1

A Project Report on
Customer Satisfaction Survey of
Maruti Udyog Ltd.

MBA (INDUSTRY INTEGRATED)

SEMESER - 4

SUBMITTED BY:-
Vinay Krishna Dasi

PROJECT GUIDE
Mrs.Rashi Ghagade

INTERNATIONAL INSTITUTE FOR LEARNING IN

MANAGEMENT BUSINESS SCHOOL
IILM BS
KNOWLEDGE TOWER, SECTOR 11/20,
BELAPUR, NAVIMUMBAI 400614

EASTERN INSTITUTE FOR INTEGRATED LEARNING IN

MANAGEMENT UNIVERSITY
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EIILM UNIVERSITY
2010

CERTIFICATE

This is to certify that Mr.Vinay Krishna Dasi

(Enrollment No:- EIILMU/O8/F0726) has successfully completed a project /
training entitled, “A Project Report on Customer Satisfaction Survey of
Maruti Udyog Ltd” in partial fulfillment for the requirement of MBA (Industry
Integrated) program.

Signature with Date

Project / Training Guide Dean

Examiner
Stamp of IILM BS

Certificate from Organization / Institute / Guide

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ACKNOWLEDGEMENT
I take this opportunity express my profound sense of gratitude
and all those who helped me through out the duration of this project .I also
immensely thanks the other faculty member of the institute under who continuous
support and guidance I completed the project.
The morale support and guidance, which I received from our
most loving and respected Dean Mr. M.M.Agashe , Director Dr. Piyali Kar
deserves a special place in my project. Our Mrs. Rashi Ghagade is a constant
motivator and mentor not only in projects and academics but also in all walks of
our personal life.
Last but not the least I would thank even my friends who
supported and co-operated with me. I have received an invaluable response from
them and I thank them again.
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PREFACE

If we can compare marketing to a long train with a multiple

compartment then every bogies represent different aspect of marketing. Marketing
strategy formulation depends upon the every aspect of related terms and marketing
research plays vital roles to connect each compartment to form a cohesive
functional unit.

The automotive industry is at the center of India’s new global

dynamic. It plays major roles in retaining manufacturing industry growth over
12.5% per annum.

The motivation behind the project was to gain clear understanding

about marketing research. Through this project I have tried to understand the
complexities involved in gathering of data for drawing inferences .The final
objective is to produce a result that is accurate, useful, and free from bias and helps
in the successful completion of my M.B.A course. The project has been presented
in a simple format
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INDEX

CHAPTER TITLE PAGE

NO.

1 INTRODUCTION 9

2 BACK GROUND 23

3 SIGNIFICANCE OF WORK 26

4 RESEARCH METHODOLOGY 31

5 ANALYSIS & DISCUSSION 35

6 CONCLUSION 67

7 SUGGESTIONS 69

8 BIBLIOGRAPHY 71

9 QUESTIONARRIE 73
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LIST OF FIGURES

FIGURE FIGURE LEGEND PAGE

NO.

1 Industry Volume Sales 20

2 Future Of Automobile in the Economy 20

3 Maruthi’s Strategic Goal 29

4 Porter’s Five Force Model 36

5
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LIST OF GRAPHS
FIGURE FIGURE LEGEND PAGE
NO.

1 Customer Satisfactory Level Graphs 41-66

4
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Executive Summary

It was in 1970 that Sanjay Gandhi envisioned the manufacture of maruti which is
known popularly as the people’s car it is maruti which is known to give wheels to
the nation. The first car of maruti was rolled out on Dec. 14, 1983 after its
collaboration with Suzuki motors.

Satisfaction is a person’s feeling of pleasure or disappointment resulting from a

comparing perceived performance in relation to his or her expectation. If the
performance falls short of expectation, the consumer is dissatisfied. If the
performance matches the expectations, he consumer is satisfied. If the performance
exceeds expectation, the customer is highly
satisfied or delighted.

In today’s competitive scenario firms consistently tries to satisfy his existing

customer to get more customers in every regards. To meet the desired expectation
of customers companies has to look around all aspects of products services and of
course market condition, otherwise they may be out of the race. Automobile
industry has the same competitiveness and every firm in the industry is
consistently working for enhancing their product and services.

The study widely concentrates on the level of satisfaction amongst customers for
which I did Exploratory Research to check the satisfaction level amongst the
customers of Maruti as the popular punchline also says “Count On Us.”
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MARUTI UDYOG LIMITED

Maruti is India's largest automobile company. The company, a

joint venture with Suzuki of Japan, has been a success story like no other in the
annals of the Indian automobile industry.

Today, Maruti is India's largest automobile company. This feat

was achieved by the missionary zeal of our employees across the line and the far-
sighted vision of our management.

The Company Mission:

To provide a wide range of modern, high quality fuel efficient

vehicles in order to meet the need of different customers, both in domestic and
export markets.

The Company Vision:

We must be an internationally competitive company in terms of

our products and services. We must retain our leadership in India and should also
aspire to be among the global players.

