Lancer, Esteem,
Cielo, Accent,
City, Opel
Astra, Ikon
Status Value,
Performance,
Features.
10.1%
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Sources : various sources
Absence of adequate mass transportation system and rising income levels have
resulted in personal vehicles becoming an important mode of transportation in the
urban and semi-urban areas. By international standards however, the Indian car
volumes remain small at just over 1% of the world market with penetration rates of
approximately 3.7 cars per thousand people as against 24 in Thailand, 144 in
Malaysia, 204 in Poland and 90 in Brazil. Cars currently constitute approximately
12% of the total stock of personal vehicles in India.
Rising household income, increased urbanisation, introduction of new models and
availability of cost effective finance are the key demand drivers in the industry.
The premium segment cars are mainly targeted at corporates or businessmen and
are usually bought on consumer finance.
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Opportunities for the Automobile Industry
Global automobile companies are setting up manufacturing facilities in
India. Also, many Indian automobile manufacturers have announced their plans to
increase the export of vehicles from India. The year 2002-03 has already seen a
significant 65% increase in export volumes during the period April to March. This
trend is expected to continue with more global OEMs sourcing vehicles from their
Indian plants.
Additionally, the introduction of newer technologies such as Electronic
Diesel Control Systems to reduce emission levels, safety devices such as Air Bags,
Anti-lock Braking Systems, etc. augur well for the Company and the automotive
sector as a whole. These technologies not only offer increased safety for drivers
and passengers, but also result in greater comfort and better drivability.
While there exist many opportunities for growth in business, there are also
quite a few factors, which act as an impediment.
In my last year’s speech I mentioned about the need for a well thought out
and clearly defined policy on emission norms. It is now fairly certain that Bharat
Stage II norms (equivalent of Euro II norms) will be implemented countrywide
starting 2005. It is important that this plan is implemented in time in the interest of
a cleaner environment. Technology is available to meet the advanced emission
norms using gasoline and diesel fuel; Bosch and many other companies have
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proved this worldwide. There is no need for the authorities to specify the type of
technical solution required for this purpose as long as the end objectives are met.
The spurious and reconditioned goods market, which I also dealt with in
detail in my speech last year, continues to be a worrying factor as it directly affects
our market share. The Company on its part has intensified the anti-spurious
operations by conducting several raids across the country with the help of local
regulatory authorities. Large quantities of spurious and fake products have been
seized and legal action has been taken against those indulging in such activities.
The Company believes that continued focus and concerted action against spurious
activities would improve safety and fuel efficiency of the vehicles and at the same
time help in expanding our market share in the Aftermarket. The Company is also
continuously educating the users about the benefits of using genuine spares in
place of spurious and reconditioned spares.
The lack of any significant change in the labor law reforms also continues to
be a matter of concern. It is essential that legal reforms be put in place at the
earliest to provide more flexibility in manufacturing operations and enable the
industry to quickly adjust the work force in line with fluctuating market conditions.
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Challenges for the Indian automobile industry
As we move into the new millennium, the Indian Automobile Industry faces
some tremendous opportunities and also great challenges. The growth in
automobile sales has been impressive for the past ten years since liberalization
began. However, with liberalization, the Indian customer has been presented with a
wide range of choices in automobiles, to suit every requirement and budget. The
market has turned into a buyers market where the customer is being wooed by the
manufacturers and the dealers with a range of freebies unheard of before in India.
Financing has become so easy that an automobile is within every aspirant's reach.
Competition has meant that manufacturers' margins have been squeezed
severely and they are all under pressure to cut costs to be profitable and
competitive. Some of the older manufacturers like Premier Automobiles
(manufacturers of Premier cars), Automobile products of India (manufacturers of
Lambretta scooters) and Ideal Jawa (manufacturers of Jawa and Yezdi
motorcycles) have closed shop. Hindustan Motors (manufacturers of Ambassador
and Contessa cars) is in trouble due to the declining sales of its car’s, as most
customers prefer the newer models available in the market. Even the dominant
player Maruti has seen its market share decline rapidly due to its models being old
and jaded and is in addition facing labour problems in its plant.
37
To add to the problems, come April 2001, under the WTO agreement, India
will have to permit import of fully built automobiles, which hitherto was not
permitted. The foreign manufacturers such as GM, Ford and Daimler Chrysler will
almost certainly import vehicles from their large portfolio of models and makes,
further segmenting the market into niches, although how competitive they are in
terms of price remains to be seen.
The challenge before the industry is to figure out the strategy for survival
and growth. It is clear from the picture painted above that the industry will have to
increase volumes in each segment to achieve lower cost of manufacture. One way
to achieve this will be to go for exports in a big way. Maruti is already exporting
vehicles, as are Mahindra, Telco, Daimler Chrysler and more recently Daewoo.
The overseas markets will have to be exploited more aggressively, but this will
mean the companies will have to invest more in Research and Development of new
models with better features.
The second opportunity is to become contract manufacturers for overseas
companies. A number of Japanese and Korean companies have been following this
strategy very successfully. Hindustan Motors is said to be considering this option.
The third opportunity is to overcome the vulnerability of the automobile market to
oil prices by designing vehicles, which can offer lower fuel consumption. Recent
reports suggest the government is exploring the possibility of introducing Gasohol,
38
which is a mixture of Petrol and Alcohol. Gasohol has been very successful in
Brazil. Since Alcohol is a by-product of the Sugar industry (of which India has the
worlds largest), this is a very logical step that should have been taken many years
ago. Even a small percentage reduction in the consumption of petroleum per
vehicle can make a big difference to the balance of payments.
