107174778 Perception of Rural People Towards Suv Cars

7/28/2019 107174778 Perception of Rural People Towards Suv Cars

1/29

Suv report. Page 1

INSTITUTE OF MANAGEMENT STUDIES

GHAZIABAD

A PROJECT REPORT ON

PERCEPTION OF RURAL PEOPLE TOWARDS, SUV

CARS

Submitted to: Submitted by:Seema mahato (BM-011191)Shikha choudhary(BM-011200)

Shriraj (BM-011209)

Dr. Urvashi Makkar Vibhor Garg (BM-011239)

Dean academics

Faculty, IMS Ghaziabad Sunil Kumar (BM011224)

Syed Khurram (BM011231)

Vishal jaiswal (BM011249)


2/29

Suv report. Page 2

TABLE OF CONTENT

INTRODUCTION

SL NO. PARTICULARS PAGE

NO.

1. Introduction 3

2. Objective 6

3. Research Methodology 7

4. Finding Analysis 11

5. Conclusion 23

6. Bibliography 24

7. Case study 25

8. Annexure 27


3/29

Suv report. Page 3

INTRODUCTION

Historically the Sport Utility Vehicle has been considered a mid-sized passenger

vehicle. It was designed to have the carrying capacity of a pick-up truck, but differ in size andperformance. Sport utility vehicles are descendents of the other sport vehicles such as

commercial vehicles and military vehicles including Jeep and the Land Rover. These vehicles

were followed by other sport utility vehicles.

Throughout history the design of the SUV has been changed. There are several

models of the SUV that are considered compact sport utility vehicles. This simply means that

they are smaller in size in some way. It could be that seats have been removed or the carrying

capacity or cargo space could be slightly smaller than the standard vehicle.

Indian car industry is crowded with a number of SUVs, the demand of which is gradually

increasing among car consumers. SUVs have come a long way from the traditional Jeep to

the stylish and high-tech Honda CR-V, Tata safari, Mahindra Scorpio and ford endeavor.

Sports Utility vehicles are rapidly capturing the market due to its multifarious use.

Utility vehicles are found in two kinds: - SUV or Sports Utility Vehicles and MUV or Multi

Utility Vehicles.

Its spacious interior and sturdy exterior have made this vehicle one of the fastest

selling vehicles of India. This is multi use vehicle to accommodate many passengers in one

vehicle, especially while going for a long trip with a big family or with a folk of friends.

Sporty attributes of this vehicle is not negligible when mentioning about its use. To name few

SUV manufacturers of India- Fiat India, Ford Motors, Force Motors, General Motors,

Hyundai Motors, Hindustan Motors, Mahindra & Mahindra, Nissan, Porsche, Tata Motors,

Toyota motors etc.

In the north, sales of high-end cars are picking up in places such as Karnal, Hoshiarpur,

Bhatinda and Patiala, and in the south, the backwaters of Kerala and rural areas of Karnataka

is turning out to be an attractive destination for manufacturers.


4/29

Suv report. Page 4

Companies such as Honda, Hindustan Motors, GM and Ford are a bullish about these rural

hotspots and are expanding their presence in these areas by increasing the number of

dealerships and marketing activities. This apart, the trend also reveals that among the number

of vehicles sold, SUVs garner a considerable chunk of the market.

According to Taipan Traders, authorised dealer of Mercedes Benz from Karnal up to northern

territory, MD Manjit Singh Bala, there has been a jump of 35 to 50% in sales of high-end cars

and SUVs in the last two years. "While driving on our type of roads, the brand name and

safety put the Merc above the rest. We are getting around 60 queries daily.

Even the Honda CR-V is basking in all the rural attention it is getting. "Apart from our main

markets in metros, we believe that there is strong growth potential in the tier II cities andtowns. We are increasingly focusing on these cities and setting up new dealerships there," a

Honda Siel spokesperson told Sunday ET.

The demand for vehicles like Scorpio rising at a faster pace in (areas such as) Lakhimpur

Kheri (Uttar Pradesh) and Muzaffarpur (Bihar), said Arun Malhotra, senior vice-president,

sales and customer care.

