Organizational Structure Running A Successful Business
Scorpio
1. A Study on
“Consumer buying preference towards Mahindra Scorpio.”
(Mahindra & Mahindra Ltd , BANGALORE)
Prepared by
Nipon Chakraborty
Registration No:
11010121086
Under the Guidance of Prof Jacob Alexander
In partial fulfillment of the Course-Industry Internship Programme (IIP) in Semester II of the Master of
Business Administration (July 2011-13)
Bangalore
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2. Master of Business Administration
Industry Internship Programme (IIP)
Declaration
This is to declare that the Report entitled “Consumer buying preference towards Mahindra
Scorpio ”has been made for the partial fulfillment of the Course: Industry Internship Programme (IIP) in
Semester II (Batch: july 2011-2013) by me at Mahindra & Mahindra Ltd under the guidance of Prof.
Jacob Alexander
I confirm that this Report truly represents my work undertaken as a part of my Industry
Internship Programme (IIP). This work is not a replication of work done previously by any other person.
I also confirm that the contents of the report and the views contained therein have been discussed and
deliberated with the Faculty Guide.
Signature of the Student :
Name of the Student : NIPON CHAKRABORTY
Registration No : 11010121086
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3. Master of Business Administration
Certificate
This is to certify that Mr. NIPON CHAKRABORTY Regn. No. 11010121086 has completed the Report
entitled “Consumer buying preference towards Mahindra Scorpio” under my guidance for the partial
fulfillment of the Course: Industry Internship Programme (IIP) in Semester II of the Master of Business
Administration.
Signature of Faculty Guide:
Name of the Faculty Guide: PROF. JACOB ALEXANDER
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4. ACKNOWLEDGEMENT
A large number of individual contributed to this project. I am thankful to all of them for their
help and encouragement. My writing in this project report has also been influenced by number
of website and standard textbooks. As far as possible, they have been fully acknowledged at the
appropriate place .I express my gratitude to all of them.
The last 12-weeks with Mahindra & Mahindra Ltd , Bangalore has been full of
learning and sense of contribution towards the organization. First of all I owe my heartfelt
gratitude to my mentor Prof. Jacob Alexander for his noble guidance throughout the
completion of the Project job in timely and also sparing his valuable time and extending all
necessary support for the same.
I would like to extend my heartfelt thanks to my industry guide Mr. Sivaramakrishnan .R,
(Area Sales Manager, Mahindra & Mahindra Ltd ) for giving me an opportunity to work
on this project and for their kind support, inspiration, encouragement and giving the freedom to
complete the project at Mahindra & Mahindra Ltd, Bangalore.
Nipon Chakraborty
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5. CONTENTS
Ch. No TITLE Page No
Executive Summary 8
1. Introduction 10
1.1) Industry Overview 12
1.2) Company overview 19
1.3) Project Profile 36
2 Methodology 38
2.1) Need of the Study 38
2.2) Statement of problem 38
2.3) Objectives of the study 38
2.4) Research Design 39
2.4.1) Data source 39
2.4.2) Sample Size 39
2.4.3) Sampling Procedure 39
2.4.4) Tools Used For Analysis 39
2.5)Limitations of the study 39
3. Observations & Findings 42
4. Recommendations 68
5. Conclusion 70
6. Learning Outcome 72
Annexure 74
Bibliography 79
LIST OF TABLES
Table No Title Page no
3.1 Analysis on basis of age 42
3.2 Gender of respondents 43
3.3 Analysis on basis of education 44
3.4 Occupation of Respondents 45
3.5 Car Model 46
3.6 Factors influencing brand preference 47
3.7 Level of Satisfaction 48
3.8 Level of Brand loyalty 49
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8. EXECUTIVE SUMMARY
Today we are moving in that era, where Companies are not just a single entity, they are moving
away from the traditional way they used to be, breaking barriers of being limited to a single
sector. Understanding the needs of different segments of the consumers, and Integrated from
Other firms who are in completely different sectors; that is slowly we are moving in a
Interdependent economy and all this can be attributed to numerous reasons, but some of the
prominent causes for this fundamental shift is Globalization, Use of Innovative
tools/techniques/methods in Businesses, Technological advancements, and Changing customer
and Society.
This study gives an overview of the Indian automotive Industry, its major players, growth and
outlook. This report also provide ample of information regarding Mahindra & Mahindra Ltd..
This report provides an analysis of the Internal as well as External situation of Mahindra &
Mahindra Ltd in the form of SWOT Analysis and PORTER’S FIVE FORCES Model.
This project explores the consumer buying preference towards Mahindra Scorpio. The detailed
analysis of marketing, a consumer behavior and brand preference of SUV is carried out in
Bangalore. As a result, focusing on an industry where brands, marketing knowledge and
distribution networks have been important determinants in the growth and survival of firms. It
reaches distinct conclusions. The project illustrates the analysis and interpretation of data.
Finally it concludes with findings and recommendations of the study which may be useful for
general public as even the manufacturers and dealers can understand the dimensions reflecting
brand preference of passenger cars and impact of all these factors on customer satisfaction.
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10. INTRODUCTION
The fast evolving Indian market is one of the most promising in the world and so is the Indian
consumer. Rising incomes, multiple income households, exposure to international life styles and
media, easier financial credit and an upbeat economy are the key drivers enhancing consumer
aspirations and consumption. India, with over one billion people comprising of different
segments of consumers, based on class, status, and income, is a huge and lucrative market. This
market is undergoing a sea change and the impetus to growth is fuelled by qualitative changes in
the consumers' preference. There has been a significant increase in awareness among the Indian
consumers. They are discerning and are beginning to demand. Their spending has increased and
the way they spend on various items too has changed in the recent years. Having become much
more open- minded and experimental in their perspective, a discernible shift in their preference
in favor of higher-end, technologically superior branded products can be noticed. The rising rate
of growth in disposable income with higher propensity to consume has changed the lifestyles
and the socio-economic environment of the market. An interesting fact is that the Indian market
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11. has a substantial middle class, that is roughly estimated at 250 million people with a sizable
disposable income. The middle-income group ($1,162-$1,190) spends more on consumer
expendables than the rich do, thus contributing significantly to the changes in the market.
Combined, the middle and the lower income group provide 60% of the value of the Indian
market (Consumer Outlook, 2011). This income-related population class has its own
consumption pattern and behavior. Data of these patterns serve as an important indicator for
forecasting and understanding consumer behavior. In fact, it becomes imperative for companies
to understand the preferences of these customers, which will enable them to embark on
strategies of effectively reaching them . This research attempts to study the p of the consumers
buying and with specific reference to the product category Mahindra Scorpio.
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12. INDUSTRY OVERVIEW
INDUSTRY OVERVIEW
History and development of Automobiles also marks the dynamism in technological
growth men have achieved. From the days of horseless carriages to the modern-age self-guided
automobiles that are designed meticulously using cutting-edge technology, we have certainly-
traveled too far.
Automobile Industry in India is still in its infancy but growing rapidly. The opportunities
in the automobile industry in India are attracting big names with the big purse and they are
investing vigorously in infrastructure, design and development, and marketing. Automobile
industry in India is today poised for (he big leap and this segment helps you to be ready for that.
