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SUMMER TRAINING REPORTON

CUSTOMER MAPPING

A SURVEY OF INDUSTRIAL CUSTOMER OF LUDHIANA(TOWARDS CARS)

Undertaken at PRESTIGE MOTORS LTD. LUDHIANA

In Partial Fulfillment of

Masters of Business Administration

At

GURU NANAK DEV ENGINEERING COLLEGE,

Ludhiana.

Submitted to: Submitted By: BHUPINDER SINGH BAWA VIJAY KUMAR(AGM) ROLL NO 80101317057PRESTIGE MOTORS MBA (2008-2010)

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ACKNOWLEGEMENT

“When you give yourself, you receive more than you give.”

The concepts learnt in academics are of no importance until they are practically applied.

In today’s world it is imperative for the students of any Post- Graduate course to keep

pace with the changing technology innovations taking place across the world. In

alignment with this, I prepared a Summer Report after my 2 nd semester of MBA.

I would like to express my sincere gratitude to Mr. Bhupinder Singh Bawa (AGM –

Prestige Motors) for giving me the opportunity to work with his esteemed

organization. I would like to thank Mrs. Sonia Sharma (Sales Executive) for giving

me product knowledge and their valuable support throughout the project. It was very

enriching and enlightening experience to work under their valuable guidance. Without

their support this project would not have been possible.

I would also like to thank my parents and friends those who have given their support &

contribution, whenever required.

Finally and most important I would like to thank to faculty of GNDEC (Especially to

Prop. Parampal Singh) to provide me with such an opportunity that has enhanced my

learning horizon Last but not least, I thank the almighty, and may he stand with all of

us.

VIJAY KUMAR

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PREFACE

The project is based on the Customer profile and mapping to understand the consumer

behavior regarding automobile sector. The project took 6 weeks for completion. The main

motive of project report was to enhance my expertise and extensive knowledge I gained through

my course, by applying it practically to the market of automobile Ludhiana.

The project has been completed by collecting the primary data by interviewing the various

industrialist of Ludhiana. Secondary data was also used as per the availability from different

sources. In all the study was to find out at which geographical area the potential customer may

exist and also to study the consumer behavior regarding automobile sectors.

During the project, I learnt the procedures and various other aspects of marketing of automobile

by applying theoretical knowledge and concepts to the best.

Needless to say, errors and omissions are bound to occur.

Last but not the least, I am grateful to all those who happened to be a part of the successful

completion of this Project and my mind and heart for going hand in hand!

Vijay Kumar

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CONTENTS

Page no.Chapter1

INTRODUCTION TO THE PROJECT 6EXECUTIVE SUMMARY 7INTRODUCTION TO AUTOMOBILE HISTORY 12

Chapter2INTRODUSTION TO VOLKSWAGEN GROUP 16HISTORY OF VOLKSWAGEN 20 NINE AUTOMOTIVE COMPANIES OF VOLKSWAGEN 27ACHIEVEMENTS OF VOLKSVAGEN 31

Chapter3VOLKSWAGEN IN INDIA 35INTRODUCTION TO PRESTIGE MOTORS 39PRODUCT PROFILE FOR MODELS AVAILABLE IN INDIA

42

Chapter4OBJECTIVES O F THE STUDY 48RESEARCH METHODOLOGY 49ANALYSIS 55

Chapter5CONCLUSION 65LIMITATIONS 66RECOMMENDATION 67QUESTIONAIRE 68BIBLIOGRAPHY 71

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INTRODUCTION TO THE PROJECT

The project title is “CUSTOMER PROFILE AND MAPPING TO UNDERSTAND THE

CONSUMER BEHAVIOUR REGARDING AUTOMOBILE SECTOR

Customer mapping is also known as geographical market analysis and it is the Easiest Way to

Identify Where Your Customers Come From and Who They Are. This project focus on to know

the profile and from which geographical part of Ludhiana the potential customer of Volkswagen

cars can be and what is the consumer behavior of various users of cars like how many cars do

they have and after how much do they like to change their cars . The whole survey has been done

in various parts of Ludhiana city like Focal Point, Industrial Area, Sundar nagar .

.

So, in this research I studied the mapping of the customers and behavior of the customers.

So, overall it was great learning experience for me to get such an introspect about automobile

industry and various aspects related to its marketing strategy.

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EXECUTIVE SUMMARY

Customer mapping is the Easiest Way to Identify Where Your Customers Come From and

Who They Are.

Customer Mapping Analysis may include:

· A customer profile to understand where to find more like them.

· Market penetration and market share reports showing performance in existing

markets and expected performance in new markets.

· Market ranking reports allowing company to prioritize resource deployment into

new markets

Customer Mapping helps to know market potential by using following steps.

Map Customer Locations

Create a "pin map" of where your customers live. Find out at a glance what parts of town you

draw from and where to advertise. If you have your names and addresses in a data file, you can

order right now with no payment required in advance.

Identify Your Trade Area

Map your customers to see what your trade area is. Compare your customers with the market

potential to see your market penetration.

Define Customer Profile

Once you have your customers mapped, you can analyze the demographic characteristics and

define a profile of your best customers. From this it is a short step to finding more potential

customers like them.

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Target Your Advertising

Given your trade area, and your customer profile, you can focus advertising to the places and

media that are most likely to hit your target market.

Customer MappingCustomer mapping shows organizations which neighborhoods and markets they are

serving with their products. The results of customer mapping can often be surprising and

show trends that were otherwise unknown.

In addition, customer mapping can be applied not only to an entire client database, but also

to selected kinds of customers such as:

Those who have bought certain products, or certain services

Those whose purchases exceed a specified amount

To gain the greatest value from Customer mapping, it can be combined with market share

analysis to reveal the strongest areas that are being reached, and those that are not being

reached.

Strategies for Customer Mapping

What is a geographic market worth to your business? Mapping Analytics will help you

find the answer. Market potential can be expressed as a function of:

The number of customers purchasing

Amount purchased

Frequency of purchase

In other words, market potential = (how many * how much * how often)

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Bottom Up or Top Down Market Analysis?

