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Marketing and CSR Activities of

Galaxy Toyota

Submitted in partial fulfillment of the requirements


For the award of the degree of

Master of Business Administration


To

Amity University, Noida

Supervisor: Submitted by:


Mr. Guide Name Name: -
Enrollment No.:-
Batch: - 201x-201x

July, 2017
Declaration

I hereby declare that the work which is being presented in the MBA project
“Marketing and CSR activities of Galaxy Toyota”, in partial fulfillment of the
requirements for the award of the Master of Business Administration Amity
University Noida Campus, is an authentic record of my own work carried under the
supervision of Mr. Guide name

Signature of Candidate:

Name of Candidate: Full Name

Enrollment No.:
Certificate

This is to certify that the project work entitled “Marketing and CSR activities of
Galaxy Toyota” submitted by Mr. Full Name for the partial fulfillment of the MBA
degree offered by the Amity University during the academic year 201x-1x is an
original work carried out by the student under my supervision, and this work has not
formed the basis for the award of any Degree, diploma or such other titles.

Signature of Supervisor(s):

Date:

Name & Designation of Supervisor(s): Mr. Guide name


ACKNOWLEDGEMENT

I would like to express my gratitude and indebtedness to the management


and staffs of Amity University, Noida for providing me this wonderful
opportunity to gain practical knowledge by including this summer minor
project as part of my curriculum of the two year MBA program.

Nevertheless, I would also like to express my sincere gratitude to Mr.


Guide Name for allowing me to complete my project in the marketing
filed. It was his guidance and support that made this project possible.

I would also like to thank Faculty Guides of Amity University, Noida for
their valuable suggestion in making the project report and for his
continuous support and help, which guided me through this report.
Table of Contents

 Introduction

 SWOT Analysis

 Research Methodology

 Result Analysis

 Conclusion

 References
CHAPTER-1:

Introduction
Marketing strategy is a process that can allow an organization to concentrate its resources on the
optimal opportunities with the goals of increasing sales and achieving a sustainable competitive
advantage. Marketing strategy includes all basic and long-term activities in the field of marketing
that deal with the analysis of the strategic initial situation of a company and the formulation,
evaluation and selection of market-oriented strategies and therefore contributes to the goals of the
company and its marketing objectives.

A market investigation thinks about the engaging quality and the elements of an uncommon
market inside a unique industry. It is a piece of the business examination and accordingly thus of
the worldwide ecological investigation. Through these investigations, the qualities, shortcomings,
openings and dangers (SWOT) of an organization can be recognized. It is a quantitative and
subjective appraisal of a market. It investigates the span of the market both in volume and in
esteem, the different client sections and purchasing designs, the opposition, and the financial
condition as far as hindrances to passage and direction.

And corporate social responsibility has become a common word in recent years and it is
highly debated topic among the researchers and scholars. Studies are being steered to search and
explore the possible benefits of CSR across the globe as well as across the disciplines. More and
more corporations are trying to engage plentiful financial resources to develop a good image to
strengthen their connections with all stakeholders mainly clients, workers, financiers, government
and the public. Earlier financial performance was the foremost standard to assess a firm's value
and higher positions were given to organizations that provide greater margins financially .But now
Consumers are becoming more aware of corporate social responsibility. Different researches have
shown that consumers are gradually into buying products on the basis of a firm's role in society.

Basically, CSR is the concept of organizations promoting, participating and initiating social
programmes in order to address an issue or concern in the wider community. A broad definition,
including multiple dimensions such as philanthropy and stakeholders, is favoured by academics
(De Los Salmones et al., 2005; Godfrey & Hatch, 2006; Piercy & Lane, 2009). The definition of
CSR has developed over time from the 1950s to the present. Literature from the 1980s onwards
presents fewer set definitions and further research into CSR (Carroll, 1999).

