SHREE HYUNDAI.
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. • India is the second largest two-wheeler market in the world. • Fourth largest commercial vehicle market in the world. • Eleventh largest passenger car market in the world. • Fifth largest bus and truck market in the world (by volume). • Envisaged to be the seventh largest automobile market by 2016, and world’s third largest by 2030 (behind only China and the US).
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.
Automobile Domestic Sales Trends (Number of Vehicle)
Category
2003-04
Total passenger 902,096
2004-05
2005-06
2006-07
2007-08
2008-09
1,061,572
1,143,076
1,379,698
1,549,882
1,551,880
vehicles 1 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI. Total
260,114
318,430
351,041
467,882
490,494
384,122
307,862 6,209,765
359,920 7,052,391
403,909 7,857,548
364,781 7,249,278
349,719 7,437,670
7,897,629
8,906,428
10,109,037
9,654,435
9,723,391
commercial vehicles Three wheelers 284,078 Total Two 5,364,249 Wheelers
GRAND
6,810,537
TOTAL Source: www.osec.ch
Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers
15.96% 3.95% 3.6% 76.49%
Source: www.osec.ch
Growth and Development of the Industry Auto sales in 2008 and 2009: 2 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
Company
December
December
%
Maruti Suzuki Hyundai Mahindra
2008 52,029 15,602 7,726
2009 71,000 22,252 16,999
change 37 43 120
4,041 732 272 80,402
8,258 1,113 308 119,930
101 52 13 49
&
Mahindra General Motors Skoda Mahindra Renault Total
Source: www.osec.ch
Leading Players Profile of key Domestic Players: Name of the
Parent company
Output
Models
Plants
company Tata Motors
Largest
Capacity –
Sierra, Sumo,
Pune
Ltd
commercial
160’000 units pa
Safari, Indica,
(Maharashtra)
vehicle player in
Volumes –
Indigo
the country and
171’870 units in
one of the largest
2004
in the
Operating
passenger
income-
vehicles
US$ 3.8
Mahindra &
segment. Flagship
billion in 2005 Capacity –
Armada, Bolero,
Mumbai, Nashik
Mahindra Ltd
company
125’000
Commander,
(Maharashtra)
of the Mahindra
units pa
Marshall, Maxx,
Group; largest
Volumes –
Voyager, Scorpio
player in the
69’737
tractor segment
units in 2004 3
T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI. in India
Operating incomeUS$ 1.47 billion
Hindustan
A C.K Birla
in 2005 Capacity –
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
Lancer,
Uttarpara (West
Operating
Nadu)
incomeUS$ 159.7 million Ashok Leyland
TVS Motor
Hinduja group
TVS Group
in 2004 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
Operating
CNG bus etc Mopeds - Excel,
Hosur, Mysore
Income
Champ, TVS
- US$ 641.9
50Scooterettes -
million in 2005
Scooty Motorcycles - Max 100, Victor, Centra, Fiero 4
T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI. Bajaj Auto
Bajaj Group
Capacity - 2.52
Motorcycles -
3 Plants at
million units
Boxer, CT 100,
Akurdi,
pa Operating
Discover, Wind,
Waluj, Chakan.
