BRAND ANALYSIS OF NEXA

Transcription

1 BRAND ANALYSIS OF NEXA A Dissertation Report Submitted in Partial Fulfilment for the Degree of Master of Business Administration SUBMITTED TO Dr. Komal Chopra SUBMITTED BY KAAMIT MALHOTRA A 15 AMIT KIRAN SINGH A 43 DHRUV DUGGAL A 52 SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES SYMBIOSIS INTERNATIONAL UNIVERSITY November 2016

2 ACKNOWLEDGEMENT We wish to express our gratitude to Dr.Komal Chopra for her guidance and support in the duration of the study; our respondents, who included our batch-mates, and other individuals who were willing and cooperative and extended their efforts for the successful completion of this endeavour. We also extend our thanks to the staff and faculty of Symbiosis Institute of Management Studies, for providing the necessary infrastructure for our research. -The Researchers 1 P a g e

3 DECLARATION I, Dhruv Duggal, Amit Kiran Singh and Kaamit Malhotra hereby declare that the dissertation report entitled Brand analysis of NEXA under the guidance of Dr. Komal Chopra is submitted in partial fulfilment Degree of Masters of Business Administration. The project or any part of it has not been previously submitted for any degree in this Institute or anywhere else. Signature of the Students: Place: Symbiosis Institute of Management Studies 2 P a g e

4 CERTIFICATE OF THE INTERNAL FACULTY This is to certify that Mr. Dhruv Duggal, Mr. Amit Kiran Singh and Mr. Kaamit Malhotra of MBA, Batch have worked under my supervision on the project titled Brand Analysis of NEXA completing it to my total satisfaction. Dr. Komal Chopra SIMS, PUNE 3 P a g e

5 LIST OF TABLES Table 1: Age Group (in years) Table 2: Gender of Respondents Table 3: Monthly Income (in INR) Table 4: Age Group Most Interested in Buying Premium Cars Table 5: Aware of the Parent Group of NEXA Table 6: Often Hear People Talk About NEXA Table 7: Preference in Buying Decision Table 8: Factors Influencing Purchase Decision for Premium Segment Cars Table 9: Level of Agreement Table 10: Factors That Help Build a Good Brand Image of NEXA Table 11: Familiarity with NEXA Table 12: Rate on the Basis of Luxury Brand P a g e

6 LIST OF FIGURES Figure 1: Age Group (in years) Figure 2: Gender of Respondents Figure 3: Monthly Income (in INR) Figure 4: Age Group Most Interested in Buying Premium Cars Figure 5: Aware of the Parent Group of NEXA Figure 6: Often Hear People Talk About NEXA Figure 7: Preference in Buying Decision Figure 8: Factors Influencing Purchase Decision for Premium Segment Cars Figure 9: Level of Agreement Figure 10: Factors That Help Build a Good Brand Image of NEXA Figure 11: Familiarity with NEXA Figure 12: Rate on the Basis of Luxury Brand P a g e

7 TABLE OF CONTENTS Chapter1: Introduction... 8 Chapter 2:Literature Review... 9 Chapter 3:Methodology Chapter 4 Results and Analysis of Data Chapter 5: Conclusions & Recommendations Chapter 6: References Chapter 7 - APPENDIX P a g e

8 ABSTRACT The purpose of this research is to analyze NEXA as a Premium Brand. It is known that Maruti Automobile Brands are not seen as a Premium Brands. NEXA is a differentiated and leading Indian brand which is acquiring a good amount of reputation and huge amount of sales in the Indian Market, which was the main target market from the inception of NEXA. Maruti Suzuki, which is ranked as India s largest car selling company has been quite successful in maintaining this coveted rank for years. However, in the early 1990s, when the market was opened up, Maruti Suzuki was controlling more than 60% of the market which was not expected throughout the market. However, this company was not the one without much of problems. The vital issue which the company faced at a given point in time was perception. NEXA the next generation showroom is Maruti s earnest chance to win over a generation of customers who are tech savvy and care a lot about Brand image. Key words: Automobile, Maruti Suzuki, NEXA, Marketing 7 P a g e

9 Chapter1: Introduction Overview of the Research In various part of the world, consumers always tend to have different kinds of services and products without having to know much about that the proper usage of that product and product s specification. Customers are purchasing inadvertently different brands which they have not used before. In lot of cases, consumers tend to buy without having much deep understanding about the new service or product Need of the Study This study will help to evaluate the present position of Brand NEXA among the existing customers. The study eventually helps to identify the vital reason why consumers like NEXA, which is the most important feature of NEXA cars, in which way consumers demand modification on existing models, how much is the level of customer acceptance. And also is there some kind of apprehension in mind of existing customers and the reason for their apprehensions. Objectives 1. To evaluate the customers perception and expectation towards the NEXA car 2. To identify the factors influencing in selection of NEXA. 3. To evaluate the attitude of young generation towards NEXA 4. To understand the reasons for change in perception, if any. Limitations 1. The study is limited to Pune due to geographical barriers and time constraint. 2. The study is partially based on the respondents of the research. 8 P a g e