It all depends on your specific needs. Mapping Analytics can advise you on the best

approach to sizing any market. We employ various methodologies and data sets to get you

the answers you need.

A bottom up approach to market sizing starts with your customers. How much and

often do they buy? What is their profile? How many potential customers do you

have in the market based on your customer profiles? How can you reach them?

A top down approach starts with market and industry data. It takes a close look at

a geographic market area and profiles the consumers and/or businesses to let you

know their propensity to buy your products and services.

Mapping Analytics has expertise in both these approaches to market sizing. We also have

a wealth of data sources through partnerships with the best data providers in the industry.

We can match the right data for market analysis to your business and market strategy.

Cluster Analysis for Customer Mapping

We often use lifestyle clustering systems to size consumer markets. Clustering systems

operate under the premise that "birds of a feather flock together." That means people with

similar buying behaviors and demographic profiles tend to live close together. This helps

you identify neighborhoods or markets where your potential is highest.

Cluster analysis identifies key segments in the population that are more likely to

purchase your products than the average consumer.

Knowing in which clusters people reside provides a reasonable means of

understanding and predicting how they will behave.

Understanding which clusters are more likely than others to purchase allows better

targeting .

Clusters are tied to geography, allowing you to identify and prioritize

neighborhoods, trade areas and markets .

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Access Market Opportunity

Market analysis services from Mapping Analytics will provide the key intelligence we

need to rank and prioritize markets. We will know:

· The top new geographic markets to target based on customer or revenue potential

· Which markets where we currently do business have untapped potential

Gaining this market understanding is essential to growing and expanding our business. But

it isn't enough on its own.

Demographic Site Selection

When we work with Mapping Analytics, we will discover that demographic site selection

leads to a sound business site selection decision. We include a series of important

analyses when helping we select new sites, including:

· Customer profiling

· Mapping customer locations

· Competitive analysis

· Trade area development and mapping

· Demographic, Census, and market data analysis

· Market potential analysis

Customer Profiling

Customer profiling services from Mapping Analytics create descriptive segments or

groups of your customers. Each segment has specific defining characteristics. A customer

segment is not as simple as applying a demographic label, such as "women age 45-54" or

"businesses with revenue >$500 million."

Those descriptions alone won't tell you enough about your customer. For example, not all

women age 45-54 have the same tendency to purchase your products. So a profile like this

may not help you much, and you may waste resources marketing and selling to the wrong

people.

That's why Mapping Analytics takes a more comprehensive and disciplined approach to

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customer profiling. We use your own customer data, lifestyle cluster data, and analytical

techniques. The result is a more accurate description of your customer that can be used to

identify areas where you can find more of your best customers.

What Goes Into a Customer Profile

What makes up a customer profile? It depends on whether your customers are businesses

or consumers. In either case, you typically start with your own customer data (such as

location, purchases, spending volume), append additional consumer or business data, then

group into segments that share similar characteristic

Mapping Customer AttitudesBy Cliff Allen, ClickZ, Oct 17, 2000

However, it's hard to predict which car someone will buy just by knowing demographic

characteristics. While one person of a certain age, income level, and family situation may

drive an expensive imported car, his next-door neighbor might share the same

demographic profile and drive an inexpensive domestic car. Thus, the demographic data

doesn't explain the difference in automotive preferences. But understanding the

differences in how these two consumers perceive the features and benefits of automobiles

could help marketers understand their needs and interests and which cars they are likely to

prefer.

By surveying consumers about their attitudes toward the leading products in a market,

marketers can map customers' dominant attitudes toward products. Market research

companies such as Simmons conduct detailed interviews to gather the data needed to

identify clusters of buyer attitudes.

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INTRODUCTION OF AUTOMOBILE INDUSTRY

The automobile industry has changed the way people live and work. The earliest of modern cars

was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As

the century turned, three cars were imported in Mumbai (India). Within decade there were total

of 1025 cars in the city.

The dawn of automobile actually goes back to 4000 years when the first wheel was used for

transportation in India. In the beginning of 15th century, Portuguese arrived in China and the

interaction of the two cultures led to a variety of new technologies, including the creation of a

wheel that turned under its own power. By 1600s small steam-powered engine models was

developed, but it took another century before a full-sized engine-powered vehicle was created.

Brothers Charles and Frank Duryea introduced the actual horseless carriage in the year 1893. It

was the first internal-combustion motor car of America, and it was followed by Henry Ford’s

first experimental car that same year.

One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that

featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood,

and an aluminum body. Chauffeurs usually drove it and emphasis was on comfort and style

rather than speed. During the 1920s, the cars exhibited design refinements such as balloon

tires, pressed-steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured

an 8-cylinder engine and an aluminum body.

The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more

to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their

predecessor was.

The 1940s saw features like automatic transmission, sealed-beam headlights, and tubeless tires.

The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. It was

built on compact and stylized lines, and was capable of 230 kmph (144 mph).This was the

Indian automobile history, and today modern cars are generally light,

aerodynamically shaped, and compact.

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Facts & Figures

The automobile industry in India is on an investment overdrive. Be it passenger car or two-

wheeler manufacturers, commercial vehicle makers or three-wheeler companies - everyone

appears to be in a scramble to hike production capacities. The country is expected to witness

over Rs 30,000crore of investment by 2010.

Hyundai will also be unmasking the Verna and a brand new diesel car. General Motors will be

launching a mini and may be a compact car.

Most of the companies have made their intentions clear. Maruti Udyog has set up the second car

plant with a manufacturing capacity of 2.5lakh units per annum for an investment of Rs 6,500

Crore (Rs 3,200 Crore for diesel engines and Rs 2,718 Crore for the car plant itself).

Hyundai and Tata Motors have announced plans for investing a similar amount over the next 3

years. Hyundai will bring in more than Rs 3,800 Crore to India.

Tata Motors will be investing Rs 2,000 Crore in its small car project.