income - US$ 1.3
Caliber, Pulsar,
billion in 2005
Eliminator Scooters - Spirit, Saffire, Wave
Source: www.osec.ch
Profile of key Foreign Players: Name of the
Parent
Output
Models
Models Plants
company Maruti
Company Suzuki of
Capacity -
800, Omni, Alto,
Gurgaon
Udyog Ltd
Japan holds
500’000 units
WagonR, Zen,
(Haryana)
a 54.2 per
pa
Baleno, Esteem,
cent stake in
Volumes -
Gypsy, Vitara,
the company
472’122 units
Versa
including exports in 2004 Operating iIncomeUS$ 2.4 billion Hyundai
Wholly
in 2005 Capacity -
Motors India
owned
150’000 units
Sonata, Terracan,
Ltd
subsidiary of
pa
i-10, i-20,
Hyundai
Volumes -
Motor
171’905 units
Santro, Accent,
Irrungattukottai (Tamil Nadu)
Company, S. Korea 5 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI. Daimler
100 per cent
Capacity -
E class, S class,
Pune
Chrysler
subsidiary of
10’000 units pa
C class
(Maharashtra)
India
Daimler
Volumes -
Chrysler
1’640 units
Group Subsidiary of
Capacity -
Uno, Siena,
Mumbai
Fiat Auto SpA
50’000 units pa
Palio,
(Maharashtra)
Volumes -
Palio Adventure Ikon, Mondeo
Fiat Motors
Ford Motors
Ford Motor
10’428 units Capacity -
Ltd
Company, the
100’000 units
world's second
pa
largest
Volumes -
General Motors
automaker Collaboration
45’723 units Capacity –
Astra, Corsa,
Ltd
between
25’000
Swing, Forrester,
General Motors
units pa
Vectra, Sail,
Corporation and
Volumes –
Optra,
C.K. Birla Group
17’986
Chevrolet Optra
Honda Siel Cars
of companies Established in
units Capacity –
Volumes -
India (HSCI)
1995, with
30’000
20,550
Honda
units pa
units
Chengaipattu (Tamil Nadu)
Motor Company,
City, Accord,
(Japan) and Siel
CR –V
Halol (Gujarat)
Noida (UP)
Ltd (India) being the key Toyota
promoters. Joint venture
Capacity –
Volumes -
Bidadi
Kirloskar
between
50’000
42,549
(Karnataka)
Kirloskar
units pa
units
Group and
Qualis, Camry,
Toyota Motor
Corolla 6
T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
Skoda Auto
Corp Skoda Auto,
Capacity –
India
based in Czech
10’000
Republic, is a
units pa
part
Volumes –
of Volkswagen
3’712 units
group 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,
Hero Honda
Octavia, Laura
Aurangabad (Maharashtra)
the Honda Motor
AmbitionStep
Company of
Through - Street
Honda
Japan Wholly owned
Capacity-
Scooters -
Motorcycle &
subsidiary of
200’000 vehicles
Activa,
Scooters India
Honda Motor
per
Dio, Eterno
Pvt. Ltd
Company Ltd.,
annum
Motorcycles -
(HMSI)
Japan
Manesar
Unicorn
Source: www.osec.ch
COMPANY PROFILE
A. Background and Inception of the company: 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 7 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI. 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. 8 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
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. 9 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI. 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.
B. Nature of Business Carried: 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.
C. Vision, Mission and Quality Policy: •
MISSION:
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.
10 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
•
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: MODEL
VARIANT
Ex-Showroom Price (As on 19/02/2010) (In Rupees)
SANTRO
Non A/C (S)
2,69,524
Non A/C (M)
2,72,985
GL (S)
3,34,971
GL (M)
3,38,432
GLS (S)
3,22,168
GLS(M)
3,58,628
D-Lite (S)
3,38,276
D-Lite (M)
3,41,757
Era 1.1L (S)
3,73,514
11 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
I-10
Getz
I-20
Accent
Verna
Sonata
Era 1.1L (M)
3,76,996
Magna 1.1L (S)
3,87,693
Magna 1.1L (M)
3,91,174
Magna 1.2L Kappa (S)
3,99,794
Magna 1.2L Kappa (M)
4,03,275
Magna 1.2L-AT (M)
4,48,874
Sportz GLS1.2L (S)
4,27,061
Sportz GLS1.2L (M)
4,30,543
Sportz GLS1.2L-AT(M)
4,72,967
Asta GLS 1.2L (S)
4,85,749
Asta GLS 1.2L (M)
4,89,231
GLE 1.1
3,62,281
GVS 1.1
3,92,281
GVS 1.1 (175 tyre+ rear spoiler)
4,02,281
Magna 1.2L
4,83,999
Asta 1.2L
5,63,999
Magna Diesel 1.4L (ABS)
6,23,599
Asta Diesel 1.4L
6,87,199
Executive IMM
5,03,901
GLE
5,24,652
ECO
5,33,900
1.6 VTVT
6,46,038
1.6 SX VTVT
7,20,838
1.5 CRDi VGT
7,69,070
1.5 SX CRDi VGT
8,18,967
Embera MT (Leather)
13,30,067
Embera AT (Fabric)
13,61,639
Embera AT (Leather)
13,92,927
Embera 2.0 CRDi
14,43,917
12 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
TUSCON
Embera MT (Fabric)
12,98,786
CRDi
16,96,114
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. Owner – Mr. B.D. Mishra CEO- Mr. Nitesh Kumar Mishra Branch Manager and Manager Sales– Mr. Manish Prasad
G. Competitors Information: Car segment – Maruti Suzuki 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. 13 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI. 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.