Their focus is on:

• Building a continuously improving organisation adaptable to quick changes

• Providing value and satisfaction to the customer

• Aligning and fully involving all our employees, suppliers and dealers to face
competition

• Maximising Shareholder's value

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• Being a responsible corporate citizen

At Maruti, they have a clear perspective on manpower. They see it

as a unique resource, in the sense that optimal productivity of other resources
depends largely on the way human resources are utilised. The basic philosophy of
management that underlies the Maruti culture is that all employees of the company
should be moulded into a team which then strives as one, to achieve commonly
shared company goals and objectives. To make this philosophy tenable, the
Company takes several initiatives. Inputs are sought from employees at all levels.
They believe that everyone should contribute to the formulation of company
policies, goals and objectives. Secondly, at Maruti, they encourage leadership in
the best sense of the word. According to us, a leader is one who must be impartial,
must have the ability to rise above his own subjectivity, and, most importantly,
must practice what he preaches.

They understand that the process of creating a sense of belonging

that all employees can identify with is a lengthy one. To ensure that this translates
into concrete reality, they have taken several simple but specific and well thought
out measures. The first step in this direction has been the introduction of a
common uniform for all employees. Another measure is the creation of a common
canteen where all employees have lunch, stand in common queues, and sit on the
same table. Common toilets, common transport and similar facilities for all levels
of employees are other measures that reinforce their emphasis on genuine equality
in the workplace.

At Maruti They do not believe in the notion of organisational

hierarchies. As a matter of fact, the management structure and systems in Maruti
have been designed to promote decentralisation of authority. Maruti has a
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horizontal management structure with only four functional levels of responsibility

to facilitate quicker decision making.

Another focus area of the Maruti culture is the maintenance of a

smoothly functioning communication network. Maruti believes that
communication channels between labour and management cannot simply consist
of having a labour representative on the Board of the Company. They have faith in
the ability of labour to effectively participate in management and make
constructive suggestions. To encourage this, they ensure that there is a thorough
dissemination of information at all levels, through newsletters or via a letter from
the Chief Executive to all employees. Meetings with the Union are held regularly,
and programmes being contemplated by the Company are discussed with the
Union. The Sahyog Samiti, a collection of representatives of non-unionised
employees, training programmes in Japan, Quality Circles, productivity-linked
incentive schemes, and an ethos of discipline and teamwork, all contribute to the
Maruti culture.

Several measures of performance have made amply clear that

Maruti has established a truly healthy work culture. They have met all project and
performance targets since inception. Their productivity levels are constantly
improving. The Company has had good labour relations with employees from the
very beginning, and they have been successful in the export market. Yet, the
Maruti culture is one that does not believe in resting on its laurels. They adhere to
the spirit of Kaizen, which states that constant improvement is always possible.
The most basic tenet of productivity that they hold dear is that " Today should be
better than Yesterday and Tomorrow should be better than Today".
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Maruti Udyog Limited (MUL) was established in Feb 1981 through

an Act of Parliament, to meet the growing demand of a personal mode of transport
caused by the lack of an efficient public transport system.

Suzuki Motor Company was chosen from seven prospective

partners worldwide. This was due not only to their undisputed leadership in small
cars but also to their commitment to actively bring to MUL contemporary
technology and Japanese management practices (which had catapulted Japan over
USA to the status of the top auto manufacturing country in the world).

A licence and a Joint Venture agreement was signed between

Government of India and Suzuki Motor Company (now Suzuki Motor Corporation
of Japan) in Oct 1982.

The objectives of MUL then were:

• Modernization of the Indian Automobile Industry.

• Production of fuel-efficient vehicles to conserve scarce resources.

• Production of large number of motor vehicles, which was necessary for

economic growth.

CORE VALUE
• Customer Obsession

• Fast, Flexible and First Mover

• Innovation and Creativity

• Networking and Partnership

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• Openness and Learning

VISION

The leader in the India Automobile Industry, Creating Customer

Delight and Shareholder’s Wealth; A pride of India”

Technological Advantage

We have introduced the superior 16 * 4 Hypertech engines across

the entire Maruti Suzuki range. This new technology harnesses the power of a
brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine
delivery. This means every Maruti Suzuki owner gets the ideal combination of
power and performance from his car.

Our other innovation has been the introduction of Electronic

Power Steering (EPS) in select models. This results in better and greater
maneuverability. In other words, our cars have become even more pleasurable to
drive.

