20 NOV 2010

VOLKSWAGE
NBHUBANES
WAR

MARKET SURVEY ON
VOLKSWAGEN
SUBMITED BY: -

GAURA

V KUMAR PANDEY
Of Regional College Of Management Autonomous,
Bhubaneswar Toward The Partial Fulfillment Of Requirement
For The Award Of The Degree Of ‘Master Of Business
Administration’.

UNDER GUIDENCE OF
CORPORATE GUIDE SUBHASH C. NATH
AAKASH DEEP
ASST. PROFFESER
SERVICE MANAGER (REGIONAL COLLEGE OF
MANAGEMENT)S

(BHARAT MOTORS LTD.)

| Gaurav Kr. Pandey
1

TABLE OF CONTENTS

Chapter no.
Page no.
Chapter 1
01-06

Includes

INTRODUCTION TO THE
STUDY.............................................. 02
EXECUTIVE
SUMMERY............................................................ 03
INTRODUCTION TO AUTOMOBILE
INDUSTORY....................... 04
Chapter 2
Includes
07-34
LITRATURE
REVIEW................................................................

09

INTRDUCTION ABOUT VOLKSWAGEN GROUP........................
16
DIFFERENT SUBSIDERIES OF VOLKSWAGEN..........................
18
HISTORY OF VOLKSWAGEN
GROUP........................................ 19
INTRODUCTION ABOUT BRAND VOLKSWAGEN......................
21
HISTORY ABOUT BRAND VOLKSWAGEN.................................
22
INTRODUCTION ABOUT VOLKSWAGEN INDIA.........................
29
ABOUT THE DEALER - BHARAT
MOTORS................................. 33
Chapter 3
35-70

Includes

OBJECTIVE OF
STUDY............................................................. 36
RESEARCH
METHODOLOGY.................................................... 37
SCOPE OF THE
STUDY............................................................. 39
AREA
COVERED......................................................................

40

ANALYSIS............................................................................
....
Chapter 4
71-78

42
Includes

CONCLUSION /
FINDING.......................................................... 72
LIMITATION.....................................................................
......... 74
RECOMMENDATION..........................................................
...... 75
QUESTIONNAIRE................................................................
..... 77
BIBILIOGRAPHY.................................................................
...... 76

CHAPTER 1

INCLUDES: a)

INTRODUCTION ABOUT STUDY

b)

EXECUTIVE SUMMERY

c)

INTRODUCTION ON INDIAN AUTOMOBILE
INDUSTRY

a) INTRODUCTION ABOUT THE STUDY
There are more than 125 Fortune 500 companies in India. India is an emerging global manufacturing hub for low cost cars.
Changing demographics, rising disposable income and entry of several new players has expanded the domestic market for passenger vehicles.
The industry turnover is estimated to reach a level of US $155 billion by 2016.
Looking into the eastern India, Orissa has emerged as a key state with minerals and metals based metal based industry with the total Gross State Domestic Product (GSDP) about
$26.6 billion in 2008-09.
As an economic-centre and capital of Orissa with tremendous potential many foreign companies are trying to grasp the opportunity by placing their different product targeting different income group.
This project was done to access the brand image of one of the well known German brand ‘VOLKSWAGEN’ and to analyse the need of degree of brand promotion in Bhubaneswar market.
With the help of questionnaire targeting all potential sector of society a survey was done to measure brand awareness and satisfaction level of customer with their present car and many more aspects.

b) EXECUTIVE SUMMERY
The study was done in the Bhubaneswar market and the main objective was to access the brand image of
Volkswagen and simultaneously to analyse the need of degree of brand promotion in the Bhubaneswar market.
Considering this around 14 questions were asked to more than 250 respondents and out of them 162 were noted down to analyse the every aspect of consumer perception towards automobile industry and Brand Volkswagen.
Through the analysis and their attitude it was found that majority of population is price sensitive (48%) and after that mileage is second most concerned factor (41%).
Looking for brand recognition around 78.12% people knows about brand Volkswagen. They also feel that VW needs more brand promotion.
The study was done both in service (50%) and business sector (42%) and it was found that people in service sector are more familiar with VW than business sector which are not so much potential than later.
People are doubtful regarding the service of VW in future.
People who are using VW cars are not properly satisfied with the mileage of the car.
Looking at the brighter side 88.32% people are dissatisfied with their present car that indicates a huge market scope in this sector and 94.18% people are eager to taste the