Mahindra sells at least 150 Scorpios every month in Bihar, he said. The enquiries for the

XUV 500, its new sports utility vehicle, are just not stopping. This is despite us telling the

buyers that Bihar would only get deliveries of this vehicle once Mahindra reopens bookings,

he said. The officials of the company said that they did not anticipate this kind of demand

for XUV from states like Bihar and Jharkhand. We are not happy with this fact. We are trying

to meet demand by increasing capacity at our plant. They said.

Aspirations are rising in the villages and smaller towns, said Pradeep Lokhande of Rural

Relations, a consumer rural relations organization.

After a colour television, a vehicle is the next big-ticket item on their shopping list, he said.

This has been further helped by the easy availability of finance.

According to Taipan Traders, authorised dealer of Mercedes Benz from Karnal up to northern

territory, MD Manjit Singh Bala, there has been a jump of 35 to 50% in sales of high-end cars

and SUVs in the last two years. "While driving on our type of roads, the brand name and

safety put the Merc above the rest. We are getting around 60 queries daily.


5/29

Suv report. Page 5

Reasons for the rising demand of SUVs cars in rural India:-

First, disposable incomes in rural areas are rising, backed by a better-than-expected

monsoon and a healthy harvest. Moreover, Pals points to massive irrigation projects

that have resulted in rural areas being much less dependent on the monsoon than in

the past.

Meanwhile, schemes such as the National Rural Employment Guarantee Act

(NREGA) and increased minimum support price (MSPs) have also boosted rural

incomes. All this is feeding through into increased demand for consumer durables.

Another reason for this is that with the real estate boom in the country which is

fetching handsome prices for land, farmers in many areas have shown interest in

buying big cars or SUVs," adds Mr Bala.

Government rural infrastructure programmes such as the Pradhan Mantri Gram Sadak

Yojana have spawned several small contractors who are among the major buyers of

utility vehicles, Lokhande said.

The real growth is happening (in utility vehicles) because of the governments road

development programmes. Such programmes have a huge multiplier effect, said

Mahantesh Sabarad, senior vice-president (equity) at Fortune Equity Brokers (India)

Ltd.


6/29

Suv report. Page 6

OBJECTIVES OF THE STUDY

The research objectives for the report undertaken can be defined as follows:

To find various factors which determine the consumer perception toward SUV cars.

To study perception of consumers towards the SUV cars.

To judge the satisfaction level of suv car owners.

Finally recommend how we can improve the perception of people towards suv cars.


7/29

Suv report. Page 7

CHAPTER2 : RESEARCH METHODOLOGY

Research methodology is a systematic way, which consists of series of action steps, necessary

to effectively carry out research and the desired sequencing to these steps. The marketingresearch is a process of involvesa no. of inter-

related activities, which overlap and do rigidly follow a particular sequence. It consists of the

following steps:-

RESEARCH DESIGN:-

Research design specifies the methods and procedures for conducting

a particular study. A research design is the arrangement of conditions for collection andanalys

is of the data in a manner that aims to combine relevance to their search purpose with

economy in procedure. Research design is broadly classified into three types as:-

Exploratory Research Design

Descriptive Research Design

Causal Research Design

We have chosen the descriptive research design.

DESCRIPTIVE RESEARCH DESIGN:-

Descriptive research studies are those studies which are concerned with described the

characteristics of particular individual. In descriptive as well as in diagnostic studies, the

researcher must be

ableto define clearly, what he wants to measure and must find adequatemethods for

measuring it along with a clear cut definition of populationhewant to study. Since the aim is to obtain complete and accurateinformation in the said


8/29

Suv report. Page 8

studies, the procedure to be used must be carefully planned. The research design must make

enough provision

for protectionagainst bias and must maximize reliability, with due concern for theeconomical

completion of the research study.