INDIAN AUTOMOBILE INDUSTRY
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13. The automobile industry is one of the core industries in India economy, whose prospect
is reflective of the economic resilience of the economy. With the liberalization of the economy.
India has become the playground of major global automobile majors.
The automobile industry in India is gradually evolving to replicate those of developed
countries. The report focuses on the trends that are emerging in the industry across segments,
namely, passenger cars/multi-utility vehicles, commercial vehicles, two-wheelers and tractors.
The qualitative analysis of the various trends reveals that the industry offers immense scope
even for allied industries and those looking at investing in the auto industry’s a background, a
brief perspective of the global automobile industry across segments has been provided with
comparisons on Indian scenario wherever needed. It discusses the current scenario in the industry,
with detailed look on segmentation, structure, and supply and demand scenarios. A detailed
competitive analysis of the industry has been provided backed warn comprehensive details on
production, sales, exports and imports over the years, across segments.
Sales have increased with the entry of several foreign manufacturers and the introduction
of new vehicle models. The report also deals with aggressive marketing strategies undertaken by
different manufacturers in India. This highlights key issues influencing the automotive industry in
India such as import and excise duties, emission norms etc and it also deals with various
government regulations.
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14. The trend of automobile production and market share of various segment is shown in the next
page. The graph shows how the production of automobiles has increased since 1971.
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15. Automobile production in India since 1971-2003 (source: SIAM and ACMA data)
Market Share of Various Segment of Automobiles ( Source: SIAM data)
Major Players in Indian Automotive Industry.
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16. Tata Motors
Market Share: Commercial Vehicles 63.94%, Passenger Vehicles 16.45%
Tata Motors Limited is India's largest automobile company, with consolidated revenues of USD
14 billion in 2008-09. It is the leader in commercial vehicles and among the top three in
passenger vehicles. Tata Motors has winning products in the compact, midsize car and utility
vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's
second largest bus manufacturer with over 24,000 employees. Since first rolled out in 1954, Tata
Motors as has produced and sold over 4 million vehicles in India.
Maruti Suzuki India
Market Share: Passenger Vehicles 46.07%
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17. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India's
largest passenger car company, accounting for over 45% of the domestic car market. The
company offers a complete range of cars from entry level Maruti-800 and Alto, to stylish
hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility
vehicle Grand Vitara.
Hyundai Motor India
Market Share: Passenger Vehicles 14.15%
Hyundai Motor India Limited is a wholly owned subsidiary of world's fifth largest automobile
company, Hyundai Motor Company, South Korea, and is the largest passenger car exporter.
Hyundai Motor presently markets 49 variants of passenger cars across segments. These includes
the Santro in the B segment, the i10, the premium hatchback i20 in the B+ segment, the Accent
and the Verna in the C segment, the Sonata Transform in the E segment.
.
Mahindra & Mahindra
Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three Wheelers 1.31%
Mahindra & Mahindra is mainly engaged in the Multi Utility Vehicle and Three Wheeler
segments directly. The company competes in the Light Commercial Vehicle segment through its
joint venture subsidiary Mahindra Navistar Automotives Limited and in the passenger car
segment through another joint venture subsidiary Mahindra Renault. In the year 2009, on the
domestic sales front, the Company along with its subsidiaries sold a total of 220,213 vehicles
(including 44,533 three-wheelers, 8,603 Light Commercial Vehicles through Mahindra Navistar
Automotives and 13,423 cars through Mahindra Renault), recording a growth of 0.6% over the
previous year.
Mahindra & Mahindra is expanding its footprint in the overseas market. In 2009 the Xylo was
launched in South Africa. The company formed a new joint venture Mahindra Automotive
Australia Pty. Limited, to focus on the Australian Market.
FORD
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18. Ford India Private Limited is a wholly owned subsidiary of the Ford Motor Company in India.
Ford India Private Limited's head quarters are located in Chengalpattu, Chennai, Tamil Nadu. It
currently is the 6th largest car makert in India after MarutiSuzuki, Hyundai, Tata, Mahindra and
Chevrolet.
TOYOTA
Toyota Kirloskar Motor Private Limited is joint venture between Toyota Motor
Corporation and the Kirloskar Group, for the manufacture and sales of Toyota cars in India.. It
currently is the 5th largest car maker in India after Maruti Suzuki, Hyundai, Tata, Mahindra.
The company Toyota Kirloskar Motor Private Limited (TKMPL) according to its mission
statement aims to play a major role in the development of the automotive industry and the
creation of employment opportunities, not only through its dealer network, but also through
ancillary industries with a business philosophy of "Putting Customer First".
SKODA
Škoda Auto India Private Limited, more commonly referred to as Škoda Auto India,
established November 2001, is a fully owned subsidiary of the Czech automotive
manufacturer Škoda Auto and a division of Volkswagen Group Sales India.
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19. Company Overview
COMPANY OVERVIEW
1945 October 2, Mahindra & Mohammed formed in Ludhiana.
1948:
• The Company was renamed Mahindra & Mahindra Limited (M & M)
• Steel Trading business was started in association with suppliers in U.K
1948:
• Business connections in USA through Mahindra Wallace
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20. 1949:
• Wallace Steel trading on behalf of European suppliers
• Jeep Assembly commenced
1950:
• The first business with Mitsubishi Corporation (for 5000 Tons) for wagon building
plates for supply from Yawata Iron & Steel
1953:
• Otis Elevator Co. (India) established .
1954:
• Technical & Financial Collaboration with Willys Overland Corporation
1956:
• Shares listed on the Bombay Stock Exchange
• Dr. Beck & Co. formed - a JV with Dr. Beck & Co., Germany
1957:
• Mahindra Owen formed - a JV with Rubery Owen & Co. Ltd., UK
1958:
• Machine Tools Division started
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21. 1960:
• Mahindra Sintered Products Ltd. (MSP) formed - a JV with the GKN Group, UK.
1962:
• Mahindra Ugine Steel Company (MUSCO) formed - a JV with Ugine Kuhlmann, France
1963:
• International Tractor Co. of India (ITCI) formed - a JV with International Harvester Co.,
USA
1965:
• Vickers Sperry of India Ltd. a JV with Sperry Rand Corporation, USA
• Roplas (India) a collaboration with Rubery Owen, UK
• Manufacture of Light Commercial Vehicles commenced.
1970:
• Mahindra Engineering & Chemical Products Ltd.(MECP) commenced operations.
1971:
• International Harvester collaboration ended
1975:
• Switch over to diesel vehicles in-house development.
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22. 1977:
• ITCI merges with M&M, to become its Tractor Division
1979:
• License from Automobiles Peugeot, France for manufacture of XDP 4.90 Diesel Engines
1982:
• License from KIA for manufacture of 4 Speed Transmissions
• "Mahindra" brand of tractors born
• Siro Plats formed
1983:
• M&M becomes market leader in Indian Tractor Market. (Position retained ever since)
1984:
• Mahindra Hellenic Auto Industries S.A. formed - a JV in Greece to assemble and market
utility vehicles in Europe
1986:
• Mahindra British Telecom (MBT) formed - a JV with British Telecommunications plc
(BT), UK
1987:
• Acquired International Instruments Ltd.
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23. 1989:
• Automotive Pressing Unit (now MUSCO Stampings) acquired from GKW
1991:
• Introduction of Commander series.