1.1 Importance of Market Strategies and CSR


Importance of Market Strategies
 Product Development
 Determine optimal prices
 Establishes effective distribution
 Assists with marketing communications
 Organizational impact

Importance of CSR
 CSR has become an important issue because of the following factors:
 CSR helps in strengthening the relationship between companies and stakeholders.
 It enables continuous improvement and encourages innovations.
 Attracts the best industry talent as a socially responsible company.
 Provides additional motivation to employees.
 Mitigates risk as a result of its effective corporate governance framework.
 Enhances ability to manage stakeholder expectations.

1.2 Company Profile

Galaxy Toyota is the largest Toyota dealership owned by Sachdev Group in New Delhi, India.
They have multiple outlets spread out all over the city, they adhere to one philosophy - 'A close
connect' with the customer.
Other products owned by this group are:

 Hans Hyundai
 Harpreet Ford
 3T Plus
 TSG International
 Harpreet Insurance

1.3 Elements of Marketing Strategies


 Market Dimensions
 Market Developments and Directions
 Market Progress Ratio
 Market Prospect
 Market Profitability
 Industry cost Structure
 Distribution Channels
 Success Factors

1.4 Need of the Study

Marketing strategies and CSR is required due to following reasons:


 to offer root for appropriate preparation
 to cut marketing outlays
 to find out new markets for the product
 to determine proper price policy
 to study in detail likes and dislikes of the consumers
 to know the market competition
 to study the external forces and their impact

1.5 Objective:

The purpose of this report is to analyze the public relations tactics and strategies of an automobile
dealer. The company I have chosen is Galaxy Toyota. The reason I chose Galaxy Toyota is because
they are a well-known company with a good reputation not only to their employees but to their
customers and the community as well. Galaxy as well as Toyota not only takes care of their
customers, making sure all of their needs are satisfied, but they realize they have a social
responsibility as well.

The problem addressed in this research is: marketing strategies and corporate strategy for
effective CSR at Galaxy Toyota and what effects does Corporate Social Responsibility have on
company profile, brand image, sales and promotional features.

Turker defined four major aspects to CSR, environmental, internal employment, ethical
and legal. Each aspect covers a range of sponsorship, donation, work/life balance and
environmental questions. Although these aspects were used in this study, the definitions of CSR
vary greatly and this is important to note. A broader definition can include a variety of CSR aspects
such as philanthropy. The development of a broad definition is important, as a variety of aspects
could affect brand trust. A concept where companies integrate social and environmental concerns
in their business operations and in their interaction with their stakeholders on a voluntary basis‖.
Wood‘s definition includes social policies and programs, as well as relating outcomes to the
societal relationships an organization develops. This considers the impact of CSR to not only
consumers but other individuals and organizations, while highlighting that CSR is a voluntary
practice.

The objective of this study is to focus on firms’ marketing strategies and corporate social
responsibility (CSR) activities with mediating role of corporate reputation. The objectives of the
study are to investigate; first the strategies of marketing and corporate social responsibility; second
the effects of marketing and corporate social responsibility and corporate reputation on other
profile of the company. It shows that marketing tactic and corporate reputations have significant
and positive impact on company profile and promotions with finical and social benefits. In this
work we study or analyze the following things:

 To study the philosophy and concept of Marketing and CSR.

 To study/analyze the implementation of Marketing and CSR in Galaxy Toyota.

 To study/analyze the constraints and benefits of CSR in Galaxy Toyota.

 What Galaxy’s Corporate and marketing Strategy should be for effective

implementation?

 What’s the impact of marketing and CSR on other factors?


CHAPTER-2
SWOT ANALYSIS

SWOT analysis is a management tool that can effectively be used for one’s personal growth. Take
a sheet of paper and divide it into four quadrants. Label each area as S, W, O, T. Write down the
answers to the following questions in the allotted quadrant.

Strengths

 What skills and capabilities do I possess?


 Which areas do I excel in?
 What are my unique gifts?
 Which personal qualities, values and beliefs help me stand out?

Weaknesses

 What negative belief-viruses am I carrying?


