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CONTENT PG 1. EXECUTIVE SUMMARY y y y y y INTRODUCTION OF TOPIC OBJECTIVE OF STUDY FINDINGS SUGGESTIONS CONCLUSIONS 4 5 6 6 7 7 12 14
2. INDUSTRY PROFILE y y y BOOM IN INDIAN AUTOMOBILE INDUSTRY E-BUSINESS OF AUTOMOTIVE INDUSTRY
COMPETITIVE FACTORS OF AUTOMOBILE INDUSTRY IN INDIA 17 18 19 21 23 24 25 27 27 30 31 34
3. COMPANY PROFILE y y y y y HISTORY OF MARUTI SUZUKI LTD AUTHORIZED SERVICE STATION OF MARUTI ABOUT KATARIA AUTOMOBILES HISTORY OF KATARIA AUTOMOBILES MANAGEMENT OF KATARIA AUTOMOBILES LIMITED
4. RESEARCH METHODOLOGY y y y y WHAT IS RESEARCH WHAT IS MARKETING RESEARCH TYPES PROCESS
METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 1
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES EXPLANATION ON CUSTOMER RETENTION OBJECTIVE OF STUDY 38 41 42 68 69 70 71 72 73
5. DATA ANALYSIS AND INTERPRETATION 6. 7. 8. 9. LIMITATIONS OF THE PROJECT SUGGESTIOS OF THE PROJECT CONCLUSION OF THE PROJECT GLOSARRY
10. BIBLIOGRAPHY 11. ANNEXURE
METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 2
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES
METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 3
Just as customer acquisition is focused on particular prospects. organization entire team should be very focused on retaining those customers. before turning to development. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 4 . And if you¶re in an industry where they make multiple purchases over the years. and a customer development strategy aims to increase the value of those retained customers to the company. Customer retention is the mirror image of customer defection or churn. High retention is equivalent to low defection. retention and development also focus on particular customers. A customer retention strategy aims to keep a high proportion of valuable customers by reducing customer defections (churn).THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Executive summary y Introduction of customer retention Customer retention is the maintenance of continuous trading relationships with customers over the long term. Focus is necessary because not all customers are worth retaining and not all customers have potential for development. Customer retention is about keeping the customers organization has spent that money to acquire. We will deal with the issue of retention first.
and current students. # To determine and compare educational development of the project-assisted and non-assisted institutes as perceived by teachers. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 5 . administrators.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Which customers will be targeted for retention? What customer retention strategies will be used? How will the customer retention performance be measured? y Objective of the study # To know whether the different variations of price level provided by KATARIA AUTOMOBILES satisfies consumers. # To know about code of conduct and which rules and procedures are followed by employees.
# All the customers surveyed at kataria automobile ltd Surat (piplod)are using the after sales service provided by the dealer. contests and coupons must be given to customers. # Free samples should be distributed among the prospects. has to make the future strategy by considering the 3 important representative factors like as RELIABILITY. 20 of the total customers come to know about the kataria automobile ltd surat(varachha) from Auto fair medium. y Suggestions # looking to the result of the factor analysis Kataria Automobiles Ltd. # They must keep in their mind that the ³customer is king in the market´ and his full satisfaction in respect of all the parameters are very essential other wise goal cannot be achieved. # Kataria automobile ltd can achieve 100% success in customer¶s satisfaction.if they will motivate their employees with handsome incentives & reward for creating customer delight. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 6 .THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Findings y # Out of the total respondents of 100 customers. 40 from friends. ATTRACTIVENESS. 25 from Media. 15 from Newspapers. and CUSTOMER HANDLING. Many global automotives giant are practicing this marketing strategy these days. Most of the customers know about kataria automobile ltd from friends and media. Sales promotion tools like gifts.
# All the paper work done in purchasing the car and all the different policies are completed by this dealer in a very short period of time which saves the time of the customer. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 7 . # It had Company Authorized Service Shop where there are well trained mechanics who quickly solves the problem of the vehicle.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES y Conclusion # This Kataria also handles the Customer in a very politely way after the sale of the vehicle and is ready to give any time service.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Industry profile Automobile Industry History: In the year 1769. The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk production of cars. after the end of the Second World War in 1945. a French engineer by the name of Nicolas J. three-wheeled. was very brief and at the most. dominated the automobile markets around the globe with no notable competitors. electric battery driven automobiles were no more the best option for traveling over longer distances. these automobiles were not fit for the roads as the steam engines made them very heavy and large. This lead to the development of the industry and it first begun in the assembly lines of his car factory. The current trends of the Global Automobile Industry reveal that in the developed countries the Automobile Industries are stagnating as a result of the drooping car markets.S. The range of the automobile. However. Oliver Evans was the first to design a steam engine driven automobile in the U.S Automobile Industry was flooded with foreign automobile companies. was a selfpowered. However. To invent more applicable automobiles. the Automobile Industry of other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period. made the new invention (that is. especially those of Japan and Germany. A Scotsman. and Scotsman Robert Davidson were amongst the first. the short ranged. In addition. The several methods adopted by Ford. whereas the Automobile Industry in the developing nations. military tractor that made the use of a steam engine. the car) popular amongst the rich as well as the masses. This automobile. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 8 . According the History of Automobile Industry US. Development of roads made traveling comfortable and as a result. was the first to invent an electric carriage between 1832 and 1839. Robert Anderson. in fact. the U. making use of non-rechargeable electric batteries in 1842. Thomas Davenport of the U. Cugnot invented the first automobile to run on roads.S. have been consistently registering higher growth rates every passing year for their flourishing domestic automobile markets. and required ample starting time. it could only run at a stretch for fifteen minutes.A. India and Brazil. such as. however. beginning in the early 1980s.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES The automotive industry designs. manufactures. 21. 19.4 million in USA and Canada. The markets in North America and Japan were stagnant. Brazil and India saw the most rapid growth. affecting the health of populations. and sells the world's motor vehicles. develops. and delivering a declining level of service despite increasing investments. China. industries such as the automotive industry.4 million in the Middle East and 1. consuming excessive energy. Of the major markets. The sustainable transport movement focuses on solutions to these problems. In 2008. 2. In the opinion of some. Around the world. are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. Many of these negative impacts fall disproportionately on those social groups who are also least likely to own and drive cars.4 million in Asia-Pacific. Russia. including cars and commercial vehicles were produced worldwide. In 2007. while those in South America and other parts of Asia grew strongly.9 million in Europe. markets. In 2008. 4. urban transport systems based around the car have proved unsustainable.4 million in Latin America. there were about 806 million cars and light trucks on the road in 2007. more than 70 million motor vehicles. The industry is also facing increasing external competition from the METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 9 . they burn over 260 billion gallons of gasoline and diesel fuel yearly. especially in China. The numbers are increasing rapidly.4 million in Africa. with rapidly rising oil prices.9 million new automobiles were sold worldwide: 22. a total of 79. About 250 million vehicles are in use in the United States.