1992:
• Triton Overwater Transport Agency Ltd., formed
• Implementation of the Service Center project at Kanhe
• Merged diverse activities of Steel, Machine Tools, Graphics into Intertrade Division
1993:
• Mahindra Steel Service Centre Limited formed in association with Mitsubishi
Corporation and Nissho Iwai Corporation of Japan.
• Mahindra Acres Consulting Engineers Ltd. (MACE) formed - a JV with Acres
International, Canada
• Incorporation of MBT International Inc., USA, a wholly owned subsidiary of MBT
The Company’s maiden international offering – the US$ 75m GDR issue.
• Introduction of Armada.
1994:
• Mahindra Realty & Infrastructure Developers Ltd. (MRIDL) formed
• Mahindra USA Inc., formed, for distribution of Tractors in the USA
• EAC Graphics (India) Ltd., formed in collaboration with The East Asiatic Company Ltd.
A/S, Denmark
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24. • Reorganization of the Group creating six Strategic Business Units
MSL Division (Auto Components) hived off to form Mahindra Sona Ltd.
• Mahindra Nissan Allwyn Limited merged with the Company.
1995:
• Mahindra Holding & Finance Ltd.(MHFL) becomes a subsidiary of M & M to carry out
business as an investment company
• Technical collaboration with Mitsubishi / Samcor to manufacture L300.
1996:
• Mahindra Ford India Ltd. (MFIL) - a JV with Ford, Motor Co. USA to manufacture
passenger cars
• The Company made a Foreign Currency Convertible Bond (FCCB) issue of US$ 115
million.
1997:
• A new die shop was inaugurated at Nasik
• Inauguration of The Mahindra United World College of India.
1999:
• Launch of ‘Bijlee’ a battery-operated, 3-wheeler environmental-friendly vehicle.
• The largest online used vehicle website in India launched by Mahindra Network
Services.
• The business of Inter trade Division and Mahindra Exports Ltd. combined and renamed
Mahindra Inter trade Ltd.
• The Company acquired major stake in Gujarat Tractors.
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25. • Mahindra & Mahindra Financial Services Limited becomes a subsidiary of M&M
2000:
• The Company unveils new logo.
• Mahindra Auto Specialties Ltd. a new 100% subsidiary is formed.
M&M sets up its first satellite tractor plant at Rudrapur.
• The Company launches New Age Tractor, the Mahindra Arjun 605 DI (60 HP tractor).
• The Company launches Bolero GLX a Utility Vehicle a response to needs of urban
consumer.
2001:
• A 3-wheeler diesel vehicle "Champion" is launched.
• The Company launches Mahindra MaXX a MUV positioned with the caption Maximum
Space, Maximum Comfort.
• M&M ties up with Renault for petrol engines.
• M&M established a separate division to provide Defence Solutions .
2002:
• M&M launches Scorpio - the new generation Sports Utility Vehicle
2003:
• Scorpio - Recipient of prestigious Awards -
• "Car of the Year" Award from Business Standard Motoring
• "Best SUV of the Year" and "Best Car of the Year" Awards from BBC on
Wheels
• "Car of the Year" Award from CNBC Auto Car
• M&M launches the "Invader" - a sporty open top vehicle.
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26. • M&M opens a second tractor assembly plant in USA.
• M&M launches MaXX Pik Up.
• M&M Tractors awarded the prestigious Deming Prize for excellence in Quality -
• The first tractor company in the world to receive the award.
• M&M launches India's first Turbo tractor - Mahindra Sarpanch 595 DI Super Turbo.
• Scorpio wins National Award for R&D.
• M&M ventures into Industrial Engine business
• Mahindra Defence & Lockheed Martin Information Systems, UK, strike an alliance for
Defence Product.
2004:
• Launched the Mahindra World Tractor - a 75 HP tractor in the overseas market.
• Formed a new Sector, Mahindra Systems and Automotive Technologies (MSAT), to
focus on developing components as well as offering engineering services.
• Launched "Bolero" and "Scorpio" in Latin American, Middle East and South African
markets.
• Signed MOU to enter into JV with Jiangling Motor Co. Group (JMCG) of China to
acquire tractor-manufacturing assets from Jiangling Tractor Company, a subsidiary of
JMCG.
• M&M becomes the first Indian company to achieve sales of one million tractors.
2005:
• Acquired 51% stake in SAR Transmission Private Limited, a company engaged in
manufacture of gears and transmission shafts.
• M&M Farm Equipment Sector launch operations in Australia.
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27. • M&M becomes the first Indian auto manufacturer to launch the Common Rail Diesel
Engine (CRDe), offering it on the Scorpio.
• M&M and Renault enter into a JV to manufacture of the mid-sized sedan, Logan, in
India.
• M&M and International Truck and Engine Corporation enter into a JV to manufacture
Trucks & Buses in India
• The first tractor from the JV, Mahindra (China) Tractor Co. Limited, rolled out on 2 July
2005
2006:
• Mahindra displays Scorpio hybrid SUV at Auto Expo India
• Mahindra,Renault & Nissan announce Chennai as the location for a 400,000 capacity
production site.
2007:
• Formation of Mahindra Navistar engines at Chakkan plant.
• M&M made its entry into the passenger car segment with the Logan in April 2007 under
the Mahindra Renault joint venture.
• M&M will make its maiden entry into the heavy trucks segment with Mahindra Navistar,
the joint venture with International Truck, USA.
2008:
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28. • Mahindra commenced its first overseas CKD operations with the launch of the
Mahindra Scorpio in Egypt.
2009:
• Mahindra & Mahindra launched the Mahindra Xylo in January 2009, and as of June
2009, the Xylo has sold over 15000 units.
2010:
• Mahindra planned to sell the diesel SUVs and pickup trucks starting in late 2010 in
North America.
2011:
• In 2011, it also gained a controlling stake in South Korea's SsangYong Motor Company
• Mahindra & Mahindra Ltd. (M&M), has launched its much awaited SUV, XUV 500,
code named as W201 in September 2011
2012:
• Launch of Mahindra scooter Rodeo RZ .
LIST OF COMPANIES UNDER MAHINDRA GROUP
1. Mahindra & Mahindra.
2. Mahindra Aerospace.
3. Mahindra Engineering Services.
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29. 4. Mahindra & Mahindra Financial Services Limited.
5. Mahindra Systech.
6. Mahindra Satyam.
7. Mahindra Lifespace Developers.
8. Mahindra Ugine Steel Company.
9. Mahindra Forgings.
COMPANY PROFILE
Vision Statement: To create a fully collaborative environment in which suppliers can deliver
exactly what the company needs, when it needs it, and at a competitive cost
Mission: To create India's largest automobile and automobile-related products distribution
network by providing dealers and customers with the largest choice of unique world-class
products and services.
Mahindra & Mahindra Limited, Automotive Sector is a major player in the automotive
industry in India. It is a part of Rs. 8000 Crores Mahindra group which manufactures Multi
Utility Vehicles ( MUVs- further classified into soft tops, hard tops and pick-ups), Light
Commercial Vehicles (LCVs) ,three wheelers two wheelers.