The industry must focus its R&D efforts in line with the global trends, which
is to build vehicles that are considerably more fuel efficient and less polluting.
With growing awareness among the public about pollution and the effective
campaigns carried out by the NGO's, this will increasingly become an important
selling feature. It was surprising to see how the industry kept stalling the
introduction of pollution norms for vehicles on the pretext that they needed more
time to get the technology. Even Maruti despite its foreign affiliation was caught
off guard when the Supreme Court finally ruled that all new vehicles should
strictly adhere to the Euro II norms.
The inadequacy of road infrastructure in India is well known. This is
compounded by the fact that traffic management is very poor or non-existent and
the drivers are mostly ill trained and in disciplined. As more vehicles come on the
road, this will become a major bottleneck. The industry will need take initiatives
firstly to train all drivers in safe driving and proper road discipline and manners.
They will also need to assist government agencies in better road design and in
39
building of multilevel parking lots. Training of police personnel in better traffic
management and advising them on better equipping themselves to deal with
various problems will also have to be done.
In terms of the world averages, India's vehicle density is very low and if we
have to achieve those density levels, the industry can look forward to a bright
future. However in the industry's interest care must be taken to see that we also
achieve the safety and convenience levels of using automobiles.
40
41
COMPANY PROFILE
Mahindra and Mahindra, a market leader in utility vehicles segment
has virtually entered the roads and hearts of millions of Indian. The
company was founded in 1945, two years before independence and has
grown to be one of the largest and respected business houses in India.
Mahindra entered the utility vehicle market in India by introducing
the Jeep. The first batch of seventy five vehicles were imported in C.K.D.
condition from Willys Overland Export Corporation in 1947. This was
followed by the CL 340 - a more sophisticated vehicle adept on both
urband and rural tracks. Much later came the CL-500 with a direct injection
diesel engine developed with Austrian technology.
Today Mahindra and Mahindra has more than 11 lack vehicle running
successfully on all Indian roads and cater to various applications and satisfy
needs of various types of customers.
The soft tops comprising of CL 500 and the Commander 650
contribute to the backbone on Indian rural transport system. The hard tops
such as the Marshal, MaXX, Savari and LCV's also cater to the
transportation needs of people in both the urban and rural areas.
The stylish Scorpio and the Bolero are image and status symbols of
personal transportation in the cities. The LCV's, Pick ups and the three
wheelers play a pivotal role in the goods transportation segment and are
becoming extremely popular in both the captive user and the fleet operator
segments.
42
Mahindra and Mahindra are the undisputed market leaders in Rural
and semi urban transportation and also enjoy similar status when it comes
to the pick-up segment. The entire new product development activity is
aimed consolidate Mahindra's leadership in the utility market segment.
There are tremendous effort to gain market shares in the contract
commercial segment, the LCV segment and the three wheeler auto
segment.
At the juncture when there is a fierce competition in all the different
market segments there is a need to combat this competition by introducing
newer and better products which provide more value than the competitive
models. It is more important that these advantages are properly
communicated on the ground level to the customers. It is a must of all of us
who are engaged in the sales of Mahindra and Mahindra utility products to
understand the product portfolio and also the various advantages and
strength of our products Vis-a-Vis the competitive products. It is also
imperative that each and every salesperson understands the needs and
requirements of every customer and satisfy the customer by recommending
the right product for the right application.
The objective of the tool kit is to provide complete information the
various products in terms of not only the specifications but also the
advantages and the main selling points of our products as compared to the
competition. There is a comparative analysis which highlight the various
advantages of our product against the different competitive products. The
tool kit explains the various features of the products, the potential
application and the customer who are to be targeted. The toolkit also
explains the various feature led emotional and the rational benefits which
43
need to be effectively communicated to the customers. The toolkit also
included the sales stories of every product which should be the final
weapon to convince the customer to buy our product. The toolkit also
contains the leaflets for all models thus making it the complete tool for all
salespersons in the field.
The toolkit has been designed specifically with a provision for
continuous updating and incorporation of new leaflets, comparative
analysis and to include any information which is useful for sales.
The toolkit has various chapters starting with the hard top range
which is led by the Scropio. The hard top range is followed by the soft tops
range, the pici-up range, the three wheeler Champion range and lastly the
LCV range.
We are confident that this toolkit will provide you with all the
necessary ammunition to fight and keep winning the battle against the
competition.
Good morning/afternoon/evening.
Thank you for visiting the Mahindra Showroom and showing interest
in the Scorpio.
Scorpio is not just a car, it's much more. It is car plus.
The Scorpio comes in two version, Diesel, and for the die-hard petrol
customers we have the Scorpio Rev 116 with the Renault Petrol state of the
art 116 bhp engine, with MPFI, 16 valves and 32-bit microprocessor.
44
Let me show you how the Scorpio is car plus.
The Scorpio has power that will excite you. It is the most powerful
vehicle in its category. Its powerful engine transports you from 0-60 km/h
in 9 seconds in the Petrol. It is not just power that the Scropio is all about, it
is also about the extra comfort.
Its Independent front suspension and easy to handle steering ensures
that you ride is gentle, smooth and comfortable.
Scorpio stands for luxury. We have moulded interiors, in the form of
injection moulded instrument panel, moulded interior package with
moulded roof lining (unlike most other vehicles in this category), moulded
carpets and door trim. We also have a state of the art Kenwood audio
system, the A/C, which even cools the rear of the car and the Lear designed
seats which made you feel that you are sitting in the lap of luxury.
