A

PROJECT REPORT
ON

CUSTOMER RELATIONSHIP MANAGEMENT IN

MARUTI DEALERSHIP
FOR
MARUTI WONDER CARS PVT. LTD.
SUBMITTED BY
ABHIJEET K. RAUT
UNDER THE GUIDANCE OF
PROF. - MRS. ASHWINI SOVANI
SUBMITTED TO
UNIVERSITY OF PUNE
IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF THE DEGREE OF
MASTERS OF MARKETING MANAGEMENT (MMM)
THROUGH
VISHWAKARMA INSTITUTE OF MANAGEMENT
PUNE-48

ACKNOWLEDGEMENT
I express great pleasure in introducing my project report titled
Customer Relationship Management In Maruti Dealership.

I take this opportunity to express my most sincere and heartfelt gratitude

to Mr. Mukesh Tadani (Asst. Manager),Mrs. Savita Kulkarni (HR Manager)
and Mr. U. G. Umrani (General Manager), Maruti Wonder Cars Pvt. Ltd.,
Pune, for providing me with a wonderful opportunity to execute this project in
their esteemed organization and for patiently mentoring and guiding me
throughout the project.

This project would not have been successful without the precious guidance of
our director Dr. Sharad Joshi & my project guide Prof. Mrs. Ashwini Sovani,
to whom I express my sincere gratitude and all those who have helped me
directly and indirectly.

Moreover, I would also like to thank all the employees of Maruti Wonder Cars
Pvt. Ltd. for their constant support and help.

Once again I express my gratitude to MARUTI WONDER CARS PVT. LTD.,

for providing me this enviable opportunity to carry out the project.

Abhijeet K. Raut

CONTENTS

Chapter
1.
2.
3.
4.
5.
6.
7.
8.
8.
9
10
11
12

Description
Introduction
Executive Summary
Objectives & Scope of Project
Company and Product Profile
Maruti Wonder Cars Pvt. Ltd.
Theoretical Background
Product or Service Promotion
Research Methodology
Findings
Limitations
Conclusion
Suggestions
Bibliography

Page No.
1
3
6
11
25
35
44
47
51
55
57
59
61

INTRODUCTION

INTRODUCTION

Maruti is a highest car manufacturer in Asia, Outside Japan and Korea. It is

one of most successful automobile company since its inception. The keys of
the first car was Handed over to Mrs. Indra Gandhi on 14th December 1981.

Despite there being 11 companies now in the passenger car market in India,
Maruti holds about 54.5 % of the total market share. Maruti factory is situated
on old gurgaon- Delhi Road, at distance of about 7 km from GurGaon Bus
Stand.

Maruti Wonder Cars Pvt. Ltd. Is dealership of Maruti, located at Chinchwad,

Pune.

EXECUTIVE
SUMMARY

EXECUTIVE SUMMARY
6

CRM is a business strategy, that integrates people, process and technology to

enhance relationship with customers, distributors, suppliers and employees to
maximize revenue growth and the market share. CRM is a comprehensive
initiative that provides seamless co-ordination among sales, marketing,
services, field support and all other customer facing functions.

What is Happening in the CRM Industry?

CRM continuous to be the most vibrant, critical and evolving technology
category in todays market. CRM today is no longer just about enterprise
software. Rather, todays CRM is a flexible solution where you can mix
software, hosted services and others components to meet your specific
business needs. It goes beyond sales, marketing and customer services
applications into business intelligence, analytics, hosted applications, mobile
capabilities and much more!
No doubt, todays most serious business and technology challenges are
surrounding.

Acquiring and retaining customers

Customer loyalty
Increasing customer profitability

Addressing these challenges is imperative to any companys success. This

organization is already investing in the strategic capabilities to improve
competitiveness and profitability for today and in the future. In this context I
discussed a clear understanding of how to build a strategic CRM master plan
and how to implement plan.
How mid to large enterprise companies are using CRM technologies
successfully to increase revenue and reduce costs.
An overview of the products available for each of the above mentioned CRM
solutions.
Here discussed about best practices in CRM strategy, design, and
implementation and CRM success stories across a various customers of
Maruti Suzuki.

OBJECTIVE & SCOPE

OF THE PROJECT

OBJECTIVES

Managing Customers
Why manage customers? Customers are the usual source of income for an
organization.
If not than they will certainly leverage your income, as in the case of readers
of a free publication which is funded by advertising. As such there are two
types of customers: the readers and the advertisers.
Customers are also an exceptional source of information- information which is
vital to enable a business to success; i.e. giving customers what they want.
Some of the basic objectives are as follows:

Knowing what customers want and need- which enables you to focus
your production and service efforts.

Knowing which products or customers have most growth potentialwhich enables you to focus on developing highest potential.

Knowing which products or customers are most or least profitablewhich enables you to focus on maximizing profit.

Knowing which customers will advocates and supporters- which

enables you to provide references, case studies and to safely test new
products and services.