Following the independence. it may not be an exaggeration to say that this industry in the coming years will soon touch a figure of 10 million units per year. automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands.000 jobs lost this decade.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES public transport sector. In the 1980s. Indian automobile industry has grown leaps and bounds since 1898. the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. China became both the largest automobile producer and market in the world after experiencing massive growth in 2009. At present it holds a promising tenth position in the entire world with being # 2 in two wheelers and # 4 in commercial vehicles. However. Following the economic liberalization in 1991 and the gradual weakening of the license raj. Thus the role of Automobile Industry cannot be overlooked in Indian Economy. Roughly half of the US's fifty-one light vehicle plants are projected to permanently close in the coming years. the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. a number of Indian and multi-national car companies launched operations. as consumers re-evaluate their private vehicle usage. After 1970. commercial vehicles and scooters. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. All kinds of vehicles are produced by the Automobile Industry. in 1953. a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. with the loss of another 200. An embryonic automotive industry emerged in India in the 1940s. Since then. on top of the 560. A number of foreign firms initiated joint ventures with Indian companies.000 jobs in the sector. the automotive industry started to grow. Withstanding a growth rate of 18% per annum and an annual production of more than 2 million units. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 10 . but the growth was mainly driven by tractors. a time when a car had touched the Indian streets for the first time. The Automobile industry has strong backward and forward linkages and hence provides employment to a large section of the population. Cars were still a major luxury Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog.
to name a few. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 11 . Toyota Kirloskar Motor Ltd. etc. Skoda India Private Ltd. Fiat India Private Ltd. Bajaj. General Motors India Pvt. Ford India Ltd . 13.5 percent amounting to Rs.. Ashok Leyland.like maruti joined hands with Suzuki in passenger cars.. have been investing in the Indian Automobile Market in various ways such as technology transfers. Ltd.. Mahindra and Mahindra. auto rickshaws and other multi-utility vehicles are manufactured by Tata-Telco.investments in the automobile industry by the foreign companies in india help in strengthening the india`s economy.same as Mahindra with Renault. The two-wheeler manufacturing is dominated by companies like TVS. joint ventures.chevorlet.. The Commercial Vehicle Segment has been contributing to the automobile market to a great extent.Suzuki.Toyota. Eicher Motors.Hyundai Motors India Ltd. Bajaj.. Hero Honda.) Ltd.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES The major Car manufacturer are Hindustan Motors.008 million by 2010 which is a big in number. and launch of the latest products. Maruti Udyog. strategic alliances.. So as in passenger luxury cars now/ Many foreign companies LikeMercedes.mitsubushi. exports. Honda Siel Cars India Ltd. trucks. defense vehicles.. and financial collaborations. The Indian Automobile Market growth is expected to grow at a CAGR of 9. The heavy motors like buses.Hyundai etc.ashkoa with Leyland in commercial vehicle segment. Yamaha.hero joint ventures Honda in two wheeler segment.Honda. etc.. increasing purchasing power.The auto market in India can boast of attractive finance schemes. Honda Motorcycle & Scooter India (Pvt.
In 2009. Automobile companies are offering various products according to users budget. automobile industry is the fastest growing industry all over the world. in 2009. with overseas players gathering the same momentum as the domestic participants. Today. With to huge demand of vehicles. Following Japan.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Turnover of Automobile Manufacturer Year 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 14. Automobile industries play a vital role in economic development of any country. some low cost cars ± all customized in a manner such that the common man is not left behind.011 34. South Korea and Thailand.285 In USD Million Driving the most luxurious car has been made possible by the stiff competition in the automobile industry in India. it is not difficult to buy a dream vehicle because of various METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 12 . India emerged as the fourth largest exporter of automobiles. which provide a lot of vehicle according to the requirements of different segment of peoples.554 20. The automobile industry in India happens to be the ninth largest in the world. Various automobile manufacturing companies are in the market. vehicles are in great demand between all segments of society. when one had to wait for their dream vehicles. the automobile industry is expected to see a growth rate of around 9%.880 16. Every other day. with the disclaimer that the auto industry in India has been hit badly by the ongoing global financial crisis.896 27. asking for more investments in the Indian automobile sector by the MNCs. we have been hearing about some new launches. Every week a new model of car or bike has been launching to accomplish the requirement of buyers. Gone are the days. Several Indian automobile manufacturers have spread their operations globally as well. Boom in Indian automobile industry Today.
BMW. Automobile manufacturing companies are offering different cars. Maruti. Tata motors also working to produce their low budget car till the July 2008. In two-wheeler industries. If we consider the Indian automobile industry. three wheelers. reduction of tariffs on imports. All the companies are offering various attractive models in different color and designs. Hyundai.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES financial institutions. Some giants in manufacturing of cars are Audi. Aveo U-VA. This amount depends on various factors such as buyer¶s credit past. two wheelers. In the initial years after independence Indian automobile industry was plagued by unfavourable government policies. global majors moved in. Honda. Buyer needs to pay some extra money as interest rate for that finance amount. Grandis. and refining the banking policies played a vital role in turning around the Indian automobile industry. All it had to offer in the passenger car segment was a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. Hindustan Motors and General Motors. Opel GT. Automobile industry in India also received an unintended boost from stringent government auto emission regulations over the past few years. This ensured that METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 13 . sport vehicles and other utility vehicles according to the user¶s requirement. Automobile companies are offering various premium cars to entry-level cars for the customers. Getz Next Generation. Outlander. Hero Honda. Skoda. As we all know. Until the mid 1990s. finance amount. One can choose among the various models according to his need and budget. Audi Q7. after the sector opened to foreign direct investment in 1996. TVS Motors. cars have become a need for today¶s world. Many banks are providing loan and converting your dream into reality. Rhino Rover. loan period and the term and conditions of financial institution. However. scooters and scooterettes to the market. the Indian auto sector consisted of just a handful of local companies. Logan. Fiat. Santa Fe and Roomster. which are about to launch in the year 2008 are Fiesta 1. The automobile sector in India underwent a metamorphosis as a result of the liberalization policies initiated in the 1991. there are various companies. Ford.4 SXi Duratorq. There are various car-manufacturing companies in Indian market. Bajaj Auto. which are offering all type of vehicles in the market. Suzuki and kinetic motors are offering various motorcycles. Yamaha. Honda. Measures such as relaxation of the foreign exchange and equity regulations. Mahindra & Mahindra. Some awaited car models. commercial vehicles. Mercedes. Montero.
Online vehicle selling sites advertise in dailynewspapers and magazines ensuring buyer as well as seller attentionbenifitting both.Online Vehicle Marketin India provides valuable information on vehicleoverviews. In the recent years Indian automobile sector has witnessed a slew of investments. Hyundai. Due to rapid economic growth and higher disposable income it is believed that the success story of the Indian automobile industry is not going to end soon. It is currently making inroads into the rural middle class market after its inroads into the urban markets and rural rich. dealers. The advantage of online vehicle buying is that one can get an exhaustive list of cars and bikes and even make a purchase without having to leave the comforts of one's house. behind only China and the US. Sellers can make their vehicles available instantly through the Internet to millions of buyers at the domestic level. Indian automobile industry has matured in last few years and offers differentiated products for different segments of the society. as indicated by the zooming automobile exports from the country. Some of the major characteristics of Indian automobile sector are: Second largest two-wheeler market in the world.com. Fourth largest commercial vehicle market in the world. Toyota. India is on every major global automobile player's radar. Ford and Mitsubishi have set up their manufacturing bases in India. GM.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES vehicles produced in India conformed to the standards of the developed world. 11th largest passenger car market in the world Expected to become the world's third largest automobile market by 2030. financing institutions. Indian automobile industry is also fast becoming an outsourcing hub for automobile companies worldwide. Today.in are their to promote online business of auto industry. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 14 . Honda. E-BUSINESS OF AUTOMOTIVE INDUSTRY The online vehicle market in India has been providing excellent services to online vehicle sellers as well online vehicle buyers.ca.ebay.Many websites like autoindia.