General Motors will be investing Rs 100 Crore, Ford about Rs 350 Crore and Toyota

announced modest expansion plans even as Honda Siel has earmarked Rs 3,000Crore over the

next decade for India - a sizeable chunk of this should come by 2010 since the company is also

looking to enter the lucrative small car segment.

.Talking about the commercial vehicle segment, Ashok Leyland and Tata Motors have each

announced well over Rs 1,000 Crore of investment. Mahindra & Mahindra’s joint venture

with International Trucks is expected to see an infusion of at least Rs 500 Crore. Industry

performance in 2008-09

The Indian automotive market managed to stand up to the vagaries of the economic meltdown to

show slightly growth during fiscal 2008-09. Overall vehicle sales at 97.23lakh grew 0.71 per

cent from 96.54lakh units in 2007-08.

When major automotive markets reported a 30-40 per cent decline, only a handful of countries

managed to show growth. A few months ago, India was looking at negative growth but has

turned around. It is actually better than expected.

Passenger vehicle sales at 15.51lakh registered flat growth while commercial vehicle sales

showed a 21 per cent drop.

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SIAM has a positive outlook for the current financial year. While it foresees a 7-8 per cent

growth for the commercial vehicle segment, the industry body predicts a 3-5 per cent growth for

passenger vehicles

The passenger vehicle market has weathered the downturn largely due to market leader Maruti

Suzuki which holds 48 per cent of the market. The compact car giant clocked 7.22lakh units for

2008-09. Closest rival Hyundai Motor India sold 2.44lakh cars, a growth of 13 per cent.

Most premium carmakers saw volumes shrink last fiscal. Toyota Kirloskar Motor’s numbers fell

15 per cent to 46,892 units while Ford India’s sales were down 17 per cent to 27,976 units.

Honda Siel Cars India also saw a 17 per cent drop at 52,420 units while General Motors India

was down 8 per cent to 61,526 units.

Among commercial vehicle makers, all major players saw substantial fall in volumes. Market

leader Tata Motors with a 60 per cent plus share, showed 22 per cent drop in numbers at 2.34

lakh units while Ashok Leyland showed 37 per cent drop at 47,632.

Either’s sales volume fell 37 per cent at 17,341 units and Force Motors was down 28 per cent at

7,819 units. “The freight movement is unlikely to improve this fiscal which will impact truck

sales.

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INTRODUCTION TO VOLKSWAGEN GROUP

Type: Public Company

Headquarters: Germany Industry: Automotive

Products: Cars, Trucks

Revenue: €113.8 billion (2008) Operating income: €6.61 billion (2008) Profit: €4.68 billion (2008) Employees: 369,928(2008)

Vehicle brand companies

Audi Bentley motors ltd. Bugatti automobile Subsidiaries: Lamborghini Seat Skoda auto Scania Volkswagen passenger car Volkswagen commercials vehicles

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INTRODUCTION TO VOLKSWAGEN

Type: Subsidiary of Volkswagen group

Founded: May 28, 1937

Founders: Ferdinand Porsche, Adolf Hitler

Headquarters: Wolfsburg, Germany

Area served: Worldwide

Key people:

Martin Winterkorn (Chairman of board of management)

Christian kingler: Ferdinand piech: (board of management of the Volkswagen passanger cars) (chairman of Volkswagen supervisory board

Industry: Automotive

Products: Cars, Trucks

Website: Volkswagen.com

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Worldwide location of various Volkswagen plants

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In German, ‘Volks’ pronounced as (folks), means people and ‘Wagen’ means ‘Car’. Hence:

Volkswagen means "people's car" in German, in which it is pronounced [fɔlksvaɡən].

Its current tagline or slogan is Das Auto (in English The Car).

Its previous German tagline was Aus Liebe zum Automobil, which translates to: Out of Love for the Car, or, For Love of the Automobile, as translated by VW in other languages.

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History of Volkswagen

Adolf Hitler had a keen interest in cars even though he did not like to drive. In 1933, shortly

after taking over as leader of Germany, he teamed up with Ferdinand Porsche to make changes

to Porsche's original 1931 design to make it more suited for the working man. Hans Ledwinka

discussed his ideas with Ferdinand Porsche, who used many Tatra design features in the 1938

"KdF-Wagen", later known as the VW Käfer—or Volkswagen Beetle. When Chrysler brought

out the 1934 DeSoto Airflow coupe, its design enabled Mr. Porsche to finalize his design of the

Beetle. On 22 June 1934, Dr. Ferdinand Porsche agreed to create the "People's Car" for

Hitler's mother.

After some time, they planned to change some features regarding various aspects. These

changes included better fuel efficiency, reliability, ease-of-use, and economically efficient

repairs and parts. The intention was that ordinary Europeans would buy the car by means of a

savings scheme ("Save five Marks a week, if you want to drive your own car"), which

around 336,000 people eventually paid into. The VW car was just one of many KdF programmes

which included things such as tours and outings. The prefix "Volks" ("People's") was not just

applied to cars, but also to other products in Europe; the "Volksempfänger" radio receiver for

instance. On 28 May 1937, the Gesellschaft zur Vorbereitung des Deutschen Volkswagens

was established by the Deutsche Arbeitsfront. It was later renamed "Volkswagenwerk" on 16

September 1938.

VW Type 82E

Erwin Komenda, the longstanding Auto Union chief designer, developed the car body of the

prototype, which was recognizably the Beetle we know today. It was one of the first to be

evolved with the aid of a wind tunnel; unlike the Chrysler Airflow, it would be a success.

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New factory started

The building of the new factory started 26 May 1938 in the new town of KdF-Stadt, now called

Wolfsburg, which had been purposely built for the factory workers. This factory only produced

a handful of cars by the time war started in 1939. None were 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).

At the times of 1st world War, Volkswagen War meant production changed to military vehicles,

the Type 82 Kübelwagen ("Bucket car") utility vehicle (VW's most common wartime model),

and the amphibious Schwimmwagen which were used to equip the German forces.