SAMPLE DESIGN

A Sample Design is a definite plan for obtaining a sample from a given population. It refers

to the technique to the procedure adopted in selecting items for the sampling designs are as

below:

(a) Sample Size-: 50 customers

SAMPLING TECHNIQUE

RANDOM SAMPLING:

A random sample gives every unit of the population a known and non-

zero probability of being selected. Since random sampling implies equal probability to every

unit in the population, it is necessary that theselection of the sample must be free from human

judgment. There is some confusion between the two terms random sampling

andunrestricted random sampling. In the latter case, each unit in the population has an equal

chance of being selected in the sample. Such as ample is drawn with replacement, which

means that the unit selected at each draw is replaced into the population before another draw

is made from it, As such, a unit can be included more than once in the sample

Most statically theory relates to unrestricted random sampling. In order to distinguish

between these two samples. I.e. sample, without replacement and sample with replacement,

the terms sample random sample and unrestricted random sample are used. If the latter is

devised in such a manner that no unit can be included more than once, it will then be known

as the simple random sampling. It may be noted that while both sample random sampling and

unrestricted random sampling give an equal probability to each unit of the population for

being included in the sample, there are other sample design too which provide equal

probability to the units. The process of randomness is the very core of simple and unrestricted


9/29


10/29

Suv report. Page 10

Dichotomous questions

Multiple choice questions

These types of questions are easy to understand and easy to give required answers.

SECONDARY DATA

Secondary data means data that are already available i.e. they refer the data which have

already been collected and analyzed by someone else. When the researcher utilizes secondary

data, than he has to look into various sources from where

h e can obtain them, in this case he is certainly not confronted with the problems that are

usually associated with the Collection of original data.

Secondary data may either be published data or unpublished data. Usually published data are

available in:

Various publications ofthe central, state and local government;

Various publications of foreign government or of international bodies and their subsidiary

organizational;

Technical and trade journals;

Books, magazines and newspapers;

Reports and publications of various associationsconnected withbusiness san industry, stock

exchanges etc.;

Reports prepared by research scholars, universities, economists etc.;

Public records and statistics, historical document and other source of published information

The source of unpublished data are many; they may be found in diaries, letters, Unpublished

Biographies and autobiographies and also may Beavailable with scholars and research worke

rs, trade associations, labor because and other public private individuals and organization.


11/29

Suv report. Page 11

CHAPTER-3 : FINDINGS AND ANALYSIS

= No Correlation Exist between Income and SUV

= Correlation Exists between Income and SUV

Correlations

Descriptive Statistics

Mean Std. Deviation N

Income 2.64 .964 50

SUV 2.30 1.182 50

Correlations

Income SUV

Income Pearson Correlation 1 -.279*

Sig. (2-tailed) .049

Sum of Squares and Cross-products 45.520 -15.600

Covariance .929 -.318

N 50 50

SUV Pearson Correlation -.279*

1


Sum of Squares and Cross-products -15.600 68.500

Covariance -.318 1.398

N 50 50

*. Correlation is significant at the 0.05 level (2-tailed).

Value of at 5% significance level is .049.I.e less then.05 so we reject the so, there is

Correlation Exist between Income and SUV.


12/29

Suv report. Page 12

Correlations

= No Correlation Exist between Income and Brand.

= Correlation Exists between Income and Brand.



Income 2.64 .964 50

BRAND 3.00 1.069 50

Correlations

Income BRAND

Income Pearson Correlation 1 .059


Sum of Squares and Cross-products 45.520 3.000

Covariance .929 .061

N 50 50

BRAND Pearson Correlation .059 1



Covariance .061 1.143

N 50 50

Value of at 5% significance level is .682.I.e more then.05 so we Accept the so, there is

no Correlation Exist between Income and Brand.


13/29

Suv report. Page 13

Correlations

= No Correlation Exist between Brand and Age.

= Correlation Exists between Brand and age.



BRAND 3.00 1.069 50

Age 2.56 .907 50

Correlations

BRAND Age

BRAND Pearson Correlation 1 .189



Covariance 1.143 .184

N 50 50

Age Pearson Correlation .189 1



Covariance .184 .823

N 50 50

Value of at 5% significance level is .189.I.e more then.05 so we Accept the so, there is

no Correlation Exist between Brand and Age.


