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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 EIILM UNIVERSITY 2010

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CERTIFICATE This is to certify that Mr.Vinay Krishna Dasi (Enrollment No:- EIILMU/O8/F0726) has successfully completed a project / training entitled, ³A 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 NO. TITLE PAGE

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 NO. FIGURE LEGEND PAGE

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 NO. FIGURE LEGEND PAGE

1

Customer Satisfactory Level Graphs

41-66

2

3

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 ³Count On Us.´

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- 10 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 farsighted 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:
y y y

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

y y

Maximising Shareholder's value Being a responsible corporate citizen

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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 horizontal management structure with only four functional levels of responsibility to facilitate quicker decision making.

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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". 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.

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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:
y y y

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
y y y y y

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

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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 First Indian car manufacturer to reach 5 million vehicles sales Business World ranks Maruti among top five most respected companies in

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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 TodayAC 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.

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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: 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

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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

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.

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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. 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.

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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 ³People¶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 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.

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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 ³Do 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 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.

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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 ³A 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 Opportunity to do so´ How you communicate Your words Your voice

7% 35%

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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 Maintain Swift 2003 Leadership _Position in India Grow International Distribution International 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 8,0009,000 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 y The main scope of the study is to identify the satisfaction level of the MARUTI SUZUKI customers y As this study is based on the Primary Data. y The main oscillator help satisfaction of the customers y 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: 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.

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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

Forces of competition created by rivalry Supplier¶s bargaining power

Buyer¶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, 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

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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 BuyersThe 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 suppliersBargaining 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 ProductsSubstitute 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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Knowledgeable Salesperson Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

No. of Respondents 0 0 0 86 14

Percentage 0% 0% 0% 86% 14%

90 80 70 60 50 40 30 20 10 0 No. of Respondents Percentage

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

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

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Employees spent enough time with you before sales Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

No. of Respondents 0 0 0 64 36

Percentage 0% 0% 0% 64% 36%

70 60 50 40 30 20 10 0 No. of Respondents
Strongly Agree Neither Disagree Nor Agree Agree Strongly Disagree Disagree

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

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Employees spent enough time with you during sales Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

No. of Respondents 0 4 0 62 34

Percentage 0% 4% 0% 62% 34%

70 60 50 40 30 20 10 0 No. of Respondents
Neither Disagree Nor Agree Agree Strongly Agree Strongly Disagree Disagree

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 time with you after sales Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

No. of Respondents 0 22 0 54 26

Percentage 0% 22% 0% 54% 26%

60 50 40 30 20 10 0 No. of Respondents
Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

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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Display of Merchandize Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
100 90 80 70 60 50 40 30 20 10 0 No. of Percentage Respondents

No. of Respondents 0 0 0 94 6

Percentage 0% 0% 0% 94% 6%

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

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

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Availability of the Product Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

No.Of Respondents 0 4 0 91 5

Percentage 0% 4% 0% 91% 5%

100 90 80 70 60 50 40 30 20 10 0 No. of Respondents

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

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.

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Variety/Selection of No.of Merchandize Respondents Strongly Disagree 0 Disagree 6 Neither Disagree Nor Agree 0 Agree 87 Strongly Agree 7

Percentage 0% 6% 0% 87% 7%

90 80 70 60 50 40 30 20 10 0 No. of Respondents

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

87% agreed that there was variety/selection of merchandize whereas 7% strongly agreed that enough variety was there and 6% disagreed with this.

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Vehicle in Good Condition Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

No. of Respondents 0 2 0 82 16

Percentage 0% 2% 0% 82% 16%

90 80 70 60 50 40 30 20 10 0 No. of Respondents

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

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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Prices Are Affordable Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

No. of Respondents 0 12 15 21 52

Percentage 0% 12% 15% 21% 52%

60 50 40 30 20 10 0 No. of Respondents Percentage

Strongly Disagree

Disagree

Neither Disagree Nor Agree Agree

Strongly Agree

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.

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Attractive Discounts Offered Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

No. of Respondents 0 26 0 47 27

Percentage 0% 26% 0% 47% 27%

60 50 40 30 20 10 0 No. of Respondents

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

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.