By 1946 the factory was producing 1,000 cars a month, a remarkable feat considering it was still

in disrepair. Due to roof and window damage, rain stopped production and steel to make the cars

had to be bartered for new vehicles.

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 standardize 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.

Sales soared — due in part to the famous advertising campaigns by New York advertising

agency Doyle, Dane Bernbach. Led by art director Helmut Krone, and copywriters Julian

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Koenig and Bob Levinson, Volkswagen ads became as popular as the car, using crisp layouts

and witty copy to lure the younger, sophisticated consumers with whom the car became

associated. Despite the fact it was almost universally known as the Beetle (or the Bug), it was

never officially labeled as such by the manufacturer, instead referred to as the Type 1. The first

reference to the name Beetle occurred in U.S. advertising in 1968, but not until 1998 and the

Golf-based New Beetle would the name be adopted by Volkswagen.

Volkswagen was in serious trouble by 1973. 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. VW's ownership

of Audi / Auto Union proved to be the key to the problem - with its expertise in front-wheel

drive, and water-cooled engines which Volkswagen so desperately needed to produce a credible

Beetle successor. Audi influences paved the way for this new generation of Volkswagens, known

as the Polo, Golf and Passat.

Volkswagen Golf, sold as the rabbits in USA

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). It

would be produced in the United States as the Rabbit until the spring of 1984. The second-

generation Golf hatchback/Jetta sedan ran from late 1983 to late 1991, and a North American

version produced in Pennsylvania went on sale at the start of the 1985 model year.

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In the 1980s, Volkswagen's sales in the United States and Canada fell dramatically, despite the

success of models like the Golf elsewhere. The Japanese and the Americans were able to

compete with similar products at lower prices. Sales in the United States were 293,595 in 1980,

but by 1984 they were down to 177,709.

Volkswagen had entered the super-mini market in 1976 with the Volkswagen Polo, a stylish and

spacious three-door hatchback designed by Bertone. It was a strong seller in West Germany and

most of the rest of Western Europe, being one of the first foreign small cars to prove popular in

Britain. The second generation model, launched in 1981 and sold as a hatchback and "coupe"

(with the hatchback resembling a small estate car and the coupe being similar to a conventional

hatchback), was an even greater success for Volkswagen. It was facelifted in 1990 and was still

selling well after 15 years, when it was replaced by the third generation Polo in 1994.

The Volkswagen New Beetle concept, especially in North America.

In 1994, Volkswagen unveiled the J-mays-designed Concept One, a "retro"-themed car with a

resemblance to the original Beetle but based on the Polo platform. Its genesis was secret and in

opposition to VW management, who felt it was too backward-looking. Management could not

deny the positive public response to the concept car and gave the green-light to its development

as the New Beetle. The production car would be based on the Golf rather than the Polo, because

the Polo frame was too small for the car to pass crash test standards in the U.S. It has been quite

popular in the North America and is now gaining in the EU.

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Volkswagen group — the Volkswagen Bora (the sedan, still called Jetta in the USA), New

Beetle, SEAT Toledo, SEAT León, Audi A3, Audi TT and Skoda Octavia. However, it was

beaten into third place for the 1998 European Car of the Year award by the winning Alfa Romeo

156 and runner-up Audi A6.

In the late 90s Volkswagen acquired the three luxury brands Lamborghini (through Audi),

Bentley and Bugatti which were mainly due to Ferdinand Piech and added to the group

portfolio.

Volkswagen in 2005, despite challenges, still maintained North American sales of 224,195—a

dramatic increase from the low in 1993 when US sales totaled only 49,533 vehicles.VW plans to

close out the decade with the release on several new vehicles worldwide and a barrage of

advertising.

The Fifth-Generation Golf

Volkswagen is recognized as one of the leading small diesel engine manufacturers, and is

partnering with Mercedes and other companies to market BlueTec clean diesel technology,

calling it Blue-Motion. Volkswagen has offered a number of its vehicles with a TDI

(Turbocharged Direct Injection engine), which lends class-leading fuel economy to several

models. According to the United States Environmental Protection Agency, four of the ten most

fuel efficient vehicles available for sale in the U.S. in 2004 were powered by Volkswagen

diesel engines

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Electric and alternative fuel vehicles:

Clean diesel

A Blue Motion Volkswagen Polo

Volkswagen has been selling clean diesel-powered engines for the European market since

2003. VW developed Turbocharged Direct Injection (TDI) technology for diesel engines, and

it offers a wide array of TDI powertrains. As modern diesel fuel economy is 30 percent higher

than gasoline engines, a proportional reduction of greenhouse gases emissions is achieved with

clean diesel technology. Volkswagen is also developing hybrid technology for diesel-electric. A

VW Golf turbo-diesel hybrid concept car was exhibited in the 2008 Geneva Motor Show,

which has a fuel economy of 70 mpg (3.3 liters per 100 km).

Electric vehicles:

Volkswagen and Sanyo have teamed up to develop a hybrid vehicle battery system. Volkswagen

boss Martin Winterkorn has confirmed the company plans to build compact hybrid vehicles.

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There will definitely be compact hybrid models, such as Polo and Golf, and without any great

delay”, with gasoline and diesel engines.

Flexible-fuel vehicles

The 2003 VW Gol 1.6 Total Flex was the first full flexible-fuel vehicle launched in Brazil,

capable of running on any blend of gasoline and ethanol (E100).

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Volkswagen Group owns nine active automotive companies:

Audi : 99.55% ownership; the Audi marque is the sole active brand of the former

Auto Union, bought from Daimler-Benz on 30 December 1964.

Automobili Lamborghini:, 100% ownership by Audi AG; company was

bought in June 1998.

Bentley Motors Limited,: 100% ownership by Volkswagen AG; the

company (at the time known as Rolls-Royce & Bentley Motors Ltd.) was bought on 28

July 1998 from Vickers, but did not include the 'Rolls-Royce' brand name. The Rolls-

Royce marquee was subsequently restarted by BMW who had licensed the brand from

Rolls-Royce plc.