M&M's association with the automobile business dates back to 1945. The Company was
incorporated in 1945 and was originally formed to manufacture utility vehicles for the Indian
market, initially by importing and assembling Willys Jeep kits. The manufacture of utility
vehicles commenced in 1954 in collaboration with Willys Overland Corporation and its
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30. successors, Kaiser Jeep Corporation and American Motor Corporation (now part of the Daimler
Chrysler group). The Company commenced manufacturing Light Commercial Vehicles (LCV)
in 1965. The Company has recently entered the three-wheeler market.
Over the years, the Mahindra brand of vehicles have come to represent high quality,
ruggedness, durability, reliability, easy maintenance and operational economy. These are the
qualities that have endeared the vehicle to individuals as well as institutions like the Indian
armed forces. M&M is the leader in the MUV business in the country since inception.
M&M has comprehensive manufacturing facilities with high level of vertical integration.
M&M's automotive division has four manufacturing plants, three in the state of Maharashtra and
one in Andhra Pradesh. In Maharashtra, its plants in Mumbai and Nasik manufacture multi-
utility vehicles, and engines are produced at the Igatpuri plant. Light commercial vehicles and
three-wheelers are manufactured at the Company's plant in Zaheerabad in Andhra Pradesh.
Our Mumbai and Nasik plants with the R&D facility at Nasik are ISO/TS 16949
certified. The Mumbai plant has also been recommended for the TPM excellence award. Our
engine plant at Igatpuri has QS 9000 certification. Our LCV & three-wheeler plant at
Zaheerabad have ISO 9001:1994 certification. Both of these plants are also working towards TS
16949 certification. Our plants in Mumbai and Igatpuri are also ISO 14001 certified.
M&M has a strong Research & Development set-up, with over 300 engineers in the
automotive division. The Company's technical prowess is proven by negligible import content in
our vehicle and by the design and development of a totally, from ground upward, new
contemporary SUV - Scorpio.
The division's marketing efforts are supported by a network of more than 275 dealers
across the country, which are managed by 20 sales offices. Additionally, the division has a
national network of authorized service stations and stockiest to meet customer needs for
servicing and spare parts.
Having conquered a substantial portion of India's semi-urban and rural markets, the
division has in recent year’s secured significant success in urban regions following the
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31. introduction of premium MUVs like Bolero, and Scorpio. Scorpio is M&M's first indigenously
developed Sports Utility Vehicle - an off road vehicle with car like comforts. The Scorpio was
launched in June 2002 and has been universally acclaimed. It was declared to be the "Car of the
Year" by CNBC AutoCAD, BBC Wheels and Business Standard Motoring.
SWOT ANALYSIS:
STRENGTHS
• Highly innovative.(eg: first Indian company to introduce hybrid engine)
• High production capacity of vehicles.
• Possess all categories of vehicles from two wheeler to sixteen wheeler.
• Well versed with the conditions of road in India.
• Possess high brand name and high brand attachments.
WEAKNESS
• Highly dependent on rural areas.
• Possess less technological power in comparison to foreign players.
OPPURTUNITIES
• Stepping into new business due to possession of huge cash eg: communications, medical,
airlines etc.
• Launching vehicles in untapped markets of different countries.
THREATS
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32. • Incoming of foreign players.
• Increasing cost of fuel.
• Increasing competition.
INTRODUCTION TO MAHINDRA SCORPIO
The Mahindra Scorpio is an SUV manufactured by Mahindra & Mahindra Limited, the
flagship company of the Indian Mahindra Group. It was the first SUV from the company built
for the global market in 2002. The Scorpio has been successfully accepted in international
markets across the globe, and will shortly be launched in the United States.
The Scorpio was conceptualized and designed by the in-house integrated design and
manufacturing team of M&M. The car has been the recipient of three prestigious awards: the
"Car of the Year" award from Business Standard Motoring as well as the "Best SUV of the
Year" and the "Best Car of the Year" awards, both from BBC World Wheels.
DIFFERENT GENERATIONS
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33. First Generation
• Soon after the success of the Scorpio, Mahindra launched an upgraded Scorpio with
plush seats and rear centre arm rest, dual tone exterior color and various minor changes.
Second Generation
• In April 2006, the company launched an upgraded Scorpio – dubbing it the 'All-New'
Scorpio.
• In June 2007, Mahindra launched a pick-up version in India known as the Scorpio
Getaway.
Third Generation
• In April 2008, Mahindra revealed a concept of a diesel-electric hybrid version of their
Scorpio SUV, with a 6 speed automatic transmission gears.
• In 2009, they came up with more safety measures such as ABS Brakes and Airbags.
Performance of the car
1. Scorpio to capture 22 per cent of the premium hard top market in F03 (9 months)
2. Sell of 12000 Scorpios in F03 (9 months)
3. Mahindra unaided brand recall score to increase by 22 pts (defined in terms of Brand
Track study scores)
4. Scorpio brand recall score to achieve 50 points (in W4)
Within three years of launch
* Scorpio to capture 45 per cent of the premium hard top market
* Scorpio to sell 24,000 units in F04
* Mahindra to emerge as a true urban player
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34. Market Positioning
• It was positioned as such that it should communicate that the vehicle is better than rest of
all the UV cars and is a better buy in terms of money.
Different Models of Mahindra Scorpio
• Mahindra Scorpio LX : This is the base model with many advanced features such as
mHawk engine, digital immobilizer, collapsible steering column, crash protection
crumple zone, illuminated spoiler, sporty bonnet scoop and tubeless tyres. In November
2011, a 4WD version was introduced in the LX trim.
• Mahindra Scorpio Getaway : This variant is powered by the 2.6L, 2609cc, diesel engine.
It satisfies only BS III emission norms, so it is not available in metro cities.
• Mahindra Scorpio SLE : This is an upgraded version with additional features like ABS,
air dams and mud flaps, front fog lamps, voice assist system, electrically operated
ORVMs and middle row sliding seats.
• Mahindra Scorpio VLX : This is an upgraded version with additional features like sporty
decals, alloy wheels, anti pinch smart windows, cruise control and audio controls on the
steering wheel, dual airbags, micro hybrid technology, 2 Din audio system, intellipark,
tyre tronics, and blue vision bulbs.
• Mahindra Scorpio VLX AT : This is the premium model with an additional feature of an
automatic transmission gearbox.
• Mahindra Scorpio VLX AT 4WD: this is the premium model with dual airbags, ABS
and 4WD.
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36. PROJECT PROFILE
PROJECT PROFILE
There is only one valid definition of a business purpose: to create a customer. The project
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37. deals with how Mahindra should focus on to create customers. This Process emphasizes the
importance of various steps in order to create and retain customers, because today there are
plenty of options available for the customers, so for any firm it’s crucial that they create value
customers and keep reminding them about the recent happening and other beneficial
associations. This research is addressed from the perspective that in order to determine the key
attributes which determine consumer’s perception and buying preference towards Mahindra
Scorpio, the correct meaning of the construct must be clearly defined from the start.
This paper describes the research problem, “the SUV product class of the Mahindra as
perceived by consumers via the Construct definition, Object classification, Attribute
classification, SUV consumers for rater-entity classification. The attributes are formulated using
content analysis by the rater entity based on consumer responses. An analysis and interpretation
of the respondants statements are presented. This is followed by a discussion of the advantages
and disadvantages of the methodology and recommendations for further research.