Safety, extra safety, that is what we aim at. The Scorpio is concerned
about your loved ones. Just for that, we have features like crumple zones,
side intrusion beams, anti locking LSPV brakes, child locks and yes even
fire resistant upholstery. Also we have features like seat belts on all rows of
seats and extra thick sheet metal for the vehicle.
The Scorpio is one of the best-designed vehicles around. It is classy
looking and modern with an aerodynamic shape and superior exterior
styling, with features like ski racks, claddings and wrap around lamps.
The spacious Scorpio can also accommodate upto 9 people
comfortably.
45
All this and the Scorpio doesn't compromise on fuel efficiency. It
gives you 10-13 kmpl for the Diesel and 8-10 kmpl for the Petrol.
So the Scorpio is not just like any other car but it is a car with an
attitude. An attitude, which says, "Nothing else will do".
46
COMPANY PROFILE
Name : MAHINDRA & MAHINDRA LIMITED
Business : Manufacturing of four wheelers of different
Models viz. Scorpio, Bolero DI Pet,
Bolero,DJ A.C., Max pick up,
Max-IV Seater, Camper,
Mahindra Champion (Three Wheeler),
Loadking Pride, Loadking DI 3200,
Tourister School and Stuff bus.
Registered office : Gateway Building, Apollo Bunder,
Mumbai - 400001
Plant Address : Automobile Sector, Akurli Road,
Kandivli (East) Mumbai – 422007
Plant Address 2 : Automobile sector, Nasic Plant No. 1,
89, M.I.D.C., Satpur
Nashik – 422007
47
Regional Office : Worli Road No. 13, Worli,
Mumbai – 400018
Range – E/Division : Jande Park Takli Road,
Nasik – 422011
Models : Scorpio, Bolero DI Ref., Bolero XL DI.
A.C., Pick up, Camper, Mahindra Champion
(Three wheeler), Loadking Super, Loadking DI
3200, Tourister school and stuff bus.
Manufacturing of L.C.V.’ : Automobile Sector, Bidar, T . Junction,
Zaheerabad
48
Objective of Mahindra
We aim to be a leading player and offer Quality and reliable software product
and IT solutions to meet the client is ever changing business needs.
OUR STRENGTHS
Dealership software solutions for Automobile industry
Inventory management solutions and spare part distributors.
System consultancy
System study , Analysis design & development.
System integration
Turkey solutions offered in
(a)Customer relationship management
(b)Supply chain management
(c) Client / server applications with distributed data
management.
(d)Web technologies.
49
HISTORY OF MAHINDRA &MAHINDRA
From small tentative beginnings in the 1940s, the organization that you see and
perceive today has transformed into one of the giants of the automotive world. And
the men behind it all were two brothers: J.C. Mahindra & Mahindra.
J.C. Mahindra, the elder of the two, was a qualified mechanical engineer from
VJTI, Mumbai. He was appointed the country’s first iron and steel controller by
the government of India. While K.C. Mahindra, a Cambridge education economist,
was a partner with Martin Burn, London, agents to IISCO. The Government of
India requisitioned his services too, and he took over as the chairman of India
supply Mission to Washington, USA.
In 1945 , inspired by Pandit Jawaharlal Nehru’s vision of building a strong,
independent India, they sit out to manufacture an Indian vehicle that would be
rugged, tough and capable of tackling the Indian terrain.
They teamed up with the Mohammed brothers and acquired a franchise for jeeps
from Willy’s USA. Post independence, in1947, they got involved Steel Trading in
association with suppliers in UK. By then, the company was renamed Mahindra &
50
Mahindra Ltd. After Ghulam Mohammed left fir Pakistan to become Pakistan’s
first Finance Minister.
Mahindra & Mahindra went on from strength to strength. The company started
assembling jeeps in 1949, and the year after, received its first order from
Mitsubishi Corporation for Wagon building plates, in 1954 got a technical and
financial collaboration with Willy’s Overland Corporation, in 1956 the company
went Public, un 1962 Mahindra Ugine Steel was formed in a joint venture with
Ugine Kuhalmann, france, then after a period of consolidation, in 1982 Tractors
were,a manufactured under the brand name ‘Mahindra’ and within a year M&M
went on to become the market leader in India.
New forays into other lines of business saw a spurt of joint ventures and
acquisitions. The foremost among them being Mahindra British Telecom (MTB) in
1986. In 1989 an Automotive Pressing Unit was acquired, and in 1994, Mahindra
Realty & infrastructure Developers Ltd. Was formed, the group was reorganized
into 6 subs and Mahindra USA Inc was formed to distribute tractors in the USA.
51
In 1999, the Trading Division was spun off as a separate company, called
Mahindra Intertrade Ltd., and Mahindra Export Ltd. was merged with it. In the
year 2000, preparation to meet the future head-on have been made, with the
launch of Project Scorpio, a completely new indigenously designed vehicle project
at Nasik. Scorpio is slated for production in 2001.
The millennium also brought forth another change, in the form of the new
Mahindra & Mahindra identity. A logo that symbolizes the road ahead, linking the
company’s past with its future.
Its also symbolizes the road through which the company’s thought, ideas, designs,
and products will travel, making it into a forward-looking organization, moving
towards new horizons with innovation and dynamisms.