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Bugatti Automobiles : 100% ownership via the Volkswagen France

subsidiary of VWAG, Bugatti Automobiles SAS was created after Volkswagen

purchased the right to the Bugatti marque.

SEAT, :- Initially cooperation agreement with Audi AG, 51% (1986) and 100%

ownership by the VW Group since 1990, and was the first foreign subsidiary in the VW

Group.

Škoda Auto,:- 100% ownership since 1999.

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Volkswagen Passenger Cars,:- 100% ownership.

Volkswagen Commercial Vehicles (VWCV) or 'Volkswagen

Nutzfahrzeuge' (VWN) (German) — 100% ownership; started operations as an

independent entity in 1995. VWCV/VWN is in charge of all commercial vehicle

developments within the Group and has control over Scania and is a shareholder in MAN

AG.

Scania AB,:- 70.94% of voting rights as at 27 February 2009 .

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Current Volkswagen models

EuropeCaddy Life Eos Fox Golf Mk6 Golf Plus Golf Variant Jetta Mk5 Multivan New Beetle New Beetle Convertible Passat Mk6 Passat CC Phaeton Polo Mk4F Scirocco Sharan Touran Tiguan Touareg

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Achievements of Volkswagen

In 1980, Volkswagen competed in the Paris-Dakar Rally with the Audi-developed Iltis, placing

1st, 2nd, 4th and 9th overall.

Volkswagen enlists Dakar Champion Jutta Kleinschmidt, the first female to win the Dakar in

2001, to help design and compete a Dakar Racer.

In 2003, VW replaced the ADAC Volkswagen Lupo Cup with the newly released Polo, to

become the ADAC Volkswagen Polo Cup.

In 2004, Volkswagen Commercial Vehicles enter the European Truck Racing series with the

Volkswagen Titan series truck - it became back-to-back champions for the 2004 and 2005 series.

In 2003, the Hannover based team starts with a 2WD buggy named Tarek. It places 6th outright

but took 1st in the 2WD and Diesel class.

In 2004, VW enters the newly developed Race-Touareg T2, finishing 6th overall and 2nd in the

Diesel class.

In 2005, an updated Race-Touareg with slightly more power is entered, with driver Bruno Saby,

finishing in 3rd overall and 1st in the Diesel class!

In 2006, Volkswagen released the most powerful Race-Touareg yet: the Race-Touareg 2. Five

vehicles enter, with driver Giniel de Villers finishing in 2nd place overall, and 1st in the Diesel

class.

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In 2009, Volkswagen won the 2009 Dakar Rally held in Argentina. VW's Touareg race models

finished 1st and 2nd

Winner of numerous international awards and accolades worldwide.

2008

• February 20, 2008 - Volkswagen Tiguan is voted SUV of the year by "OFF ROAD" magazine

readers

• January 29, 2008 - Volkswagen receives award for increasing shareholder value

• January 29, 2008 - Value champions 2008: Volkswagen Tiguan and Golf Estate

• January 24, 2008 - Golf GTI is one of “10 Best Cars of 2008”

• January 18, 2008 - What Car? Award 2008: Double for Volkswagen

• January 17, 2008 - Prize for TSI and DSG: “Yellow Angel 2008” Award for Volkswagen’s

Latest High-End Technologies

2007

• May 16, 2007 - Volkswagen models voted “Company Cars of the Year”

• April 20, 2007 - Volkswagen wins 10 gold at Fleet Awards 2007

• March 27, 2007 - Multiple awards for Volkswagen advertising

• March 26, 2007 - "Innovation of reason" 2007: Award for high temperature fuel cell from

Volkswagen

• January 4, 2007 - Volkswagen unveiled the cleanest ever TDI engine.

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2006

• September 12, 2006 - Volkswagen Ranks First in J.D. Power Environmental Study

• September 12, 2006 - Aerodynamic package makes Volkswagen Passat an eye-catcher -

• June 20, 2006 - Volkswagen receives environmental award from Federation of German

Industries -

• March 2, 2006 - Auto1 Award- The Passat is Europe’s Number One -

• January 20, 2006 - Passat Awarded Renowned What Car Trophy as Best Family Car

• January 19, 2006 - The Passat is Germany's Favourite Car 2006-ADAC readers award

Volkswagen the 'Gelber Engel' prize -

2005 and 2004

• May 23, 2005 - The Passat - receives five star rating - top result in the Euro NCAP crash test

• April 8, 2005 - The Golf - more than 25 awards worldwide

• March 23, 2005 - Volkswagen Phaeton moving ahead

• February 16, 2005 - The new Passat launched with four different engines

• January 30, 2004 - The Volkswagen Touareg – an outstanding off-road vehicle - International

experts award prizes to the Volkswagen SUV -

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Volkswagen in India

Recently Volkswagen paved the way for sustainable market activities in India. With the

investment agreement signed at the end of 2006 the brand sets a new course that unites two

success stories – Volkswagen and India.

Volkswagen AG is to build a new production plant in Pune in the Indian state of Maharashtra.

With investment totaling some 410 million euros, a full production plant with a press shop, body

shop, paint shop and assembly lines is to be built on the 230 hectare site in the Chakan industrial

park near Pune. The German brand and Europe’s largest automotive manufacturer will be

entering the Indian market to meet the rapidly growing demand for mobility. Volkswagen will be

developing a vehicle in the foreseeable future specifically tailored to the needs of the Indian

market offering all the features of a genuine Volkswagen.

For the first step the Volkswagen brand will bring locally produced vehicles to the Indian market

up from the third quarter of 2007. To accompany the growing supply of Volkswagen Passenger

Cars, the Group has established a separate Indian sales company in 2007, initially for

Volkswagen as well as for Audi. “Volkswagen Group Sales India Private Limited” registered in

Mumbai will distribute locally manufactured and imported vehicles in India.