14/29

Suv report. Page 14

Correlations

= No Correlation Exist between Brand and SUV.

= Correlation Exists between Brand and SUV.



BRAND 3.00 1.069 50

SUV 2.30 1.182 50

Correlations

BRAND SUV

BRAND Pearson Correlation 1 .145



Covariance 1.143 .184

N 50 50

SUV Pearson Correlation .145 1



Covariance .184 1.398

N 50 50

Value of at 5% significance level is ..314 i.e more then.05 so we Accept the so, there

is no Correlation Exist between Brand and SUV.


15/29

Suv report. Page 15

Correlations

= No Correlation Exist between Income and Fuel.= Correlation Exists between Income and Fuel.



Income 2.64 .964 50

FUEL 3.90 .647 50

Correlations

Income FUEL

Income Pearson Correlation 1 -.092


Sum of Squares and Cross-products 45.520 -2.800

Covariance .929 -.057

N 50 50

FUEL Pearson Correlation -.092 1


Sum of Squares and Cross-products -2.800 20.500

Covariance -.057 .418

N 50 50

Value of at 5% significance level is .527 I.e more then.05 so we Accept the so, there is

no Correlation Exist between Income and Fuel.


16/29

Suv report. Page 16

Nonparametric Correlations

Correlations

Income FUEL

Spearman's rho Income Correlation Coefficient 1.000 -.095

Sig. (2-tailed) . .512

N 50 50

FUEL Correlation Coefficient -.095 1.000

Sig. (2-tailed) .512 .

N 50 50

Factor Analysis

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .447

Bartlett's Test of Sphericity Approx. Chi-Square 24.925

df 21

Sig. .250

Communalities

Initial Extraction

Age 1.000 .591

Income 1.000 .618

Occupation 1.000 .401

Gender 1.000 .757

SUV 1.000 .477

BRAND 1.000 .865

FUEL 1.000 .337

Extraction Method: Principal Component Analysis.

Total Variance Explained

Component

Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative % Total


17/29

Suv report. Page 17

1 1.684 24.052 24.052 1.684 24.052 24.052 1.

2 1.248 17.834 41.885 1.248 17.834 41.885 1.

3 1.113 15.903 57.789 1.113 15.903 57.789 1.1

4 .974 13.908 71.697

5 .914 13.062 84.759

6 .610 8.712 93.471

7 .457 6.529 100.000


Component Matrixa

Component

1 2 3

Age .679 .240 .269

Income .672 -.324 .249

Occupation .545 .102 -.305

Gender -.183 -.724 .447

SUV -.638 .098 .247

BRAND .054 .492 .787

FUEL -.177 .548 -.075


a. 3 components extracted.

Rotated Component Matrixa

Component

1 2 3

Age .588 -.004 .495

Income .572 .490 .223

Occupation .609 -.144 -.094

Gender -.314 .811 .022

SUV -.678 -.073 .112

BRAND -.145 -.098 .913

FUEL -.137 -.547 .140


18/29

Suv report. Page 18


Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 6 iterations.

Component Transformation Matrix

Component 1 2 3

1 .963 .142 .228

2 .026 -.894 .446

3 -.267 .424 .865


Rotation Method: Varimax with Kaiser Normalization.


19/29

Suv report. Page 19

BAR CHARTS


20/29

Suv report. Page 20


21/29

Suv report. Page 21


22/29

Suv report. Page 22

CHAPTER-4: CONCLUSION

To conclude, the results show that the companies are playing on the peripheral cues to

maintain their Total Relationship Management and connect to the customers both present and

potential. The companies are operating in a highly aggressive and competitive global market

place and this climate has led to the emphasis on quality in all aspects. TQM focuses on

integration and coordination as well as the continuous improvement of all activities and

processes. Total Relationship Management (TRM) is a very recent marketing strategy and

philosophy. It focuses on and is concerned with all integrated internal and external activities

within and between the organizations. These two terms are integrated by the manufacturers

by building good quality products and building good relationship with dealers and enhancing

service levels.