Some of the security measures have been mentioned below: Good online companies do not keep a record of the transactions made Nor are they involved in the transacting process. and alsoproduct comparisons. Competition in India METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 15 . India is ranked 1st and 2nd respectively. ebay.ca. Theonline Indian automobile market is part of the growing automobile industry in India. Thus. COMPETITIEVE FACTORS OF AUTOMOBILE INDUSTRY OF INDIA The automotive sector is one of India¶s largest and fastest growing manufacturing sectors.com. many new joint ventures evolved. The Online Vehicles market in India provides full security to its buyers and sellers. Reliable websites like Cartradeindia.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES insurance companies. All information is with regard to the region of theonline vehicle purchaser.in make sure that that their customers are not victims of manipulated electronic paper work. Discouraging the practice of advance payment. avoiding the Possibility of fraud. Many customer services are offered online. In the category of motorcycles and scooters. resulting in close to 24 global auto manufacturers setting up their shop in India. With India increasingly liberalizing its market place. It is ranked the 11th largest passenger car producer in the world. No trustee or financial department services offered by the websites.
and Daewoo. Hence. have since improved their share of the passenger car market with new models For the 4-wheelers segment. while Hyundai Motor ranked third with 15% share and the rest split amongst close to 2 dozen other manufacturers. Scooter India Pvt. Hyundai. it remains quite a local dominant game but global players also have obvious presence in the market. commanding 26% share. Hero-Honda Motors. the licensing regime was scrapped in 1993 paving way for 17 new ventures. a local company. In 1982. Most of them are through tie-ups with dominant local players. accounting for 40% of market share. Maharashtra Scooters Majestic Auto. Japan.. a move which was followed by Honda.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES As a result. followed by Bajaj Auto and TVS Motor. TVS Suzuki. Other players. Subsequently. Major players in this segment include Bajaj Auto. In the absence of strong competition in the past. For the 2-wheelers segment.g. MUL. local players like MUL also began to face competition from new foreign car makers. e. there has also been an emergence of new competition for higher value segments of the passenger car market. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 16 . Kinetic Engineering. Foreign manufacturers also have presence in India through their 100% owned subsidiaries. Ford entered the mid-range market with the Icon model in April 1998. Japan. Kinetic-Honda Motors. M/s Honda Motor Co. In the second place is Tata Motors. Many global players in the automobile have already set up presence in India. Greaves Ltd. MUL/Suzuki dominates the automotive landscape holding a 33% share of the passenger car market in 2004/05. then a wholly government-owned company. Hyundai and Daewoo. Scooters (India). As the automotive manufacturing sector rapidly evolved through the dynamics of open market and deregulation. while some are done entirely on their own. Yamaha Motor India. The largest player is Hero Honda Motors. the local car manufacturer Maruti Udyog Ltd (MUL) has virtually dominated the Indian automotive market in the passenger segments since the 1980s. competition in India¶s automobile had been heating up in the recent years. Royal Enfield (India). Honda Motorcycle. which account for 27% and 18% respectively. of which 16 are now manufacturing cars . Yamaha Motor. Ltd. signed up a collaboration agreement with Suzuki of Japan to establish the volume production of contemporary models. LML Limited. since then. many new joint ventures (both technical and financial) were formed between local players with leading global manufacturers. Mitsubishi.
India as an automotive manufacturing country is also pitting against other competitors in the international market. The top country for exports of automobile and auto parts was Germany. the other huge automotive factory ranked 17th. In terms of exports of automobile. India was 26th. while China. India is ranked 29th. Market segment METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 17 .THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Competition in the International Market Besides on the competition observed amongst all global players in the domestic Indian market. while China came in 11th. For exports of auto parts.
Company profile METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 18 . Maruti Suzuki. Tata Motors has a wider product range. Its strength lies in its wide range of small car models. from SUV¶s to the world¶s cheapest car. remains the market leader in India with a share of nearly 44%. Maruti Suzuki also has the largest dealer network and its annual manufacturing capacity is close to 1 million vehicles. which is now majority owned by Suzuki Motor Corp. which form the bulk of the Indian car market. the Nano.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Despite increased competition.
Maruti Insurance Agency Solutions Limited. CEO Shinzo Nakanishi. Managing Director Industry Products Revenue Employees Slogan Website Automotive Cars ~$3. Maruti Insurance Agency Network Limited. NSE MARUTI) 1981 Gurgaon (Delhi metropolitan area).THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Maruti Suzuki India Ltd Type Founded Headquarters Public (BSE MARUTI.com History of Maruti Suzuki India LTD Maruti Suzuki India Limited. purchase and sale of motor vehicles and spare parts (automobiles). 2009. the Company produced and sold over seven million cars. Haryana. The Company has four plants.marutisuzuki. India Key people Jagdish Khattar. and exported more than 500. fleet management and car financing. http://www. During the fiscal year ended March 31. Maruti Insurance Distribution Services Limited. The Company's subsidiaries include Maruti Insurance Business Agency Limited. The other activities of the Company include facilitation of pre-owned car sales. three located in Palam Gurgaon Road. Haryana and one located at Manesar Industrial Town. Gurgaon. Haryana. formerly Maruti Udyog Limited.1 billion (2007) 3. is engaged in the business of manufacturing. Gurgaon.334 Count on us.000 cars. Maruti Insurance Agency Services Limited METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 19 .
Our parent company. our product range has widened. What remains unchanged. (the Company went into production in a record 13 months). has been a success story like no other in the annals of the Indian automobile industry. Maruti Suzuki India Limited is a publicly listed automaker in India. The Company¶s subsidiaries are engaged in the business of selling motor insurance policies to owners of Maruti Suzuki vehicles. Its main factory is situated in Gurgaon district. The company. with Suzuki as a minor partner. a common uniform METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 20 . The first cars rolled out for sale on 14th December 1983.Right from inception. which we have inherited from our parent company. Maruti Udhyog Limited is India's largest automobile company. Suzuki Motor Corporation of Japan holds a majority stake in the company. then and now. It is the market leader in India. 2007. We were born as a government company. to make a people's car for middle class India. near Delhi. Haryana. marking the beginning of a revolution in the Indian automobile industry. It was the first company in India to mass-produce and sell more than a million cars. is our mission to motorise India. Product quality. safety and cost consciousness are embedded into our manufacturing process. a joint venture with of Government of India with Suzuki of Japan. On 17 September. Maruti brought to India. shorter and neater' From the Japanese work culture we imbibed simple practices like an open office. Maruti Udyog was renamed to Maruti Suzuki India Limited. a very simple yet powerful Japanese philosophy 'smaller. The same characteristics make our cars extremely relevant to Indian customers and Indian conditions. fewer. The company's headquarters remain in Gurgaon. Over the years. ownership has changed hands and the customer has evolved. Suzuki's technical superiority lies in its ability to pack power and performance into a compact. has been a global leader in mini and compact cars for three decades. Suzuki Motor Corporation. lighter.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES and Maruti Insurance Agency Logistics Limited. It is a leading four-wheeler automobile manufacturer in South Asia. lightweight engine that is clean and fuel efficient. It is largely credited for having brought in an automobile revolution to India.