Thus, Volkswagen can bring one of it's upper-premium sedan as the first locally produced

vehicle to the Indian market. In April 2006, Volkswagen produced the 14 millionth of its

bestseller. The Passat has become the very image of automotive progress, representing what

“Made in Germany” means. This long-term success is confirmed by numerous accolades from

experts, journalists and customers who have put the car through its paces in recent months. This

image is characterized by vehicle size, drive technologies, safety features such as airbags, ABS

and ESP in addition to quality details including galvanized bodies. Imported vehicles such as the

premium Sports Utility Vehicle Touareg will complement the range.

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Various positions of Volkswagen Dealers in India

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Current Existing Dealers in India

Ludhiana - Prestige Motors, Lally Motors India Private Limited\

Ahmedabad - Volkswagen AhmedabadAutomark Motors Pvt.Ltd

Bangalore - Elite Motors Pvt.Ltd

Bangalore - Volkswagen Palace Cross

Chandigarh - Genuss Motors, Swami Automotives Pvt.Ltd.

Cochin - Volkswagen CochinEVM Motors & Vehicles India Pvt Ltd

Chennai - Volkswagen ChennaiABRA Motors Private Limited

Coimbatore - Volkswagen Coimbatore Ramani Cars Private Limited

Delhi - DD Autoworld Private Limited

Delhi - Kashyap Vehicle Works Private Limited

Delhi West - Volkswagen Delhi WestWorldclass Automobiles Pvt. Ltd.

Goa - Volkswagen GoaCaculo Automotive Pvt. Ltd

Hyderabad - Orion Motors

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Jaipur - Volkswagen JaipurTanya Cars Pvt Ltd

Kolkata - Volkswagen KolkataOSL Exclusive Pvt Ltd

Mumbai - Volkswagen Downtown Mumbai

Pune - Volkswagen PuneVidyut Motors Pvt. Ltd

Surat - Volkswagen SuratNavjivan Auto Square Pvt. Ltd

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INTRODUCTION TO PRESTIGE MOTORS

PRESTIGE MOTORS is a division of LALLY MOTORS, owned by the NRI Lally family

and the Official dealer for Volkswagen AG in India and first Volkswagen passenger car

dealer in Punjab currently operational in Ludhiana at National Highway-1 (G. T. Road)

since March-2008.

Mission:

The strategic intent is to be the premier partner in the Indian automotive market, providing

products and service that exceed the current standards.

Strategy:

A long-term strategy is being the leading benchmark company in the Indian automotive

market by constant investments in our people and facilities.

Quality Policy:

Prestige Motors are fully committed towards total customer satisfaction. We believe in

continual professional improvement. Hence we keep updating our systems and facilities to

offer the very best for:

Total Commitment to customer satisfaction.

Focus on employee’s involvement and improve retention.

Work professionally and honestly.

Prestige Motors Sales

Highly qualified Sales Team is ready to advise customers on any specific want and

need that would require and will assist in making the right choices.

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Products Profile for models available in India:

Passat

Technical specifications

Vehicle Model Passat TDI 2.0 Exclusive

Engine Type 4-cylinder diesel engine Displacement(liters/cc) 2.01/1968ccMax. Torque(NM at RPM) 320/1750-2500Transmission 6 speed DSG-direct shift gearboxBore/Stroke(mm) 81/95.5Max. Power output(kw(PS) @ RPM 103(140) at 4000Emission Category Euro 4

Price 2518279

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Jetta

Technical specifications

Vehicle Model Jetta 1.6 L (Petrol) Jetta 1.6 L TDI (Diesel)Jetta 1.9 L TDI (Trendline)/Comfortline

Engine Type 4-cylinder diesel engine

4-cylinder diesel engine

Displacement(liters/cc) 1.6/1595cc 1.9/1896ccMax. Torque(NM at RPM) 148/3800 250/1900Transmission 5 speed manual

gearbox5 speed manual /6 speed automatic DSG gearbox

Max. Power output(kw(PS) @ RPM

75(102) at 5600 77(105) at 4000

Price 1,335,851 1,463,613/ 1,713,646

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Touareg

Technical specifications

Vehicle Model Touareg 3.0 V6 TDI Touareg 5.0 V10 TDIEngine Type 6-cylinder ‘V’turbo

diesel10-cylinder ‘V’ bi-turbo diesel

Displacement(liters/cc) 3.0/2967 5.0/4921Max. Torque(NM at RPM) 550/2250-2500 750/2000Bore/Stoke mm 83.0/91.4 81.0/95.5Compression Ratio 17.0:1 18.5:1Max. Power output(kw(PS) @ RPM

176@4000-4400 230@3750

Fuel Type Diesel 51CZ Diesel 51CZ

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Introducing POLO in India

Volkswagen India will launch its first small car, the Polo, in the domestic market in the early part of 2010. The car will be priced and positioned in line with the A2 compact car category, which includes models such as Maruti's Swift & Ritz, and be built on a new platform. The Polo will be made at the company's new manufacturing facility at Chakan, Pune, with locally sourced auto components being about 50 per cent.

"The all-new platform for the Polo has been designed keeping Indian road conditions in mind. The Polo will be benchmarked against the market leader in this segment, which is Maruti Suzuki's Swift. The Polo would be available in the petrol and the diesel engine variant.

Company hope to sell around 30,000 units in 2010. Then, by 2014, and hope to cross the 100,000 mark, by which time  the car market in India would have crossed two million units

Till date, VW India has invested Rs 3,800 crore (Rs 38 billion) in setting up its operations in India. The facility at Chakan has an annual capacity of up to 110,000 cars on a single shift.

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Competitors of existing Volkswagen model in India

Competitors of JETTA (14-18lakhs)

Honda Civic Hyundai Sonata(Emberra)Skoda OctaviaSkoda LauraToyota Corrola AltisFiat 500

Competitors of Passat(24lakhs)

Toyota CamryHonda AccordBMW 3seriesSkoda Superb

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OBJECTIVES OF THE STUDY

The study has been under taken to analyze the customer profile and mapping to understand the

consumer behavior regarding automobile sector.

Objectives

To know the customer profile.