52
The Mahindra brand in utility vehicles has come to signify high quality,
ruggedness, durability, reliability, and ease-of-maintenance and operational
economy for its user groups. This has been a result of the division's relentless
pursuit of delivering to the customer value for money. As a result the division's
products have a commanding market share in the category it operates in.Besides
state-of-the-art manufacturing facilities, a dealer network of over 275 dealers
supervised by 20 sales offices drives the divisions marketing efforts. After sales
service is provided by a network of authorized service stations across the country,
which meet customer needs for servicing and genuine spare parts.The Mahindra
brand in utility vehicles has come to signify high quality, ruggedness, durability,
reliability, ease-of-maintenance and operational economy for its user groups. This
has been a result of the division's relentless pursuit of delivering to the customer
value for money. As a result the division's products have a commanding market
share in the category it operates in.Besides state-of-the-art manufacturing facilities,
the divisions marketing efforts are driven by a dealer network of over 150 dealers
supervised by 18 sales offices. After sales service is provided by a network of over
53
100 authorised service stations across the country, which meet customer needs for
servicing and genuine spare parts.
Profile
Mahindra Defence Systems (MDS) a division of Mahindra & Mahindra Ltd. has an
unbroken track record of doing business with the defence sector in India for over
fifty years. MDS is located in New Delhi, oversees the requirements of the
Defence Sector. In a short span MDS has incorporated state-of-the-art technology
into its products at a reasonable cost and has emerged as the largest private sector
company for supplying bulletproof vehicles.
Main objective of MDS is to:
1) Provide total solutions for entire range of light combat / armoured vehicles and
their derivatives for Defence/ Security Forces.
2) Address specific segments of governments import substitution/indigenization
program like Small Arms, Sea Mines.
Govt of India has awarded MDS following industrial licenses:
1 LIGHT ARMOURED MULTI ROLE VEHICLE
2 SIMULATORS FOR WEAPONS & WEAPON SYSTEMS
3 MOBILE SURVEILLANCE PLATFORMS
4 SEA MINES
54
5 SMALL ARMS, VARIANTS & ASSOCIATED AMMUNITION
A major area of expertise of MDS is providing world class armouring solutions for
light combat vehicles, MUVs and SUVs. These up-armoured vehicles are already
in service with Indian Army, Indian Air Force, Paramilitary & State Police Forces
in India & many of these have been exported to other nations under the auspices of
Ministries of Home and External Affairs. Special Projects on the anvil include state
of the art training simulators for the land forces, mobile surveillance platforms for
Army and BSF and weapons and munitions for the Army and Navy respectively.
MDS has established numerous alliances with foreign partners for their products in
service, and those under development. These alliances will only help strengthen the
technological base and provide customized, and state of the art, products for the
satisfaction of the customer.
55
M & M - our Legacy MAHINDRA & MAHINDRA LIMITED
From small tentative beginnings in the 1940s, the organization that you see and
perceive today has transformed into one of the giants of the automotive world. And
the men behind it all were two brothers: J.C. Mahindra and K.C. Mahindra.
J.C. Mahindra, the elder of the two, was a qualified mechanical engineer from
VJTI, Mumbai. He was appointed the country's first Iron and Steel Controller by
the Government of India. While K.C. Mahindra, a Cambridge educated economist,
was a partner with Martin Burn, London, agents to IISCO. The Government of
India requisitioned his services too, and he took over as the Chairman of India
Supply Mission to Washington, USA.
In 1945, inspired by Pandit Jawaharlal Nehru's vision of building a strong,
independent India, they set out to manufacture an Indian vehicle that would be
rugged, tough and capable of tackling the Indian terrain.
They teamed up with the Mohammed brothers and acquired a franchise for Jeeps
from Willy's, USA.
Post independence, in 1947, they got involved Steel Trading in association with
suppliers in UK. By then, the company was renamed Mahindra & Mahindra Ltd
56
after Ghulam Mohammed left for Pakistan to become Pakistan's first Finance
Minister.
Mahindra & Mahindra went on from strength to strength. The company started
assembling Jeeps in 1949, and the year after, received its first order from
Mitsubishi Corporation for wagon building plates, in 1954 got into a technical
and financial collaboration with Willy's Overland Corporation, in 1956 the
company went public, in 1962 Mahindra Ugine Steel was formed in a joint venture
with Ugine Kuhlmann, France, then after a period of consolidation, in 1978, the
International Tractor Company of India was merged with M&M, in 1982 tractors
were manufactured under the brand name 'Mahindra' and within a year M&M went
on to become the market leader in India.
New forays into other lines of business saw a spurt of joint ventures and
acquisitions. The foremost among them being Mahindra British Telecom (MBT) in
1986. In 1989 an Automotive Pressing Unit was acquired, and in 1994, Mahindra
Realty & Infrastructure Developers Ltd. was formed, the group was reorganized
into 6 SBUs and Mahindra USA Inc. was formed to distribute tractors in the USA.
In 1999, the Trading Division was spun off as a separate company, called
Mahindra Intertrade Ltd., and Mahindra Export Ltd. was merged with it. In the
57
year 2000, preparations to meet the future head-on have been made, with the
launch of Project Scorpio, a completely new, indigenously designed vehicle project
at Nasik. Scorpio is slated for production in 2001.
The millennium also brought forth another change, in the form of the new
Mahindra & Mahindra identity. A logo that symbolizes the road ahead, linking the
company's past with its future.
It also symbolizes the road through which the company's thoughts, ideas, designs
and products will travel, making it into a forward-looking organization, moving
towards new horizons with innovation and dynamism.
Employee Development
The company's long-term success depends on developing, motivating and
maintaining a work force possessing the skills required for supporting key
processes such as human resources
Team Work
Personal Effectiveness
Change Leadership
58
The Competency Framework and its application is in a stage of evolution and
Human Resources Function would be finalizing its application in a more definite
manner in due course.