Maruti Grand Vitara XL-7 8. Late Mrs. In 1993. Through the years Maruti has provided world-class Japanese technology.000 cars a year for the decade ending 1983. this figure reached a number of 1. Maruti Baleno:Launched 1999. 3.Maruti's current efforts mirror the government's vision to put India in the international map for producing compact small cars. The Maruti models on road now are 1. daily morning exercise. Maruti produced over 350. offers a major opportunity for Maruti Suzuki. Maruti 1000: Launched 1990 2. Maruti Swift: Launched 2005 METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 21 . Maruti Grand Vitara:Launched 2003 7. India's iconic car rolled-off the assembly line at company's Gurgaon plant. and quality circle teams. Maruti Versa: Launched 2003 9.For the year ended 1997-98. Maruti's figures are a different story altogether. On 14th December. All over the world. Maruti posted a turnover of US$ 2. becoming the first Indian company to cross this milestone and crossed the two million mark in 1997.820. 1983. 5. Maruti reached a total production of one million motorcars in March 1994. The government's renewed focus on promoting small cars. Maruti Zen: Launched 1993 with a facelift in 2003. Production ended late 2006/early 2007. Since then.Production ended in 2006. Suzuki is acknowledged for its know-how in producing small cars. first Maruti 800. Indira Gandhi. Currently the largest selling car in India 6. the then Prime Minister of India. out of which 26. suitably adapted to Indian conditions and Indian car users. handed over keys for this car to the first Maruti customer. Maruti Suzuki has produced and sold around 75 lakh (7.1 billion and a Profit before Tax of US$ 244 million.000 or 40.000 were exported. Maruti Alto:Launched 2000. During the year. Maruti Esteem:Launched 1994 Maruti Wagon-R:Launched 1999 Modified 2006 4. 96.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES and common canteen for everyone from the Managing Director to the workman.000 vehicles.5 million) cars to address the needs of customers across segments. The Indian car market had stagnated at a volume of 30.
Maruti Ecco launched in 2009 16. Maruti Swift Diesel Launched in 2007 12.Service is a major revenue generator of the company. Maruti Wagon r revised model launched in 2010 Authorized Service Stations of Maruti Maruti is one of the companies in India which has unparalleled service network. where Maruti trains the local staff. Maruti Grand Vitara Sports Utility Vehicle Launched in July 2007 14. Most of the service stations are managed on franchise basis. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 22 . Maruti Zen Estilo Launched in 2006 11. Maruti Ritz launched in 2009 15. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle. Maruti Suzuki SX4 Launched in May 2007 13.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 10. Other automobile companies have not been able to match this benchmark set by Maruti. To ensure the vehicles sold by them are serviced properly Maruti had 1545 listed Authorized service stations and 30 Express Service Stations on 30 highways across India.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Maruti¶s Vision: "The Leader in the Indian Automobile Industry. and Maruti Suzuki Alto in 2000. A pride of India. Later in METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 23 . The introduction of Zen was then followed by the launch of Maruti Suzuki Esteem in 1994. Maruti Suzuki Baleno and Maruti Suzuki WagonR in 1999." By this period of time. The company also launched another SUV in the Indian market known as Maruti Suzuki Grand Vitara in 2003. Creating Customer Delight and Shareholder's Wealth. This car was not successful during that year and was phased out. few other car manufacturers had also hit the Indian market which eventually made Maruti more competitive in its car models and more aggressive in its operations.
Maruti Suzuki Versa and Maruti Suzuki Zen Estilo are an addition to Maruti cars but unfortunately were not as successful as other in the list. About Kataria Automobiles Authorized Maruti Suzuki Car Dealer in Ahmedabad. earned the only way we know: by giving our customers the most appropriate car luxury solutions for each of their needs. and Navsari . After these successful launches by Maruti Suzuki. christened as Maruti Suzuki SX4. was introduced in 2005.offers a wealth of variety to the Maruti automotive consumers. This is the entire journey of Maruti Suzuki India since the time of its inception in 1981. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 24 . popularly known as Maruti Suzuki Swift. finance. Swift is as swift as its name and is winning hearts and applauds across the country. Maruti Suzuki was happy with the praises and appreciation received by all its customers but was not happy with the lack of one successful sedan. a world strategic car model. the company re-introduced the new car with better features and engine technology. Even further Maruti aims to make compact. This made the company the company introduced a hot. fuel efficient. We are conscious of the fact that vehicles are more than just a means of transporting people and goods. Surat. and light-weight cars better suited to Indian weather and road conditions. elegant and one of the most comfortable sedan. We believe that our impressive strides in the marketplace stem in equal parts from our proactive approach and our customers' unstinting support. after sales services and a responsive after-market network. and by backing them up with consultancy. Vapi. This car is available in both petrol and diesel version and is a big hit in the Indian car market.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 2007. low-maintenance. in 2007. Silvassa.
It further expanded its METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 25 . We strengthen our relationships with our customers through our services like MGP. Shobhagmal Kataria in the year 1956 and has grown to become one of the biggest Transport Operators in India. Kataria Group has its sights set firmly on the economic & premium sector of the national automobile market. To achieve its aims. Kataria Group is committed to the very highest in quality for all its products and services. the first being in 1984 with dealerships of LML ± 2 wheelers. History of Kataria Automobiles Ltd The KATARIA GROUP was founded by Mr. the company knows how to deploy its strengths with an efficiency that is unmatched in the automotive industry. MF We collaborate with others to revolutionize our core business processes and to stay ahead of our rapidly changing industry.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES we understand that they have a deep and far-reaching impact on society. the national economy and the environment. We have established an extensive product portfolio which supplies expert information and advice for situations and questions relating to the finance sector. We carefully select those opportunities that enable us to deliver better ideas into the marketplace in new and exciting ways. The company's phenomenal success is proof of this strategy's correctness. MOS. we are in a position to appeal to the widest network of showrooms and service stations. The Kataria group has since expanded its wings. As we start our second century of business. We see financial services as a key factor for success in today's car world. We choose new view to help system that maximizes efficiency and operational services. having 60 branches. Each of our Maruti automotive brands has a unique personality and holds a distinct value in itself. At Kataria. From research and development to sales and marketing. We are also proud to honor the hard work of our business and marketing partners. Financial services . by way of expansion and diversificationin various sectors. we create network to better connect with our customers.
Management of Kataria Automobiles Ltd. is one of the ³most trusted brands´ in the ³Automobile Dealership of Maruti Suzuki´with Showrooms in Ahmedabad. through sound business decisions. Navsari and Vapi Today the Kataria Group is proud to have a family of 2000 dedicated. The Board of Directors and the Management of Kataria Group are committed to the enhancement of its products and services. and exceeding wherever possible. it further acquired the dealership of TVS Two Wheelers in 2003 Today Kataria Automobiles. prudent financial management and high standards of ethics throughout the organization.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES wings to becomes one of the Most Trusted Brand for Maruti Car Dealership in 1996. Surat. by ensuring transparency and professionalism in all decisions and transactions and achieving excellence in Corporate Governance by conforming to.00. satisfied and committed work force. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 26 . The Group further has a ³satisfied´ customer base of more than 2. the prevalent mandatory guidelines on Corporate Governance and by regularly reviewing the Board processes and the Management systems for further improvement.000 happy families. Not stopping at its unflinched Automobile Growth.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 27 .
it is undertaken for increase in knowledge. by charitable organizations and by private groups. This research provides scientific information and theories for the explanation of the nature and the properties of the world around us. it would fall into two major categories: Basic Research and Applied Research. It makes practical applications possible. There is no direct benefit as it is a research for the sake of research. Historical research is embodied in the scientific method. Research can use the scientific method. (b) why society changes and (c) why social relations are METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 28 . and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. a harnessing of curiosity. It is conducted to satisfy any curiosity such as: (a) what makes things happen. The primary purpose for applied research (as opposed to basic research) is discovering. including many companies. while in case of method. Scientific research can be subdivided into different classifications according to their academic and application disciplines. If we categorise it by purpose. Scientific research relies on the application of the scientific method. but need not do so.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Research methodology What is research? Research can be defined as the search for knowledge or any systematic investigation to establish facts. interpreting.The term research is also used to describe an entire collection of information about a particular subject Types of Research Research can be classified by purpose or by method. it would be deductive research and inductive research. BASIC RESEARCH Also called Pure or fundamental Research. Scientific research is funded by public authorities.