However, when studied from the point of view of a customer there seems to be no major

difference among the car brands in a segment as far as performance is concerned. The brand

perception is dependant mostly on the peripheral cues depending upon the nature and quality

of the service provided along with the pricing, maintenance, availability of spare parts andrelated issues.

So, a question arises here that is this the end of road for the branding of cars? Has the

commoditization of cars has started and its time that manufacturers must read the writing on

the wall? It seems so! It seems as an undercurrent sentiment is flowing and the perception of

the customers is changing according to it. So this might be the reason that despite Verna

faring so high on the performance parameters still lags on the account of converted sales. The

study shows that brand perception is something which starts building up before a car is

purchased and goes on with its use and is reflected in the recommendations the customer


23/29

Suv report. Page 23

makes to his acquaintances for the same car. Also, its seen that the customer might not be

using the car still he holds the perceptions about it. Brand personality of a car is enforced by

the sellers in the mindsets of the customers and the customers react to it by forming their

perceptions about the car and this reflects in the overall brand image of the car.

So brand image and brand personality complement each other and the brand perception aids

the building of brand image. Dealers, as per the study findings, play a very important role in

building up the brand perception of the cars. Since dealers are the connecting link between

the customers and the manufacturers thus becoming the most important link in joining the

company to its customers as he is the person who will sell the product, will deliver it and will

keep on providing the after sales services to the customers as and when required. So, it

becomes necessary automatically to study dealer as a part of customers satisfaction journey

with the product called car! Their proximity to the customers, the service provided by them

and the relationship maintained by them with the customers helps the car companies to

establish and reinstate the brand personality communicated by them to the customers.

Finally the major point that emerges out of this detailed study is a caution for the car

companies ,what are the dos and what are the donts ?ultimately, how to increase

passenger car sales?, the answer lies within this result of this research.

It says that there is no doubt that Indian car market may be growing with a double digit

figure still the car companies have a long way to travel to convince their customers about the

brand personality of their cars and how it suits the prospective buyers. Simply because it

simply is not a guarantee that how so ever good the customer might be holding the brand

perception and how so ever good the brand image may be it is not a guarantee that it will

convert into sale. Cars just like clothes and accessories suit the style and persona of a person

and since all cars will become commodity someday the key to sell and excel in the market

will lie with a person who knows how to use the perceptions of the customers to its use and

sell the cars coz ultimately only that car survives which sell.


24/29

Suv report. Page 24

Case study

Scorpio the Making of India's First Indigenous Sports Utility Vehicle

M&M was set up in 1945 to manufacture general-purpose utility vehicles for the Indian

market. The company soon diversified into the manufacture of tractors for agriculture and

light commercial vehicles (LCVs). Over the decades, M&M diversified into other businesses

through alliances and joint ventures with Indian as well as foreign companies, and secured a

significant presence in many major business sectors in India and abroad.

By the early 1990s, M&M was a global conglomerate with a presence in many sectors

including automobiles, farm equipment, trade and finance related services, information

technology, and infrastructure development.

In 1994, the M&M Group embarked on an organizational restructuring exercise arising from

a Business Process Reengineering program. The result of this was that all the divisions of the

Group were spun off as separate entities, with the exception of the Farm Equipment and

Automotive Divisions, which remained with M&M.

M&M's Farm Equipment Division made tractors and other farm implements. The Division

also diversified into manufacturing industrial engines in 2003. In the same year, it became the

first tractor company in the world to receive the prestigious Deming Application Prize.

(Awarded by the Union of Japanese Scientists and Engineers (JUSE), this prize was

considered the equivalent of the Nobel Prize in the area of Quality Management). The

Automobile Division traced its roots back to the 1950s, when the company began offering a

multi utility vehicle (MUV) under the 'Jeep' brand in India, in collaboration with Willys

Overland Corporation, American Motors Corporation, and Kaiser Jeep Corporation, all based

in the US.

In 1965, the company began manufacturing LCVs in collaboration with Rubery Owen, UK.