59
Procedure
All employees are required to receive training identified as general training
and any required Job Specific Training to enhance their performance.
Managers and Supervisors with the assistance from the Corporate Training
Department must determine what training is required for successful
performance and ensure smooth implementation.
The Corporate Training Department will develop the training strategy for the
organization and will develop appropriate sectoral training resources.
Production Personnel must be retrained and/or re-certified on a scheduled
basis, to assure that skills and performance meet production and quality
standards.
Training records must be maintained for all employees.
Program Consultation:
Prior to approval of any training and development course-work, whether internal,
external, or towards a degree program, the Sectoral HR training co-ordinators must
be consulted. They will provides guidance regarding selection criteria such as cost,
quality and match between the development need or plan and the course content.
60
Assistance for Self-Development
With an objective to help officers undertake further study and improve their
performance, assistance for self-development will be governed by the loan policy.
It is therefore important to note that:
a) The course for which financial assistance is sought must be such that it would
help the officer in his day-to-day work, and is useful to the company.
b) The Departmental Head, while recommending financial assistance will be
expected to specify the manner in which
the course will help the officer in his day- to-day work.
c) Assistance for correspondence or postal courses leading to a University Degree
will be given.
d) Assistance may be given at the discretion of the Management if it is relevant to
the officer's current or future job role.
e) The officer seeking financial assistance is required to have at least two year's
service with the company to his credit, at the time of admission.
61
f) Before seeking admission in colleges or other such institutions, the officer is
expected to invariably obtain the permission of his Departmental Head, in writing,
and copy send to the Corporate HRD.
g) For applications for financial assistance, information pertaining to the duration
of the course, tuition fees, etc. payable, is required to be communicated to the
Corporate HRD.
h) Financial assistance would be subject to the officer clearing the examination in
the first attempt.
g) For financial assistance, refer the self-education loan policy.
62
Corporate Governance
The goal of any system of governance would be to achieve the best performance
within the overall content of the prevalent economic environment so as to secure
the maximum benefit for all the stakeholders. For this to be achieved, governance
has to be an integral part of the beliefs, values, culture and ethics of an
organisation, an interplay between individual aspirations and corporate goals,
ultimately leading to the cornerstones of transparency and accountability, which is
what good governance is all about.
In the recent past, corporate India has been flooded with several prescriptive
principles of governance, the result of intense deliberations of eminent
commissions. Ironically, the corporate failures in developed countries regulated by
highly disciplined capital markets have only brought home the stark reality that
good governance can never acquire a lustre of its own if it is mandated by
legislation - it might only turn into a farce.
Our shareholders are aware that Mahindra companies have been associated with
good governance even before corporates were faced with legislation and a set of
regulations. The Company has recently formally enunciated its own governance
practices by way of a Code of Corporate Governance. This Code seeks to serve as
a reminder of the underlying principles governing the conduct of our businesses.
63
They are a reiteration of the fundamental precept that good Corporate Governance
must and will always remain an integral part of the fabric tThe 1990s saw India
embrace liberalisation and globalisation, and infrastructure development was the
key to spurring domestic and foreign direct investments. This generated
employment, gave free reign to domestic entrepreneurial talent, and accelerated the
country's GDP growth to unprecedented levels.
The Mahindra Group is playing its part in driving the nation's infrastructure
development, with a host of companies operating in real estate, project consultancy
and design, engineering consultancy, the hospitality industry and other core
segments hat makes up our ethos.
64
The Great Eastern Shipping Co Ltd., diversified into real estate activities with the
formulation of its property division in 1992 and over a period of time spread its
operations in Mumbai, Navi Mumbai, Gurgaon, Pune and Bangalore.
The Property Division of The Great Eastern Shipping Co Ltd., subsequently
demerged from the parent Company in February 2000 to become an independent
entity as GESCO Corporation Ltd., with focus on its core business activities of
projects management services, business centers and development of residential and
commercial complexes Mahindra Realty & Infrastructure Developers Ltd.,
(MRIDL) was incorporated in August 1994 to give shape to the diversification
plans of the Mahindra Group into real estate and infrastructure business, as a
wholly owned subsidiary of Mahindra & Mahindra Ltd.
To synergise towards becoming the largest corporate developers in the country
GESCO Corporation Limited and MRIDL combined their operations from
December 01. The resultant Company being Mahindra Gesco Developers Ltd
imbibes the very same qualities of its parent companies. The professional expertise
and teamwork of the organisation joining together will go a long way in achieving
the shared vision.
65
The Company has a joint venture with Semb Corp of Singapore, who is leading
international Constructions Company dealing with infrastructure and project
management in the Far East. The Company also has a joint venture with Knight
Frank of UK, who are international property consultants and property management
providers.
66
67
BOARD OF DIRECTORS
1. Mr. Keshub Mahindra
Chairman
2. Mr. Anand G. Mahindra Vice Chairman and Managing Director
3. Deepak Shantilal Parekh
Director 4. Nadir Burjorji Godrej
Director 5. M. M. Murugappan
Director 6. Bharat Narotam Doshi
Executive Director & Group Chief Financial Officer (Group CFO) 7. Arun Kumar Nanda
Executive Director & Secretary 8. Narayanan Vaghul
Director 9. Dr. Ashok Sekhar Ganguly
Director 10. R. K. Kulkarni
Director 11. Anupam Pradip Puri
Director 12. Thomas Mathew T.