10

 Knowing about the customer satisfaction level and increase customer

satisfaction level, and to know about that are they getting exactly what
they want.

To identify the threats aced by the Maruti, Wonder Cars Pvt. Ltd., Pune
due to customer relationship and to create the awareness to the
employees of Wonder Cars Pvt. Ltd. regarding the customer value.

11

SCOPE

The study titled Customer Relationship Management has been conducted on

behalf of Maruti Wonder Cars Pvt. Ltd., Pune. The study focuses on the
prospective customers who are giving business to the company. A data
prepared to find out the business fitness in the market initially, which provides
Strengths and Weakness about the organization to lead the project in a
systematic manner.

On obtaining information, an analysis had been done to find out the better
Relationship Management with the customers by using the latest technologies.
The recent internet technologies like e-commerce etc. whish supports to
increase the efficiency of customer relation.

Personalized customer attention acknowledging the customer, as the king is

the Mantra of Maruti. The Customer is King, Customer Services is of
paramount importance to stay in the business are principle followed by
Maruti Wonder Cars Pvt. Ltd.

The focus of Maruti Wonder Cars Pvt. Ltd. is on:

Customer Relationship
Customer Loyalty
Profitability
Value Creation

12

This goal can be achieved through the process of:

Transforming corporate culture from being product center to customer centric.
Movement from mass marketing to target market of individuals.
Reduction in cost per transaction substantially.
Reaching out to customer is the most cost effective way with target offers.

13

COMPANY AND
PRODUCT PROFILE

14

COMPANY PROFILE

When Maruti entered the Indian Market, it should to fill what it perceived as
two very glaring needs. One to provide fuel efficient, low- cast vehicles,
which were reliable and of high quality. Two, to offer customers a friendly
sales and after sales service. Total automobile value and customer satisfaction
these objectives shaped company policies and company approach to quality.

Additionally, the absence of an efficient public transportation system was

leading to a growing demand for passenger cars. A burgeoning work force and
growing middle class population meant that personal transport had become
necessary.

The first car rolled out for sale on 14 th December 1983, the company went into
production in a record into 13 month marketing. The beginning of a revolution
in the Indian Automobile Industry.

Through the year Maruti has provided word-class contemporary Japanese

technology, suitably user with a range of car to suit different needs. Marutis
market share of vehicles was over 70%, in addition to leading in

economic car segment, Maruti is also the leader in the luxury car segment
with a market share of 30%.

15

The success of the joint venture led Suzuki to increase its equity from 26% to
40% in 1987, and future to 50% in 1992. As a result Maruti change from being
a government company to nongovernmental company.

Several measures of performance have made amply clear that Maruti has
established a truly work culture. Maruti have met all project and performance
targets since inception. Companys productivity levels are constantly
improving. The companies have good labors relations with

employees from the very beginning, and have been successful in the export
market. Maruti adhere to the spirit of Kaizen, which states that Continuous
Improvement is always possible. The most basic tent of productivity that
company hold dear is that Today should be better than Yesterday and
Tomorrow should be better than Today.

16

ORGANIZATION OVERVIEW

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
system. Suzuki Motors Company was chosen from seven prospective
partners worldwide. This was due to not only undisputed leadership small cars
but also to their commitment to actively bring MUL contemporary technology
and Japanese Management practices (which had catapulted Japan over USA to
the Top Auto Manufacturing Country).

A license and joint venture agreement was signed between Govt. of India and
Suzuki Motors Company (now Suzuki Motors Corporation of Japan) in Oct.
1982.

The objectives of MUL then were:Modernization of 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.

17

OUR VISION:

The leader in the Indian Automobile Industry, creating customer delight and
share holders wealth, a price of India.

OUR CORE VALUES:

Customer Obsession.
Fast, Flexible and First Mover.
Innovation and Creativity.
Networking and Partnership.
Openness and Learning.

OFFICES/ DEPARTMENTS

Divisional Commissioner Office

Deputy Commissioner Office
Additional Deputy Commissioner Office
Sub- Divisional Magistrate Office
Police Department
District Development and Panchayat Office
State Council of Education and Research Training(SCERT)
District Education Office
Excise taxation
Industry
18

 Sport Department

Health Department
District Child Welfare Council (DCWC)
District social Welfare Organization (DSWO)
District Red Cross Society
Food and Supply Office
Planning and Development Department

MARUTI ON ROAD SERVICES

Even the most stringent quality measures, complex machines like cars can
sometimes malfunction. Just call 24 hour Maruti On-road Services (MOS)
center during an emergency and help will be on its way to you.

The MOS ensures :-

Round-the-clock services in almost all the city.

A common contact number across the country, i.e., 9622-9622-00.
A computerized call-monitoring system dispatches a mobile MOS van
to you at the earliest.
All MOS vans are manned by qualified Maruti Authorized Dealers /
MASS technicians who are trained by Maruti in Problem diagnosis.