To analyze the exact segregation of the industry of Ludhiana.

To know at which geographical segment the potential customer exist..

To know the consumer behavior regarding cars on following parameter:

(a) To analyze the factors that influence the customer before buying a car..

(b) To find out the replacement pattern of customers.

(c) To find out the purchase pattern.

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RESEARCH METHODOLOGY

A research process consists of stages or steps that guide the project from its conception through

the final analysis, recommendations and ultimate actions. The research process provides a systematic,

planned approach to the research project and ensures that all aspects of the research project are

consistent with each other.Research studies evolve through a series of steps, each representing the

answer to a key question.

This chapter aims to understand the research methodology establishing a framework of

evaluation and revaluation of primary and secondary research. The techniques and concepts used during

primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction

towards the analysis and results.

RESEARCH DESIGN

I propose to first conduct a intensive secondary research to understand the full impact and

implication of the industry, to review and critique the industry norms and reports, on which certain

issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken

up in the next stage of exploratory research. This stage shall help me to restrict and select only the

important question and issue, which inhabit growth and segmentation in the industry.

The various tasks that I have undertaken in the research design process are :

Defining the information need

Design the exploratory, descriptive and causal research.

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RESEARCH PROCESS

The research process has four distinct yet interrelated steps for research analysis

It has a logical and hierarchical ordering:

Determination of information research problem.

Development of appropriate research design.

Execution of research design.

Communication of results.

Each step is viewed as a separate process that includes a combination of task , step and specific

procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and

ongoing.

EXPLORATORY RESEARCH

The method I used for exploratory research was

Primary Data

Secondary data

PRIMARY DATA

New data gathered to help solve the problem at hand. As compared to secondary data which is

previously gathered data. An example is information gathered by a questionnaire. Qualitative or

quantitative data that are newly collected in the course of research, Consists of

original information that comes from people and includes information gathered from

surveys, focus groups, independent observations and test results. Data gathered by the researcher

in the act of conducting research. This is contrasted to secondary data, which entails the use of

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data gathered by someone other than the researcher information that is obtained directly

from first-hand sources by means of surveys, observation or experimentation. Primary data is

basically collectedby getting questionnaire filled by the respondents.

SECONDARY DATA

Information that already exists somewhere, having been collected for another purpose. Sources

include census reports, trade publications, and subscription services. There are two types

of secondary data: internal and external secondary data. Information compiled inside or outside

the organization for some purpose other than the current investigation Researching

information, which has already been published? Market information compiled for purposes

other than the

current research effort; it can be internal data, such as existing sales-tracking information, or it

can be research conducted by someone else, such as a market research company or the U.S.

government. Secondary source of data used consists of books and websites . My proposal is to

first conduct a intensive secondary research to understand the full impact and implication of the

industry, to review and critique the industry norms and reports, on which certain issues shall

be selected, which I feel remain unanswered or liable to change, this shall be

further taken up in the next stage of exploratory research.

DATA COLLECTION

Data collection took place with the help of filling of questionnaires. The questionnaire method

has come to the more widely used and economical means of data collection. The common factor

in all varieties of the questionnaire method is this reliance on verbal responses to questions,

written or oral. I found it essential to make sure the questionnaire was easy to

read and understand to all spectrums of people in the sample. It was also important as

researcher to respect the samples time and energy hence the questionnaire was designed in such

a way, that its administration would not exceed 4-5 mins. These questionnaires were personally

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administered. The first hand information was collected by making the people fill the

questionnaires. The primary data collected by directly interacting with the people.

DETERMINING THE SAMPLE PLAN AND SAMPLE SIZE

TARGET POPULATION

It is a description of the characteristics of that group of people from whom a course is intended.

It attempts to describe them as they are rather than as the describer would like them to be. Also

called the audience the audience to be served by our project includes key

demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries of

a program.

The target population is the population I want to make conclude an ideal situation; the sampling

frames to matches the target population. A specific resource set that is the object or target

of investigation. The audience defined in age, background, ability, and preferences, among

other things, for which a given course of instruction is intended.

I have selected the sample trough Simple random Sampling

SAMPLE SIZE :

This involves figuring out how many samples one need.

The numbers of samples you need are affected by the following factors:

• Project goals

• How you plan to analyze your data

• How variable your data are or are likely to be

• How precisely you want to measure change or trend

• The number of years over which you want to detect a trend

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• How many times a year you will sample each point

SAMPLE SIZE

I have targeted 120 people for the purpose of the research. The target population influences the

sample size. The target population represents Ludhiana region. The people were from different

professional backgrounds. The details of our sample are explained in chapter named primary

research where the divisions are explained in demographics section.

ERRORS IN THE STUDY

Interviewer error

There is interviewer bias in the questionnaire method. Open-ended questions can be biased by

the interviewer’s views or probing, as interviewers are guiding the respondent while the

questionnaire is being filled out. The attitudes the interviewer revels to the respondent during the

interview can greatly affect their level of interest and willingness to answer openly. As

interviewers, probing and clarifications maximize respondent understanding and yield complete

answers, these advantages are offset by the problems of prestige seeking, social desirability and

courtesy biases.

Questionnaire error

The questionnaire designing has to careful so that only required data is concisely reveled and

there is no redundant data generated. The questions have to be worded carefully so that the

questions are not loaded and does not lead to a bias in the respondents mind.

The respondents selected to be interviewed were not always available and willing to co operate

also in most cases the respondents were found to not have the knowledge, opinion, attitudes or

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facts required additionally uninformed response errors and response styles also led to survey

error.

Sampling error

We have taken the sample size of 150, which cannot determine the buying behavior of the total

population. The sample has been drawn from only National Capital Region.

Research Design

Research design is a conceptual structure within which research was conducted. A research

design is the detailed blueprint used to guide a research study towards its objective. It is a series

of advanced decision taken together comprising a master plan or a model for conducting the

research in consonance with the research objectives. Research design is needed because it

facilitates the smooth sailing of the various research operations, thereby making research as

efficient as possible yielding maximum information with the minimum effort, time and money.