Nominee of LIC
68
PRODUCTS PROFILE
Mahindra DI 3200
If a big LCV proves to be uneconomical and a small one can’t handle your
payload, then Mahindra DI 3200 is just the right truck for you. It’s an ideal city
delivery vehicle that assures more loading area, more mileage and more profits.
5.25 sq. mt. of loading area
Smallest TCD
More mileage
Easy to operate
Easy to load and unload
Low maintenance cost
69
Mahindra Loadking Pride
Discover a truck designed to give you more. Profit with its better loading capacity
and greater pulling power. Load it with whatever and go wherever. It’s your
chance to ride high on success. With great Pride.
Low price
4 years unlimited warranty
Better mileage
Easy maneuverability
Small turning radius
Attractive cabin
70
Mahindra Loadking Long Wheel Base
Don’t buy a long heavy load vehicle to deliver voluminous goods. Get the
Loadking Long Wheel Base instead. It’s a vehicle that helps you to cut down your
operating costs drastically. A truck low on maintenance and high on business.
Longest in its class
More loading area
Lowest turning circle radius of 6.48m
6 wide tyres to provide greater stability at high speed
Faster turnaround time
Superior mileage
71
Mahindra Loadking CRDe
It’s a truck that comes with an amazing feature. It’s got the cutting-edge, CRDe
engine fitted beneath its hood. Generates More Power, More Speed, More Pickup
and More Mileage. Along with more revenues!
Wider cargo box
Heavy duty rear axle
High torque
Extra payload
Bharat Stage III certification
72
Mahindra Loadking LCV Tipper
The all new Loadking LCV Tipper makes anything possible. From dumping sand
and cement to delivering stone chips and boulders. The biggest advantage is its
small size. Be it a lane or a steep ascend, nothing can stop a Loadking. From
reaching its destination. From getting more business.
Smallest turning circle diameter
Faster turnaround
Better maneuverability
Attractive price
Superior mileage
Heavy duty rear axle
Stranger chassis frame
73
MAHINDRA TOURISTER I REGULAR BUS
(Avaliable 16, 25, 32 & 40 seating capacity.) Comfort, style and economy in a
new range
The Mahindra Tourister i range is an improved version of the existing Tourister
range. The ‘i’ signifies the 32 improvements which have been incorporated in the
existing bus to further enhance safety, comfort and aesthetics.
So now, let your passengers travel in the lap of luxury. It’s got plush cushion seats
and more space for extra comfort. Its huge windows make every journey a pleasant
memory. And its low maintenance, more mileage and a powerful engine keeps
your pocket full, always.
74
Superior Comfort for unmatched convenience
Bright airy interiors
Greater leg room
Bottle holder for driver
Economical for bigger savings
Superior mileage
Low operating costs
Greater Safety for a worry free drive
Emergency exit
JK door lock
Three piece window
Contemporary Styling for better looks
Attractive front façade
Modern front Grille
75
MAHINDRA TOURISTER I SCHOOL BUS
(Available in 16, 25, 32 & 40 seating capacity)
The No.1 school bus range in India
The Mahindra Tourister school bus enjoys the faith of hundreds of schools,
parents, kids and bus owners across India. And it is this faith that has made
Tourister the No. 1 school bus, in its segment.
Over the years, the brand Tourister has consistently delivered incredible value to
its customers. Coming from the Mahindra stable, each school bus is engineered to
deliver on its promise of total safety, but without any compromise on comfort and
efficiency.
76
In keeping with the customer centric philosophy of the organistion, the Tourister
range has been upgraded several times over the years to meet the ever-changing
customer requirements.
This year Mahindra is proud to introduce an improved version of the existing
Tourister range, Tourister i. The ‘i’ signifies the 32 improvements which have been
incorporated in the existing bus to further enhance safety, comfort and aesthetics.
With the launch of Tourister i,, all school buses henceforth will be sold under the
Tourister i brand.
Given the company's commitment to customer’s satisfaction, its bound to become
India's most preferred school bus. After all the best just got better.
Greater Safety for a worry free drive
Fire Extinguisher
Emergency exit
Specially designed tooth and chin guards
STOP sign indicator at the door
First-aid kit
Anti skid vinyl flooring
Double bar rail on windows
Superior Comfort for unmatched convenience
77
Bright airy interiors
Large cushioned seats
Water bottle holders
Special rack for school bags
Economical for bigger savings
Superior mileage
Powerful pickup
Low operating costs
Higher torque
Contemporary Styling for better looks
Attractive front façade
Modern front Grille
Swanky notice board
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MAHINDRA TOURISTER I CRDE BUS
(Available in 25 seater capacity)
It’s a bus better than any other bus. Presenting the 25-seater Mahindra Tourister i
with the revolutionary CRDe technology. It’s the first in its category and it’s
designed to make every journey really smooth. And really quiet too.
Available in school and regular variants
Powerful pickup
Remarkably low N.V.H
Greater mileage
Conforms to BS III norms
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STRENGTH
1. Mahindra & Mahindra Automotive division collaborated with willy overland
corporation (nowpart of Daimler Chrysler group)
2. Tech Mahindra is also a joint venture between Mahindra & Mahindra
Limited and Indian British Telecommunication plc.United Kingdom.
3. With over 17 years of experience, Tech Mahindra has proven track record in
outsourcing and off shoring bysiness in critical system.
4. Wide range of commercial vehicle and jeeps and Luxuries and comforts.
5. Extensive research and development both in house development both in
house development facility and interface with other independent engineering
units.