19

 You are charged only Rs. 100. on labour and spares.

The charges do not apply if the vehicles are under warranty.

The first 24 Hours MOS was launched on a pilot run in Delhi in

January 1999. This service was then extended to Bangalore,
Calcutta, Chandigad, Chennai, Hyderabad, Ludhiana, Mumbai
and Pune in September 1999.Success of the service in these stations led to the
addition of nine more cities in April 2000.

Today, MOS is available in the following 41 cities across the

Country:
Ahmedabad, Ajmer, Ambala, Amritsar, Bangalore, Bhopal,
Calcutta,Chandigad, Chennai, Cochin, Delhi,
Faridabad, Ghaziabad, Gurgaon, Hyderabad, Indore, Jaipur,
Kanpur, Lucknow, Ludhiana, Madurai, Mangalore, Mumbai,
Mysore, Nagpur, Noida, Panchkula, Patana, Pune, Rajkot,
Surat, Varanasi,Vadodara.

20

PRODUCT PROFILE:-

The Wonder Cars Pvt. Ltd. is handling sales of Maruti Vehicles. It includes the
several Maruti models. The name, main features, launching year and punch
line of all models are as follows:-

1. MARUTI-800 [ Change your life ]

Launching in 1982.
Maruti 800, the largest selling car in India and also first Indian car. This car
is having 796cc, 37bhp, 3 cylinders with 6 valves. Fuel tank capacity is 28
liters. Having ground clearance 170mm and turning radius 4.4m. Better fuel
efficiency and low maintenance due to that this car is highly affordable. This
car is mainly preferred by the first buyers and economy class peoples.

2. OMNI [ FITS ALL]

Launching in 1984.
The Maruti Omni powered by Suzuki, the world leader in compact car
technology. This car is having 796cc, 35bhp, 3 cylinders with 6 valves. Fuel
tank capacity is 36 liters. Having ground clearance 165mm and turning radius
4.1m. The Omni is fuel-efficient , comfortable and needs very little
maintenance. The Omni has taken a technology leap. It now comes with a
21

MPFI engine. Making it confirm to the stringent Euro-II emission norm. It is

used so extensively as an ambulance, a school van, courier van, a mobile store,
a florists van, a staff car, a light goods carrier etc. Recently the Dual-Fuel
option is available in this car. Superb maneuverability because of sliding doors
and very less turning radious.

3. GYPSY
Launching in 1985.
Superb maneuverability smooth handling and raw energy packed aim to
sleek yet rugged frame the gypsy king is the real adventure gear whether
passing through dirt tracks, capacity to making way through the urban jungle.
With and incredible power of 80 BHP a 6000 RPM and a whopping troque of
100 Nm @ 4500 rpm.

4. ZEN
Launching in 1993.
Zen is the Indias number one car in its categories at features suede leather
finish seats a 3-spoke steering wheels, wood grain finish consoles and acutest.
Main features are 4 in line cylinder, 1527cc and 57 BHP@ RPM with turning
radius 4.9M.

22

5. ESTEEM [ Welcome to the BIG world ]

Launching in 1994.
The Esteem, Indias favorite luxury car that makes the longest drive looks
lime as print and that maneuvered thought traffic like knife through butter. The
new Esteem is available in 3 variants Esteem-LX, Esteem-LXi and EsteemVXi. Powered by a 16 bit computer and a 16 vale MPFI Suzuki ACE engine,
the Euro-II complaint Esteem can takes speed form O-100km/hr in 11.49
seconds. This car is having engine all aluminium 1298cc, 85bhp, 4 cylinders
with 16 valves. Fuel tank capacity is 40 liters. Having ground clearance
170mm and turning radius 4.8m.

6. BALENO [ OWNERS CHOICE ]

Launching in 1999.
Baleno is a luxurious travel car. A twin as doubles the luggage space, large
cabin space with flexi seating option that can send up to 5 people. Having fuel
tank capacity 51 liters, 170mm ground clearance, turning radious 4.9m.
Having 1590cc, All aluminum, 4 cylinders with16 valves and 91 BHP@5500
RPM and torque 130.5Nm @ 3000rpm, engine of Baleno smooth power
delivery quick acceleration in short a try technology master piece.

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7. WAGONR [ For The Smarter Race ]

Launching in 2000.
The WagonR is tall boy design because the roof height is 1690mm. This car
is having 1061cc, 64bhp, 4 cylinders with 16 valves. Fuel tank capacity is 35
liters. Having ground clearance 165mm and turning radius 4.6m. This car is
having 32-Bit Electronic control module (ECM) because of that highly
integrated ECM car is having better control and high efficiency.