German engineering on Indian road this shows that there is a good scope of VW in Orissa market if they overcome some of their hurdles.

c) Introduction on Indian automobile industry The Automobile industry in India is the seventh largest in the world with an annual production of over 2.6 million units in 2009.
• In 2009, India emerged as Asia's fourth largest exporter of

automobiles, behind Japan, South Korea and Thailand. By
2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.
• Following economic liberalization in India in 1991, the

Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions.
• Several Indian automobile manufacturers such as Tata

Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations.
India's robust economic growth led to the further expansion of its domestic automobile market which attracted significant India-specific investment by multinational automobile manufacturers. In February

2009, monthly sales of passenger cars in India exceeded
100,000 units.
Embryonic automotive industry emerged in India in the
1940s.
•

Following the independence, in 1947, the Government of
India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the
Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies

•

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations.
Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands.

EXPORT
India has emerged as one of the world's largest manufacturers of small cars.
•

According to New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuelefficient cars has resulted in the expansion of

manufacturing facilities of several automobile companies like Hyundai
Motors, Nissan, Toyota, Volkswagen and Suzuki.
•

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by
2011. Similarly, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011.

•

In September 2009, Ford Motors announced its plans to setup a plant in India with an annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the Indian market and for export. The company said that the plant was a part of its plan to make India the hub for its global production business. Fiat also announced that it would source more than US$1 billion worth auto components from India.

According to Bloomberg L.P., in 2009 India surpassed China as Asia's fourth largest exporter of cars. Installed capacity in different segments of the automobile industry
SEGMENT

INSTALLED CAPACITY

COMMERCIAL VEHICLES

410000

CARS AND MULTIUTILITY
VEHICLE

1146000

TWO AND THREE VEHICLE

5696000

Rank wise Largest Automobile Manufacturers in
India by Sales
1.
2.
3.
4.

Maruti Suzuki
Hyundai
Tata Motors
Mahindra

5.
6.
7.
8.
9.
10.

GM Chevrolet
Honda
HSD
Ford
Fiat| Fiat Motors
Volkswagens

CHAPTER 2

INCLUDES: a)LITRATURE REVIEW
b)INTRDUCTION ABOUT VOLKSWAGEN
GROUP
c) DIFFERENT SUBSIDERIES OF
VOLKSWAGEN
d)HISTORY OF VOLKSWAGEN GROUP
e)INTRODUCTION ABOUT BRAND
VOLKSWAGEN
f) HISTORY ABOUT BRAND VOLKSWAGEN
g)INTRODUCTION ABOUT VOLKSWAGEN
INDIA
h)ABOUT THE DEALER- BHARAT MOTORS

a)

Literature review

MARKETING COMMUNICATION:

Modern marketing is the management of the 4P’s- product, price, place, promotion. In a sense of entire marketing process has a large content of communication. For instance, the product communicates a distinctive image such as youthfulness, glamour or prestige. The brand name communicates physical and physiological attributes of the product. The package communicates to the manufacturer thinks of his convenience and the since of beauty. This price communicates the equity of the products. These are communication between buyer & seller i.e. the distribution channel. Thus each elements of the marketing mix either helps or hinders communication and ultimately the sales effort.
The marketing communication or promotion mix consists of five major tools:
1. Advertising
2. Sales promotion.
3. Publicity
4. Personal selling
5. Public relation.

THE GENERAL MEANING OF BRANDING:

A brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed. Branding is the process of creating and disseminating the brand name.
Branding can be applied to the entire corporate identity as well as to individual product and service names.
Brands are often expressed in the form of logos, graphic representations of the brand.
A company's brands and the public's awareness of them are often used as a factor in evaluating a company. Corporations sometimes hire market research firms to study public recognition of brand names as well as attitudes toward the brands. BRAND BUILDING:
The important factors that are affecting to build a brand value… 1. Quality
2. Positioning
3. Repositioning
4. Communication
5. First mover advantage
6. Long term perspective
7. Internal marketing