6. Large and competitive work force.
7. Producing always – challenging products in competitive market.
8. Best balance vehicle while riding.
9. Best style and durable products.
10.Great performance.
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Weakness
1. Mechanics have no proper knowledge if Mahindra & Mahindra Commercial
vehicle.
2. There are not much space between cabin (Where driver sits) and dala
(where the goods are loaded).
3. There are not regular visit of engineers to the dealer point for grievance
handling.
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OPPORTUNITY
1. Boast up production to fully utilize the installed capacity.
2. A great opportunity in light commercial vehicle segment where the
competition is much increased.
3. There are attractive finance facilities provided by Mahindra finance Ltd.
At a very low interest rate than others.
4. Opportunity in rural sector.
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THREATS
1. Sever competition by light motor faced from the side of Tata motors
and Eicher motors.
2. Stiff competition with Tata motors, which has a relatively high market
active performance in whole Indian market.
3. Threats from much performed commercial vehicle in India.
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Research objective
To study the consumer behavior regarding Mahindra & Mahindra in Meerut.
To find out the major problem faced by the Mahindra consumer in their
respective .
To do SWOT analysis according to my consumer interaction.
To tirel out the relations for visit at service centre.
To observe the level at service centre.
To find out the time taken by the service centre in servicing the vehicle.
To find out the behavior of management staff of service centre.
To find out the customer satisfaction level regarding after sales service at the
service centre.
Finally ti draws results on the basis of analysis and brding and give
suggestion regarding my findings.
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RESEARCH METHODOLOGY
Research Type : Descriptive Research
Universe : Meerut city
Sample Unit : Customers
Sample Size : 200
Type of Data : Primary Data
Questionnaire
Secondary Data
Mahindra & Mahindra .com
Mahindra & Mahindra world.com
Tools : Personal Interview
Through Survey
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DATA ANALYSIS
1. Brand awareness among the consumer based on 1st response
No. of respondents = 200
Brand Name No. of Customers %age
Tata Motors 80 40%
Mahindra &
Mahindra50 35%
Others 70 25%
25%
35%40%
Tata Motors Mahindra & Mahindra Others
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2. Various motivating factors in making purchase decision :
No. of respondents : 200
Factors No. of Customers %age
Family 80 40%
Friends 60 30%
Relatives 20 10%
Yourself 40 20%
40%
30%
10%
20%
Family Friends Relatives Yourself
By above graph it is very clear that family influences lot in
purchasing of Mahindra & Mahindra commercial vehicles.
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3. Chances of buying Mahindra & Mahindra Commercial Vehicle
Sample size 200
Possibilities No. of Respondents (%)
Definitely buy 30%
Very likely will buy 20%
Probably will buy 10%
Might or might not buy 10%
Definitely not buy 20%
Can't Say 10%
30%
20%10%10%
20%
10%
Definitely buy Very likely w ill buy Probably w ill buy
Might or might not buy Definitely not buy Can't Say
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4. Strength Of Mahindra & Mahindra Commercial Vehicle
StrengthPercentage of
Customer
Performance 40
Balance 20
Fuel Efficiency 25
Price 15
40%
20%
25%
15%
Performance Balance Fuel Efficiency Price
Percentage of Customers
Above graph shows that 40% of customers are rating performance as
Mahindra major strength.
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5. How customers rate Mahindra offering :
Sample Size : 200
Customer RatePercentage of
Customer
Good 40
Average 30
Excellent 25
Poor 5
40%
30%
25%
5%
Good Average Excellent Poor
Percentage of Customers
By above graph it is very clear that Mahindra offering is liked by
major portion of Meerut population.
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6. Quality provided by the Service Center
QualityPercentage of
Customer
Good 50
Average 30
Below Average 15
No Response 5
50%
30%
15%5%
Good Average Below Average No Response
According to 50% of customer quality of service provided by Service
Center is Good.
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7. Major problem faced by consumer in Mahindra & Mahindra
Commercial Vehicle
Sample Size 200
Major ProblemPercentage of
Customer
Spare Parts 60
Gear Box 20
Average 15
Suspension 5
60%20%
15%5%
Spare Parts Gear Box Average Suspension
Percentage of Customers
By above graph it is clear that spare parts in engine is the major
problem faced by Mahindra & Mahindra commercial vehicle Consumer.
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8. Price charged by the service Center for servicing and spare parts :
PricesPercentage of
Customer
Very High 25
Competitive 55
Low 10
No Response 10
25%
55%
10%
10%
Very High Competitive Low No Response
Percentage of Customers
According to 55% of the customer prize charged by the service center
is average or competitive but 25% customers say that the charges are very
high.
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9. What customer see at the time of purchase of vehicle :
Reason of PurchasePercentage of
Customer
Brand 40
Features 30
Advertisement 10
After Sales Service 20
40%
30%
10%
20%
Brand Features Advertisement After Sales Service
Percentage of Customers
The above bar chart shows that the major influences on buyr is of
Brand and features.
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10. Behaviour of Management & Staff :
Behaviour ofManagement & Staff
Percentage of Customer
Cooperative 55
Indifferent 15
Ignorant 17
No Response 13
55%
15%
17%
13%
Cooperative Indifferent Ignorant No Response
Percentage of Customers
According to 55% of customer the behaviour of management and
staff of service center is cooperative but according to 17% of customer
behaviour of management & staff of service center is ignorant.
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11. Level of Customer Satisfaction :
Customer SatisfactionPercentage of
Customer
Satisfied 67
Dis-satisfied 26
No response 7
67%
26%
7%
Satisfied Dis-satisfied No response
Percentage of Customers
From above graph, we see that major customers are satisfied with
service provided by the authorized service center of Mahindra & Mahindra
at Dealer Point, Jain Motors. But percentage of dissatisfied is not ignorable.