focuses on uncovering what needs are not being met and use that information in designing products or services that would create their own demand. Basic research rarely helps anyone directly. It is opposed to pure research which is not problemoriented but for the increase in knowledge which may or may not be used in future. Applied Research. Such measures caused a heavy demand. There is absolutely no commercial value to the discoveries resulting from such research.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES in a certain way. Applied Research foresaw that this product would have a limited market and stressed on cost-cutting. reduced weight and long-distance communication. Thus. In old days. then applied spin-offs often eventually result from this research. "People cannot foresee the future well enough to predict what's going to develop from basic research. In fact. it is the source of most new theories. on the other hand. more emphasis is being given to applied research to solve problems arising out of overpopulation and scarcity of natural resources. If we only did "applied research"." To sum up. In the present world situation. it forms the basis of applied research or development commercial products. we would still be making better spears. Applied research should not be treated the same as Research & Development (R&D) which is involved in developing products demanded by the existing clients. applied research brings in new customers and also provides better products and services to the existing customers. the mobile phone was expensive. It only stimulates new ways of thinking. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 29 . basic research is purely theoretical to increase our understanding of certain phenomena or behavior but does not seek to solve any existing problem. If basic work is done first. The main motivation is to expand man's knowledge. bulky and had a short range. It deals with practical problems. APPLIED RESEARCH It is use of basic research or past theories. As Dr. However. knowledge and methods for solving an existing problem. in the long run. principles and ideas. George Smoot of LBNL says.
or may be expanded to include a philosophically coherent collection of theories. "the systematic study of methods that are. rules. "the analysis of the principles of methods.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES JUSTIFICATION: In the KATARIA AUTOMOBILES there exists the APPLIED RESEARCH because this research gives the clear knowledge about the existing problems like How to satisfy the consumer? This research also takes the information from the Basic Research and also this research helps the dealer to create the good competitive marketing strategies. or have been applied within a discipline". What is Methodology? Methodology can be: 1. can be. Concept Methodology may be a description of process. and postulates employed by a discipline". concepts or ideas as they relate to a particular discipline or field of inquiry METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 30 . 2.
This can be done by tallying up how much of a product is sold. For example. attitudes. which studies how businesses sell products and services to other businesses. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 31 . The goal is to study the purchasing habits of consumers. The field of consumer marketing research as a statistical science was pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923. Company A sells computer equipment to companies B and C. and behaviors of consumers in a market-based economy. The information gathered from consumers can be used to analyze current marketing campaigns and to create new ones. The term is commonly interchanged with market research. however. and analysis of data about issues relating to marketing products and services. in that market research is concerned specifically with markets.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Methodology may refer to nothing more than a simple set of methods or procedures. either by target market: y y Consumer marketing research. scholarly literature often includes a section on the methodology of the researchers. expert practitioners may wish to draw a distinction. Marketing research is often partitioned into two sets of categorical pairs. Someone may be interested in seeing how companies B and C found out about the equipment. and it aims to understand the effects and comparative success of marketing campaigns. and Business-to-business (B2B) marketing research -The first is consumer market research. . through surveys or through other means.The second type of marketing research is business to business (B2B) research. while marketing research is concerned specifically about marketing processes. recording. Consumer marketing research is a form of applied sociology that concentrates on understanding the preferences. how company A marketed its product and how good the market for that product is. What is Marketing Research? Marketing research is the systematic gathering. For example. or it may refer to the rationale and the philosophical assumptions that underlie a particular study relative to the scientific method.
It involves in-depth studies into the affect of advertisements and market conditions on consumers. Most companies invest in market research when they release a new product. current market trends or your customers. improve on an existing product or if they plan on introducing a particular product in a new market. Types of Market Research Market research is the process of finding information about your competitors. Primary research can be both qualitative and quantitative. Market research can also prove helpful if you want to explore business opportunities in new markets. primary research or secondary research. Market research can be conducted by two methods. JUSTIFICATION: In KATARIA AUTOMOBILES the Consumer Marketing research is applied as it helps the dealer to know the purchasing habits of the consumer which will help them in future to create marketing campaigns and it also updates the dealer with the attitudes and behaviour of the consumer in the market. focusing on the size and trends in that market. Marketing research studies how and why consumers and businesses buy. Market research is the research that may be done into a single market. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 32 . Another simple method of primary research would be to directly talk to your customers and get their feedback.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Marketing research is not the same as market research. and how those sales can be increased or why they have decreased. -Primary Research Primary research refers to information that is directly collected from the source.
You can get a lot of information from such interviews and also find out about the dislikes. y Open-ended interviews include questions that cannot be answered with a yes or no. likes. This information is then analyzed. requirements. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 33 . The cheapest and easiest way of conducting a survey is through the telephone and on the place where your product is being sold. JUSTIFICATION: In this KATARIA AUTOMOBILES Quantitative Primary Research is followed up as it provides the information at less time and the consumers are also interested to fill up the questionnairies. y Surveys can provide you with the information you require if the survey has meaningful questions. More people would be willing to take a survey as it takes less time. Since trained professionals are required to handle focus groups. they are very expensive. trends and emotional motivators of your primary market y A focus group should ideally be led by experienced professionals who can lead a group of 6 or more people and ask them both general and specific questions.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES -qualitative primary research Qualitative primary research involves gathering information from interviews or focus groups. -Quantitative primary research Quantitative primary research involves the collection of numerical information from surveys.
evaluate your competitors and assess political. studies etc. The internet has a large number of secondary data sources and most resources. By investing in secondary market research you can analyze your target markets. 2. You can also get access to the maps of the area. Here you will have to analyze the information that has been collected for some other reason. issues and competitors.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES -Secondary market research Secondary research is more economical and easier to do when compared to primary research. Some of these sources are: 1. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 34 . The marketing departments of local colleges The marketing department of any college can give you access to special research projects and reports prepared by students. You can find the data that you require through a set of articles. the standards that they observe and the leaders in their field. demographic/ statistical data. 3. Secondary research resources There are a large number of resources from which secondary research information can be obtained. social and economic factors. magazines and press releases are now available online. Chamber of commerce The local chamber of commerce in your area can give you information on your local community and local businesses. You can also get information on the latest trends. Trade associations From the reports available with trade associations you can get information on the industries served.
problems if any. In defining the problem. Marketing research process Marketing research process is a set of six steps which defines the tasks to be accomplished in conducting a marketing research study. research design formulation. These include problem definition. 5. the researcher should take into account the purpose of the study. industry standards etc. Wholesalers and manufacturers From manufactures and wholesalers you can get information on customers. banks and real estate companies You can information on the statistics of the communities to whom they provide services.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 4. JUSTIFICATION: In this KATARIA AUTOMOBILES mainly the information which is collected is based on Secondary Research which help the dealer to retrive the information whenever is needed and with the help of this information the dealer plans out its future Marketing Strategies which influences the Purchasing Factors of The Consumers. costs. The information can be collected from any reports like The Crisill Report which also shows the current status of its major competitors. data preparation and analysis. field work. Insurance companies. developing an approach to problem. and report generation and presentation. the relevant background METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 35 . Stages of marketing research process Step 1: Problem Definition:The first step in any marketing research project is to define the problem.