Although M&M received an initial impetus from its foreign collaborations, it was stronglyfocused on developing its own manufacturing facilities and capabilities and it began


25/29

Suv report. Page 25

manufacturing vehicles indigenously by the end of the 1960s. (By the late 1990s, M&M had

ISO-9002 certified manufacturing plants at Mumbai, Nashik and Igatpuri (all in Maharashtra)

and Zaheerabad (in Andhra Pradesh).)

M&M's Jeeps were immensely successful and the company's vehicles came to be identified

with high quality, reliability, durability, ruggedness, easy maintenance, and operational

economy in the Utility Vehicle (UV) market...

In November 2003, Mahindra and Mahindra (M&M), a major automobile and farm

equipment manufacturer, became the second auto company in India to receive the prestigious

National Award for Research and Development. The award was given in recognition of its

achievement in manufacturing India's first indigenously developed Sports Utility Vehicle

(SUV), 'Scorpio'. The award was presented by the Department of Scientific and Industrial

Research, under the Government of India's Ministry of Science and Technology. Several

parameters, like financial inputs, scientific and technological advancement of the project,

status of in-house Research & Development, environmental consciousness, and use of

imported technology, were applied in judging the winner.

The National Award was just one of the major awards that came Scorpio's way since it was

launched in mid-2002. Within a year of its launch, the vehicle also won the 'Car of the Year'

award from Business Standard Motoring, the 'Best SUV of the Year' by BBC Wheels and the

'Best Car of the Year', also from BBC Wheels.

In addition, it was also the winner of CNBC and Auto Car's 'Car of the Year 2003' award

(generally considered to be the Oscars of the Indian automobile industry), and the 'Product

Launch of the Year' award given by the Business Standard Brand Derby. "Scorpio is the

result of extensive R&D, right from concept to commercial production," said Anand

Mahindra (Mahindra), vice chairman and MD of M&M.

Analysts said the main reason for Scorpio's remarkable success in the Indian automobile

market was that it catered to a previously neglected niche. Scorpio fell between a passenger

car and an SUV.

While it was designed as and looked like an SUV (with its sporty looks and sturdy design), it

also offered all the comfort and elegance of a passenger car. Therefore, Scorpio's target

market straddled both passenger car buyers as well as SUV fans.


26/29


27/29

Suv report. Page 27

CHAPTER-6 ANNEXURE

QUESTIONNAIRE ON CONSUMER PERCEPTION FOR SUV

SEGMENT

(Scaled Questionnaire)

1. Name:-

2. Age: - 18-25 25-40 40-55 55 above

3. Gender: - Male Female

4. Occupation:-

Business Professional Employee Student

Others

5. Annual Income:

Less than 3 lakh 3-5 lakhs 5-7 lakh 7-10 lakhs

10 lakh &above

7. In sports utility vehicles which brand do you prefer ?

Mahindra Ford TaTa

Force Honda

8. Why you bought suv cars?.

Increase in disposable income Better safety at rough roads

Comfort Increase in family size Suits your lifestyle and

personality


28/29

Suv report. Page 28

9. Please rate your existing car in terms of understated Interior Design features

on a scale of 1 to 5(Where 1 = Highly Dissatisfied, 2 = Dissatisfied, 3 =

Neutral, 4 = Satisfied,

5 = Highly Satisfied

1 2 3 4 5

10. Please rate your existing car in terms of understated Safety features on a

scale of 1 to 5

Safety Parameters 1 2 3 4 5

Crossbar under Dashboard

Air Bags

Anti-Lock Breaking System

Aerodynamic Shape

Intensity of front lights

11 .Please rate your existing car in terms of following parameters

Parameter 1 2 3 4 5

Fuel Consumption

Pick Up

Stability at higher speed

Top speed

Mileage ( Km/ltr)


29/29

12. What is your opinion on the performance Of SUV Cars?

Excellent Good Satisfactory Poor

13. do you think Suv cars are perfect for the rural area ?

YES NO

Documents

107174778 Perception of Rural People Towards Suv Cars