 What are the gaps in my capabilities?
 What skills do I need to develop?
 Which areas of my life can I improve upon?
 Which personal difficulties do I need to work through to reach my goals?

Opportunities

 Which opportunities are available to me?


 Which circumstances can help me achieve my goals?
 Which people could offer me support?
 Which tools are available to help me grow?
 What steps am I taking to create changes in my life?

Threats

 What obstacles do I currently face?


 Which thoughts can hinder my growth?
 Which fears are holding me back?
 Which people could be a hindrance in my progress?
Fig.2.1. SWOT Analysis

About Galaxy Toyota

Strengths

 Brand (Toyota) Name


 Strong Management
 Expertise Knowledge
 Pricing Power
 Financial Leverage
 Innovative culture
 Economies of scale
 Customer loyalty
 Cost and Reward Advantages
Weaknesses

 Small Staff network


 Tough Competition
 Online presence

Opportunities

 New Market and structure


 Emerging Market
 Loosening regulations
 Market Expansion

Threats

 Lessening working revenue margin and gross profit margin.


 Leisurelier growth in main markets.
 Intl and Mature competition
 Competition from low cost Asian manufacturers.
CHAPTER-3
Methodology
Before describing the word Research Methodology we should firstly understand the meaning of
Research.
In layman’s terminology, research may be defined as a systematic process of solving a
problem through, collecting, organizing & evaluating data to reach the solution & gain new
knowledge.

3.1 Data Set:

The methodology used in this report is Data gathering technique. There are two ways of data
collection which are explained below:
Primary Sources
Secondary sources

Primary Sources

Primary data has been collected through studying carefully the products of the advert media in
India. In advert media sector many organizations have a good brand image. As I had observed the
products of Advert Media are popular because of its need of updated information, outcome of
delivering what clients requires and awareness of it.

Secondary Sources

The secondary data collection involves study of products & net surfing which was carried out to
obtain the history, products, strategy & other relevant information about Advert Media.
 The secondary data has been collected through:
 The main information we get through internet.
 Through detailed study of products.
3.2 Marketing Strategies of Automobile Companies:

 Marketing strategy covers all the aspects of communications, upgrades, and encouraging
actions which are used to propose an artifact or facility or facility to objective clients.
Self-propelled promoting states to marketing action done via a company in motorized
business.

 There are numerous policies that are recognized by vehicle producers and traders for
marketing of their motorized. Automotive straight mail is a method that is substantiating
to be right effective.

 Social media marketing can be a solid factor of automotive advertising. It offers off a
modest means for users and aim to relate with a dealer or maker. It similarly provides
the corporation a cool, low price mean to supply data to a vast amount of persons at the
similar time. This provides an advantage over old-style marketing techniques like direct
mail and print media marketing.

 One Another and important feature of automotive marketing is to create ads and sales
terrains that connect a motor vehicle advantages also in its place of its features only.

n
 Advertisements must be together pleasing and genuine and attractive. They need be also
fit with the hollow the trade wants to make. For an example, a secondhand car dealer
whose main strategy of trade point is low price will like to confirm that evidence of
cheap price is deliberately exhibited within its ads. A hatch back car seller, on the other
side, will like to de-emphasize price and focus more on the design, ease of car.

 All of these are lawful strategies, diminishing them wouldn’t be effectual. Hatch back
motor vehicle purchasers, probable would be spun off by marked low price showed in
big type. Price shoppers, on the other side, would detect that they couldn’t have
sufficient cash for a car offered to be a top class model.

Different types of market

1) Physical Market: Physical market is a set up where purchasers can actually meet the
retailers and acquisition the wanted range from them in interchange of money. Shopping
malls, department stores, retail stores are all examples of physical markets.
2) Non Physical Market: In such markets, customers buy things and services through
internet. In such a market the purchasers and suppliers do not meet or interact really, instead
the deal is done through internet. Examples - Carwale, olx etc.
3) Auction Market: In an auction market the supplier vends his goods to one who is the
maximum bidder.
4) Market for intermediate goods: Such marketplaces sell raw ingredients (goods) needed
for the ultimate production of other goods.
5) Black Market: A black market is a system where prohibited goods like drugs and
weapons are sold.
6) Financial Market: A Market which dealing with the interchange of liquid assets (money)
is called a financial market.