Alliance University Page 37
39. This study focuses on the decision-making process and resulting consumer buying preferences
towards Mahindra Scorpio . It provides information that may help the organization to identify
opportunities and to help them to decide if the market is a potentially profitable segment, after
the evaluation of the size, growth, accessibility and responsiveness of the consumers. It provides
answers to questions about the buying preference of SUV and provide organization with the
necessary information to develop effective marketing strategies.
STATEMENT OF THE PROBLEM
People who were not ready to spend their money on luxuries have now changed their attitude
that yesterday’s luxuries are today’s necessities.To be a successful marketer it is absolutely
essential to read the minds and perceptions of the prospective buyers of cars. In the globally
prevailing competitive environment corporate are very keen in knowing consumer behavior and
their buying preference in order to promote sales of their product. This particular feature made
me to take up the research topic on consumer buying preference towards SUV. To study the
problem effectively, Mahindra Scorpio is chosen taking into the account the emergence of many
new brands of the SUV product in the recent past.
OBJECTIVES OF THE STUDY
The specific objectives of the study are:
a) To identify factors influencing consumers perception towards Mahindra Scorpio.
b) To find a few important factors which contribute to consumer preference towards
Mahindra Scorpio .
RESEARCH DESIGN
DATA SOURCE
The study is an empirical research based upon Primary data. A detailed survey has to be
conducted from among car owners with the help of structured interview schedule so as to elicit
first-hand information about brand equity. This particular study has used in depth interview as a
means for obtaining primary data. Survey method has been adopted to elicit the views of local
and global brand car owners.
SAMPLE SIZE
Alliance University Page 39
40. The customer’s preference towards SUV is studied by administering structured interview
schedule with 50 customers in Bangalore city. I have adopted cluster-sampling techniques for
choosing sample respondents. The dealers of selected car brands are identified as clusters.
Consumer buying is related with several dimension like age, gender, perception etc.
SELECTION OF THE CORPORATE BRAND
This study aims to focus on the SUV, specifically the three segments of SUV viz. Mahindra
Scorpio . As on date, there are twenty car manufacturers in Indian Car Industry. The major
players of SUV in Indian car Industry are Mahindra Scorpio , Tata Safari , Toyota Innova .
According to a survey by the Automotive Component Manufacturers Association of India
(ACMA), the market share of SUV in India in the year 2008-09 states that Scorpio have 45%
market share, Innova have 26% market share and Tata Safari have 12.7% market share. In total,
84% market shares are occupied by these three major brands.
TOOLS USED FOR ANALYSIS
Spss and excel tool is used for analysis.
Test used for Analysis is Chi square test.
LIMITATIONS OF THE STUDY
Every research is limited by its imagination is true, but we definitely have some limitations on
this research. The limitations are as follows:
1. Considering the huge population that we have the sample data that will be collected is very
small. The primary data collected is only from 50 respondents of Bangalore so this findings
may not represent all customers owning SUV. The time constraint is also one of the factor as it
was not possible to meet each and every customers owning suv.
2. Also to the fact that many respondents will not reply correctly to the questions that have been
asked to them.
3 . Errors can be considered while understanding or interpreting the questions in the survey
4. Errors can be also considered during data entry.
5. This study does not include any other types of vehicle.
Alliance University Page 40
42. CHAPTER-3
ANALYSIS AND FINDINGS
OBSERVATIONS AND FINDINGS
TABLE NO 3. 1: ANALYSIS ON THE BASIS OF AGE
Age Groups No. of
Respondents
Percentages
Less than 25 5 10
Alliance University Page 42
43. 0
2
4
6
8
10
12
14
16
18
less
than
25
35-
45
55-
65
no. of
respondants
3-D Column 2
3-D Column 3
25-35 8 16
35-45 18 36
45-55 14 28
55-65 5 10
TOTAL 50 100
0
5
10
15
20
less than
25
25-35 35-45 45-55 55-65
no of respondants
Table No. 3.1 shows the Analysis on the basis of age, 36 per cent of the total respondents are in
the age group of 35-45 years, followed by 28 percent in the age group of 4 5-55 years of age.
Ten cent of the total are below 25 years. This reveals that maximum respondents are in the age
group of 25-45 years.
Alliance University Page 43
44. TABLE 3. 2 : GENDER OF THE RESPONDENTS
GENDER NO OF THE
RESPONDENTS
PERCENTAGE
MALE 40 80
FEMALE 10 20
TOTAL 50 100
0
10
20
30
40
male female
no ofrespondants
Table No.3.2 shows the gender of the respondent’s majority of the respondents do male with a
sample size of 50 constitute 80% and remaining are female respondents
TABLE NO. 3.3: ANALYSIS ON THE BASIS OF EDUCATION QUALIFICATION
Alliance University Page 44
45. QUALIFICATION NO OF THE
RESPONDENTS
PERCENTAGE
METRIC 4 8
HSC 12 24
GRADUATE 16 32
POST GRADUATE 5 10
PROFESSIONAL DEGREE 13 26
T0TAL 50 100
0
2
4
6
8
10
12
14
16
METRIC GRADUATE PROFESSIONAL
Table no.3.3 shows the analysis of respondents on the basis of education qualification. 32
percent are graduate while 26 percent have professional degree.
TABLE NO.3. 4 : OCCUPATION OF RESPONDANTS
OCCUPATION NO OF RESPONDANTS PERCENTAGES
Professional 12 24
Alliance University Page 45
46. Govt. employee 6 12
Pvt. employee 10 20
Own Business 22 44
TOTAL 50 100
0
5
10
15
20
25
professional govt employee pvt employee own business
NOOF RESPONDANTS
Table No.3.4 shows the analysis of occupation of respondents. A maximum forty four per cent
of the total respondents have their own business, 12 percent are Government employee, and 20
percent of the respondents are private employees while 24 per cent of the respondents are
professionals.
TABLE NO. 3.5 : CAR MODEL
Source of awareness No. of respondents Percentage
Mahindra Scorpio 30 60
Alliance University Page 46
47. Tata Safari 8 16
Toyota Innova 12 16
Total 50 100
0
5
10
15
20
25
30
scorpio safari innova
Table No. 3.5 shows the car models used by the car owners. Sixty per cent of the total
respondents are using scorpio, sixteen per cent have safari and rests of the twenty four percent of
the respondents have Innova It clearly shows that 76% of the respondents have local brands.
TABLE NO.3. 6: FACTORS INFLUENCING BRAND PREFERENCE
Factors No. Of respondent Percentage
Price 12 24
Brand status 17 34
Mileage 9 18
Alliance University Page 47
48. Low maintaining cost 7 14
After sale service 5 10
Total 50 100
0
2
4
6
8
10
12
14
16
18
price mileage after sales
service
no of respondants
Table No 3.6 shows the Factors incfluencing brand preferance According to the response of
customers 34% of the respondents preferred brand status as important factor influencing brand
preference, 24% of the respondents preferred price as an important factor, 18% of the
respondents preferred Mileage as an important factor, 14% of the respondents preferred for
low maintaining cost and rest 10 per cent preferred after sales service as an important factor in
brand preference.
