Vtu Mba Final Summer Project On Hyundai Part A
Vtu Mba Final Summer Project On Hyundai Part A
PART- A
INDUSTRY PROFILE
The Indian automotive industry has witnessed an unprecedented boom in recent year owing the
improvement in living standards of the middle class, and a significant increase in their disposable
incomes. The industry is expected to touch the 10 million mark, to which the commercial vehicle
segment will be a major contributor. Industry experts peg the Indian Automobile Sales growth at
a compounded annual growth rate (CAGR) of 9.5 % by end of 2010.
Domestic Sales
The Society of Indian Automobiles Manufacturers’ Association (SIAM) estimates the sales
figures of 7.5 million motorcycles, 2 million cars (including MPVs, SUVs & MUVs) and 9
million two-wheeler For year 2008-09 fiscal. Consequently, India should be able to contribute
about 6 % to the total global automotive industry output by end 2010.
(Number of Vehicle)
Source: www.osec.ch
Leading Players
in India Operating
income-
US$ 1.47 billion
in 2005
Hindustan A C.K Birla Capacity – Lancer, Uttarpara (West
Motors group flagship 64’000 Ambassador, Bengal),
Ltd. and one of the units pa Contessa, Pithampur
oldest auto Volumes – Trekker, (Madhya
companies in 15’782 RTV, Pushpak, Pradesh),
India. units Pajero Trivellore (Tamil
Operating Nadu)
income-
US$ 159.7
million
in 2004
Ashok Leyland Hinduja group Operating Multiaxle Ennore, two
Income vehicles, plants
- US$ 952.9 tractor, ecomet, at Hosur, the
million in 2005 engines, Viking assembly plants
BSI, at
Viking BS-II, Alwar, Bhandara,
Vestibule Bus, castings plant at
222 Hyderabad
CNG bus etc
TVS Motor TVS Group Operating Mopeds - Excel, Hosur, Mysore
Income Champ, TVS
- US$ 641.9 50Scooterettes -
million in 2005 Scooty
Motorcycles
- Max 100,
Victor,
Centra, Fiero
4
Corp
Skoda Auto Skoda Auto, Capacity – Octavia, Laura Aurangabad
India based in Czech 10’000 (Maharashtra)
Republic, is a units pa
part Volumes –
of Volkswagen 3’712 units
group
Hero Honda Joint venture Capacity - 2.8 Motorcycles - 2 plants at
between Hero million CD Daruhera and
Group, the units pa Dawn, CD Gurgaon
world's largest Operating Deluxe,
bicycle income - US$ Splendour,
manufacturers 1.66 billion Passion,
and in 2005 Karizma, CBZ,
the Honda Motor AmbitionStep
Company of Through - Street
Japan
Honda Wholly owned Capacity- Scooters - Manesar
Motorcycle & subsidiary of 200’000 vehicles Activa,
Scooters India Honda Motor per Dio, Eterno
Pvt. Ltd Company Ltd., annum Motorcycles -
(HMSI) Japan Unicorn
Source: www.osec.ch
COMPANY PROFILE
Shree Hyundai is one of the dealership of Hyundai Motors India Limited in BOKARO. It
was established in the year 2007. With the opening of this venture, customers may feel ease as
they are having options to take the view from either of the show room. It seems Mr. B.D.Mishra
decided to open this showroom in Chas (Bokaro) area as there is no any passenger vehicle
showroom in this area and it is going to be the future business area of the Bokaro.
Shree Hyundai’ working philosophy is particularly based on “Prepare employees for the future
developments with developments in their personality.” As competition is very much intense
hence the management is working hard for customer relationship to achieve future business
growth.
As it is newly opened organization hence as every other organization it is also facing some
management problems. Management is trying to overcome all these problems and achieving
systematic workings here. Each and every department is distinguished for the employees. Every
employee is having its own designation and job profile and he/she has to work under that profile
only. For each segment of the vehicles, Shree Hyundai is having its separate executives.
Departments are connected through local area networks.