precisely defining the variables. analysis of secondary data. perhaps. formulating the research design involves the following steps: METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 36 . the research can be designed and conducted properly. This process is guided by discussions with management and industry experts. and. Once the problem has been precisely defined. More formally. analysis of secondary data. and how it will be used in decision making. It details the procedures necessary for obtaining the required information. The issue of how the data should be obtained from the respondents (for example. and identifying characteristics or factors that can influence the research design. analytical models. interviews with industry experts. and provide the information needed for decision making. such as focus groups. Step 3: Research Design Formulation:A research design is a framework or blueprint for conducting the marketing research project. research questions. case studies and simulations. some qualitative research. determine possible answers to the research questions. JUSTIFICATION: In KATARIA AUTOMOBILES the main problem definition of this dealer can be the customers satissfaction Step 2: Development of an Approach to the Problem:Development of an approach to the problem includes formulating an objective or theoretical framework. Conducting exploratory research. and its purpose is to design a study that will test the hypotheses of interest. by conducting a survey or an experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. what information is needed. Problem definition involves discussion with the decision makers. qualitative research and pragmatic considerations. hypotheses. and designing appropriate scales to measure them are also a part of the research design.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES information.
or. Sampling process and sample size 8. Qualitative research 3. Each questionnaire or observation form is inspected. gives meaning to the data that have been collected. coding. and. Univariate techniques are used for analyzing data when there is a single measurement of each element or unit in the sample. multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 37 . Plan of data analysis Step 4: Field Work or Data Collection:Data collection involves a field force or staff that operates either in the field. and experimentation) 4. or edited.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 1. and verification of data. Secondary data analysis 2. as in the case of personal interviewing (in-home. training. Verification ensures that the data from the original questionnaires have been accurately transcribed. from an office by telephone (telephone or computer-assisted telephone interviewing). supervision. On the other hand. or computer-assisted personal interviewing). if necessary. transcription. Proper selection. The data from the questionnaires are transcribed or key-punched on to magnetic tape. or through mail (traditional mail and mail panel surveys with prerecruited households). guided by the plan of data analysis. or disks or input directly into the computer. Definition of the information needed 5. Step 5: Data Preparation and Analysis:Data preparation includes the editing. and evaluation of the field force help minimize data-collection errors. Questionnaire design 7. Measurement and scaling procedures 6. while data analysis. if there are several measurements of each element. observation. Methods of collecting quantitative data (survey. mall intercept. each RCH variable is analyzed in isolation. corrected. Number or letter codes are assigned to represent each response to each question in the questionnaire.
figures. data collection. interviews with experts are more useful in conducting marketing research for industrial firms and for products of a technical nature. and data analysis procedures adopted. and presents the results and the major findings. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 38 . and graphs to enhance clarity and impact. This method is also helpful in situations where little information is available from other sources. an oral presentation should be made to management using tables. the research design.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Step 6: Report Preparation and Presentation:The entire project should be documented in a written report which addresses the specific research questions identified. as in the case of radically new products. The findings should be presented in a comprehensible format so that they can be readily used in the decision making process. where it is relatively easy to identify and approach the experts. describes the approach. For these reasons. In addition.
It also depends on the ability of the organization to encourage customers to complain and then recover when things go wrong. Customer retention is the maintenance of continuous trading relationships with customers over the long term. In this era of intense competition. Service recovery is the process of putting things right after something goes wrong in the service delivery. it is very important for any service company to understand that merely acquiring customers is not sufficient because there is a direct link between customer retention over time and profitability & growth. up-selling and asking for referrals from existing customers Developing programs to increase customer loyalty and decrease turnover Knowing the lifetime value for different segments and using that data to improve your marketing. Customer retention to a great extent depends on service quality and customer satisfaction.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Explanation on Customer retention In today's challenging economy and competitive business world. Customer retention is about keeping the customers organization has spent that money to acquire. And if you¶re in an industry where they make multiple purchases over the years. It's far less expensive to cultivate organization existing customer base and sell more services to them than it is to seek new. A customer-focused approach among its employees is still not present. High retention is equivalent to low defection. retaining their customer base is critical to organization success. If they don't give their customers some good reasons to stay. Customer retention and satisfaction drive profits. Customer retention is the mirror image of customer defection or churn. organization entire team should be very focused on retaining those customers: Delivering service that¶s consistent with your value proposition and brand Cross-selling. Most surveys across industries show that keeping one existing customer is five to seven times more profitable than attracting one new one. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 39 . Complaints are natural part of any service activity as mistakes are an unavoidable feature of all human endeavor and thus also of service recovery. organization¶s competitors will give them a reason to leave. single-transaction customers.
However.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Prioritizing retention as a major focus in your annual marketing plan. Long-term customers may initiate free word of mouth promotions and referrals. CRM comprises nearly every customer oriented activity from a complaint hotline to client cards and client clubs. For sure. But the thing is: data mining systems or client clubs are not the basis. A company like Porsche needs no client club to tie up the customer to the brand. Customer retention has always been an important topic for the marketing. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 40 . Customers that stay with you tend to be satisfied with the relationship and are less likely to switch to competitors. In the last years the concept had a renaissance because of the new term CRM (Customer Relationship Management). Long-term customers tend to be less inclined to switch. Often CRM is only implementing new systems for data mining and client segmentation or operational systems like a complaint management. making it difficult for competitors to enter the market or gain market share. so the longer the relationship. The cost of acquisition occurs only at the beginning of a relationship. Long-term customers are more likely to purchase ancillary products and high margin supplemental products. the lower the amortized cost. and also tend to be fewer prices sensitive. the advantages of loyal clients are obvious. They are the cherry of the cake called client retention. This can result in stable unit sales volume and increases in dollar-sales volume. Account maintenance costs decline as a percentage of total costs (or as a percentage of revenue). According to Buchanan and Gilles the increased profitability associated with customer retention efforts occurs because of several factors that occur once a relationship has been established with a customer.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Importance of Customer Retention
Why are customers more profitable for service firms over a period of time? There are a number of reasons for this. To begin with, to acquire a customer a company incurs promotional costs like advertising, sales promotion etc. It is said that it costs five times more to attract a new customer than retaining one. The operating cost decreases when a customer stays. Services being rich in experience and credence qualities, it takes some time for customers to get accustomed to it and once they are used to the service and are satisfied with the service provider ,they tend to purchase more over a period of time. As they remain satisfied with a service provider, they spread a positive word of mouth, which is very effective in case of services for attracting new customers. Longer the customer stays with an organization, more the organization knows about him, which enables it to offer customized services which make it difficult for the customer to defect. This may even provide opportunities to the organization to charge price premium by offering individualized services which may be difficult for the competitors to offer. Considering the importance of retaining customers in service business, Reichheld & Sasser coined a term µZero Defection¶. They highlighted that companies can boost profits by almost 100% by retaining just 5% more of their customers. Further, it is also very important to understand the life time value of a customer. Further, if by a positive word of mouth, he brings just one more customer to the organization, his value to the organization doubles. Therefore, it is important for all the employees in the organization to understand the life time value of their customers. Once they understand it, they will treat the customer accordingly and will focus on building relationship with the very people who keep them in business.
METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 41
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES
Objective of study
1) To know about company¶s responsibilities for their Customers. 2) To know the consumer relationship with KATARIA AUTOMOBILES. 3) To know the thinking of the customer for purchasing the car of Maruti Suzuki.