8. ALTO [ Lets Go]

Launching in 2000.
It comes in 3 variants i.e. std Alto, Alto-LX, Alto-LXi. is thundering MPFI
engine with 4 values per cylinder and 16 bit computer will tackle all
challenges meets smooth performance. This car is having 796cc, 47bhp, 3
cylinders with 12 valves. Fuel tank capacity is 28 liters. Having ground
clearance 160mm and turning radius 4.6m. Better fuel efficiency and low
maintenance due to that this car is highly affordable. This car is mainly
preferred by the first buyers and economy class peoples.Raw power meets
optimal fuel efficiency high tensile steel door beams guards against Collission
impact 8-inch Booster Assisted Breaks in front provide for controlled stooping
power. The AC is deal for Indias tropical climate and cool the interiors in
seconds.

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9. VERSA [ The joy of traveling together ]

Launching in 2001.
It comes in 3 varients i.e. std Versa, Versa-DX, Versa-DX2. This car is
having 1298cc, 82bhp, 4 cylinders with 16 valves. Fuel tank capacity is 40
liters. Having ground clearance 165mm and turning radius 4.5m. This car is
having seating capacity of 8 persons comfortably so that punch line of this car
is The joy of traveling together. Recently this car is not for sale.

10. GRAND VITARA [ Play it your way ]

Launching in 2003.
This is highest cost car of Maruti-Suzuki. This car is having highly
technical facilities like - Four Wheel Drive, Anti-lock Breaking System(ABS
System) for better breaking on wet surface, EBD System, 6 speeds( 5
forward+1 reverse), Independent front and rear suspensions for better ride and
handling, Tilt adjustable power steering, In-dash CD with steering mounted
audio system, Dual front airbags, Drive by wire, tubeless tyres. This car is
having 1995cc, 119.5bhp, 4 cylinders with 16 valves. Fuel tank capacity is 66
liters. Having ground clearance 200mm and turning radius 5.5m. Due to that
this car is having high luxury, comfort, safety so that price of this car is high.

25

11. SWIFT [YOURE THE FUEL ]

Launching in 2005.
This car is having very stylish and sporty look, so that it attracts young
generation. This car is having 1298cc, 87bhp, 4 cylinders with 16 valves. Fuel
tank capacity is 43 liters. Having ground clearance 170mm and turning radius
4.7m. The car design allow specious interiors, ride comfort, better on-road
handling and stability.

12.WAGONR DUO [ DRIVE THE WAY YOU WANT ]

Launching in 2006.
. This car is having RTO permitted LPG kit, 1061cc, 64bhp, 4 cylinders with
16 valves. Fuel tank capacity is 35 liters (petrol) and 22.5 liters (LPG). Having
ground clearance 165mm and turning radius 4.6m. Better economy because of
Duel-Fuel option.

13. ZEN ESTILO [ SHAPE YOUR WORLD ]

Launching in 2006.
ESTILO means Stylish. This car is having very stylish look, very high
comfort. It is attracting Women market and young generation. This car is
having 1061cc, 64bhp, 4 cylinders with 16 valves. Fuel tank capacity is 35

26

liters. Having ground clearance 165mm and turning radius 4.6m. This car is
having 32-Bit Electronic control module (ECM) because of that highly
integrated ECM car is having better control and high efficiency.

14. SWIFT DIESEL [ YOURE THE FUEL ! ]

Launching in 2007.
The Swift is newly launched by the Maruti Udyog Limited. This car is
having very stylish and sporty look, so that it attracts young generation. This
car is having 1298cc, 87bhp, 4 cylinders with 16 valves. Fuel tank capacity is
43 liters. Having ground clearance 170mm and turning radius 4.7m. The car
design allow specious interiors, ride comfort, better on-road handling and
stability.

15. SX4 [ MEN ARE BACK ]

Launching in 2007.
The SX4 is newly launched by the Maruti Udyog Limited. This car is
included in luxurious car segment. This car is having 1586cc, 102bhp, 4
cylinders with 16 valves. Fuel tank capacity is 50 liters. Having ground
clearance 180mm and turning radius 5.3m. It is having high cost because of
high technical features like ABS (Anti-Lock Breaking System), EBD
( Electronic Break Distribution ) system. Due to that this car is having high
luxury, comfort, safety so that price of this car is high.

27

WONDER CARS
PVT. LTD.

28

MANAGEMENT RESPONSIBILITY

RESPONSIBILITY DESCRIPTION
1. Responsibility for executive director-

Ultimately responsibility for the quality of the in all fields.

Future planning and giving orientation to the business.

Responsibility for overall quality policy.

2. Responsibility of G.M. -

Responsibility for the quality of the company in fields.

To improve quality manual and procedure.

Talking part of review meting.

Planning strategies for vehicles sales spare part sales and customer
satisfaction.

Cost control and budgeting.

Selling / forecasting (targets).

Review customer complaints once a fort night.

Chairing the management review.

Sectioning adequate budget requirement.

29

To implement management plans.

To implement HRD programs.

3. Responsibility of Manager-

Controlling quality system.