Production/R&D

Spread over a sprawling 297 acres with 3 fully-integrated

production facilities, the Maruti Udyog Plant has already rolled out over 4.3
million vehicles. In fact, on an average, two vehicles roll out of the factory every
minute. And it takes on an average, just 14 hours to make a car. More importantly,
with an incredible range of 11 models available in 50 variants, there's a Maruti
Suzuki made here to fit every car-buyer's budget. And dream.
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AWARDS

2005
Number one in JD Power SSI for the second consecutive year
Number one in JD Power CSI for the sixth time in a row - the
only car to win
it so many times
M800, WagonR and Swift topped their segments in the TNS
Total
Customer Satisfaction Study
Leadership in the JD Power Initial Quality Study - Alto
number one in its
segment for the 2nd time in a row, Esteem number one in its
segment for
the 3rd year in a row, Swift number one in the premium
compact segment
WagonR and Esteem top their segments in the JD Power
APEAL study
TNS ranks Maruti 4th in the Corporate Reputation Strength
(CSR) study
(#1 in Auto sector)-Feb 05
Maruti bagged the "Manufacturer of the year" award from
Autocar-CNBC
( 2nd time in a row)-Feb 05
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First Indian car manufacturer to reach 5 million vehicles sales

Business World ranks Maruti among top five most respected
companies in
India-Oct 04
Maruti ranked among top ten (Rank7) greenest companies in
India by
Business Today - Sep '04

2004
Maruti Suzuki was No. 1 in Customer atisfaction, No. 1 in
Sales Satisfaction No.1 in Product Quality (Esteem and Alto)
and No. 1 in Product Appeal (Esteem and Wagon R)
No. 1 in Total Customer Satisfaction (Maruti 800, Zen and
Alto)
Business World ranked us among the country's five most
respected companies
Business World ranked us the country's most respected
automobile company
Voted Manufacturer of the year by CNBC
Voted one of India's Greenest Companies by Business Today-
AC Nielson ORG-MARG

2003
Maruti 800, Maruti Zen and Maruti Esteem make it to the top
10 automotive brands in "Most Trusted Brand survey 2003"
J D Power ranked 3 models of Maruti on top: Wagonr, Zen
and Esteem
Maruti 800 and Wagonr top in NFO Total Customer
Satisfaction Study 2003.
MUL tops in J D Power CSI (2001) for 4th time in a row

2001
MUL tops in J D Power CSI (2001) for 2nd time in a row:
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another international first

2000
Maruti bags JD Power CSI - 1st rank; unique achievement by
market leader anywhere in the world

1999
MSM launched as model workshop in India; achieves highest
CSI rating.
Central Board of Excise & Customs awards Maruti with
"Samman Patra", for contribution to exchequer and being an
ideal tax assessee

1998
CII's Business Excellence Award

1996
Maruti wins INSSAN award for "Excellence in Suggestion
Scheme"
Awarded the Star Trading House status by Ministry of
Commerce

1994-95
Engineering Exports Promotion Council's award for export
performance

1994
Best Canteen award among Haryana Industries as part of
employee welfare

1992-93
Engineering Exports Promotion Council's award for export
performance
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1991-92
Engineering Exports Promotion Council's award for export
performance

Automobile Industry in Indian Market:-

India is an emerging country with huge potential. The domestic

economy is now growing at around 9-10% per annum and India’s importance in
global terms is being reinforced by rapidly rising exports and domestic
consumption. At a time when numbers of a slowdown and overheating in the
Indian economy have started gaining momentum, the Indian rupee sprang a
surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark.

The automotive industry is at the center of India’s new global

dynamic. The domestic market expanding rapidly as incomes rise and consumer
credit becomes more widely available. Manufacturer’s product lines are being
continually expanded, as is the local automotive manufacturing base. Expectation
are high that India can develop as a global hub for vehicle manufacturers and as an
outsourcing center that offers the global automotive industry solution high up the
automotive value chain.

India eyes 25 million automotive jobs.

India's GDP is set to double over the next decade

In percentage terms, the automotive industry's contribution should also
double.
In dollar terms, the sector's contribution is set to quadruple to some $145bn
The automobile industry in India accounts for a business volume of
$45 billion and has the potential to grow much faster both through Indian as well
as international manufacturers who have established huge facilities in the country
With the world’s second largest and fastest-growing population, there
is no denying India’s potential in both economic and population terms and the
effect it will have on the auto industry in the years to come. The country is already
off to a good start, with a well-developed components industry and a production
level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and
three-wheelers.
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The implications, market drivers and scope of a future massive Indian

vehicle market are covered in the India Strategic Market Profile, a brand-new
forecast of Indian automotive and related activity to 2020. Based on Max
Pemberton's unique relational long-term forecasting model, it forecasts car and CV
sales, demographics, materials usage, auto industry employment, and explains their
inter- year of healthy growth in auto industry.
INDUSTRY GROWTH

Future of the Automobile in the Economy

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US based consultancy, keystone predicts that India will become world’s third
largest automobile market by 2030. Overall size expected to exceed 20 million
with compounded annual growth rate of over 12%.