4) To know about code of conduct and which rules and procedures are followed by employees.
5) To know about employees burden level for stick the customer in company.
6) To study about the perception of maruti Suzuki automobiles product.
7) To know whether the different variations of price level provided by KATARIA AUTOMOBILES satisfies consumers.
8) To know about employees burden level for stick the customer in company.
9) To know that why the customer choose the Maruti Suzuki brand in purchasing their dream car.
METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 42
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES
Findings: data analysis and interpretation
1) What type of car do you prefer from Maruti Suzuki (kataria automobiles)? Small car Sedan Luxury
Small car sedan luxury
57% 29% 14%
small car 57%
METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 43
In the above graph we can come to know that there are 14% people who prefers luxury cars . METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 44 . Dark orange is the percentage growth of the people satisfied with the small cars compare to sedar and luxury cars.29% of the people using sedar cars and 57% of the people using the small cars.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Interpretation:. Suggestion:-Best services should be provided to the high-end customers and loans should be given to the customers at cheaper rates who prefer luxury and sedar cars so it can increase the sales of luxury and sedar cars.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 2) What is your perception about Maruti Suzuki automobiles product? Very good Good Average Bad Very good Good Average Bad 15% 70% 12% 3% Sales 3% 15% 12% Very good Good Average 70% Bad METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 45 .
15% of the customers has very good perception about maruti cars. Suggestion:-The management team of Maruti Suzuki should look after the marketing team and train them in such a way that customers get influenced in much beter way and hilitin the key services provided by the company to increase the perception of customers.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Interpretation:-From the above graph we can come to know that about 70% of the customers have good perception about maruti Suzuki. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 46 .12% of the customers havin average perception for d maruti cars and 3% of the customers are having bad perception.
Media Hoardings Newspapers Others 25% 20% 15% 40% Column1 25% Media 40% Hoardings Newspapers Others 20% 15% METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 47 .THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 3) From where do you come to know about kataria automobiles? Media Hoardings Newspapers Others ___________.
15% of the people come to know from the newspapers and 40% of the people come to know from their relatives.parents etc« Suggestion:-The dealer should increase their advertising expenditure in order to bring the attention of a customers as well as people through media n other such activities.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Interpretation:-From the above graph we can see that 25% of the people come to know from media about kataria automobiles.friends. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 48 .20% of the people come to know from the banners n hoardings.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 4) Why do you choose this Maruti Suzuki brand? Product quality Low maintenance Cheaper rates Product quality Low maintenance Cheaper rates 45% 30% 25% perce t 25% Product quality low maintainance cheaper rates 45% 30% METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 49 .
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Interpretation:-From the above graph we can come to know that about 45% of the people select this brand coz of product quality. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 50 .30% of the people select this brand coz they think maintenance is low and 25% of the people think that the rates of this brand is cheaper. Suggestion:-Its people¶s choice for selecting the brand der can¶t be any suggestion for this as it fully depends upon the customer choice.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 5) If you are going to be a customer of maruti Suzuki (kataria automobiles) cars in future what will b your expectation? More varieties of cars Improve quality of car Better after sales services More varieties of cars Improve quality of car Better after sales services 45% 25% 30% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% More varities of cars Improve quality of car Better after sales services Series 1 Series 2 Series 3 METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 51 .
Suggestion:-There should be latest advanced technologies to b fixed in the cars if the customer wants to.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Interpretation:-From the above clustered cone we can see that 45% of the people expecting more varities of cars from this brand. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 52 . Sports gear should be available and olso sunroof technique should be provided by the company.25% of the people want to change them the quality of cars and 30% of the people likes the after sales services of kataria automobiles.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 6) What do you feel about the behavior of sales executives at kataria automobiles? Bad Average Good Worst Bad Average Good worst 5% 30% 60% 5% behaviour 5% 5% 30% Bad Average 60% Good Worst METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 53 .
30% thinks that the behavior is average.5% of the people thinks its bad and other 5% thinks that its worst when they are not treated well.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Interpretation:-From the above conical graph we can say 60% of the people thinks that the behavior of sales executives is good. he should be capable of solving all the difficulties which local people are in. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 54 . Suggestion:-I would like to suggest that the company must appoint the sales executives which understands the customers needs and can satisfies his needs.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 7) Whether executives are able to understand your requirement ? Yes No Yes No 90% 10% Column1 10% Yes No 90% METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 55 .
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Interpretation:-In the above diagram we can see that around 90% of the people are satisfied with the executives of kataria automobiles and rest 10% of the people are not satisfied with their requirements provided by executives. but unless every hour of a sales executive¶s time is optimized and not allowed to waste.It may sound straightforward. Suggestion: . Without proper territorial alignment. the company can never hope to achieve its ultimate potential. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 56 . the sales executive could be faced with having to deal with far too many potential customers.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 8) What do you think about the space avaibality in maruti cars? Extremely spacious Averag Less space Extremely spacious Average Less space 45% 50% 5% Sales Average 50% Other 5% Less space 5% Extremely Spacious 45% METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 57 .
Suggestion:-The suggestion is different for each of the cars. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 58 . we get the spacy cars which is of luxury cars but for todays generation people believes in small car n prefer more so they dealers should make the small budget cars wit more space.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Interpretation:-From the above circles we can say that 50% of the people say that space availability in maruti cars is average.45% of the people think that this cars are extremely spacious and rest of the 5% think that availability of space is less according to them.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 9) Do you think that the cars of Maruti Suzuki (kataria automobiles) are capable to attract today¶s generations ? Yes No Cannot say Yes No Cannot say 65% 25% 10% Sales Yes No 25% Cannot say 10% 10% 65% METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 59 .
auto locks etc etc.varities of other external accessories. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 60 . Suggestion:-The only thing is to b suggested that dealer should provide discounts.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Interpretation:-From the above graph we can say that 65% of the people are attracted to the maruti Suzuki cars of todays generations.25% people are not attracted by maruti Suzuki cars as they prefer other dealers and 10% of people say that as per the competition in the market its difficult to suggest.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 10) What do you think about the style and design of maruti Suzuki cars? Very good Good Average Bad Very good Good Average Bad 35% 30% 30% 5% Sales 5% 35% 30% Very good Good Average Bad 30% METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 61 .
Suggestion:-I would like to suggest that the seats need to rise when we open the door. Solid supportive seats impressed.30% people thinks that style n design of maruti cars is average and 5% of the people thinks that its bad. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 62 .THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Interpretation:-From the above figure we can see that 30% of the people thinks that the style n design of maruti cars is good.35% of the people think that style n design is very good. but the main thing was the massive access when you opened the door Fold away steering wheels is another way to make it easier for driver entry.
reverse parkin sensor are provided by kataria automobiles of maruti suzuki cars is it good and makes you feel comfort while drivin? Excellent Verygood Good Average Excellent Verygood Good Average 40% 35% 20% 5% Sales 5% 20% 40% Excellent Very good Good 35% Average METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 63 .DIS.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 11) New technologies such as Bluetooth device.
Bluetooth devices .THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Interpretaion:-In the above figure we can come to know that 40% of the people are happy with the technologies provided by the kataria automobiles. Suggestion:-I would like tu suggest that rador system.35% of the people thinks that its good for them.20% of the people thinks that technologies are good and 5 % thinks that it¶s a average technologies.parkin senson etc etc should b provided by the dealers only it shuld be with cars this work should not be done saprately. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 64 .
what do you think about it? Very good Good Average Very good Good Average 55% 40% 5% Sales 5% Very good 43% 52% Good Average METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 65 .THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 12) A Kataria automobile has got the largest boot space in its segment.