Day-to-day administration.

Dealership development activities as a whole.

FUNCTION OF VARIOUS DEPARTMENTS

A.

B.

Personal and administration:

House keeping.

Training of employment after identifying.

Maintaining service records.

Statutory complaints.

Sales:
30

New vehicle sales and documentation.

Procurement of vehicle.

Co-ordination with workshop.

Receipt of new vehicle.

Customer complaints and follow up.

Field sales.

Training.

Managing sales force.

Marketing:

Marketing

Identifying opportunity.

Marketing strategies and programs.

Planning and Promotion.

Market Research.

Advertising and Organization events.

31

1. Service and repair (Workshop)

Controlling quality system.

Review customer complaints and analyze defects in vehicle reporting

to Wonder Cars Pvt. Ltd. and time of first service and taking
preventive actions.

Opening job card.

Carry out services and repairs as per laid out procedures and
instructions in check sheet and manuals.

2.

Final inspection of service vehicle.

Deliver of vehicle to the customer.

Warranty handling.

Simple audit of serviced vehicle.

Post services follow up.

Customers complaints handling.

Maintenance of equipments and facilities.

Pre- delivery inspection.

Spare part section:

Planning forecasting and inventory control.

32

Procurement of parts.

Proper stocking and identification.

Workshop issue.

Counter sales.

3.

Finance activities:

Bank transaction.

Expense control.

Documentation.

Computerization

PERSONNEL AND ADMINISTRATION

Procurement and administration is not the only function of this division. HR

development is an area of this division looking after the development of
personal giving training for new aspirants and conduction seminars and events
to improve the living and social status of employees. Also welfare services i.e.
canteen facilities, accident benefits etc.

33

Other than this, the workers education, cultural activities and community
development are some of its functions. Personal department also helps in
making good industrial relations to avoid any conflict between employees and
management. All the problems regarding their increment, employees,
conflicts, complaints of working conditions, bonus, promotion, incentives,
strikes, etc. are also handled by this department.

INCENTIVE SYSTEM
In Wonder Cars Pvt. Ltd. besides wages and salaries, employees are paid
incentives depending on their performance.
Incentives are monthly benefits paid to workman in recognition of their
outstanding performance. The Wonder Cars Pvt. Ltd. adopted the incentive on
the basis of target achieved by employees in their respective fields. Also
maruti provides incentive schemes for every month to all dealerships. All
dealerships must provide incentives to the DSE (Dealership Sales Executives).

PROCEDURE FOR VEHICLES SALES OPERATION

1. PROCUREMENT OF VEHICLES
All vehicles for sales should be procured from MUL as per the
procedure laid down by MUL in their bulletins in circulars from time
to time. Details of all vehicles received at the dealership shall be
recorded in the vehicles receipt in the format specified by MUL and
34

also entered to the computer. Model, chassis number and engine

number will identify all the vehicles.
Vehicles received from MUL shall be inspected for shortage and
transits damage and from correctness of accompanying documents
transits damage and shortage will be mentioned in the transport
documents and in the vehicle received registered as per guideline
provided by MUL.
Vehicles not found to be sold as new vehicles are to referred to MUL
long with the complete documentation specified for the same accepted
are to be handed over to the workshop for repairs and replacement of
shortage items. All new vehicles shall under to PDI and records shall
be maintained in the register for the same.

SALES

A customer can communicated his intention to buy a vehicle over

telephone or by a personal visit (walk in).

Incase of communication over phone, the front office state will note
down the name, address and phone no. of the customer in the enquiry
register and inform the field staff in details to enable them the followup the sales with the customers.

Whether a customer enters the front office of the sales department the
dealership sales executive (DSE) should welcome to the customer treat
the customer and politely ask customer for the service required and

35

according shall comply. If the customer has come for the Performa
invoice the same for the required model shall given.

In the booking procedure colors available delivery period should be

clearly explained. The details of the customers name, address, phone
number shall also be entered in the inquiry register to enable the field
staff to follow up on the sale.

Whenever a customer comes to the book a vehicle or make payment

for ready stock vehicle the order booking form and payment receipt
shall be filled in and given to the customer. The delivery time shall be
clearly explained to the Customer at the time of making payment.

Allotment and delivery of booked vehicles shall be as per the guideline

of MUL for booked vehicle.

In case of any change in product specification price or delivery period

the same shall be intimated to the customer by phone or in writing.

The customer signature must be taken on order booking form to

finalize the same contract. The customer signature must also be taken

On the delivery document at the time of handling over the vehicle to

the customer after he is satisfied in all respects.

All documents for pertaining the sale including order booking form,
invoice, sales letter and delivery note shall be kept in the docket in all
times. The docket shall be opened at the time, customer make the
booking. The docket shall be kept in the sales debt in the files years
marked for the same and these shall be preserved in the record section.