TABLE NO. 3.7 : LEVEL OF SATIAFACTION
No. of respondent Percentage
Level of satisfaction
Very high 20 40
High 15 30
Medium 10 20
Alliance University Page 48
49. Low 5 10
Total 50 100
0
5
10
15
20
very high high medium low
no ofrespondants
Table No. 3.7. shows the level of satisfaction, forty per cent of the respondents are highly
satisfied with the car which they are using, thirty per cent of the car user are also satisfied with
the car and ten per cent of the car users are not satisfied with the performance of their car. This
reveals that a maximum of seventy per cent of the respondents are satisfied with the car which
they are using
TABLE 3.8 : LEVEL OF BRAND LOYALTY
Change in Brands No. of Respondents Percentage
Yes 20 40
No 30 60
Total 50 100
Alliance University Page 49
50. 0
5
10
15
20
25
30
yes no
No. ofRespondents
Table No. 3.8 shows the status of the respondents towards the brand loyalty. The response
shows that 60 per cent of the respondents do not want to change their brands often, while 40
per cent of the respondents said they may change their car brands.
ANALYSIS OF CHI-SQUARE TEST RESULTS
gender * preferred SUV
H0: There is no impact of gender on factors of brand preference of SUV.
H1: There is significant impact of gender on factors of brand preference of SUV.
Crosstab
preferred SUV Total
Alliance University Page 50
51. Safari Scorpio Innova
gender Male Count 8 23 9 40
% within gender 20.0% 57.5% 22.5% 100.0%
female Count 0 7 3 10
% within gender .0% 70.0% 30.0% 100.0%
Total Count 8 30 12 50
% within gender 16.0% 60.0% 24.0% 100.0%
Chi-Square Tests
Value Df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 2.396(a) 2 .302
Likelihood Ratio 3.948 2 .139
Linear-by-Linear Association 1.506 1 .220
N of Valid Cases
50
a 2 cells (33.3%) have expected count less than 5. The minimum expected count is 1.60.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of age on preference of SUV.
gender * factors of brand preference
H0: There is no impact of gender on factors of brand preference of SUV.
H1: There is significant impact of gender on factors of brand preference of SUV.
Crosstab
factors of brand preference Total
price Mileage
brand
status
after
sales
service
low
maintenanc
e costs price
Alliance University Page 51
52. gender Male Count 9 8 15 2 6 40
% within
gender
22.5% 20.0% 37.5% 5.0% 15.0% 100.0%
Femal
e
Count
3 1 2 3 1 10
% within
gender
30.0% 10.0% 20.0% 30.0% 10.0% 100.0%
Total Count 12 9 17 5 7 50
% within
gender
24.0% 18.0% 34.0% 10.0% 14.0% 100.0%
Chi-Square Tests
Value Df
Asymp. Sig.
(2-sided)
Pearson Chi-
Square
6.495(a) 4 .165
Likelihood Ratio 5.478 4 .242
Linear-by-Linear
Association
.046 1 .831
N of Valid Cases 50
a 6 cells (60.0%) have expected count less than 5. The minimum expected count is 1.00.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of genders on factors of brand preference of SUV.
gender * satisfaction level
H0: There is no impact of gender on factors of satisfaction level of SUV.
H1: There is significant impact of gender on satisfaction level of SUV.
Crosstab
satisfaction level
Totallow Medium High very high
Gender Male Count 4 6 13 17 40
% within
gender
10.0% 15.0% 32.5% 42.5% 100.0%
female Count 1 4 2 3 10
Alliance University Page 52
53. % within
gender
10.0% 40.0% 20.0% 30.0% 100.0%
Total Count 5 10 15 20 50
% within
gender
10.0% 20.0% 30.0% 40.0% 100.0%
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-
Square
3.229(a) 3 .358
Likelihood Ratio 2.887 3 .409
Linear-by-Linear
Association
1.103 1 .294
N of Valid Cases 50
a 5 cells (62.5%) have expected count less than 5. The minimum expected count is 1.00.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of gender on satisfaction level of SUV.
gender * brand loyalty
H0: There is no impact of gender on brand loyalty of SUV.
H1: There is significant impact of gender on brand loyalty of SUV.
Crosstab
brand loyalty
TotalNo yes
Gender Male Count 24 16 40
% within gender 60.0% 40.0% 100.0%
female Count 6 4 10
% within gender 60.0% 40.0% 100.0%
Total Count 30 20 50
% within gender 60.0% 40.0% 100.0%
Alliance University Page 53
54. Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Exact Sig.
(2-sided)
Exact Sig.
(1-sided)
Pearson Chi-Square .000(b) 1 1.000
Continuity Correction(a) .000 1 1.000
Likelihood Ratio .000 1 1.000
Fisher's Exact Test 1.000 .645
Linear-by-Linear
Association
.000 1 1.000
N of Valid Cases 50
a Computed only for a 2x2 table
b 1 cells (25.0%) have expected count less than 5. The minimum expected count is 4.00.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of gender on brand loyalty of SUV.
age * preferred SUV
H0: There is no impact of age on preference of SUV.
H1: There is significant impact of age on preference of SUV.
Crosstab
preferred SUV
TotalSafari Scorpio Innova
age 20 - 30 yrs. Count 0 6 5 11
% within age .0% 54.5% 45.5% 100.0%
30 - 40 yrs. Count 5 5 0 10
% within age 50.0% 50.0% .0% 100.0%
40 - 50 yrs. Count 3 14 0 17
% within age 17.6% 82.4% .0% 100.0%
50 - 60 yrs. Count 0 5 7 12
% within age .0% 41.7% 58.3% 100.0%
Total Count 8 30 12 50
% within age 16.0% 60.0% 24.0% 100.0%
Chi-Square Tests
Value Df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 27.727(a) 6 .000
Alliance University Page 54
55. Likelihood Ratio 33.056 6 .000
Linear-by-Linear Association .556 1 .456
N of Valid Cases 50
a 8 cells (66.7%) have expected count less than 5. The minimum expected count is 1.60.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of age on preference of SUV.
age * factors of brand preference
H0: There is no impact of age on factors of brand preference of SUV.
H1: There is significant impact of age on factors of brand preference of SUV.
Crosstab
factors of brand preference
TotalPrice Mileage
brand
status
after
sales
service
low
maintenanc
e costs
Age 20 - 30
yrs.
Count 2 1 2 3 3 11
% within
age
18.2% 9.1% 18.2% 27.3% 27.3% 100.0%
30 - 40
yrs.
Count 4 1 4 1 0 10
% within
age
40.0% 10.0% 40.0% 10.0% .0% 100.0%
40 - 50
yrs.
Count 6 4 4 0 3 17
% within
age
35.3% 23.5% 23.5% .0% 17.6% 100.0%
50 - 60
yrs.
Count 0 3 7 1 1 12
% within
age
.0% 25.0% 58.3% 8.3% 8.3% 100.0%
Total Count 12 9 17 5 7 50
% within
age
24.0% 18.0% 34.0% 10.0% 14.0% 100.0%
Chi-Square Tests
Alliance University Page 55
56. Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 18.251(a) 12 .108
Likelihood Ratio 22.593 12 .031
Linear-by-Linear Association .308 1 .579
N of Valid Cases 50
a 19 cells (95.0%) have expected count less than 5. The minimum expected count is 1.00.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of age on factors of brand preference of SUV.
age * satisfaction level
H0: There is no impact of age on satisfaction level of SUV.
H1: There is significant impact of age on satisfaction level of SUV.