10 Chapter 2: Literature Review Gerald D Bell (1967) researches how a new car purchaser feels about the purchase and what factors determine his response when he starts using his new car. The result of this research suggests the effect of a consumer self confidence and his personality with the the quality of buying environment he receives upon his cognitive dissonance. Dr.Garima Malik(2008) demonstrates a study on customer perception and the expectations from Tata Nano Conducted by Asst.Prof in Amity Business School- Noida. Main highlights of the study are, to understand the general perception about NANO, factors which would influence the buying decision and consumer expectations from NANO R.C.Bhargava(2010), The Maruti Story, flays emphasis on the developments of Maruti Suzuki. Mr.Bhargava in this book looked upon that Maruti Udyog establishing high standards of productivity and consumer care in the Indian automobile industry at large. C. W Park et al (1994) understanding the customer has observed that consumer knowledge is a vital factor in understanding consumer behavior such as information processing and information search. Increment in the self gained knowledge was associated with decrease in utilization recommendations of sales people s. Chi HsinKuang (2002)in his paper titled The Impact of Brand Awareness on Consumer Purchase Intention tries to explain the effects among brand loyalty brand awareness, perceived quality and intention of customer purchase. Kasper and Bloemer (1995)in his paper title The complex relationship between consumer satisfaction and brand loyalty. intends to explain brand loyalty have six necessary factors which are out of a set of such brands the comparison of comparing to one or more alternative brands; and the non-random (that is biased); Jacoby and Kyner (1973) in his paper title Brand Loyalty there are important differences in the mid of recurrence behaviour of purchasing and loyalty towards brand. According to them, the set of seven very essential as well as mutually satisfactory conditions can be defined as brand loyalty 9 P a g e

11 Chapter 3: Methodology Selection of Topic The sole objective of choosing this topic as our research was to gain an insight on how various variables/would influence in a brand preference towards buying NEXA Sampling Method and Size of Sample The sample size for the research is 104 and data was collected from random people. The data was collected both offline and online. People from different economic background and occupational background were approached. Data sources include majorly secondary data involving student journals, research papers published in reputed journals across the world. Pilot Study We decided to take a sample of 10 respondents to help conduct the study. To have a broader view we included people in our sample from different parts of Pune. The pilot study helped us to combine our thought and come to a common consensus which helped us define our target audience in order to reach our required solution Our analysis of pilot study demonstrated that 80% of pilot consumers showed a great preference towards NEXA. Looks and Brand are the two factors that affects the most while purchasing a NEXA (75%). Price and Quality are important parameters for purchase preference for Luxury brand car (80%). Style is an important factor influencing purchase decision for Luxury segment cars (76%). 10 P a g e

12 Analysis of Data Data collection tool- Primary data will be collected through two ways: 1. Filling up of hard copies of questionnaires. 2. E-Surveys, such as Survey Monkey and Google Docs. Secondary Data will be collected with the help of internet, journals, newspapers, magazines and other academic resources. Data analysis tool- 1. Microsoft Excel 11 P a g e

13 Age Group Brand Analysis of NEXA Chapter 4: Results and Analysis of Data 1. Age Group of Respondents Age Group Number of Respondents 18 to to to and Above 69 Table 1: Age Group (in years) Age Group 36 and Above to to Respondents 18 to Number of Respondents Figure 1: Age Group (in years) Discussion From the above data and graph, we can conclude that most of the respondents are in the age group of 36 and above. This is justified as the major target segment for a premium car manufacturer would fall in that age group, as they would have the required level of income to buy those cars. Another observation is the number of people in the age group 21 to 25. This goes to show that the younger adults are also aware of and purchase NEXA vehicles. This may be attributed to the economical prices of NEXA. 12 P a g e

14 Gender Brand Analysis of NEXA 2. Gender of Respondents Gender Number of Respondents Male 72 Female 31 Table 2: Gender of Respondents Gender of Respondents Female 31 Male 72 Number of Respondents Number of Respondents Figure 2: Gender of Respondents Discussion From the above data and graph, we observe that there was a good mix of respondents based on gender. We can conclude that both genders are well aware of the brand NEXA. 13 P a g e