36

DSE must have to ask the customer about the delivery date and time
according to the customers convenience and arrange the ceremony
program for delivering the vehicle.

After all documentation work is completed, the customer shall be

given a test drive in his vehicle and satisfied of them vehicle condition

before delivery. They shall be explained the operation details of the

vehicle by the sales executive and service advisor before delivering the
vehicle.

In case the customer is not satisfied about any aspect of the vehicle the
same shall be attained immediately to a satisfaction.

2. AFTER DELIVERY FOLLOW-UP:

All customer shall be provided with postage prepaid sale feedback

form at the time of delivery. The delivery staff request the customer to
fill up the same and mail it back with his comments and observation.

An after delivery follow-up shall be done with all customers over the
phone by the sales executive within 3 days after delivery of the vehicle
regarding performance of the vehicle. The response will be recorded in
a register.

37

If the customer reports any problem/ dissatisfaction, he shall be asked

to bring his supervisor of the customer complain cell and set right. The
GM and Chief executive shall review of the sales feedback forms
received back from the customer. Other suggestion made by customer
shall be compile analyzed and action taken whenever required.

38

THEORITICAL
BACKGROUND

THEORITICAL BACKGROUND

CUSTOMER RELATIONSHIP MANAGEMENT

CRM- Principles, strategy, solutions, applications, systems, software, and
ideas for effective customer relationship management.

39

Customer Relationship Management, or CRM, is an essential part of modern

business management. This CRM article is proved by Ellen Gifford, who
specializes in helping organizations

develop

excellent

in

CRM ,

and

his contribution is gratefully acknowledged.

What is Customer Relationship Management, or CRM?

Customer- Relationship- Management concerns the relationship between the
organization and its customers. Customers

are the lifeblood of

any

organization be it a global corporation with thousands of employees and a

multi-billion turnover, or a sole trader with a handful of regular customers.
Customer Relationship Management is the same in principle for these two
examples. It is the scope of CRM which can vary drastically.

CRM focuses on the relationship

Successful organization use three steps to build Customer Relationship:
Determine mutually satisfying goals between organization and customers.
Establish and maintain customer rapport.
Product positive feelings in the organization and the customers.

CRM conditions:
The organization and the customers both have sets of conditions to consider
when building the relationship , such as wants and needs of both parties :

Organizations need to make a profit to survive and grow.

40

 Customers want good service, a quality product and an acceptable

price.

Good CRM can influence both sets of conditions.

CRM is a new concept to many organizations. If its new to you, heres why
most forward thinking organizations devote lot of energy and resources to the
set up and management of a CRM capability.

How CRM impacts on the organization

CRM can have a major impact on the organization through :
Shifting the focus from product to customer.
Streamlining the offer to what the customer requires, not according to
the organization want.
Highlighting competencies required for an effective CRM process.

Why does the organization need the CRM :

The ultimate purpose of CRM, like any organizational initiative, is to increase

profit. In the case of CRM this is achieved mainly by

providing a better

services to your customers than your competitors. CRM not only improves
the services to customers though ; a good CRM capability will
41

also reduce costs , wastages , and complaints (although you may see some
increase initially , simply because you here about things that without CRM
would have stayed hidden.) Effective CRM also reduces staff stress, because
attrition a major cause of stress reduces as services and
relationships improve. CRM enables instant market research as well: opening
the lines of communications with your customers gives you direct constant
market reaction to your products, services and performance, far better than any
market survey. Good CRM also helps you grow your business; customers stay
with you longer; customer loosing rates reduce; referrals to new customers
increase from increasing numbers of satisfied customers; demand reduces on
fire-fighting and trouble-shooting staff, and
Overall the organizations service flows and team work more efficiently and
more happily.

Features of good CRM

The old viewpoint in industry was: Heres what we can make-who wants to
bye our product?
The new viewpoint in industry is :
what exactly do our customers want and need ? and
what do we need to do be able to produce and deliver it to our
customers ?
This is a significant change of paradigm and a quantum leap in terms of how
we look at our business activity.

42

CRM AS A PROCESS:

CRM as we can see, is a process whose objective is to enhance customer

loyalty. This process consist of following:

Creation and management of data mining and warehousing.

Development of appropriate organizational structures.
Investment in technology.
People development

CRM PROCESS.
Managing customers

Knowing which customers will be advocates and supporters which enables

you to provide references, case studies, and to safely test new products and
services achieving good CRM.