It indicates there is necessity of further improvement in after sales service.
The reason behind it customers wait in service centre due to lot of work in
service centre.
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Statement of findings
The result that I get through analyzing and evaluating the data drawn from the
schedule and expressed in the form of percentage of sample size and their results
can better explain the level of customer’s satisfaction on after sales service
provided by the Mahindra.
During my study what I find is described below.
1. The working condition inside the service centre is good.
2. The workers are well trained as they send to the service camp organized by
Mahindra one or two times in a month from where they trained skillfully.
3. Washing facility in the service center.
4. The break down service is available.
5. A separate section for servicing.
6. A separate customer lodge with full facilities.
7. The Businessman group figures out to be very much aware regarding
commercial vehicle.
8. Availability of spare part must consider being most important.
9. Mileage was given to priority.
10. Style and power considered most purchasing power point today.
11. Tata motors came out to be most familiar leaving others far behind.
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SUGGESTION
I would like to offer some suggestion if implemented would increase the
satisfaction of the customer. These are follows.
1. There should be more transparency in the servicing procedure
2. The company should offer some free check up camp, which leads the
consumers toward the company, and make them brand loyal.
3. The company should provide the feedback forms to get the response
of the vehicle owners at the service center.
4. Before the launch an aggressive advertising must be carried out in
order to inform the customer about the new vehicle.
5. Continuous innovation in production process and services too are
recommended to get the competitive edge.
6. The company should upgrade the workers of service center to work
with new technology equipments and enhance the quality of service.
7. The servicing speed should be enhanced so that the consumer get their
vehicles as quick possible by keeping the quality of service.
8. The price of spare parts should be more competitive rather than at
premium.
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9. The company should operate some wariness programs regarding
servicing schedule and vehicles maintenance.
10. Easily available spare parts at reasonable price backed by efficient
sales as competition.
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Limitations
1. The consumers were not amicable in giving their views.
2. Illiteracy was the biggest problem with the consumers to give
answers Of open –ended questions.
3. The time for training was limited so it was not possible to contact all
the Consumers.
4. The management & staff were uncooperative.
5. There was no response from subdealers.
6. Consumers are asking a lot of irrelevant questions.
7. No guidance in the fieldwork.
8. Consumers are not well aware of the summer training concept and
take a lot of time to explain them things properly.
9. Auto center mechanics are not able to explain things properly.
10. Money virtually fall short of what ideal field work would cost and
may requires short cost for the validity of findi
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CONCLUSION
On evaluating and analyzing the data I draw inferences that some of the
factors are satisfying the customers and some are not
During the study through the interviews of the customers and discussion
with the staff of after sales service center. I find that company is to provide.
Better facilities to the customers. A large group of customers was satisfied
with after sales provided by Mahindra & Mahindra but some customer
are not satisfied. The major problem faced by Mahindra & Mahindra is
that there is a lot of competition with Tata Motors.
As per the problem faced by the customer, I have notice that Mahindra &
Mahindra commercial vehicle consumers, I have noticed that Mahindra
consumers are complaining a lot about spare parts and there are the shortage
of skilled workers of that commercial vehicle therefore they are not satisfied.
Mahindra consumer appreciate there vehicle on performance basis and their
attractive designed they have chosen.
In conclusion I am in position to say that performance of Mahindra &
Mahindra is not in a very good position, therefore some steps are required
to raise the sale of Mahindra & Mahindra in Meerut.
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Appendix
The appendix combined of the questionnaire, which was administrator to the
response and dealers.
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QUESTIONNAIRE
1. Name of the brand you are familiar with in the commercial vehicle segment.
2. What you see at the time of purpose of the vehicle?
(a) company’s name (b) advertisement
(c) feature (d) after sales service
3. Who influenced your decision to purchase commercial vehicle?
(a) Family (b) advertisement (c) Friends (d) yourself
4.What are the chances of your buying Mahindra & Mahindra commercial vehicle,
Or the next time you purchase any other commercial vehicle.
(a) Definitely buy (b) very likely will buy
(c) Probably will buy (d) might or might not buy
5. Reasons for the arrival at service center?
(a) Free service (b) major problem (c) Service on regular basis (d) any other problem
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6. Major problem faced by you in Mahindra & Mahindra commercial banking is
(a) Gear box (b) average
(c) Suspension problem (d) spare parts
7. The level of service provided by the service center
(a) Good (b) Average
(c) Below average (d)No response
8. Price charged for service and spare part – is
(a) Very high (b) competitive
(c) Low (d) can’t say
9. According to you, the availability of spare parts at service center is
(a) After (b) occasionally
(c) Seldom (d) can’t say
10. The behavior of management and staff is:
(a) Co-operative (b) ignorant (c) Indifferent (d) no-response
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11. How do you rate the speed of servicing:
(a) Fast (b) moderate
(c) Slow (d) no-response
12. Are you satisfied with the service provided by the service center
(a) Satisfied (b) dis- satisfied
(c) No-response
13.How do you find Mahindra & Mahindra offering
(a) Excellent (b) good
(c) Average (d) can’t say
14.In your opinion the no’s of service centre in the city are sufficient
(a) Yes (b) No
(c) Other statement
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Bibliography
Kothri c.r. Research methodology India.
Kotler, Philip, marketing management, India.
Schittman, l.g and Meerut l.l. Consumerbehaviour, India
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