India Then & Now

1983
Number of brands 2
Number of models 2

2010

Number of brands 35
Number of models 125

Some of the Car companies in India:

Maruti Suzuki
Fiat
General motors (Opel, Chevrolet)
Ford
Hindustan motors, Mitsubishi
Honda
Hyundai
Baja tempo
Marinara
Maine elect.
Mercedes Benz
Nissan
San engineering
Soda
Toyota
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Top three manufacturers:

Maruti Suzuki
Tate motors
Hyundai

Car segmentation: This is done on the basis of size and price of the car

A segment: maruti800, omni

B segment: Zen, wagon-r, alto, Santo, polio, indicia
C segment: esteem, accent, indigo, icon, Honda city, civic
D-segment: opera, Octavia, sonata, monde, accord, corolla, Camry, Mercedes
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In 1970 , Sanjay Gandhi the son of Indira Gandhi envisioned the

manufacture of an indigenous , cost effective , low maintenance compact car for
the Indian middle class . Indira Gandhi’s cabinet passed a unanimous resolution for
the development and production of a people’s car. Sanjay Gandhi’s company was
christened Maruti limited. The name of the car was chosen after a Hindu deity
named Maruti Ltd

That time Hindustan Motors’ Ambassador was the chief car and
the company had come out with a new entrant the premier Padmini that worked
slowly gaining a part of the market share dominated by the ambassador. For the
next ten years the Indian car market had stagnated at a volume of 30,000 to 40,000
cars for the decade ending 1983.

Sanjay Gandhi was awarded the exclusive contract and license to

design, develop and manufacture the “People’s Car.” These exclusive rights of
production generated some criticism in certain quarters, which was directly
targeted at Indira Gandhi. Over the next few years the company was sidelined to
Bangladesh liberation war and emergency.

In the early days under the powerful patronage of Sanjay Gandhi

the company was provided with free land, tax breaks and funds. Till the end of
1970 the company had not started the production and a prototype test model was
welcomed with criticism and skepticism. The company went into liquidation IN
1977. The media perceived it to be another area of growing corruption.
Unfortunately Maruti’s started to fly only after the death of Sanjay Gandhi, when
Suzuki motors joined the government of India as a joint venture partnered with
50% share. After his death Indira Gandhi decided that the project should not be
allowed to die. Maruti’s entered into this collaboration with Suzuki motors. The
collaboration heralded a revolution in the Indian car industry by producing the
maruti-800. It created a record of taking 13 months time to go from design to
rolling out cars from a production line.

The production of Maruti-800 in 1983 marked the beginning of a

revolution in the Indian automobile industry. It brought in the latest technology of
that time more fuel efficiency and lower prices that led to the creation of a huge
market for all car segments as the Indian, middle class grew in size. This in turn
brought in more players in this segment. A number of auxiliary car parts making
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units were set up as more car manufacturers realized it was more cost effective to
make their car parts in India rather than importing them.
Maruti’s major influence was in helping the component industry
in the country because of its emphasis on localization and indigenization. As in the
beginning that sector hadn’t grown much Maruti’s had to start dozens of joint
ventures with Indian entrepreneurs. It got them from foreign collaborations that led
to collaborations for other manufacturers so that over a period of time the whole
component industry was able to upgrade itself and improve its quality who had
given their income leading to major existing export potential vehicle components.

It also brought in better methods of financing that allowed more

people who given their income levels could not afford to buy a car on their own, to
buy cars. It still remains the leader not only in the terms of market share but also in
customer satisfaction surveys. It has consistently topped J.D. power quality
surveys, including 2005. By the year 1993 the company had sold 1, 96,820 cars.
By March 1994 it produced 1 million vehicles becoming the first Indian company
to cross the 2 million mark in October, 1997 and rolled out 4 millionth vehicles as
Alto-LX .Then it introduced Wagon-R followed by Swift . Swift has been a great
success in the market .In 2007 Maruti came up with SX4 and Grand Vitara.
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Role of the Sales Person

He should be neatly dressed

He should have knowledge about various product’s
Features
Variants
Colors
Prices
Sales promotion campaigns
Competitor products , their features , prices ,etc.
Latest service and warranty policies
Current availability
Carry copy of ready reckoner

“Do not leave the customer unattended for more than 3 minutes”

Customer Care Team:

Role of the Customer Care Manager:

Customer Care Manager is the leader of the customer care team. He is accountable
for the sales satisfaction index of the dealership. The customer care manager
ensures that every customer is properly followed up and feedback is recorded. Also
the customer complaints are recorded and resolved as soon as possible to the level
of satisfaction. The customer care executives report to the customer care manager.

Customer Care Executive:-

Initially does the Post Sales Follow up (PSF) and monitors the feedback forms at
the showroom
Post sales follow up
PSF’s are done in order to get the first hand feedback form the customer about the
experience that they had during the sales and delivery process.
The first PSF is done within the 72 hours of delivery and the voice or exact
wordings of the customer are recorded. The next PSF call is made after 15 days
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after the vehicle is delivered. The feedback form system is a very important tool to
obtain customer’s feedback on the experience that the customer had during the
purchase of his/her car.

Steps to be followed after receiving customer complaint:

Firstly customer acre manager gives a control number to all complaints received
and records the same in the customer complaints control register.