Suggestion:-I would like to suggest that their should b small two light near the boot space when its too spacious. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 66 .40% thinks that boot space segment is good and 5% of the people thinks that its average.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Interpretation:-In the above diagram we can see that about 52% of the people are satisfied by the boot space provided in maruti cars.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 13)What do you think about the different variations¶ of price level provided by kataria automobiles? Highly price Moderate/average price Low price Highly price Moderate/average price Low price 20% 70% 10% Low price Series 1 Series 2 Moderate/Average price Series 3 Highly price 0% 10% 20% 30% 40% 50% 60% 70% 80% METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 67 .
Suggestion:-no suggestion METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 68 .70% of the people thinks that is average price accorin to the requirement and 10% thinks that it¶s a low price.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Interpretation:-From the above bars we can cme to know that 20% of the people thinks that price level provided by kataria automobiles is high.
3. 5. Some of the respondents refuse to give the important information best known to them. 6. Availability of documents as sources of secondary information. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 69 . in such case their habit. Respondents are not willing to fill the questionnaire. 7. 4. preference. 2. 8. though as mention earlier the reliance on the sources can not be minimized to zero in context of precision.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Limitations of the project Any research or study always has some limitations under which this has to be undertaken. These limitations are poised by the environment « some external and some inherent. Sometimes the respondents are not available at their place. The limitation can be enlisted as hereunder:- 1. This study has been conducted with utmost consideration to the adequacy of data and quality of information. cannot be assessed correctly. Very often the respondent do not express their true feelings.Probability sampling was not used due to time and cost constraints and therefore the results cannot be generalized to the population. This one too was not an exception. There is a chance of mistake in the answer because of the limited knowledge of the respondent. practice. Reliability of information collected from various public information sources such as magazines and website. 9. The perception level of the respondents.
Moreover. 1) Company must undertake extensive promotional activities like advertisements must be released in different Medias to create brand awareness. Magazines. has to make the future strategy by considering the 3 important representative factors like as RELIABILITY. autocards. should be the main weapon for the company.accessorories. 7) Should put in more efforts to promote maruti finance. Sales promotion tools like gifts. 5) Looking to the result of the factor analysis Kataria Automobiles Ltd. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 70 . 2) Free samples should be distributed among the prospects. they also suggested that the company should increase their current servicing capacity.Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer. 4) The company should focus more on Auto fair medium. Demo. 3) Majority of the respondents in Surat(piplod) suggested that the company should open a service centre inside varachha. 8) They must keep in their mind that the ³customer is king in the market´ and his full satisfaction in respect of all the parameters are very essential other wise goal cannot be achieved.CUSTOMER HANDLING 6) More test drives should be offered.ATTRACTIVENESS.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Suggestions of the projects Following are the few suggestions to KATARIA AUTOMOBILES for improving the market share and image of the products concerned. contests and coupons must be given to customers.
How to save the time & how to do the work in just short time. Motivate me to perform in work with the customer & increase the good relationship with customers.. This Kataria also handles the Customer in a very politely way after the sale of the vehicle and is ready to give any time service. To knowing that what is business and how we increase our business in competitive market. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 71 .THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Conclusion of the project Here. It had Company Authorized Service Shop where there are well trained mechanics who quickly solves the problem of the vehicle. below are some points which conclude the whole project: During the training I knew that which way employees are follow their employer rules with customer relationship management. One is the biggest benefit is to make me punctual and profession person for the good relationship with customers.
2) Stretch:. 3) Liberalization:.Fleet Management is a function which allows companies which rely on transportation in their business to remove or minimize the risks associated with vehicle investment. but with much greater scope for vocabulary and the capability of flashing more than one word at a time.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Glossary 1) Reliability:."Stretch" is a speed reading program that offers exercises designed to improve reading speed and comprehension. providing 100% compliance with government legislation (duty of care) and many more. These functions can be dealt with by either an in-house fleet-management department or an outsourced fleet-management provider. METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 72 . and communications. Deregulation occurs when the government pulls back from the industry a bit.A segment is a defined portion or section of something larger such as a database. 5) Deregulation:. The term is used in database management.reliability (systemic def.The process of making policies less constraining of economic activity. 4) Segment:. as well as the government. These exercises are an extension of the flash-card method used in school. 6) Fleet management:. productivity and reducing their overall transportation costs. improving efficiency. or network. Reduction of tariffs and/or removal of nontariff barriers.) is the ability of a person or system to perform and maintain its functions in routine circumstances. 2. These rules are created by industry associations and watchdogs. graphics. therefore loosening its grip on particular rules and regulations. as well as hostile or unexpected circumstances. geometric object.Every industry has certain rules and regulations that it must abide by.
com 3. www.scribd.google. New Age International Publisher. Tata McGraw ± Hill Publishing Co. New Delhi y LAL RAJIV. NewDelhi Sites 1. www. www.com METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 73 .wikepedia. QUELCH JOHN (2009): ³Marketing Management´ 3rd Edition.com 2. Ltd.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Bibliography Books y KOTHARI CK (2008): ³Research Methodology´ 2nd Revised Edition.
:OCCUPATION:- 1) What type of car do you prefer from Maruti Suzuki(kataria automobiles)? Small car Sedar Luxury 2) What is your perception about Maruti Suzuki automobiles product? Very good Good Average Bad METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 74 . In the area of marketing specialization on the topic Customer Retention with reference to Maruti Suzuki products for the partial fulfillment for the bachelor Degree of Business Administration. y y y y y NAME :GENDER:AGE:CONTACT NO.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES Annexure Respected sir/Madam I Raviraj Bachkaniwala of SY BBA studying in Seventh Day Adventist College Surat is undertaking a Summer Project Training at KATARIA AUTOMOBILES LTD. Kindly spare few minutes of your valuable time to fill in the below questionnaire.
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 3) From where do you come to know about kataria automobiles? Media Hoardings Newspapers Others ___________. 4) Why do you choose this Maruti Suzuki brand? Product quality Low maintenance Cheaper rates 5) If you are going to be a customer of maruti Suzuki (kataria automobiles) cars in future what will b your expectation? More varieties of cars Improve quality of car Better after sales services 6) What do you feel about the behavior of sales executives at kataria automobiles? Bad Average Good Worst 7) Whether executives are able to understand your requirement ? Yes No 8) What do you think about the space avaibality in maruti cars? Extremely spacious Average Less space METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 75 .
reverse parkin sensor are provided by kataria automobiles of maruti suzuki cars is it good and makes you feel comfort while drivin? Excellent Verygood Good Average 12) A Kataria automobile has got the largest boot space in its segment.DIS.THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 9) Do you think that the cars of Maruti Suzuki (kataria automobiles) are capable to attract today¶s generations ? Yes No Cannot say 10) What do you think about the style and design of maruti Suzuki cars? Very good Good Average Bad 11) New technologies such as Bluetooth device. what do you think about it? Very good Good Average 13) What do you think about the different variations¶ of price level provided by kataria automobiles? Highly price Moderate/average price Low price METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 76 .
THE STUDY ON CUSTOMER RETENTION WITH REFERENCE TO KATARIA AUTOMOBILES 14) Finally. what is your suggestion for the kataraia automobiles for the conditions and requirement provided by them? ______________________________________________________________________________ ______________________________________________________________________________ _____________________________________________ METAS OF SEVENTHDAY ADVENTIST COLLEGE Page 77 .