The main aim of management here is self development of employees. So that, they can be
empowered for the benefit of the organization and be able to take future responsibilities. It starts
with the joining of the employee in the organization. Initially, they have to work under various
departments till his/her probation period would be over. They have to start their works from the
ground level, so that they can understand the reality of the business here. Daily reporting at the
morning and the evening make them up to date with the objectives and their future targets. The
senior management knows that how they are doing their work and in which way they have to be
directed.
ABOUT HMIL
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the largest passenger car exporter and the second largest car
manufacturer of India. HMIL presently markets 54 variants of passenger cars across segments.
These includes the Santro in the B segment, the i10, the Getz Prime & the premium hatchback
i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Transform in the
E segment and the Tucson in the SUV segment.
Hyundai Motor India Ltd, continuing its tradition of being the fastest growing passenger car
manufacturer, registered total sales of 559,880 vehicles in the calendar year (CY) 2009, an
increase of 14.4 percent over CY 2008. In the domestic market it clocked a growth of 18.1
percent as compared to 2008 with 289,863 units, while overseas sales grew by 10.7 percent, with
export of 270,017 units. HMIL currently exports cars to more than 110 countries across EU,
Africa, Middle East, Latin America and Asia. It has been the number one exporter of passenger
car of the country for the sixth year in a row.
HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most
advanced production, quality and testing capabilities in the country. In continuation of its
commitment to provide the Indian customer with global technology, HMIL commissioned its
second plant in February 2008 which produces an additional 300,000 units per annum, raising
HMIL's total production capacity to 600,000 units per annum.
HMIL has invested to expand capacity in line with its positioning as HMC's global export hub
for compact cars. Apart from the expansion of production capacity, HMIL currently has 286
strong dealer network and 540 strong service points across India, which will be further bolstered
in 2010.
In December 2008, HMIL launched the much awaited premium compact the i20 after it had a
global preview at the Paris Motor Show in October, 2008. In 2009, HMIL also launched the new
facelift Sonata Transform and the new Verna which are vastly improved models compared to the
outgoing models. In March, 2009 Hyundai i10 clocked the fastest 3 lakh sales since its launch in
October, 2007. HMIL also became the only car manufacturer to introduce Automatic
transmission across segments with the launch of the i20 1.4 Litre Petrol Automatic. The i20 also
simultaneously got a powerful 1.4 Litre CRDi engine in July 2009. The i20 achieved the highest
safety rating by the European NCAP. In September 2009, HMIL introduced the new refurbished
Santro with luxurious interiors and improved exterior features. The Santro has been the highest
selling model for Hyundai with more than 15 Lakhs units sold since its launch in India in 1998.
Hyundai Motor India in December 2009 also crossed the 25 Lakh car production milestone.
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Hyundai Motor India remains one of the fastest growing car manufacturers in the country. The
company’s overall performance in the automobile sector was recognized by the media as it was
awarded with the prestigious ‘Manufacturer of the Year’ award by both UTVi Autocar Car and
NDTV Profit-Car & Bike in 2009
HMIL has invested to expand capacity in line with its positioning as HMC's global export hub
for compact cars. Apart from the expansion of production capacity, HMIL currently has 251
strong dealer network across India, which will be further bolstered in 2009.
Shree Hyundai is a dealer of cars of Hyundai motors. The business carried by Shree
Hyundai is of dealership. It is an also an authorized service centre and it totally aims in
selling cars both passenger and SUV vehicles as per demand of customers.
The mission of the Shree Hyundai is committed to develop the firm as a big
competitor and service provider in the Jharkhand Passenger car market.
• VISION:
The dealer announced "Innovation for Customers" as our mid–to long–term vision with
five core strategies: global orientation, respect for human values, customer satisfaction,
technology innovation, and cultural creation. They desire to create an automobile culture
of putting customer first via developing human–centered and environment–friendly
technological innovation.
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• QUALITY
POLICY:
Based on a
respect for human dignity, it make efforts to meet the expectations of all stakeholders
including customers and business partners by building a constructive relationship
amongst management, labor, executives and employees. Also, they focus on
communicating their corporate values both internally and externally, and gaining
confidence from all stakeholders.