Crosstab
satisfaction level
TotalLow medium High very high
Age 20 - 30 yrs. Count 1 3 4 3 11
% within age 9.1% 27.3% 36.4% 27.3% 100.0%
30 - 40 yrs. Count 0 0 3 7 10
% within age .0% .0% 30.0% 70.0% 100.0%
40 - 50 yrs. Count 3 4 6 4 17
% within age 17.6% 23.5% 35.3% 23.5% 100.0%
50 - 60 yrs. Count 1 3 2 6 12
% within age 8.3% 25.0% 16.7% 50.0% 100.0%
Total Count 5 10 15 20 50
% within age 10.0% 20.0% 30.0% 40.0% 100.0%
Chi-Square Tests
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 9.750(a) 9 .371
Likelihood Ratio 12.460 9 .189
Linear-by-Linear Association .068 1 .795
N of Valid Cases 50
a 14 cells (87.5%) have expected count less than 5. The minimum expected count is 1.00.
Alliance University Page 56
57. Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of age on satisfaction level of SUV.
age * brand loyalty
H0: There is no impact of age on brand loyalty of SUV.
H1: There is significant impact of age on brand loyalty of SUV.
Crosstab
brand loyalty
Totalno yes
age 20 - 30 yrs. Count 8 3 11
% within age 72.7% 27.3% 100.0%
30 - 40 yrs. Count 7 3 10
% within age 70.0% 30.0% 100.0%
40 - 50 yrs. Count 9 8 17
% within age 52.9% 47.1% 100.0%
50 - 60 yrs. Count 6 6 12
% within age 50.0% 50.0% 100.0%
Total Count 30 20 50
% within age 60.0% 40.0% 100.0%
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 2.012(a) 3 .570
Likelihood Ratio 2.049 3 .562
Linear-by-Linear Association 1.760 1 .185
N of Valid Cases 50
a 3 cells (37.5%) have expected count less than 5. The minimum expected count is 4.00.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
Alliance University Page 57
58. there is significant impact of age on brand loyalty of SUV.
occupation * preferred SUV
H0: There is no impact of occupation on preference of SUV.
H1: There is significant impact of occupation on preference of SUV.
Crosstab
preferred SUV
TotalSafari Scorpio Innova
occupation public sector Count 1 5 0 6
% within
occupation
16.7% 83.3% .0% 100.0%
private sector Count 5 11 6 22
% within
occupation
22.7% 50.0% 27.3% 100.0%
Entrepreneur Count 2 14 6 22
% within
occupation
9.1% 63.6% 27.3% 100.0%
Total Count 8 30 12 50
% within
occupation
16.0% 60.0% 24.0% 100.0%
Chi-Square Tests
Value Df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 3.876(a) 4 .423
Likelihood Ratio 5.320 4 .256
Linear-by-Linear Association 1.506 1 .220
N of Valid Cases 50
a 5 cells (55.6%) have expected count less than 5. The minimum expected count is .96.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
Alliance University Page 58
59. there is significant impact of occupation on preference of SUV.
occupation * factors of brand preference
H0: There is no impact of occupation on factors of brand preference of SUV.
H1: There is significant impact of occupation on factors of brand preference of SUV.
Crosstab
factors of brand preference
TotalPrice
mileag
e
brand
status
after
sales
service
low
maintenan
ce costs
occupati
on
public
sector
Count 3 2 0 0 1 6
% within
occupation
50.0% 33.3% .0% .0% 16.7% 100.0%
private
sector
Count 5 5 5 3 4 22
% within
occupation
22.7% 22.7% 22.7% 13.6% 18.2% 100.0%
entrepren
eur
Count 4 2 12 2 2 22
% within
occupation
18.2% 9.1% 54.5% 9.1% 9.1% 100.0%
Total Count 12 9 17 5 7 50
% within
occupation
24.0% 18.0% 34.0% 10.0% 14.0% 100.0%
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 11.229(a) 8 .189
Likelihood Ratio 13.211 8 .105
Linear-by-Linear Association 1.045 1 .307
N of Valid Cases 50
a 11 cells (73.3%) have expected count less than 5. The minimum expected count is .60.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
Alliance University Page 59
60. there is significant impact of occupation on factors of brand preference of SUV.
occupation * satisfaction level
H0: There is no impact of occupation on satisfaction level of SUV.
H1: There is significant impact of occupation on satisfaction level of SUV.
Crosstab
satisfaction level
Totallow medium high very high
occupatio
n
public
sector
Count 0 2 1 3 6
% within
occupation
.0% 33.3% 16.7% 50.0% 100.0%
private
sector
Count 4 2 6 10 22
% within
occupation
18.2% 9.1% 27.3% 45.5% 100.0%
Entrepreneu
r
Count 1 6 8 7 22
% within
occupation
4.5% 27.3% 36.4% 31.8% 100.0%
Total Count 5 10 15 20 50
% within
occupation
10.0% 20.0% 30.0% 40.0% 100.0%
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 6.540(a) 6 .365
Likelihood Ratio 7.268 6 .297
Linear-by-Linear Association .171 1 .679
N of Valid Cases 50
a 8 cells (66.7%) have expected count less than 5. The minimum expected count is .60.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of occupation on satisfaction level of SUV.
Alliance University Page 60
61. occupation * brand loyalty
H0: There is no impact of occupation on brand loyalty of SUV.
H1: There is significant impact of occupation on brand loyalty of SUV.
Crosstab
brand loyalty
Totalno yes
occupation public sector Count 4 2 6
% within occupation 66.7% 33.3% 100.0%
private sector Count 14 8 22
% within occupation 63.6% 36.4% 100.0%
entrepreneur Count 12 10 22
% within occupation 54.5% 45.5% 100.0%
Total Count 30 20 50
% within occupation 60.0% 40.0% 100.0%
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square .505(a) 2 .777
Likelihood Ratio .505 2 .777
Linear-by-Linear Association .457 1 .499
N of Valid Cases 50
a 2 cells (33.3%) have expected count less than 5. The minimum expected count is 2.40.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of occupation on brand loyalty of SUV.
Alliance University Page 61
62. preferred SUV * factors of brand preference
H0: There is no impact of preferred SUV on factors of brand preference .
H1: There is significant impact of preferred SUV on factors of brand preference .
Crosstab
factors of brand preference
Totalprice mileage
brand
status
after sales
service
low
maintenance
costs
preferred
SUV
Safari Count 5 0 3 0 0 8
% within preferred
SUV
62.5% .0% 37.5% .0% .0% 100.0%
Scorpio Count 7 6 9 3 5 30
% within preferred
SUV
23.3% 20.0% 30.0% 10.0% 16.7% 100.0%
Innova Count 0 3 5 2 2 12
% within preferred
SUV
.0% 25.0% 41.7% 16.7% 16.7% 100.0%
Total Count 12 9 17 5 7 50
% within preferred
SUV
24.0% 18.0% 34.0% 10.0% 14.0% 100.0%
Chi-Square Tests
Value Df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 12.704(a) 8 .122
Likelihood Ratio 17.265 8 .027
Linear-by-Linear
Association
5.767 1 .016
N of Valid Cases 50
a 12 cells (80.0%) have expected count less than 5. The minimum expected count is .80.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of preferred SUV on factors of brand preference.
preferred SUV * brand loyalty
Alliance University Page 62
63. H0: There is no impact of preferred SUV on brand loyalty of SUV.
H1: There is significant impact of preferred SUV on brand loyalty of SUV.