15 3. Approximate Monthly Income (in INR). Gender Number of Respondents Male 72 Female 31 Table 3: Monthly Income (in INR) Monthly Income (in INR) 10, 10% 2, 2% 10,000 to 15,000 15,001 to 20,000 20,000 and Above 91, 88% Figure 3: Monthly Income (in INR) Discussion From the above data and graph, we observe that the majority of respondents have a respectable monthly income. This in turn suggests that their purchasing power is good and is sufficient to indulge in the premium cars offered under the NEXA brand. 14 P a g e

16 Age Group Brand Analysis of NEXA 4. Age Group Most Interested in Buying Premium Cars, According to Respondents. Age Group Number of Respondents 18 to to to Above Table 4: Age Group Most Interested in Buying Premium Cars Age Group Most Interested in Buying Premium Cars Above to to Number of Respondents 18 to Number of Responses Figure 4: Age Group Most Interested in Buying Premium Cars Discussion From the above data and graph, we observe the affinity of various age groups for purchasing premium cars, according to the respondents. This response was obtained in order to understand the major target audience and corroborate this with the findings based on the average monthly income. 15 P a g e

17 5. Aware of the Parent Group of NEXA. Aware of Parent Group of NEXA Number of Responses Yes 59 No 43 Table 5: Aware of the Parent Group of NEXA Aware of the Parent Group of NEXA No, 43, 42% Yes, 59, 58% Yes No Figure 5: Aware of the Parent Group of NEXA Discussion From the above data and graph, we observe that a majority of the respondents, i.e. 59%, are aware of the independent identity of NEXA as well as its parent brand, Maruti Suzuki. This would help in understanding the impact of Maruti Suzuki being the parent brand on the customer psyche towards NEXA; whether NEXA is perceived as a premium car brand or a people s car like Maruti Suzuki. 16 P a g e

18 Response Brand Analysis of NEXA 6. Often Hear People Talking About NEXA. Often Hear People Talk About NEXA Number of Responses Not At All 33 Sometimes 59 Often 11 All the Time 0 Table 6: Often Hear People Talk About NEXA Often Hear People Talk About NEXA All the Time 0 Often 11 Sometimes 59 Responses Not At All Number of Responses Figure 6: Often Hear People Talk About NEXA Discussion This response was taken to understand whether NEXA is known amongst the target audience as an independent brand. From the above data and graph, we observe that even though NEXA is known amongst the target audience but it spoken about sometimes only. It is not a very popular matter of discussion and has not entirely created a large ripple in the Indian automotive industry. This in turn goes to show that it may still be shrouded by its parent brand Maruti Suzuki. 17 P a g e

19 Response Brand Analysis of NEXA 7. Association of NEXA with Maruti Suzuki Leads to a Preference in Buying Decision. Preference in Buying Decision Number of Responses Never 13 Rarely 15 Sometimes 38 Often 28 Always 9 Table 7: Preference in Buying Decision Association of NEXA with Maruti Suzuki Leads to a Preference in Buying Decision Always 9 Often 28 Sometimes Rarely Responses Never Number of Responses Figure 7: Preference in Buying Decision Discussion This response was obtained to ascertain the level of impact that Maruti Suzuki has on the purchase decision for NEXA, being a trusted brand known for economy and value for money. From the above data and graph, we observe that the respondents believe that association of NEXA with Maruti Suzuki does at times affect the purchase decision of a buyer. This goes to show that customers may opt for NEXA based on Maruti Suzuki s reputation as an economical brand with great value for money, while offering a premium car priced lower than cars in the same category from other brands. 18 P a g e

20 8. Factors That Influence Purchase Decision for Premium Segment Cars. Factors Number of Responses Style 53 Comfort 76 Mileage 33 Price 45 Table 8: Factors Influencing Purchase Decision for Premium Segment Cars Factors Influencing Purchase Decision for Premium Segment Cars Price, 45, 22% Style, 53, 25% Style Comfort Mileage, 33, 16% Mileage Price Comfort, 76, 37% Figure 8: Factors Influencing Purchase Decision for Premium Segment Cars Discussion This response was obtained to understand which of the above mentioned factors greatly affect the purchase decision for a premium segment car. This in turn would help understand whether price is an important factor for customers purchasing premium cars, as lower price is the major driving point for premium cars offered by NEXA. From the above data and graph, we observe that the respondents rate comfort as the most important factor influencing the purchase of a premium car at 37%, followed by style at 25%. Price ranks third according to the respondents. This goes to show that customers may be opting for NEXA based on Maruti Suzuki s reputation rather than solely on NEXA being a premium car brand. 19 P a g e