Utility Vehicle segment – Mahindra Marketing Strategy of Mahindra and Mahindra Limited for Scorpio 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:
The firm has good infrastructural facilities these are: 14 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI. o
It is situated in the main market place of the Bokaro Steel City.
o The showroom has good facilities such as Playing area for children who are coming with the customers, o
Good servicing facilities for cars with advanced technologies,
o
Good entertainment facilities available for customers who were wait during the servicing of their car,
o
The showroom uses new technology in their management information system(MIS).
I. Achievement and Awards: o Achieved the most car seller dealership in Jharkhand. o
Win the best car seller award in Bokaro from Chas Chamber of Commerce.
J. Work flow Model:
CUSTOMER APPROACH MODEL
PROCESSING OF ORDER Order to Manufacturer
FEATURES
DELIVERY OF ORDERS Customer choose the payment option i.e., car finance or cash.
Supply of cars from Manufacturer COLOUR Delivery to Showrooms BOOKING OF 5 days T-JOHN INSTITUTEWit OFinTECHNOLOGY CAR
After all Documentation the car is finally delivered to customer
15
SHREE HYUNDAI.
There are three broad processes at a showroom. Pre-sales Sales Post –sales
All these are inter-related to each other. 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.
Walk in Enquiry
Telephonic Enquiry
Product Demonstration
Test Drive
The pre-sales activities include: 16 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
•
Cold Calling and Identification of Prospects
•
Creation of Customer Card
•
Acquire Knowledge about MUL ‘s range of cars, competitor cars
•
Knowledge about other allied services like finance, insurance, pre owned cars, extended warranty etc.
•
Knowledge about accessories, range offered, prices etc. and about preventive maintenance of the car.
THE SALES ACTIVITIES INCLUDE: Visit the prospects Understanding needs of the prospects Give a proposition to the customer. Create interest and preference for MUL Give a detailed demonstration and test drive Provide clarification to queries and handle objections Follow-up with the customer Secure order from customer Offer allied services like finance, insurance, accessories etc. Advice customer on all matters related to his car. 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.
K. Future growth and prospects: 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 17 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI. 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 :
18 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
STRATEGY Shree Hyundai’s marketing strategy is differentiated marketing. •
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 Overall Structure of the Shree Hyundai: Managing Director
Chief Executive Officer Branch Manager and Manager ‘sales & marketing’
Corporate &Exchange , Hyundai Advantage PreOwned Cars
Team Leader,S ales S.E. 1 S.E. 2
Sales Executive s
S.E. 3 S.E. 4
Finance Dept.
GDMS and Back Office
Employee 1 Employee 2 Employee 3
S.E. 5
Accessori es & Spares
Service Dept.
Employee 1 Employee 2 Employee 319
T-JOHN INSTITUTE S.E. OF 6 TECHNOLOGY S.E. 7
Service Employees 01 to 30
SHREE HYUNDAI.
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 Top down Approach
The management acts with autonomy and independence in excercising strategic supervision, discharging its fiduciary responsibilities, and in ensuring that the company observes the highest standards of ethics, transparency and disclosure.
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….
20 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI. 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 CATEGORY
NO. OF STAFF
TYPE OF WORK
Sales Consultants
10
Generate sales from market
Back Office
02
Maintain the data of customers
Finance Dept.
06
Maintain the financial data
Spares And Accessories
04
Maintain the data and Stock of parts and spares
Corporate and Exchange
03
Deal in all the pre-owned cars of Hyundai
Service Dept.
40
Servicing of cars and data maintenance of Serviced cars in service station of Shree Hyundai.