Crosstab
brand loyalty
TotalNo Yes
preferred
SUV
Safari Count 5 3 8
% within preferred
SUV
62.5% 37.5% 100.0%
Scorpio Count 20 10 30
% within preferred
SUV
66.7% 33.3% 100.0%
Innova Count 5 7 12
% within preferred
SUV
41.7% 58.3% 100.0%
Total Count 30 20 50
% within preferred
SUV
60.0% 40.0% 100.0%
Chi-Square Tests
Value Df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 2.257(a) 2 .324
Likelihood Ratio 2.225 2 .329
Linear-by-Linear Association 1.195 1 .274
N of Valid Cases 50
a 3 cells (50.0%) have expected count less than 5. The minimum expected count is 3.20.
Here the significance level is greater than .05. Hence H0 is rejected and H1 is accepted. Thus
there is significant impact of preferred SUV on brand loyalty of SUV.
Oneway
ANOVA
Alliance University Page 63
64. satisfaction level
Sum of
Squares Df Mean Square F Sig.
Between Groups 1.342 2 .671 .648 .528
Within Groups 48.658 47 1.035
Total 50.000 49
Post Hoc Tests
Homogeneous Subsets
satisfaction level
Duncan
preferred SUV N Subset for alpha = .05
1 1
Innova 12 2.92
Scorpio 30 2.93
Safari 8 3.38
Sig. .297
Means for groups in homogeneous subsets are displayed.
a Uses Harmonic Mean Sample Size = 12.414.
b The group sizes are unequal. The harmonic mean of the group sizes is used. Type I error
levels are not guaranteed.
Personal Cal. Table DOF Ho/
Profile Value Value Accepted/
Rejected
Alliance University Page 64
65. Age 46.5 18.3 10 Rejected
gender 56.9 11.07 5 Rejected
Education 51.86 18.3 10 Rejected
Occupation 66.15 24.9 15 Rejected
This clearly depicts that Ho is rejected and concluded that Personal factors like age,
education qualification, gender, occupation and income status have significant
influence over the factors influencing brand preference.
FINDINGS
Alliance University Page 65
66. • It is found that sixty percent people uses Mahindra Scorpio in SUV segment. Among all
respondents only forty percent people are willing to change the brand. People wants the
interiors of Scorpio to be improved.
• It is found that brand is the most important factor while price is the second most
important factor while deciding in buying an SUV.
• It is found that seventy percent of the respondents are satisfied with the car which they
are using.
• Respondents between the age group 25-45 are the most consumers of SUV and there is a
significant association between age and brand preference.
• It is found that personal factors like age , gender, educational qualification, occupation have
significant impact on consumer buying behavior towards Scorpio .
• It is found that people are factors of brand preference like price ,mileage ,brand status ,
mantainence cost , after sales service plays an important role in selecting the brand.
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68. RECOMMENDATIONS
1. Indians are conscious about the price, fuel efficiency and mantainence cost . Whoever is
selling low-priced, fuel-efficient SUV with latest technology will succeed and they are
likely to see large volumes of sales. So Mahindra should try to improve Scorpio with
advanced technology so that its mantainence cost is low and fuel efficiency is high.
2. Relationship marketing strategy must be adopted to the customers owing Scorpio. The
marketers must try to build a relationship with the customer so that they feel special and
in turn becomes loyal to the brand. Brand loyalty programmes like owners group
magazine should be published containing the names of the new owners by welcoming
them to join the group. In this way they can create a strong relationship with the
customers.
3. Customers wants comforts and luxury hence Scorpio must improve its interiors with rear
end cameras, GPS navigation etc.
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70. This report tries to present an idea about consumer buying preference of Mahindra Scorpio by
examining age, qualification, gender, profession. In trying to create strong brand loyalty,
company should be interested in assessing the degree of customer brand preference. The brand
strength depends on the perception of customers. Satisfied and loyal customers indicate positive
perceptions of brand. In time when competition is getting powerful, it is imperative for the firm
to seriously evaluate factors that are not only important in creating strong brand equity but also
assist them in achieving customer satisfaction and loyalty. The results of the study shows that
brand preference and brand loyalty play an important role in creating consumer buying
behavior.
The Automobile industry has strongly striven towards globalization, which increasingly affects
the policy at local, regional and global levels. The present study made a systematic effort on
studying consumer brand preference towards Scorpio by analyzing the factors that influence
brand choice of the customers and revealed the impact of brand preference dimensions on
customer satisfaction. There is cut throat competitions in the market on price front and so they
have to find out better quality and low cost product.
The characteristic of this specific industry is that the marketing defines, creates and forms the
goods and their target groups, possibly more than any other industry in the world. Ability to
meet changing technology, customer’s needs and styling and shortening product life cycle are
the challenges that passenger car companies will have to face.
All said and done, this industry will continue to grow with time.
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72. My 12 weeks in Mahindra & Mahindra Ltd. was a great Learning Experience for me, it gave
me first time Experience to Work in a MNC. The Project allocated to me was best thing that can
happen to any trainee because it covered almost every aspect of learning which I have acquired
in this last one year. It included Business Communication, Marketing Skills, Presentation Skills,
Understanding of importance of brand equity. I learned a lot about the Organization Structure
and the way Mahindra & Mahindra functions, how they analyze the market and set targets
depending on the sales data, how the Organization communicates with its clients and the
Customers, how different marketing functions are Organized and finally carried out.
It was really wonderful to learn all those things, my sincere thanks to my entire senior’s
and colleagues without their help it wouldn’t have been possible. Now, I am much more
prepared to jump in the corporate world, with a better understanding of it. Here everything has
far more reaching consequences and we worked under tight deadlines. Every job I did was given
to me with a time line attached to it, which pointed out still I have to learn when it comes to time
management. But I am satisfied with all my work given to me, since after 12 weeks I know I
have added some value to the company.
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74. QUESTIONNAIRE
NAME : PROFESSION:
AGE : CONTACT NO:
QUALIFICATION: GENDER:
1. Among the following, which SUV you own?
a) Mahindra Scorpio
b) Innova
c) Tata Safari
2. Are you aware of Mahindra & Mahindra .
Yes No
3. What comes to your mind when you see the following symbols?
4. What makes Scorpio important ?
.
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76. 5. Please select your choice
6. I will buy Mahindra Scorpio because of its
i. Price
ii. Mileage
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1
(strongly
disagree
)
2
(disagree
)
3
(Neither
agree
nor
disagree
)
4
(Agree
)
5
(Strongly
agree)
Mantainence cost of Scorpio
is very less
The looks and interior of
scorpio is good
Scorpio is very comfortable
and luxurious
Customer satisfaction of
Scorpio is very high
I will purchase Scorpio
Scorpio possess advanced
technology.
I am highly satisfied with
Scorpio.
Accessorries of Scorpio are
easily available
Company should continue
producing Scorpio
77. iii. Brand status
iv. Low mantainence cost
v. After sales service
7 .What do you think of Mahindra Scorpio against its competitors Tata safari and Innova?
please comment:
8 .Is there any aspects on which you believe Scorpio could improve?
Please comment:
9 .How do you compare Mahindra with other companies?
Please comment:
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78. 10. .Would you purchase Scorpio?
Please comment:
Why or why not?
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