Then customer acre manager gets in touch with the customer over the phone and
expresses regret on the inconvenience faced by the customer

Immediate action is taken to ensure that the customer complaint is resolved and
writes a letter of apology

The customer care manager along with the concerned DSE, then visits the
customer, hands over the letter and takes satisfaction note from the customer

Then he sends a copy of the letter and the satisfaction note to Maruti Udyog Ltd.
And also files a copy of the same in the customer complaints register/file.

Then the CCM discusses the customer complaints in the weekly meeting with the
general manager on SSI with the entire showroom staff. Necessary counter
measures are taken to ensure that such complaints are not repeated in future.

All sales staff and managers review customer care activities on daily, weekly and
monthly basis. The SSI review meet is conducted regularly.

According to Maruti

“A customer is the most important visitor on our premises

He is not dependent on us ,
We are dependent on him,
He is not an interruption on our work,
He is the purpose of it.
He is not an outsider on our business,
He is part of it.
We are not doing him a favor serving him,
He is doing us a favor by giving us the
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Opportunity to do so”

How you communicate

Your words 7%
Your voice 35%
Your body language 58%

Moments of truth
Expectation---------------satisfaction---------------------reality
If you get what you expected

Expectation---------------dissatisfaction----------------reality
If you get less than you expected

Expectation---------------delight--------------------------reality
If you get more than you expected

When customers don’t complain they go somewhere else……….

Customers don’t complain. They pass on their dissatisfaction to their colleagues ,
family , greengrocer, suppliers , consultants, managers , sports club, grandparents,
neighbours, director, to you…….

Maruti’s Strategic Goal

New Products Capacity Expansion

SX4 launched in 2007 Production capacity of

Grand Vitara launched in Swift increased
2007 Started production at its
New variant of third plant in
Swift Maintain 2003
Leadership
_Position in India

International Grow International Distribution

Business Business Network
Growth in Exports
Increase Customer Touch
Points
Increase in the Number
Of Maruti Service Station
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-Maintained its materials cost despite change in product mix.

-Growing shipments of Alto.

-Has 55% of the market.

-Introduced both petrol and diesel variants of Swift.

-Maruti has cut the prices of models including Maruti 800, Omni, Zen,
Wagon R, Swift Diesel and Alto. The amount of this price cut varies from Rs.
6,500 for Maruti 800 to Rs. 18,030 for Swift Diesel (in New Delhi).

-Maruti Suzuki to invest 200 billion Yen on expansion in India.

-Sri Lanka currently is the largest export market for Maruti where it sells 8,000-
9,000 cars a year.

-Maruti Udyog to enter South African market.

-Invest more on marketing and research and development.

-They are working on identifying their dealership in the region in collaboration

with the parent company Suzuki.
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Market Research Project

Project involves:

Introduction about Maruti

Procedure followed by Maruti for catering to the needs and queries of the
Customers
Application of Five Force’s Model in the Automobile Industry
Quantitative research
Awareness regarding the facilities provided by Maruti
Overall opinion about Maruti

IMPORTANCE OF THE STUDY

• The main scope of the study is to identify the satisfaction level of the
MARUTI SUZUKI customers

• As this study is based on the Primary Data.

• The main oscillator help satisfaction of the customers

• This research helps to identify the future demand for the MARUTI
Automobiles.

OBJECTIVE OF THE STUDY

 To gain in-depth knowledge in corporate promotions activity.

 To find out marketing strategy and action program of the MARUTHI

SUZUKI.

 To analyze the taste & preferences of the MARUTHI customers.

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LIMITATIONS
 Limited time for the collection of data.

 Received information from the company dealers only.

 The data received from the respondents are not much viable.

 The sample size is only 100 so the sample may not be truly representative of
the Mumbai population.

RESEARCH METHODOLOGY
Research design

A research design is an arrangement of conditions for collection and analysis

of a data in manner that aims to combine relevance to the research purpose with
economy in procedure. Research is conducted within the conceptual structure. It is
the blue print or the collection measurement and analysis of data.

Type of data used

Since the researcher has undergone his project in the marketing field, only
the primary data which is taken in to consideration. company details from the
secondary data.

SAMPLING TECHNIQUE
Satisfied random sample

Research Methodology:
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The purpose of methodology is to describe the process involved in research work.

This includes the overall research design, data collection method, the field survey
and the analysis of data.

Research Design:

Detailed and structured questionnaire was designed.

Survey a sample of 100 customers.
The methodology developed was Primary and Secondary research.
The questionnaire was designed to get information from customers about their
satisfaction and overall opinion about Maruti.

Field of Survey:

The field work for the survey was conducted in Mumbai. The exercise involved
face to face interview with the customers.