The sevens main factors in building successful brand as illustrate in the diagram given below:

Quality:
Quality is a vital ingredient of a good brand. Remember the
“core benefits” – the things consumers expect. These must be delivered well, consistently. The branded washing machine that leaks or the training shoes that often falls apart when wet will never develop brand equity.
Research confirms that, statistically higher quality brands achieve a higher market share and higher profitability that their inferior competitors.
Positioning:

Positioning is about the position a brand occupies in a market in the minds of consumers. Strong brand have a clear, often unique position in the target market.
Positioning can be achieved through several means, including brand name, image, service standard, product guarantees, packaging and the way in which it is delivered. In facts, successful positioning usually requires a combination of these things. Repositioning:
Repositioning occurs when a brand tries to change its market position to reflect a change in consumer’s taste. This is often required when a brand has become a tired, perhaps because its original market has matured or has gone into decline.
Communications:
Communications also play a key role in building a successful brand. We suggested that brand positioning is essentially about customer’s perceptions- with the object to build a clearly defined position in the minds of target audiences.
All elements of the promotional mix need to be used to developed and sustain customer’s perceptions. Initially, the challenge is to build awareness, then to develop the brand personality and reinforce the perception.
First-mover advantage:
Business strategists often talk about first-mover advantage. In terms of brand development, by “first-mover” they mean that it is possible for the first successful brand in a market to create a clear positioning in the minds of target customers before the competition enters the market. There is plenty of evidence to supports this.
Long-term perspective:

It leads into another factor in brand-building. This needs to invest in the brand over the long-term. Building customer awareness, communicating the brand’s message and creating customers loyalty takes time. This means that management must “invest” in a brand, perhaps at the expense of short- term profitability. Internal marketing:
Finally management should ensure that the brand is marketed
“internally” as well as externally. By this we mean that the whole business should understand the brand values and positioning. This is particularly important in service businesses where a critical part of the brand value is the type and quality of service that a customer receives.
Think of the brand that you value in the restaurant, hotel and retail sectors. It is likely that your favorite brands invest heavily in staff training so that the face-to-face contact that you have with the brand helps secure your loyalty.
OBJECTIVE OF BRAND POSITIONING:
In the below there are main objectives of brand positioning,
1. Marketing:

This is where you state what you’re setting out to do.
Branding is about changing minds. Marketing is about overcoming obstacles to the sell. An objective is something specific you want to accomplish. So a brand marketing objective can be thought of as how you’re going to change customers’ minds about the obstacles that are preventing them from buying your product.
Example:
The brand marketing objective for the [CAMPAIGN NAME] is to prompt a change in consumer attitude/perception.
2. Promise:

Make a one-sentence promise that matters to your customer, is unique to your organization or product and above all believable. This promise should indicate what the product is and whom it’s for.
3. Brand Attributes:

These are words—think talking points—from your brand promise that are leveraged in your brand-building communications. 4. Brand Category:

Your brand category helps you focus on where you are competing, and where you’re not. In case you don’t know your category, ask your customers. Try to dominate your category. 5. Brand Positioning:

This is a one sentence positioning statement that shows how you are different, better or more special than your competition. This is the message you plan to put into the minds of potential customers, consumers, etc. when they think of your company or products.
6. Positioning Anchors:

This is the evidence you supply to back up your promise
(especially useful for development). This information is vital to your marketing efforts.
7. Advertising:

Here’s where you would list all of your advertising placements. This data would include the medium, vendor, description, size, execution date, due date, number of impressions and cost. These efforts should align with both your customers and brand message.

8.

Budget:

Details how much money you are investing in this brand positioning. NEED FOR BRANDING:
 Separate your brand from your competitors in a unique way  Relevant and motivating to your customers
 Prospects and channels-it gives you value and make you special.  Enhance your perceived value, there by supporting premium pricing, sheltering you from low price competition.  Contributing to share holder value.(Companies like
Morgan Stanley look to evidence of brand strength in setting buy ratings.)
 Provide resilience in times of negative press.
 Enable you to launch new products more quickly and cost effectively. THE ADVANTAGES OF BRANDING:
 Every product requires having identity or naming so that it could be identified hence easy to process order.
 Legal protection to features
 Only products with unique features attract customers that’s why branding facilities making customer loyal.