Different types of financial marketing

1. Stock Market: A type of market where suppliers and consumers interchange shares is
called a stock market.
2. Bond Market: A type of market place where suppliers and customers are involved in the
interchange of debt securities, usually its in the form of bonds and is called a bond
market. A bond is a agreement signed by both the parties where one party assures to
return money with interest at regular intermissions.
3. Foreign Exchange Market: In such type of market, both seller and purchaser are involved
in exchange of currency. In a imported exchange market (also called currency market), one
party exchanges one country’s currency with equal amount of another currency.

Predictive Markets: Predictive market is a set up where exchange of good or service takes
place for future. The buyer benefits when the market goes up and is at a loss when the market
crashes.

How to do a market analysis?

The purposes of the market analysis fragment of a business strategy are to demonstration to
financiers that: know the marketplace the market is sufficient to shape a maintainable commerce
for this aspect we mention the following strategy:

 Demographics and Segmentation

When evaluating the dimension of the market, this method will be subject to on the category of
business we are selling to investors. Liable on our market we might also need to part it into various
fragments.

 Volume & Value


 Potential customer?
 Market value
 Methods for building an estimate

 Target Market

The target market is the kind of users we target within the market. This is appropriate when our
market has strong divisions with various drivers of demand.

 Market Need
This segment is very imperative as it is where we show your potential investor that we have an
intimate knowledge of our market. We know why they buy!

 Competition

The object of this segment is to provide a clear view of who we are competing against. We need
to explain our competitors' positioning and describe their strengths and weaknesses. We should
inscribe this section in equivalent with the Competitive Control part of the Strategy segment.

 Barriers to Entry

This fragment is all about responding two questions from our investors:

 What averts somebody from opening a works in front of ours and take 50% of our
business?
 Having countered the earlier request what makes we think we will be positive in trying
to come in this marketplace/business? (startup only)

3.3 Corporate Social Responsibility (CSR)

CSR is a powerful tool for leaders to use in strategy. However not all firms will achieve the same
positive outcome. This is because the execution (leadership), support (employee) and exploitation
(cause-related marketing communications and branding) of CSR activities are not the same in
every organisation (Brown, 1998; Sen & Bhattacharya, 2001). During the industrial revolution a
significant portion of the human work force was replaced with machines used in factories. This
helped to produce a substantial number of millionaires and corporate figures causing a significant
gap between the upper class and working class (Ahmad and Jaseem, 2006).

Levine (2008) suggested that due to the importance of CSR some non-governmental
organisations (NGOs) are looking into options to make it legally mandatory for CSR programmes
to become part of every corporation's business agenda.
Effect of CSR
CSR can have an effect on an organisation and the consumer in different ways, as demonstrated
by the following literature. De Los Salmones et al. determined that the only effect social
responsibility had on consumer loyalty was indirectly through the service valuation.

Pomering and Dolcinar concluded that a majority of consumers were not aware of CSR
methods in use by the organization and in most cases were not being provided with the proper
information for their needs, even though the organization considered CSR communication
important. Duarte found although managers have differing values in regards to specific CSR
activities to engage in, the overall evaluation was that the managers encouraged CSR and believed
in it, which was reflected in the organizational culture. However, Duarte‘s study was an
exploratory study and would benefit from some further research. Pivato et al. found a positive
correlation between trust in organic products and trust in private label organic products, which
effected brand loyalty. The CSR activities also impacted positively on brand trust. Becker-Olsen,
Cudmore and Hill discovered the better the fit and motivation between the company and the cause,
the more positive thoughts were associated with the company. Timing was important, the more
proactive the company was in CSR activities, the more positive the association, including purchase
intention.