Analysis:

The important factors and data’s collected were sequentially analyzed and graphed.
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Porter’s Five Forces Model

pppppppotep
Potential threats from

firm’s that make

substitute products or

Forces of competition Buyer’s

created by rivalry bargaining power
Supplier’s

bargaining power

Potential threat from

entry of new firms

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Threat of New Entrants –

When the industry is profitable there is a threat of the entry of new

entrants as they want to share the growth prospects so the existing firms either
have to share the growing market pie or part with their own market share o the new
entrants like the coming of new Tata Nano in the market which is an A segment
car and is known for its low price and would give direct competition to Maruti-800
and would cause lesser sales volume and revenue and lower the returns. As the
switching costs from the existing products to a new one is not high so this
encourages the foreign companies like Renault and also Indian companies to bring
in new models and enter the industry.

Today the customer is not brand loyal and if there is product

differentiation the promotion is so attractive that it supports the new entrants.
Access to the distribution channels is not difficult as can be done by forming joint
ventures like Mahindra-Renault. India offers a huge market for small, mid segment
cars as the middle class is coming up in a big way and even for the prestige class as
new and elite brands have come up and India is producing good number of
entrepreneurs. Some of the ways of entering the industry is either directly or by
acquisition, joint ventures, licensing, franchises, mergers.

Rivalry Amongst Competitors –

In any industry there are countermoves made by the companies to

protect themselves. Firms are mutually dependent and the situations keep changing
with the actions and reactions of the constituent firms. The desire to be the market
leader or to corner a larger market share leads to rivalry amongst competitors. The
extent of the rivalry amongst competitors in an industry affects the competition
within that industry. When the rivalry is weak, there is likely to be lesser
competition, when the rivalry is high the competition is high and its the same in the
automobile industry.

There is cut throat competition, which leads to under pricing or

severely fought competitive battles on the basis of other factors such as delivery,
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advertising, after sales services. For example when Maruti came up with the ad of
a kancha were the tourists are in the hills and there is no food there but there is a
Maruti service station in the hilly region. Moreover the demand in India is so large
that it encourages competition.

Number of competitors in the automobile industry in India are:

Audi
Bentley
BMW
Chevrolet
Daewoo
Fiat
Ford
Hindustan motors
Honda
Hyundai
ICML
Lambhorgini
Mahindra
Mahindra-Renault
Maini
Maruti-Suzuki
Maybach
Mercedes Benz
Mitsubishi
Nissan
Opel
Porsche
Premier
Rolls-Royce
San
Skoda
Tata
Toyota
Volkswogen
Volvo
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Bargaining Power of Buyers-

The bargaining power of buyers of firms in an industry constitutes

the ability of buyers, individually or collectively to force a reduction in the prices
of products and services, demand a higher quality or better services or to seek
more value for their purchases in any way . If the purchasing power of buyers is
low then it enables a firm to pass on cost increases to buyers or to make the buyers
accept a low quality of product / service at a higher price.

As in the automobile industry the switching costs of buyers is low the

bargaining power of buyers is more and they are sensitive to price increases. A car
constitutes a higher percentage of a buyer’s cost so an increase in the price would
make the buyer goto any other brand.

Bargaining power of suppliers-

Bargaining power of suppliers constitutes their ability, individually

or collectively, to force an increase in the price of the products or services or make
the buyers accept a lower quality of product or level of service a higher supplier
bargaining power constitutes a negative feature for existing firms or new entrants
of an industry . A low supplier bargaining power enables a firm to negotiate price
increases in its favor or to make the suppliers offer higher quality of inputs at a
lower price. Suppliers have the ability to integrate forward and backward. But the
product is expensive so cannot ignore the customer and has to provide better
product like in India now even the B segment cars have advanced technology
features like airbags, anti braking systems,etc.

Bargaining power in this industry in not very high for the suppliers
as there in intense competition and substitutes are easily available. Switching costs
are low so more discounts are available and also the prices are reduced to fight
competition. The raw material is expensive like steel due to the demand still
companies are trying to reduce the cost of production.
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Threat of Substitute Products-

Substitute products or services are those which are apparently

different but satisfy the same needs of customers. For example when the demand
for swift diesel was high and the supply was less then the customers who could not
wait switched to Tata as it makes diesel cars. These days segment B cars are
promoted in a way as segment C cars are done so that they can attract the customer
and give him a feeling of belonging to the esteem segment.
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No. of Percentag
Knowledgeable Salesperson Respondents e
Strongly Disagree 0 0%
Disagree 0 0%
Neither Disagree Nor Agree 0 0%
Agree 86 86%
Strongly Agree 14 14%

86% people agreed that the sales persons are knowledgeable and 14%
strongly disagreed that the sales persons are knowledgeable.

Employees spent enough No. of Percentag

time with you before sales Respondents e
Strongly Disagree 0 0%
Disagree 0 0%
Neither Disagree Nor Agree 0 0%
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Agree 64 64%
Strongly Agree 36 36%

64% people agreed that the sales persons spent enough time with them
before the sales and 36% strongly agreed with this.