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Décor Of The Waiting Area Is No. of Pleasing Respondents Strongly Disagree 0 Disagree 0 Neither Disagree Nor Agree 0 Agree 80 Strongly Agree 20
80 70 60 50 40 30 20 10 0 No. of Percentage Respondents

Percentage 0% 0% 0% 80% 20%

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

80%agreed that the décor of the waiting area was pleasing while 20% strongly agreed that the décor of the waiting area was pleasing

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Offered A Test Drive Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

No. of Respondents 0 20 0 74 6
Strongly Disagree

Percentage 0% 20% 0% 74% 6%

80 70 60 50 40 30 20 10 0 No. of Respondents Percentage

Disagree

Neither Disagree Nor Agree Agree

Strongly Agree

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 Regularly Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
60 50 40 30 20 10 0 No. of Respondents Percentage

No. of Respondents 0 15 0 59 26

Percentage 0% 15% 0% 59% 26%

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

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 Quickly Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
70 60 50 40 30 20 10 0 No. of Respondents

No. of Respondents 0 9 12 61 18

Percentage 0% 9% 12% 61% 18%

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

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

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Service At Maruti Service Station Is Excellent Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

No. of Respondents 0 4 0 82 14

Percentage 0% 4% 0% 82% 14%

90 80 70 60 50 40 30 20 10 0 No. of Percentage Respondents

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

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

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Careful With Personal Information Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

No. of Respondents 0 0 8 85 7

Percentage 0% 0% 8% 85% 7%

90 80 70 60 50 40 30 20 10 0 No. of Percentage Respondents

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

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

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All The Commitments Are Fulfilled Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
90 80 70 60 0 40 30 20 10 0

No. of Respondents 0 7 0 6 87

Percentage 0% 7% 0% 6% 87%

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

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

 

No. of Respondents

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Value For Money Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
100 90 0 70 60 50 40 30 20 10 0 No. of Percentage Respondents

No. of Respondents 0 0 0 2 98

Percentage 0% 0% 0% 2% 98%

Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree

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

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Are you aware of the following facilities provided by maruti No. of Percentage Respondents 98 98% 2 2%

Maruti insurance Yes No
100 90 80 70 60 50 40 30 20 10 0 No. of Respondents

Yes No

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

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Extended warranty Yes No
100 90 80 70 60 50 40 30 20 10 0

No. of Respondents Percentage 97 97% 3 3%

Y

. f

t

97% said they were aware about extended warranty and 3% said that they did not know about this. 

¥ § ¤¨§ ¢¦ ¥¤£ ¢ ¢¡

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True value Yes No

No. of Percentage Respondents 98 98% 2 2%

. f

t

98% said they were aware about true value and 2% said they were not aware.

$# "!
Y

100 90 80 70 60 50 40 30 20 10 0 

      

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Maruti finance Yes No
80 70 60 50 40 30 20 10 0 No. of Respondents

No. of Percentage Respondents 75 75% 25 25%

Yes No

75% said that they were aware about maruti finance and 25% said that they were not aware of it.

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Autocard Yes No
90 80 70 60 50 40 30 20 10 0 No. of Respondents

No. of Percentage Respondents 84 84% 16 16%

Yes No

84% said that they were aware about autocard and 16% said that they were not aware of it.

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Genuine Accessories Yes No
90 80 70 60 50 40 30 20 10 0 No. of Respondents

No. of Percentage Respondents 85 85% 15 15%

Yes No

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

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What is your overall opinion about Maruti ? No. of Respondents 0 0 0 4 96

Choice Very bad Bad Neither bad nor good Good Very good

Percentage 0% 0% 0% 4% 96%

100 90 80 70 60 50 40 30 20 10 0 No. of Respondents

Very bad

Bad

Neither bad nor good Good

Very good

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

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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.

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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.

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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

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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 disagree agree Nor disagree 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 fulfilled Value for money

Strongly agree

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Q.3)Are you aware of the following facilities provided by maruti Yes Maruti insurance Extended warranty True value Maruti finance Autocard Genuine accessories No

Q.4) What is your overall opinion about Maruti? Very Bad 1 Bad 2 Neither Bad Nor Good 3 Good 4 Very Good 5

Q.5) How likely would you recommend Maruti? Very Unlikely 1 Very Likely 5

2

3

4

Date

Sign

Thank You for your prestigious time.

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