EDP
06
Maintain Showroom data and customers complaints, etc
DUTIES AND RESPONSIBILITIES OF STAFF
To report him/ her to duty at the place to which he/she posted. 21 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI. 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 Review of Customer Care Activities. 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.
Customers for Life 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. Show Room Ambience 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.
22 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
SWOT ANALYSIS
STRENGTH: Second largest manufacturer of Passenger vehicles in India due to this customers
are attracted towards the company in Bokaro.. 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. 23 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI. Manufacture only Passenger vehicles but some models are not economic such as Verna, Accent, etc OPPORTUNITY: Shree Hyundai has opportunity to grow as a big competitor in Jharkhand automobile sector. 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 In the course of its business, Hyundai is exposed to a variety of market and other risks including the effects of demand dynamics, commodity prices, currency exchange rates, interest rates, as well as risk associated with financial issues, hazard events and specific assets risk. Whenever possible, we use the instrument of insurance to mitigate the risk. Threats from Competitors o Maruti Udyog Limited Maruti Suzuki’s is also the old car showroom in Bokaro due to this the competition is high with Shree hyundai
24 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
Analysis of Financial Summary
25 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI. Particulars
2007-08
2008-09
(in laces)
(in laces)
2070147
2621400
Growth in Sales (nos) (%)
23.4
26.6
Total Income
5997
7563
Growth in Total Income (%)
15.5
26.1
Profit before Tax
1072
1217
728
810
Share Capital
39.94
39.94
Reserves and Surplus
1099
1453
Total Debt
175
202
Net Fixed Assets
589
715
Total Assets(Net)
1314
1695
Market Capitalisation
9797
10943
569
564
0
0
OPBIT*/Net sales-%
16.8
15.7
OPBT**/Net Sales*(%)
15.6
14.6
Profit after Income(%)
12.1
10.7
Return on Avg. Equity (%)
72.9
61.6
Return on Avg. Employed(%)
92.8
80.9
49.3
37.5
20
20
Dividend Payout (%)
61.9
56.3
Earnings Per Share (Rs)
36.5
40.6
8.6
7.3
Sales ( nos)
Profit after Tax
Economic Value Added(EVA) KEY RATIOS Long Term Debt/Equity
tax/Total
Capital
EVA/Capital Employed(%) Dividend Per Share ( Rs)
Market Value/Book Value
T-JOHN INSTITUTE OF TECHNOLOGY
26
SHREE HYUNDAI.
Particulars
Corresponding nine months ended December 31, 2008
Year ended March 31, 2009 (Audited)
No. of Four-wheelers Sold
1,935,981
2,621,400
Gross sales/ Income from 6,356.21 operations
8596.81
Less: Excise duty
1,175.16
874.89
Net sales/ from operations
Income 5,481.32
7,421.65
Other income
105.27
141.03
Total Turnover
5,586.59
7,562.68
Total Expenditure
4,610.03
6,257.14
[A] / Decrease in trade
{Increase} (9.14) in stock
[B] Consumption raw materials
of 3,845.23
(14.95)
5,214.57
[C] Staff cost
195.04
267.97
[D] Other expenditure
578.90
789.55
Interest (net)
(0.65)
(1.09)
Depreciation
63.03
89.38 27
T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
Profit for period before tax
the 914.18
1,217.25
Provision for tax - Current
297.11
395.22
- Deferred
13.71
11.56
Net profit (8-9)
603.36
810.47
Paid-up Equity Share Capital
39.94
39.94
Face value share (Rs.)
per
equity 2.00
Reserves excluding revaluation reserve
Basic/diluted per share
2.00
1,453.44
earnings 30.22
40.59
Aggregate of nonpromoters shareholding
(Rs. 2.00 per share)
(Rs. 2.00 per share)
Number of shares
89,945,570
89,945,570
Percentage holding (to total holding)
of 45.04%
45.04%
Interpretation: 28 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
29 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
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.
30 T-JOHN INSTITUTE OF TECHNOLOGY
SHREE HYUNDAI.
31 T-JOHN INSTITUTE OF TECHNOLOGY