D. Products Profile:
(As on 19/02/2010)
(In Rupees)
GL (S) 3,34,971
GL (M) 3,38,432
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GLE 5,24,652
Accent
ECO 5,33,900
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E. Area of Operation:
The firm operates regionally in the Jharkhand circle. The showrooms are situated
in the important markets of Jharkhand that are Bokaro(Head office), Dumka,
Ramgarh, Ranchi and Purulia (Bengal). But the HMIL under which the dealership
situated operates globally in both Passenger cars segments and SUVs segment.
F. Ownership Pattern:
The firm is private limited firm and the dealership is directly under the HMIL.
G. Competitors Information:
M-800 had dominated the Indian car market since it was launched in 1984. The
introduction of new cars by competitors made the M-800 look obsolete as it had not been
changed in any major way for over two decades. Apart from the increased competition,
MUL also had a few other problems on its plate.
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There was a delay in setting up of a plant in India for manufacturing diesel engines and
transmission systems for cars. The engines for its diesel variants were imported from other
countries, and there were limits on the quantities it could import. In the market, MUL's
models like the Zen, Alto, WagonR, and Baleno were showing mixed results.
In June 2003, 'Scorpio,' a sports utility vehicle (SUV) from Mahindra and Mahindra Ltd. (M&M),
a leading Indian automobile company, celebrated the first anniversary of its launch.
This one year journey had been quite fruitful for Scorpio, which had impressed many industry
observers and customers.
A year ago, within the first eight days of its launch, Scorpio had attracted over 10,000 customers
to its dealer showrooms and over 3,000 customer enquiries, resulting in 1000 order bookings.
According to company sources, by the time it completed its first birthday, Scorpio had sold
15,000 units across India.
Media reports, automobile enthusiasts and industry analysts had all given the SUV extremely
positive reports. With demand for the vehicle growing steadily, M&M even had to increase its
production from 1,800 units per month in 2002 to 2,000 per month in June 2003, and 2,500 per
month by late 2003.
Thanks to the high decibel advertising support, Scorpio had acquired high brand recall among
consumers. In fact, it was said to be one of the very few automobile brands in India that
successfully boosted the image of their parent companies (in this case M&M) as well.
H. Infrastructural Facilities:
o The showroom has good facilities such as Playing area for children who are
coming with the customers,
o Good entertainment facilities available for customers who were wait during the
servicing of their car,
o Win the best car seller award in Bokaro from Chas Chamber of Commerce.
Supply of cars
from Manufacturer
COLOUR After all
Documentation
the car is finally
Delivery to 15
delivered to
Showrooms customer
BOOKING OF
T-JOHN INSTITUTEWit
OFinTECHNOLOGY
5 days
CAR
SHREE HYUNDAI.
Pre-sales
Sales
Post –sales
The pre-sales process is very important because if a customer has a satisfying experience during
this process, it greatly increases the chances of him purchasing the car from your showroom. At
this stage, the customer is indecisive as to which car to buy and from where to buy.
Product
Demonstration
Test Drive
In case there are too many Sales cases, a special focus is required to serve these customers
since ultimately, the customers are also the showroom’s customers and there are suggested ways
to handle them.
Shree Hyundai’s future growth is very bright because it is the newly growing firm in the
Bokaro market. It is the division of Ranju automobiles (Pvt.) Ltd. which is already a well
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established Bajaj showroom in the Bokaro market. The customers of Bokaro is already
aware about the Ranju Automobile because this is the very old firm and dealership in
Jharkhand. Due to this customers are committed toward this dealership and due to this
customers do not go for any other showroom of Hyundai.
McKinsey’s 7S framework :
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STRATEGY
• Its primary consumer target is middle to upper income professionals who need true value
for their money and comfortable ride in city conditions. Its primary business target is
midsized to large sized corporates that want to help their managers and employees by
providing them a car for ease of transport.
• Its secondary business target is entrepreneurs and small business owners who want to
provide discounts to managers buying a new car
STRUCTURE
Managing Director
Chief Executive
Officer
Corporate
Team GDMS
&Exchange , Accessori Service
Leader,S and Back
Hyundai Finance es & Dept.
ales Office
Advantage Pre- Dept. Spares
Owned Cars
S.E. 1 Employee 1
S.E. 2 Employee 1
Employee 2
S.E. 3 Employee 2
Sales S.E. 4
Executive Employee 3
s Employee 319
S.E. 5
T-JOHN INSTITUTE
S.E. OF
6 TECHNOLOGY
SKILL
Shree Hyundai product is Passenger Cars, so they should be handled carefully. So it required
skilled manpower for handling, and skill in the sense testing of cars.