Employees spent enough No. of Percentag

time with you during sales Respondents e
Strongly Disagree 0 0%
Disagree 4 4%
Neither Disagree Nor Agree 0 0%
Agree 62 62%
Strongly Agree 34 34%

62% agreed that sales persons spent enough time with them during the sales , while
34% strongly agreed that the sales persons spent enough time with them during
sales and only 4% disagreed with this.
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Employees spent enough No. of Percentag

time with you after sales Respondents e
Strongly Disagree 0 0%
Disagree 22 22%
Neither Disagree Nor Agree 0 0%
Agree 54 54%
Strongly Agree 26 26%

60% agreed that the sales persons spent enough time with them after sales ,
26% strongly agreed with this and 14% disagreed that the sales persons
spent enough time with them after sales.
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No. of Percentag
Display of Merchandize Respondents e
Strongly Disagree 0 0%
Disagree 0 0%
Neither Disagree Nor Agree 0 0%
Agree 94 94%
Strongly Agree 6 6%

94% agreed that the display of merchandize was attractive and 6% strongly
agreed that the display of merchandize was attractive.

No.Of Percentag
Availability of the Product Respondents e
Strongly Disagree 0 0%
Disagree 4 4%
Neither Disagree Nor Agree 0 0%
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Agree 91 91%
Strongly Agree 5 5%

91% agreed that the availability of the product was there, 5% strongly
agreed that the availability was there while only 4% said they disagreed with
this.

Variety/Selection of No.of Percentag

Merchandize Respondents e
Strongly Disagree 0 0%
Disagree 6 6%
Neither Disagree Nor Agree 0 0%
Agree 87 87%
Strongly Agree 7 7%

87% agreed that there was variety/selection of merchandize whereas 7%

strongly agreed that enough variety was there and 6% disagreed with this.
 1

No. of Percentag
Vehicle in Good Condition Respondents e
Strongly Disagree 0 0%
Disagree 2 2%
Neither Disagree Nor Agree 0 0%
Agree 82 82%
Strongly Agree 16 16%

82% agreed that the vehicle was in good condition when delivered ,16%
strongly agreed with this whereas only 2% disagreed with this.
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No. of Percentag
Prices Are Affordable Respondents e
Strongly Disagree 0 0%
Disagree 12 12%
Neither Disagree Nor Agree 15 15%
Agree 21 21%
Strongly Agree 52 52%

64% strongly agreed that the prices are affordable , 21% agreed that the
prices are affordable whereas only 15% said that they neither disagreed nor
agreed with this.

No. of Percentag
Attractive Discounts Offered Respondents e
Strongly Disagree 0 0%
Disagree 26 26%
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Neither Disagree Nor Agree 0 0%

Agree 47 47%
Strongly Agree 27 27%

55% agreed that the discounts offered are attractive , 34% strongly agreed
with this while 11% disagreed and said that the discounts offered were not
attractive.

Décor Of The Waiting Area No. of Percentag

Is Pleasing Respondents e
Strongly Disagree 0 0%
Disagree 0 0%
Neither Disagree Nor Agree 0 0%
Agree 80 80%
Strongly Agree 20 20%
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80%agreed that the décor of the waiting area was pleasing while 20%
strongly agreed that the décor of the waiting area was pleasing

No. of Percentag
Offered A Test Drive Respondents e
Strongly Disagree 0 0%
Disagree 20 20%
Neither Disagree Nor Agree 0 0%
Agree 74 74%
Strongly Agree 6 6%

74%agreed that the test drive was offered to them ,6% strongly agreed that
the test drive was offered while 20% disagreed with this.
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Post Sales Follow Up Done No. of Percentag

Regularly Respondents e
Strongly Disagree 0 0%
Disagree 15 15%
Neither Disagree Nor Agree 0 0%
Agree 59 59%
Strongly Agree 26 26%

59%agreed that the post sales follow ups are done regularly , 26% srongly
agreed and 15%disagreed with this.
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Responds To complaints No. of Percentag

Quickly Respondents e
Strongly Disagree 0 0%
Disagree 9 9%
Neither Disagree Nor Agree 12 12%
Agree 61 61%
Strongly Agree 18 18%

64% agreed that the response to complaints is quick ,18% strongly agreed ,
12% neither agreed nor disagreed and 6% disagreed with this.

Service At Maruti Service No. of Percentag

Station Is Excellent Respondents e
Strongly Disagree 0 0%
Disagree 4 4%
Neither Disagree Nor Agree 0 0%
Agree 82 82%
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Strongly Agree 14 14%

82% said that the service at maruti service station is excellent , 14%
strongly agreed while only 4% disagreed with this.

Careful With Personal No. of Percentag

Information Respondents e
Strongly Disagree 0 0%
Disagree 0 0%
Neither Disagree Nor Agree 8 8%
Agree 85 85%
Strongly Agree 7 7%

85% agreed that yes they were careful with personal information, strongly
agreed with this and 8% neither agreed nor disagreed.
 1

All The Commitments Are No. of Percentag

Fulfilled Respondents e
Strongly Disagree 0 0%
Disagree 7 7%
Neither Disagree Nor Agree 0 0%
Agree 6 6%
Strongly Agree 87 87%

94% strongly agreed that all the commitments were fulfilled and 6% agreed
with this.
 3

No. of Percentag
Value For Money Respondents e
Strongly Disagree 0 0%
Disagree 0 0%
Neither Disagree Nor Agree 0 0%
Agree 2 2%
Strongly Agree 98 98%

98% strongly agreed that maruti provides value for money while 2% agreed
with this.