Internal

Employment

Ethics

Corporate

Social Responsibility

Brand Image

Economics Legal

Effect of CSR

CSR is an important concept for businesses, if it was found to have an effect on brand trust it may
encourage more engagement in CSR activities. Further information on the CSR and trust
relationship could benefit businesses by identifying specific activities that could be undertaken to
strengthen trust with consumers. The relationship between brand trust and CSR could unleash
untapped potential in businesses. The benefit of this research is the ability to conduct exploratory
research in an area which has not been fully explored.
CHAPTER-4
Result Analysis
Quantitative research is associated with exploring connections between variables (Bryman
& Bell, 2007, p.426). Quantitative research is appropriate to use under a positivist paradigm and
natural science approach, which helps explain the links between theory and research (Bryman &
Bell, 2007, p.154). Natural science aims to explain the natural world and positivist research uses
precise, objective measures (Cavana et al., 2001, p.8), which makes a quantitative method ideal.

Survey Research Method

For primary research, the following section discusses the survey method and sampling
design and size. Although there are many survey methods that could have been chosen, due to time
constraints and the need to access a variety of age groups.

The survey method has both advantages and disadvantages. Postal or email questionnaire
methods can lead to lower response rates and there is no opportunity for participants to ask
questions, thus a face-to-face survey is most favorable.

Sudman (1980) suggests it provides an unbiased sample by sampling at shopping mall


entrances, provided different locations are chosen. The unbiased sample is possible because
different stores attracting different socio-economic groups are scattered across a mall (Sudman,
1980). However, Sudman (1980) suggests time intervals and gender must be considered. The ideal
time frame for the data collection to occur is between 2-3 weeks (Sudman, 1980).

Questionnaire format: The questionnaire began with the scenario which the participants
read, whether they receive the socially responsible (Luxor A) or non-socially responsible (Luxor
B). Following the scenario is five brand trust questions and then the remaining 19 CSR questions.

RESEARCH APPROACH
Step One: Survey Research Design

Survey Method

Sampling Design and Size (Quota sampling and 100 sample size,
Step Two: Questionnaire Design

Question items and Scale)

Questionnaire Format

Pre-Tests

Step Three: Data Collection

The data analysis method begins with the profiling of respondents which includes
demographics, response rate and missing data. A simple t-test to compare the means of both the
socially responsible and non-socially responsible company will be performed

Analysis

In this section we will examine the profile of respondents, including demographics and response
rates. Secondly, the data analysis begins with an exploratory analysis of mean and standard
deviation and normality testing. The normality testing is followed by reliability testing, factor
analysis and a multiple regression. Finally, a conclusion will collate the chapter findings. The
research question to be answered is: What effects does CSR have on brand image? The data
analyzed throughout this chapter provides a foundation for the conclusions.

Descriptive Statistics

The mean, or central tendency of the data and standard deviation, or the average amount
of variation from the mean, can help give an overview of the way participants are answering the
questions. The scale of measurement for this study was a 7- point Likert scale, which ranged from
1-3 (disagreeable range), 4 which was neutral and 5-7 Table outlines the mean, S.D., of brand
Image and the CSR components of employee, economic, legal and ethics. Turker (2009) used
descriptive statistics to analyse the age range of respondents, education levels and which sector the
employee was working in (i.e. manufacturing, education). The data in the descriptive statistics
described trends in the participants completing the survey, rather than CSR itself.