21 9. Level of Agreement for the Following: Table 9: Level of Agreement Figure 9: Level of Agreement Discussion This response was obtained to understand the customer psyche towards NEXA, keeping in mind that Maruti Suzuki is its parent brand. From the above data and graph, we observe that individuals still do not entirely believe in NEXA being a premium segment car brand. Maruti Suzuki being an economical and people friendly brand does affect the brand image of NEXA to a certain extent. NEXA has not been able to break free 20 P a g e

22 from that image. The advertising campaigns for Maruti Suzuki and NEXA, even though distinct, have not created the desired effect. The NEXA campaigns are not as frequent enough. This goes to show that NEXA is not advertised to its full potential as Maruti Suzuki still wants to maintain its primary brand image as that of a people s brand. NEXA has its exclusive showrooms but not enough in number as compared to Maruti Suzuki. This in turn may be creating a gap between the potential customers and NEXA. 21 P a g e

23 10. Parameters That Help Build a Good Brand Image of NEXA. Table 10: Factors That Help Build a Good Brand Image of NEXA Figure 10: Factors That Help Build a Good Brand Image of NEXA 22 P a g e

24 Discussion This response was obtained to ascertain the driving points of NEXA as a premium car brand. From the above data and graph, we observe that the top four factors ranked by respondents were After Sales Service, Driving Pleasure, Value for Money and Aesthetics. These contribute heavily towards building of a good brand image of NEXA. At the same time, it is important to note that After Sales Service and Value for Money have been the strong suites of Maruti Suzuki for as long as it has existed. These have translated down to NEXA as well. These two factors being highly influential in increasing the affinity of potential customers towards NEXA show that Maruti Suzuki being the parent brand does affect the brand image of NEXA. Individuals may be opting for NEXA by weighing Maruti Suzuki s characteristics as a brand. 23 P a g e

25 11. Familiarity with NEXA in Accordance with the Following Factors: Table 11: Familiarity with NEXA Figure 11: Familiarity with NEXA Discussion The responses to the above question were analysed using a weighted average. The weights were assigned as follows- Not at all familiar: 1 Slightly familiar: 2 Moderately familiar: 3 Extremely familiar: 4 Using these weights, the average was calculated by the formula: 24 P a g e

26 Weighted average = Number of respondents for the option weight of the option Total number of respondents It was found, as illustrated by the graph above, that people were most cognizant to the brand pricing and offering, i.e. how premium the brand is. However, the trend was not the same for the value added services offered by NEXA. The offering and value added services ought to be highlighted more in the marketing communications in order for to obtain an increased perceived value proposition in the minds of the consumers. 25 P a g e

27 12. Rate on the Basis of Luxury Brand on a Scale of 1 to 5. Table 12: Rate on the Basis of Luxury Brand Discussion Figure 12: Rate on the Basis of Luxury Brand The responses to the above question were analysed using a weighted average. The weights were assigned as follows- Using these weights, the average was calculated by the formula: Weighted average = Number of respondents for the option weight of the option Total number of respondents It was found, as illustrated by the graph above, that in terms of association to luxury, the product NEXA S-Cross felt short than the other options. This may be due to the fact that people are not too aware of the value added services that are offered by the brand as discussed in the previous question. 26 P a g e

28 Chapter 5: Conclusions & Recommendations Conclusion From the research it has been found that most of the respondents associate NEXA with its parent brand- Maruti Suzuki. However, the parent brand does shed its good reliability on NEXA. Respondents were aware of the premium characteristic of the brand NEXA but did not find it to be as luxurious as other brands within its range, attributed by the fact that value added services offered by NEXA were not as familiar to the respondents. Recommendations Marketing communications should incorporate the value added services offered by NEXA, so the consumers can have a more luxurious feeling towards the brand. 27 P a g e

29 Chapter 6: References 1. Chi Hsing Kuang. (2002). The impact of brand awareness on consumer purchase intention:the mediating effect of perceived quality and brand loyaty.. 2. Kaspar, Bloemer. (1995). The complex relationship between consumer satisfaction and brand loyalty. 3. Makeover Time, Features, Metroplus, The Hindu, August 2, We are looking at creating market disruption: R.S.Kalsi, Business, Industry, The Hindu, July 5, market-disruption-says-maruti-suzuki-executive-director-marketingand-sales-rs- kalsi/article ece. 5. Maruti Suzuki launches NEXA: A New Premium Automotive Experience, Press Release, Annexure A, Corporates, BSE India, July ADCE_73BD4218E556_ pdf 6. NEXA A New Exclusive Automotive Experience, Investors, Maruti Suzuki Background Material NEXA for analysts, July 17, Vineet Singh, Short Term Solvency Analysis of Lead Automobile Players in India. International Journal of Advanced Research in Management, 6(3), 2015, pp P a g e