b)

Introduction about Volkswagen Group

Type
Aktiengesellschaft

Pubic Company –

Industry

Automotive

Founded

German

Headquarters

Wolfsburg, Germany

Number of locations countries 61 production plants in

Area served

Worldwide

Key people

Ferdinand k Piech (Chairman of the

supervisory board)

Martin Winterkorn (CEO and
Chairman management)

Product vehicle, engines
Production output countries (2009)
Services

Automobiles, commercial
6,054,829 units for sale in 153 financial services

Revenue

€177.2 billion

Total equity

€37.43 billion

Employees
Divisions

368,500 (end 2009)
Automotive
Vehicle brand

companies:
AUDI AG,
BENTEY AUTOMOBILES
LIMITED,
BUGATTI AUTOMOBILES,
LAMBORGHINI,
SEAT,
SKODA AUTO,
VOLKSWAGEN
PASSENGER CAR,
VOLKSWAGEN COMMERCIAL
VEHICLES,

SCANIA AB

FIANANCIAL
SERVICES:
VOLKSWAGEN FINANCIAL
SERVICES AG,

VOLKSWAGEN EASING
Gmbh

OTHERS:

LOGISTCS, MARINES, INTERNATIONAL

COLABORATIONS

Website

www.volkswagenag.com

c)
Different subsidiaries of
Volkswagens

d)

History of Volkswagen Group

Volkswagen (abbreviated VW, previously known as VAG) is one of the world's largest German automobile manufacturing group. Volkswagen officially ranks as the world’s 3rd largest manufacturer as measured by OICA in 2008. According to data published by all three companies, Toyota Group did lead in
2009 with 7.23 million units. General Motors ended the year in place 2 with 6.503 million units. Volkswagen was third with
6.29 million units delivered to customers.
Volkswagen Group is divided into two primary divisions: the
Automotive Division, and the Financial Services Division. The

Group consists of 342 Group companies, which are involved in either vehicle production or other related automotive services.
Although it operates worldwide, Volkswagen Group's core market is primarily Europe.
History: Volkswagen was founded on 28 May 1937 as the
GesellschaftzurVorbereitung des Deutschen Volkswagens mbH
("Society for the preparation of the German People's Car", sometimes abbreviated to Gezuvor) by the Nazi Deutsche
Arbeitsfront (German Labour Front).The purpose of the company was to manufacture the Volkswagen Type 1, later better known as the Volkswagen Beetle. On 16 September
1938, the company was renamed Volkswagenwerk GmbH
("Volkswagen Factory limited liability company").
After the Second World War in June 1945, Major Ivan Hirst of the British Army Royal Electrical and Mechanical Engineers
(REME) took control of the bomb-shattered factory, and tried to dismantle it and ship it home. However, no British car manufacturer was interested; "the vehicle does not meet the fundamental technical requirement of a motor-car ... it is quite unattractive to the average buyer ... To build the car commercially would be a completely uneconomic enterprise “
In 1960, upon the floatation of part of the German federal government's stake in the company on the German stock market, its name became Volkswagenwerk Aktiengesellschaft
(usually abbreviated to Volkswagenwerk AG).
On 1 January 1965, Volkswagenwerk acquired Auto Union
GmbH from its parent company Daimler-Benz. The new subsidiary went on to produce the first post-war Audi models, the Audi F103 series, shortly afterwards.
Another German manufacturer, NSU Motorenwerke AG, was merged into Auto Union on 26 August 1969, creating a new

company, Audi NSU Auto Union AG (later renamed AUDI AG in
1985).
From the late 1970s to 1992, the acronym V.A.G was used by
Volkswagen AG as a brand for group-wide activities, such as distribution and leasing. Contrary to popular belief, "V.A.G" had no official meaning.
On 4 July 1985, the company name was changed again - to
Volkswagen Aktiengesellschaft (usually abbreviated to
Volkswagen AG), to reflect the company's increasing global diversification from its headquarters and main plant, the
Volkswagenwerk in Wolfsburg. In 1986, Volkswagen acquired a controlling stake in the Spanish car manufacturer SEAT, S.A. and in 1991, Škoda automobilová a.s. of Czechoslovakia became a wholly-owned subsidiary.
Three prestige automotive marques were added to the
Volkswagen portfolio in 1998: Bentley, Lamborghini and
Bugatti.