Are you aware of the following facilities provided by maruti

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No. of Percentag
Maruti insurance Respondents e
Yes 98 98%
No 2 2%

98% said yes that they are aware about maruti insurance while only 2% said
that they were not aware.

No. of Percentag
Extended warranty Respondents e
Yes 97 97%
No 3 3%

97% said they were aware about extended warranty and 3% said that they
did not know about this.
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No. of Percentag
True value Respondents e
Yes 98 98%
No 2 2%

98% said they were aware about true value and 2% said they were not
aware.
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No. of Percentag
Maruti finance Respondents e
Yes 75 75%
No 25 25%

75% said that they were aware about maruti finance and 25% said that they
were not aware of it.
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No. of Percentag
Autocard Respondents e
Yes 84 84%
No 16 16%

84% said that they were aware about autocard and 16% said that they were
not aware of it.
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No. of Percentag
Genuine Accessories Respondents e
Yes 85 85%
No 15 15%

85% said that they were aware of genuine accessories available and 15%
said they were not aware.

What is your overall opinion about Maruti ?

No. of Percentag
Choice Respondents e
Very bad 0 0%
Bad 0 0%
Neither bad nor good 0 0%
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Good 4 4%
Very good 96 96%

96% said that there overall opinion about maruti was that it is ver good while
4% said that it is good.

How likely would you recommend maruti?

90% people said they would very likely recommend maruti to other people
and 10% said they would likely recommend maruti to others.
1
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On an average more than 73% people feel that the prices are
affordable whereas 12% do not agree, 74% believe that attractive discounts are
offered whereas 26% are not satisfied with the discounts offered. 20% said that the
test drives are not offered and 15% said that post sales follow ups are not done
regularly whereas 85% said that they were done regularly but people feel that it is
the people’s car as it is satisfactory on all other parameters: knowledgeable sales
persons , employees spent enough time before and during sales, display of
merchandise is attractive, availability of product, variety of merchandize, vehicle
in good condition, prices are affordable, attractive discounts are offered, décor of
the waiting area is pleasing, responds to complaints quickly, service at maruti
service station is excellent, careful with personal information and is value for
money .

In the present study an attempt was made to measures the existing

marketing strategies of promotional activity by the Maruthi and Tata car

The researcher used questionnaire which include for customers and

for managers to known the current marketing strategy for the promotional activity.
Hypothesis is used to under to under the satisfy level of the customers.

Correlation is used for knowing the company cars performances.

The different option was know by the researcher when the customer given
important for features of the cars. This study helps to know the difference of
dealers’ promotional activity and the company promotional activity.

The promotional activity may different, but the effectiveness only

known by the customers when it reaches fully to the customer which would help in
the increase of sales.

The researcher made this study to not as conclusive but it would be

a corner stone on which many more stones need to placed to complete the
foundation.

The overall opinion about maruti is very good.

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➢ More test drives should be offered.

➢ Should be more particular about Post Sales Follow Up as it shows

the concern of the company with the customer.

➢ Should put in more efforts to promote Maruti Finance , Autocard

and Accessories.
1
 3

www.google.com

www.marutiudyog.com

Automobile Magazines

Marketing Management by Philip Kotler

EIILM University Course Book

Kothari. C. R, Research Methodology, New Age International(P) Ltd.,

New Delhi
1
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Being an esteem customer of Maruti Udyog Limited you are

requested to take out a few minutes and fill the following questionnaire.

Q.1) How long have you been associated with Maruti?

Q.2.)How would you rate Maruti on the following parameter

Strongly Disagree Neither agree Strongly
disagree agree agree
Nor
disagre
e
Knowledgeable sales person
Employees spent enough time
with you: before sales
During sales
After sales
Display of merchandise is
attractive
Availability of the product
Variety/selection of
merchandise
Vehicle in good condition
Prices are affordable
Attractive discounts offered
Décor of the waiting area is
pleasing
Offered a test drive
Post sales follow ups are done
regularly
Responds to complaints
quickly
Service at Maruti service
station is excellent
Careful with personal
information
All the commitments are
 1

fulfilled
Value for money

Q.3)Are you aware of the following facilities provided by maruti

Yes No
Maruti insurance
Extended warranty
True value
Maruti finance
Autocard
Genuine accessories

Q.4) What is your overall opinion about Maruti?

Very Bad Neither Bad Good Very

Bad Nor Good Good
1 2 3 4 5

Q.5) How likely would you recommend Maruti?

Very Very
Unlikely Likely
1 2 3 4 5

Date Sign
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Thank You for your prestigious time.