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Achieving effective Customer Relationship Management requires many

organizations to adopt a new perspective. Consider the following:
Your relationship with customers should be ongoing, co-operative, and built
for the long term. Organizations who have many transitory relationships with
customers Consequently have to spend a lot of money on finding new
customers.
The cost of keeping existing customers is a tiny fraction of the cost of
acquiring new

customers. The essential CRM focus of any organization

should be on developing core competencies, and an overall strategy of

building customer relationship. In this way, all efforts in the organization can
be aligned to :
Understanding and managing the people impact on the culture of the
organization
Customers being recognized and treated as partners
Service being seen as a value-adding activity
Reward and recognition being based on customer focus
i.e; going the extra mile

Characteristics of excellent CRM

The following characteristics are associated with delivery of excellent
CRM:
Reliability
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 Responsiveness
Accessibility
Safety
Courtesy
Consideration
Communication
Recognizing the customer
Competence

CRM and communications

Communication is central to any successful relationship. In terms of
Relationship Management, communication needs to be consistent and high
quality as determined by :
on time
focused
relevant
reliable
coherent

Important also, for effective communications its the message and meaning
that is received that counts, irrespective of what the communicator thinks
theyve said, or written. Communication must be judged most vitally by the
reaction of the receiver. If the reaction is not good then the communication is
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poor. The information contained in a CRM system allows communication to

be directed at the correct audience, in the correct way. The communication
system must also encourage and facilitate honest and actionable feedback.

Feedback from customers- especially complaints are essential for good

organizational performance and ongoing development. Most organizations
avoid, discourage and hide from complaints. Complaints are free guidance for
improving your quality, and free opportunities to increase customer loyalty.

PEOPLE AND CRM

As with any other business process your people have a huge impact on the
success of the CRM process.
Successful and effective Customer Relationship Management people tend to
display the following key characteristics:
positive attitude
people orientation
organizational skills
analytical skills
customer focus (natural empathy)
understanding of the link between CRM and profitability

On the subject of empathy: Empathy is about understanding, not

necessarily agreeing.
Effective customer focus enables the organization and its staff to see both
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Sides, and to work with the customer to arrive at the mutually and
satisfactory sustainable solution.

Benefits of effective CRM

There are significant business benefits which occur from an effective,
integrated Customer Relationship Management approach. These include:

Reduced costs, because the right things are being done

( i.e. effective and efficient operation)
Increased customer satisfaction, because they are getting exactly what
they want ( i.e. exceeding expectations)
Maximization of opportunities (e.g. increased services, referrals, etc)
increase access to a source of market and competitor information.
highlighting poor operation process.
long term profitability and sustainability
Forward thinking organizations understand the vital need to maintain a
strategic focus on CRM and to resource and manage it appropriately.

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PRODUCT OR
SERVICE PROMOTION

PRODUCT / SERVICE PROMOTION

48

Promotion is main activity of marketing department. Promotion includes all

the activity in which the company under communicates and promotes its
product services to the target market. For this a company has to hire, train, and
motivate sales people. It has to set up communication and promotion program
consisting of advertising sales promotion, public relations and direct and on
line marketing.
The marketing department of Wonder Cars Pvt. Ltd. also uses different type of
promotion tools to communicate their target market. Wonder Cars Pvt. Ltd.
use following tools:

1.

Advertising

Advertising is any paid form of presenting ideas, product and services to the
customers. Wonder Cars Pvt. Ltd. uses Newspaper, Advertisement, trade
shows, promotions in corporate as well as in villages and Banners for their
advertising, the radio advertisements.

2.

Events

Wonder Cars Pvt. Ltd. also organizes events to promote their product and
services. It includes meals, school competition, free service camp.

Sales Promotion

Sales promotion is the activity done by the organization for increasing the
sales of particular product in given territory and time. Sales promotion consists

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of diverse collection of incentive tools mostly short term, design to stimulate

quicker or greater purchase of particular product or service by consumers.
Wonder Cars Pvt. Ltd. uses these tools very often to attract more and more
people for purchasing and servicing. The sales promotion tools, which Wonder
Cars Pvt. Ltd. uses, are following types:

(A) Free Test Drive

Wonder Cars Pvt. Ltd. gives free test drive for all vehicle before
purchase.

(B) Offers
Offers usually come from MUL.

(C)

Discounts
Wonder Cars Pvt. Ltd. on a special occasion gives discount on
their services charge. Also provide discounts given by MUL.

(D)

Free Accessories
Some time Wonder Cars Ltd. offers new accessories free cost.

(E) Trade Shows

Wonder Cars Ltd. organize trade shows to promote their sales.

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RESEARCH
METHODOLOG
Y

RESEARCH METHODOLOGY

51

The methodology is basically the set of rules, procedures, tools, and

techniques used by the researcher for realization of research objective. The
process of designing research study involves many interrelated decisions. The
most significant decision is the choice of research approach. This determines
how the information will obtain.

There are three types of research approach: 1) Exploratory research

2) Descriptive research
3) Causal research

These types differ significantly in terms of research purpose, research

question, precision of hypotheses that are formed and data collection method
used.

1) Exploratory research: Exploratory research is seeking insight into general nature of

a

problem,

variables that

the

possible decision

need

alternatives and relevant

to be considered.