e)

Introduction about Brand Volkswagen

Type

Public

Industry

Automotive

Founded

28 May 1937

Headquarters
Key people
Board of Management,

Wolfsburg, Germany
Martin winterkorn:

Chairman of the

Ferdinand Piech:

Chairman of

Volkswagen Supervisory board

Product

Cars

Employees

368,500 (2009)

Website

www.volkswagen.com

f) History of Volkswagen

Volkswagen was originally founded in 1937 by the National
Socialist trade union German Labour Front (Deutsche
Arbeitsfront). In the early 1930s German auto industry was still largely composed of luxury models, and the average German rarely could afford something more than a motorcycle
Adolf Hitler was also interested for that and declared his intentions for a state-sponsored "Volkswagen" program. Hitler

required a basic vehicle capable of transporting two adults and three children at 100 km/h (62 mph). The "People's Car" would be available to citizens of the Third Reich through a savings scheme at 990 Reichsmark, about the price of a small motorcycle (an average income being around 32RM a week).
Despite heavy lobbying in favour of one of the existing projects,
Hitler chose to sponsor an all new, state owned factory. The engineer chosen for the task was Ferdinand Porsche. By then an already famed engineer, Porsche was the designer of the
Mercedes 170H, and worked at Steyr for quite some time in the late 1920s. When he opened his own design studio he landed two separate "Auto für Jedermann" (car for everybody) projects with NSU and Zündapp, both motorcycle manufacturers.
Neither project come to fruition, stalling at prototype phase, but the basic concept remained in Porsche's mind time enough, so on 22 June 1934, Dr. Ferdinand Porsche agreed to create the
"People's Car" for Hitler
Erwin Komenda, the longstanding Auto Union chief designer, developed the car body of the prototype, which was recognizably the Beetle known today. It was one of the first to be evolved with the aid of a wind tunnel, in use in Germany since the early 1920s.
The building of the new factory started 26 May 1938 in the new town of KdF-Stadt, now called Wolfsburg, which had been purpose-built for the factory workers. This factory had only produced a handful of cars by the time war started in 1939.
None was actually delivered to any holder of the completed saving stamp books, though one Type 1 Cabriolet was presented to Hitler on 20 April 1938 (his 49th birthday).

1945: British Army, Major Ivan Hirst, unclear future
The company owes its post-war existence largely to one man,
British Army officer Major Ivan Hirst, REME. In April 1945, KdFStadt, and its heavily bombed factory were captured by the
Americans, and subsequently handed over to the British, within whose occupation zone the town and factory fell. The factories were placed under the control of Oldham-born Hirst. At first, the plan was to use it for military vehicle maintenance. Since it had been used for military production, and had been in Hirst's words a "political animal" rather than a commercial enterprise, the equipment was in time intended to be salvaged as war reparations. Hirst painted one of the factory's cars green and demonstrated it to British Army headquarters. Short of light transport, in September 1945 the British Army was persuaded to place a vital order for 20,000. The first few hundred cars went to personnel from the occupying forces, and to the
German Post Office.

®1945 to 1948 survived in allied-occupied Germany and served for British army

®1948 onwards became a very important element, symbolically and economically, of West German

regeneration
Volkswagens were first exhibited and sold in the United States in 1949, but only sold two units in America that first year. On its entry to the U.S. market, the VW was briefly sold as a "Victory
Wagon". Volkswagen of America was formed in April 1955 to standardise sales and service in the United States. Production of the Type 1 Volkswagen Beetle increased dramatically over the years, the total reaching one million in 1955.