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ANALYSIS

ANALYSIS HAS BEEN DONE BY TWO METHODS

1. GRAPHICAL METHOD

2. PERCENTAGE METHOD

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Type of

Business

Interpretation

Type of the business Manufacturer Trading Service

No. of respondents 412 81 37

Percentage 78% 15% 7%

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From this analysis it came to know that in Ludhiana the 78% of the business is manufacturing, 15% business is trading and 7% business is service. It means the Ludhiana industry is a manufacturing industry.

Location of industries

Location Ind. Area

Focal point

Sunder Nagar

No. of respondents

299 192 39

Percentage 56% 36% 8%

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Interpretation

From this analysis it came to know that most of the industry of Ludhiana is concentrated around focal point area (36%) and industrial area (56%) and the then sunder nagar (8%).

Type of manufacturing industry

Type of Manfg. industry

Cycle parts

Auto parts Hosiery & dyeing

Forging Others

No. of industries 130 83 72 51 76

Percentage 32% 20% 18% 12% 18%

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Interpretation

From this analysis it came to know that in Ludhiana the 32% industry is cycle industry and then followed by Auto parts industry (20%), Hosiery(18%) and rest by others industries.

Percentage of various car companies

Preferred Brand Maruti Hyundai Honda Tata Toyota Others

No. of cars 362 126 144 109 75 115

Percentage 39% 14% 15% 12% 8% 12%

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Interpretation

From this analysis it came to know that 39% of the domestic car market is owned by maruti and then followed by Honda(15%) , Hyundai(14%), Tata(12%), Toyota(8%) and others(12%).

Price wise Distribution of cars

Price range of cars

3-7lakhs 7-12lakhs 12-20lakhs 20-30lakhs 30+lakhs

No. of cars 449 352 84 22 24

Percentage 48% 38% 9% 2% 3%

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Interpretation

From this analysis it came to know that the cars with range 3-7lakhs holds 48% of the market while the cars with range 7-12lakhs holds 38% of the market and rest of the market is holed by other range of cars. Which means most of the market is hold

by 3-7lakhs and 7-12lakhs cars.

Mode of Purchase

Mode of Purchase Cash FinanceNo. of respondents 122 408

Percentage 23% 77%

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Interpretation

From this analysis it came to know 77% of customer prefers to purchase cars on finance due to various reasons. And this ratio also show the purchasing power of the customer

Preferred Bank for FinanceTotal no. of respondents-290

Preferred Bank ICICI HDFC Nationalized Any other

No. of respondents

90 55 84 61

Percentage 31% 19% 29% 21%

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Interpretation

From this analysis it came to know 31% of people prefer ICICI bank, 29% of people Nationalized bank, 19% of people prefer HDFC bank and 21% of people prefer others bank for financing the cars. Hence ICICI is the prior option chosen by the customers to finance their cars.

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Conclusion

The above study shows that Ludhiana industry is manufacturing industry and most of the

industry resides in focal point and industrial area. In manufacturing industry cycle industry, auto

parts industry and hosiery industry are major industries. And among car companies maruti holds

the major part of the market followed by Hyundai, Honda, Tata and then other companies. And

most number of cars hold by customers are in the range 3-7lakhs (35%) and then 7-12lakhs

range. Most of the customers (77%) prefer to purchase cars on finance. Most customers change

their cars after 3-4 year interval. As this result may not be suitable to all the regions of the

country because of the culture, standard of living and volume of the market. The research

concludes that Volkswagen have great opportunity to penetrate in the market.

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LIMITATIONS OF THE RESEARCH PROJECT

The research study suffers from following limitations:

The Ludhiana market was too vast and it was not possible to cover each and every

customer in the available short span of time.

Generally, the respondents were busy in their work and were not interested in

responding.

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Respondents were reluctant to disclose complete and correct information about

themselves and their organization..

Most respondents were reluctant to provide exact information as in why they preferred

particular company’s car.

The research was conducted in present prevailing conditions. There can be some

fluctuations in the market, which can offset the findings.

The project is carried out for the period of 45 days only.

Measurement of customer satisfaction is complex subjects, which uses non-objectives

method, which is not reliable.

The sample unit was also 120 respondents

Recommendation

Volkswagen should increase their service stations.

Facilities regarding after sales services should be increase.

People were not aware about VW brand, there should be more brand awareness in the

market.

They should increase advertisement activities.

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People didn’t recognize difference between prestige motors & Prestige Honda, that

should be rectified.

They should promote more road shows in the respective areas.

The company should promote about the entire feature offered by it.

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QUESTIONNAIRE FOR THE CUSTOMER PROFILE MAPPING

Name ………………………….

Q1: What is your age?

(a) 20-30 (b) 30-40 (c) 40-50 (d) 50+

Q2: Are you a:

(a) Main earning member (b) Other earning member

Q3: What is your occupation?

(a) Businessman (b) Salaried (c) Self Employed

If Businessman

(a) Company Name :(b) Designation :(c) Address:

Q4: What type of business are you doing?

(a) Manufacturing (b) Trading (c) Service Industry

If Manufacturing:

(a) Cycle parts (b) Auto parts (c) Hosiery/Dying (d) Forging (e) Any other (specify)………….

Q5: How many various others units do you have?

Place 1………………………………………………………………………… Place 2………………………………………………………………………… Place 3………………………………………………………………………… Place 4…………………………………………………………………………

Q6: What is your monthly household income?

(a) Below 50,000 (b) 50,000-1, 00,000 (c) 1, 00,000-1,50,000 (d) Above 50, 00,000

Q7: Number of cars currently owned

Year of Purchase Make Model

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BIBLIOGRAPHY

1. Research methodology – C.R. kothari.

WEBSITES:-

http:// www.volkswagen.co.in

http:// www.prestigemotors.co.in

http:// www.automobile.com

http:// www.google.com

Magazines

Autocar

OverDrive

Staff of Prestige Motors