The objective of

exploratory research is to find out new ideas flexibility, &

ingenuity characterized by the investigation. In the exploratory
research emphasis is given on the finding practices and policies
that need changing and developing possible alternatives.
Exploratory research seeks to discover new relationships. Hence
most of the marketing research is of an exploratory type.

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Exploratory research defines problem, which is then solved by

conclusive research.

2) Descriptive research: Descriptive research gives emphasis on description & such studies
are simply fact gathering expedition. Descriptive studies attempt to
obtain a complete & accurate description of situation. Descriptive
data are based as direct basis for marketing decisions.

3) Causal approach: When it is necessary to show that one variable causes or determine
the value of other variable the causal research approach is used. In
our research approach the

exploratory as well as descriptive

approach is used to explore the various ways of obtaining the

information.
In planning and designing a specific research project it is necessary
to anticipate all the points that must be undertaken if the project is
to be successful in collecting valid and reliable information.

Customers Expectation Survey

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I had done the survey in that I asked to customers about there

expectations for the service from dealership.

Following are the customers expectations from dealership about service

quality:
Good treatment by sales executives and good environment in
showroom.
Those customers who are first time buyers they want suggestions about
which car is suitable to them.
Customers want to know all the features added in the car which they
want to purchase.
Customers want maximum discount.
Customers want to know about the various finance schemes available.
Customers want to know about the after sales service and insurance
renewal.
Customers perception is that they are investing a large amount of
money for purchasing a car. So they want very good service quality and
prompt service from dealership.

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Analysis Of Customer Preferences

I had done survey in that I asked to130 people about which companys car
they would prefer to purchase.

Customers preferences for purchasing a car:

COMPANY

RESPONDANTS

Maruti

85

Tata Motors

18

Hyundai

13

Mahindra

Honda

Toyota

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6. RESEARCH ANALYSIS & FINDINGS

The survey was carried out in the Pune. The analysis has shown that most of
the customer expectations are fulfilled by Maruti Dealerships. Those
expectations which are not fulfilled, the dealership people can try their best to
improve.

Because of Marutis good products and good quality service provided by their
dealerships most of the customers want to purchase Marutis products.

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FINDINGS

57

FINDINGS

In last two years Maruti had done their 60-65% business by the
existing customer referrals.
In year 2006 Maruti Had 54.5% market shear. 11.5 lack cars sold in
year 2006, in that Maruti sold 6.5 lack cars.
Maruti having cars from very less price range to high price luxury cars.
With the main product of cars Maruti provides following additional
services; Maruti- Call Centers, Maruti On-road Services (MOS),
Maruti- Insurance, Maruti- Genuine Accessories (MGA), Maruti- True
Value, Maruti- Finance, Maruti Autocard, Maruti- Driving School.
Marutis sales network spread across more than 200 cities, 400 sales
outlets across the country, service centers in more than 1100 cities and
towns, 550 dealer workshops, 1650 Maruti authorized service stations,
200 True Value outlets across India, Driving schools in Gurgaon and
Kochi.
Maruti Wonder Cars Pvt. Ltd. works on Single Window Concept, i.e.provides all the additional facilities suggested by Maruti. Because of
highly maintained quality they sales 300-350 cars per month.

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LIMITATIONS OF THE
PROJECT

59

LIMITATIONS

Non availability of official data.

There was time constrains (2 months), so that data collected is less.

To keep the project cost minimum due to budget constrains.

Some of the respondents did not give other relevant information which
was required for the project

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CONCLUSION

61

CONCLUSION

Maruti has highest no of loyal customers in India.

By holding highest market shear, Maruti maintains their leadership in
car industry of India.
Maruti having products suitable for all income group peoples so that
Maruti have very large no of customers.
Maruti having very large network in all over India, ultimately Maruti
getting competitors advantage.
Maruti dealerships Selling their product by the Single Window
Concept in that Maruti provides additional facilities to their customers
like finance, insurance, true value, MGA, MOS, autocard. Maruti not
only satisfies their customers but also delights them.
By using better CRM practices Maruti had won the hearts of the Indian
customers.
Maruti Wonder Cars Pvt. Ltd. Is very successful dealership of Maruti
in Pune.

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SUGGESTIONS

63

SUGGESTIONS

1. CRM awareness programs must be conducted in dealership for DSE on

regular interval.

2. Motivational programs must be conducted for increasing job

satisfaction level of employees ultimately satisfied employees can
provide better service to the customers and make them delight.

3. Complaint box must be provided for the customers so that organization

can able to find out the problems in service quality.

4. By providing good interior of showroom, additional facilities like tea,

coffee, organization can able to reduce customer complaints.

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BIBLIOGRAPHY

65

BIBLIOGRAPHY

Customer Relationship Management Jagdish Seth.

Marketing Management - Philip Kotler.

Books provided by Maruti in training program for the DSE (Dealership

Sales Executive).

Information broachers of car.

Information booklets of Maruti Wonder Cars Pvt. Ltd.

www.google.com

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