Product line expansion:
Company did product line expansion from 1961 to 1973 with the introduction of several Type 3 model, Super Beetle and several engine and structural modification.
In 1964 it successfully added Audi brand and developed it as luxury vehicle marque.
1974: from Beetle to Golf/Rabbit
Volkswagen was in serious trouble by 1973. The Type 3 and
Type 4 models had sold in much smaller numbers than the

Beetle and the NSU-based K70 also failed to woo buyers. Beetle sales had started to decline rapidly in European and North
American markets. The company knew that Beetle production had to end one day, but the conundrum of replacing it had been a never-ending nightmare.
1974 to 1990: entering the mainstream

Volkswagen Polo, 1990

While Volkswagen's range of cars soon became similar to that of other large European automakers, the Golf has been the mainstay of the Volkswagen lineup since its introduction, and the mechanical basis for several other cars of the company.
There have been six generations of the Volkswagen Golf, the first of which was produced from the summer of 1974 until the end of 1983 (sold as the Rabbit in the United States and
Canada and as the Caribe in Latin America). Its chassis also spawned the Volkswagen Scirocco sport coupe, Volkswagen
Jetta saloon/sedan, Volkswagen Golf Cabriolet convertible, and
Volkswagen Caddy pick-up.

Volkswagen Golf 2000 model

The Volkswagen New Beetle

In 1994, Volkswagen unveiled the J Mays-designed Concept
One, a "retro"-themed concept car with a resemblance to the original Beetle, based on the platform of the Polo. Due to a positive response to the concept, a production version was developed as the New Beetle, based on the Golf's larger platform. In the late 1990s Volkswagen acquired the three luxury brands
Lamborghini (through Audi), Bentley and Bugatti due to
Ferdinand Piëch" strategy.

g)

Different Cars of Volkswagen

Caddy Life
Mk6

Eos
CC

Fox

Golf Mk6

Passat

Passat

Phaeton

Polo Mk6

Golf Pus
Scirocco

Golf Variant

Sharan

Jetta Mk5

Multivan

New Beetle
Beetle Convertible

Touran

Tiguan

Touareg

New

h)

Introduction about Volkswagen India

With its headquarters in Pune, Maharashtra (India), the
Volkswagen Group is represented by three brands in India:
Volkswagen, Audi and Skoda. The Volkswagen Group is completing 10 years of its India journey which began with the entry of the Skoda brand in 2001, Audi brand and Volkswagen brand in 2007. Each brand has its own character and operates as an independent entity in the market.
Volkswagen Group India is a part of Volkswagen AG, which is globally represented by 9 brands- Audi, Bentley, Bugatti,
Lamborghini, Scania, Seat, Skoda, Volkswagen Commercial
Vehicles (Volkswagen Nutzfahrzeuge) and Volkswagen
Passenger Cars. The product range extends from lowconsumption small cars to luxury class vehicles and trucks. The
Group operates 60 production plants around the world. In total more than 370,000 employees produce more than 26,600 vehicles or are involved in vehicle-related services each working day.
The highest volume brand of the Group is Volkswagen. Europe’s most successful car brand has made successful inroads into the
Indian market. Volkswagen presents itself in a variety of segments as a premium manufacturer of high-volume models.
As a first step, the Volkswagen brand launched the globally successful Passat in 2007. To expand its portfolio and cater to the mid segment, Volkswagen launched one of the brand’s bestselling models, the Jetta, in India in July 2008. Both the sedans are being assembled locally. The iconic New Beetle and the high-end SUV Touareg were introduced in December 2009.
Also available is the high-end automobile Phaeton.
From December 12, 2009 the new Pune plant has started rolling-out the hatchback version of the
Volkswagen Polo.

The made-in-India Polo was presented to the general public for the very first time at the Auto Expo
2010. The launch of this premium hatchback in March, brought access to one of the Indian passenger car segments with the highest-volume unit sales.

•

Skoda entered the Indian market in 2001. Its plant in
Aurangabad, which assembles a total of eight models including the Audi A6 and Audi A4 as well as the
Volkswagen Passat and Volkswagen Jetta, has been instrumental in this achievement. For Indian customers, the name of Skoda stands for high-quality, robust yet affordable cars in the compact, lower mid-size and midsize ranges. In terms of models, the Skoda product offering in India ranges from the Fabia through the
Octavia, the Laura to the Superb. Skoda lifted the veil off its international bestseller SUV Yeti for the first time in
India at the Auto Expo 2010.
Audi offers high-end models of interest to Indian customers. With the A8 and the Q7, the A6, the A4 and not forgetting the R8, the TT and the recently introduced Q5,
Audi offers top-quality, technically brilliant cars with an exclusive flair in the relevant luxury segments. Audi’s positioning as a leading manufacturer of such high-class vehicles, both assembled in India and imported through
Audi India, will be systematically pursued in future. At
Auto Expo 2010, Audi also unveiled the Audi Sport back
Concept – a five-door model offering a glimpse into Audi's future design vocabulary.
Recognizing the importance of an extensive dealer network towards scripting a long-term success story, the brands of the Volkswagen Group are setting up dealerships spanning the entire country with Volkswagen,
Skoda and Audi having in total around 120 dealerships across the country today. They are not only laying the foundation for a substantial increase in sales but also