Training will be conducted in Hyundai Jamshedpur (Jharkhand). For newly recruited employees
will be given basic training program for 10 weeks. And 10 weeks training will be given for
employees for junior technical officer, about machines. Training will be given to employees to
know about the total features of cars in Shree Hyundai.
STYLE
Participating Approach
At Shree Hyundai the management is participating in nature. Anyone in the company can
put in their view points before the management for any improvement in the prospects of the
company, manpower, working environment,etc….
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SYSTEM
The marketing department is divided into 5 Teams. For all the different marketing teams, one
Team Leader is assigned. The team leaders take care of their team’s activities and report to the
marketing manager that is further reported to the CEO. The marketing is totally target based and
based on targets given by HMIL, the task is distributed to different teams.
The customers are handled by the same personnel from the beginning to the end. Spot incentive
Schemes etc is placed in the system to motivate the employees. The conversion and Target
fulfillment is traced out via the software.
STAFF
To undergo the prescribed probation under specify period and undergo such training and
for a period has may be arranged for him/her and acquit him/her self creditably in the
training imported to him/her.
To obey and abide the rules, regulations, service conditions and standing orders which
the may adopt, prescribe, frame are issue from time to time to govern its employees.
SHARED VALUES
The review of customer care activities is done through morning meetings and weekly meetings
on customer care. The documents that are necessary during the weekly review are: PSR related,
Internal SSI forms related,HMIL related and other information related.
A week after the delivery, the concerned sales person must fix an appointment with the customer
and visit him along with the service advisor. He should personally hand over the photographs
clicked also the vehicle’s registration certificate and try to become the customer’s car advisor for
life and never lose touch with the customer.
The hours of operation, outside and insides of the showroom along with reception, car display
area, selling area, customer lounge and delivery area should be taken care of.
Customer Meets
Organizing customer meets helps in improving SSI, helps in introducing the workshop staff to
the customers and in getting referrals and there are guidelines for the same.
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SWOT ANALYSIS
STRENGTH:
Ranju Automobiles Pvt. Ltd. is very old firm in Bokaro due to this customers of
Bokaro area and its surroundings aware about this.
WEAKNESS:
SUV car has only two model i.e., TUCSON and TERRACAN which is fewer
available in India due to uneconomic and out of reach for middle class Families.
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Manufacture only Passenger vehicles but some models are not economic such as
Verna, Accent, etc
OPPORTUNITY:
If the cars are more economic then the sales will be more boom and the company
turn into first position in Indian automobile sector and win from their competitors
i.e., Maruti Suzuki, Tata Motors, GM and M&M.
THREATS:
Risk Factors
Maruti Suzuki’s is also the old car showroom in Bokaro due to this
the competition is high with Shree hyundai
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KEY RATIOS
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Aggregate of non- (Rs. 2.00 per share) (Rs. 2.00 per share)
promoters shareholding
Interpretation:
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LEARNING EXPERIENCE
There was a great opportunity for me to do my research work there. I was a part of many
promotional schemes in sales. Learnt about the automobile sector, company’s history, how they
promote the company, how to manage sales dept to get more sales, etc….
I started my research in the company and as well as I was looking at other works that was
allotted to me. The best learning experience was that I started from the very basics of getting the
overall idea.
This helped me get useful insight and understanding of various automotive products, the market
details about them and the benefits provided by them to the customers. Apart from the assigned
roles and responsibilities, the Branch manager facilitated me with a training which covers the
sales and permotional schemes of Shree Hyundai. and how they are arranging sales and how they
make strategies to increase sales, about their corporate culture, organizational structure.
I had a very pleasant learning their, I got to know about corporate and its working style of
different departments. The guide helps me to understand the customers in the Bokaro market. In
conclusion, I would like to state that by the experience of this training, the theoretical knowledge
has no meaning without the practical approach. Both theoretical and practical knowledge serves
as the two faces of the same coin. This learning experiences is valuable for me because I got a
opportunity to understand the market situations and customer values.
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