On the data sources, collection and processing us will analyze the market strategy and
corporate strategy with their impacts and relation with other factors:

 Brand Image
 Consumer Loyalty
 Financial Benefits
 Stakeholder and Shareholder relationship
 Measurement of Business
 Ethics and CSR
 CSR and the Environment
 Economic Performance and CSR
 Employees and CSR
 Corporate relation and trust in relation to CSR

Questionnaire:
Q. How did you learn first about Corporate Social Responsibility (CSR)?

a) Other companies
b) Local NGOs
c) Business Associations
d) Media
e) Other

Ans-

30%

25%
25%

20% 20% 20%


20%
a
15% b
15%
c
d
10%
e

5%

0%
Category 1

Q. Which of the below definitions describes CSR best in your opinion?


a) CSR is a set of philanthropic activities a company carries out voluntarily on a sporadic
basis in the local community
b) CSR is about promoting corporate fairness, transparency and accountability through a set
of internal rules or processes by which businesses are operated, regulated and controlled
c) CSR is the commitment of a company to strictly abide to national labour and
environmental laws
d) CSR is a formal process of relationship management through which companies engage
with their stakeholders to align their mutual interests
e) CSR describes a decision-making process based on ethical values and compliance with
legal requirements
f) CSR describes the way in which a company manages its economic, social and
environmental relationships,

Ans.

30%

25%
25%

20% 20%
20% a
b
15%
15% c
d
10% 10%
10% e
f
5%

0%
Category 1

Q. Is Marketing Strategy and CSR a resource intensive and costly concept?


a) Yes
b) No

Ans-

Sales

40%
Yes
No
60%

Q. What would in your opinion be the biggest obstacles to integrate marketing and CSR in
business operations?
a) lack of human resources
b) lack of employee motivation
c) lack of time
d) unavailability of technology
e) lack of know-how
f) lack of funds

Ans-

30%

25%
25%

20%
20% a
b
15% 15% 15%
15% c
d
10%
10% e
f
5%

0%
Category 1

Q. Please tick, which of the below listed in your marketing and opinion activities form part of
CSR?
a) Involvement of employees in decision making processes
b) Introduction of codes of conduct
c) Developing non-financial reports for stakeholders
d) Investigating CSR commitment of potential business partners
e) Making regular donations to charities

Ans-

35%

30%
30%

25%
25%

20% a
20% b
15% c
15%
d
10%
10% e

5%

0%
Category 1

Q. What incentives would encourage company to implement CSR practices?

a) government financial incentives


b) free/subsidized counselling
c) concessional credit/matching grant schemes
d) sponsored participation in fairs
e) facilitated participation in business networks
f) other

Ans-

25%

20% 20%
20%
18%
a
15% 15%
15% b
12% c
d
10%
e
f
5%

0%
Category 1

Q. Tick activities/issues for a company that wants to engage in CSR?

a) Cleaning procedures
b) Gender-balanced work environment
c) Work-life Balance
d) Business ethics and transparency
e) CSR assessment of business partners

Ans-

35%

30%
30%

25%
25%

20% a
20% b
15% c
15%
d
10%
10% e

5%

0%
Category 1

Q. For which of the following social issues does a company should have a policy?

a) Respect for human rights


b) No forced or compulsory labour
c) No child labour
d) Freedom of association
e) Collective bargaining

Ans-

40%
35%
35%
30%
30%

25% a
b
20%
c
15%
15% d
10% 10% e
10%

5%

0%
Category 1

Q. Which processes do you think should be in place to ensure that CSR Policy is effectively
implemented?

a) Audits conducted by company


b) Supplier meetings
c) Audits conducted by an external auditor
d) Other

Ans-

35%

30% 30%
30%

25%
25%

20% a
b
15%
15% c
d
10%

5%

0%
Category 1
Conclusion:

A marketing plan is somewhat that continually changes, adjusting to varying market situations.
Inside Enterprise, the results from its several changed kinds of business are continuously studied
and calculated. Judgments are at that time nourished into the conclusion creation procedure. This
allowed new approaches to be established to advance processes.

And the purpose of CSR is to promote an image and enhance reputation, but trust helps
maintain long term relationships with the consumer (Delgado-Ballester & Munuera-Aleman,
2001). Consumer trust is a major component of brand loyalty, which reduces a consumers desire
to switch products. Consumer loyalty allows companies to maintain a strong financial position by
reducing costs associated with continually attracting new consumers to a brand.
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