doing the groundwork for offering a first-class all-round service, taking customer satisfaction to the highest level.
Keeping this in mind they launched their first Group
Logistics Service facility recently that would help make their dealer network become more efficient and smoothen the entire process of service. In the period between
January 2009 and December 2009, the three brands of the
Volkswagen Group have together sold around 19,000 vehicles in India, an increase of 1.4% over 2008 in a year marked by recession in the auto industry.
A crucial element of the Volkswagen’s strategy is to establish a long-term presence in India is the Group’s production facility near Pune in the Chakan Industrial Park.
The investment with a total sum of around INR 3,800 crore
(580 million Euros) is the biggest investment of a German company realized in India so far. The plant, one of the most modern in the Volkswagen Group has a high level of vertical integration – not least attributable to the high share of local suppliers. The recruitment is of some 2,500 employees at the end of 2010, primarily from the region itself. With the investment, the vertical integration of suppliers and the employment of people Volkswagen will thus demonstrate its commitment to the new site.
Simultaneously Volkswagen contributes to a positive development of the economy of the region and of
Maharashtra at the same time.
The new plant was inaugurated by
The Honourable Governor of
Maharashtra, His Excellency Shri. S.
C. Jamir, and Prof. Dr. Jochem
Heizmann, Member of the Board of
Management of Volkswagen
Aktiengesellschaft with responsibility for ‘Group Production’ end of March
2009 and has begun building the
Skoda Fabia compact car in May
2009. The launch of Polo, the hatchback car, is a visible testimony to Volkswagen’s vision of “Mobility -

Made in India”. By mid of 2010 the hatchback version will be followed by a sedan, also based on the new generation of the Polo but entirely different to the hatch.
In recognition of its efforts in India, Volkswagen India won the coveted ‘Automotive Company of the Year 2010’ award at the
Inaugural Golden Steering Wheel Awards India presented by the leading automotive magazine, Auto Bild India.

i)

Bharat Motors –Dealer (Eastern India)

About the dealer

J.P.DIDWANIA (Director)

Introduction
BHARATS is known as an automobile business house over last
60 years in the state of Orissa.
It represents companies as follows:-

• Hero Honda Motors Ltd.
• Tata Motors Ltd. (PCBU Division)
• General Motors India
• Ashok Leyland Ltd.
• Bajaj Auto Ltd. (3 wheeler division)
• Volkswagen India
As an auto dealer in the state company have branches in the following cities:
Angul – Bhubaneswar – Balasore – Berhampur – Barbil –

Keonjhar – Rourkela – Sambalpur.
In the year 1992 company diversified into Transport & Logistic business and today it is one of the leading transporter in the country having many blue chip companies as its esteemed clients and have offices in all major cities in the country.
In the year 2008 as a Corporate Social Responsibility (CSR) policy we initiated to impart technical education and hence
Industrial Training Centre was born in the name of Bharat
Industrial Training Centre.
At Bharats we take pride to state that the organization is standing on a strong tradition of service to its valuable clients.
The group is managed by a very committed & dedicated team of professionals.