30 Chapter 7 - Appendix APPENDIX A: PILOT STUDY Questionnaire to elicit information on BRAND ANALYSIS OF NEXA Dear Respondent, We the students of Masters of Business Administration of Symbiosis International University, Pune are conducting a research on BRAND ANALYSIS OF NEXA. We seek your cooperation in answering the questions given below. We assure you that the data provided by you will be kept strictly confidential and will be used for academic purposes only. Thank You. GENERAL INFORMATION Please put a Tick Mark for appropriate Answer 1. Age (in- years) a (b) (c) (d) 35 and above 2. Gender (a) Male (b) Female 3. Income (INR) (a) 10, ,000 (b) 15, ,000 (c) 20,000 and Above 29 P a g e

31 SPECIFIC INFORMATION Q1) Which Age group is most interested in buying Luxury cars? a) b) c) d) Above 55 Q2) Rank the following parameters on your purchase preference for Luxury brand car? a) Price b) Quality c) Availability d) Involvement e) Recommendation Q3) Does purchase of NEXA car directly related to income level? a) Yes b) No Q4) Why would you purchase a NEXA? a) Quality b) Flaunt value c) Interested in art d) Exclusivity Q7) What is the factor that affects the most while purchasing a NEXA? a) Engine power b) Shape c) Acceleration time d) Looks e) Brand Q9) What are the factors influencing your purchase decision for Luxury segment cars? a) Style b) Comfort c) Mileage d) Price Colour 30 P a g e

32 APPENDIX B: QUESTIONNAIRE To elicit information on BRAND ANALYSIS OF NEXA Dear Respondent, We the students of Masters of Business Administration of Symbiosis International University, Pune are conducting a research on BRAND ANALYSIS OF NEXA. We seek your cooperation in answering the questions given below. We assure you that the data provided by you will be kept strictly confidential and will be used for academic purposes only. Thank You. GENERAL INFORMATION (Please put a Tick Mark for appropriate Answer) 1. Age (in- years) 2. Gender (a) (b) (c) (d) 35 and above (a) Male (b) Female 3. Income (INR) (a) 10, ,000 (b) 15, ,000 (c) 20,000 and Above 31 P a g e

33 SPECIFIC INFORMATION (Please put a Tick Mark for appropriate Answer) Q1. Which age group is most interested in buying premium cars? a b c d. Above 55 Q2. Which brands come to mind when you think of premium cars? a. b. c. d. Q3. Do you know the parent group of NEXA? a. Yes. Name: b. No Q4. How often have you heard people talking about NEXA? a. Not at all b. Sometimes c. Often d. All the time Q5. Does association of NEXA with Maruti Suzuki lead to a preference in buying decision? a. Never b. Rarely c. Sometimes d. Often e. Always 32 P a g e

34 Q6. What are the factors that influence your purchase decision for premium segment cars? a. Style b. Comfort c. Mileage d. Price Q7. Please show your level of agreement for the following statements on a scale of 1 to 5. (1- Strongly Disagree, 2-Disagree, 3-Neutral, 4-Agree, 5-Strongly Agree) S. No. Parameter Rating NEXA is a premium segment car 2. Brand Image of Maruti Suzuki affects NEXA 3. Advertising campaigns of NEXA are frequent than Maruti Suzuki 4. NEXA is priced higher 5. NEXA has better distribution channel than Maruti Suzuki 33 P a g e

35 Q8. Which of the following parameters helps build a good brand image of NEXA according to you? (1-Strongly Disagree, 2- Disagree, 3-Neutral, 4-Agree, 5-Strongly Agree) S. No. Parameter Rating Mileage 2. Engine Performance 3. Fuel Tank Capacity 4. After - Sales Service 5. Driving Pleasure 6. Prestige 7. Value for Money 8. Aesthetics Q9. How familiar are you with NEXA in accordance with the following factors? (1-Not at all familiar, 2-Slightly familiar, 3-Moderately familiar, 4-Extremely familiar) S. No. Parameter Rating Brand Offering 2. Brand Concept 3. Store Ambience 4. Value Added Services 5. Pricing 34 P a g e

36 Q10. Rate on the basis of Luxury Brand on a scale of 1 to 5. (1 being the lowest and 5 being the highest) NEXA Mahindra Hyundai Renault Ford S-Cross XUV 500 Creta Duster EcoSport NEXA S-Cross 5 Mahindra XUV Hyundai Creta 5 Renault Duster 5 Ford EcoSport 5 The questionnaire is finished. Thank you again for your help! 35 P a g e