Mission of the company
“TO FACILITATE MOBILITY WITH COMFORT & STYLE. TO
DELIGHT OUR VALUED CUSTOMERS BY PROVIDING
EXCILLENT PRE SALES & AFTER SALES SERVICE UPTO
THEIR BEST SATISFACTION”

CHAPTER 3

INCLUDES: a)
b)
c)
d)
e)

OBJECTIVE OF STUDY
RESEARCH METHODOLOGY
SCOPE OF THE STUDY
AREA COVERED
ANALYSIS

a)

OBJECTIVE OF STUDY: -

The main objective of study was to understand the whole automobile market of Orissa and customer behaviour regarding that
Objectives: a)

To know the profile of different customer group according to their sex, age, income, frequency of their uses etc

b)

To know the approximate potentiality of customer

c) To know the satisfaction level of customer with their present car
d) To analyze the down market stretching strategy of
Volkswagen with the introduction of Polo
e) To find out the exact customer needs said during a purchase of a car
f)

To find out the positioning effect strategy required
(product attributes, benefits, beliefs and values)

b)

RESEARCH METHODOLOGY

This research study involves knowing the brand positioning of
Mixer Grinder adopted by Bajaj Electricals Ltd. What uniqueness and special features it has got in its product which differentiated it form its competitors and also how Brand
Positioning is stimulates.
Process Of The Research:
I have completed my project with visiting different retails outlets, dealers, distributors, and also service centre and customers in Kolkata market to analyze the how Brand positioning help to boost up their sales in comparison on their competitors. So entire project was divided into three parts:
1. Conducting market research in the various part of the city in order to get the idea about the effectiveness of Brand
Positioning in bringing the customers and dealers satisfaction. 2. Retailers or dealers perception, views or satisfaction level regarding the product they are using.
3. Identification of the factor that are responsible for the dealers or consumers response towards these brand positioning. • Like whether offered sales promotion,
• Brand loyalty,

• Approaches towards the new product,
• Explore needs of the consumers
TYPE OF STUDY:
My study is an Empirical Research. Empirical research is practical or data based research. Whatever I have done relies on the experience and observations. Lastly the conclusions with which I have come up are capable of being verified.
DATA SOURCES:
I have collected the data from different area in the Kolkata market. Data are collected through both the primary and secondary sources. Primary data are collected from the market by circulating questionnaires to the respondent and the secondary data are collected from web sites and published material as listed in the bibliography.
DATA COLLECTION METHODS:
The data has been collected through a personal survey.
•

SAMPLING METHODS: This research is based on the non probability Quota sampling methods. Since I have selected my sample dealers or distributors according to channel wise.

•

DATA COLLECTION INSTRUMENT: I have collected data using face to face (personal interaction) for the customer’s views and dealers views and Scheduling methods for analyzing the customer’s and dealer’s satisfaction and the effectiveness of the branding after sales-service.
Scheduling methods are those methods in which a schedules containing relevant question are prepare and than enumerators fill the schedules and the basis of the reply given by respondent. My questionnaire consists of both open ended and close ended question.

c)Scope of the study

• The study is to be carried out in capital city of Orissa
i.e. Bhubaneswar.

• Bhubaneswar is a cosmopolitan environment, consisting of people from different parts of Orissa.

d)

AREA COVERED

• The study was conducted in the capital of Orissa and it contains various groups of people living in the capital.

•

It was conducted considering all the three sectors of society i.e. business, service, and both service and business class.

ANALYSIS

Analysis 1: Identification of prospect customers:The automobile industry is experiencing a dramatic transformation that will forever alter the way both new and used vehicles are marketed and sold. As consumers change their operational structure and methods.
As the automotive industry becomes increasingly sophisticated, dealers are looking outward for assistance in increasing new and used car sales, improving margins, containing costs, developing additional profit centres and designing programs that will meet consumer demands today and in the coming years. Concerning to this to differentiate user and non-user the very first question to customer was whether they own a car or not. CUSTOMER
CATEGORIES
CAR USER
NON USER

NO.OF
RESPONDENT
104
58

%OF
RESPONDENT
64
36

TY OFCUS OMER
PE
T

36%
USER(64%
)
NON USER(36%
)
64%

Implication: - The research was conducted taking all the sector of society i.e., business class, service class and those belonging to both business and service class and among them 64% belong to user group and 36% belong to non-user group, here user group means those who previously owned any car or presently using any car and non-user means those who never owned any car.
Among 64% of user group and 36% of non-user group taken together,
42% were businessmen.
50% were servicemen.
8% were both to businessmen and servicemen. Considering the income of the entire above sector, in the survey it was found that the businessmen, servicemen and both businessmen and servicemen in Bhubaneswar city have average yearly income