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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 Master of business Administration course. The project has been presented in a simple format.

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ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep gratitude to all those who, directly or indirectly made this project possible. I have got considerable help and support in making this project report really from many people. I would like to thank Miss. Sandhya Tripathi whose endeavor for perfection, under fatigable zeal, innovation and dynamism contributed in a big way in completing this project. This work is the reflection of his thought, ideas, concept and above all his modest effort.

Ashok kumar

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Introduction & Objective • INTRODUCTION  History Of The Company  History Of Maruti  Brands And Models  Manufacturing Markets  Major Future Strategies  Advertising Of Maruti  Swot Analysis Of Company • RESEARCH METHODOLGY • DATA PRESENTATION • FINDINGS • CONCLUSION • SUGGESTION • LIMITATIONS • BIBLIOGRAPHY • ANNEXURE

(4-6) (7-54) (8-14) (15-24) (25-26) (27-39) (40-44) (45-48) (49-54) (55-58) (59-72) (73-74) (75-77) (78-79) (80-81) (82-83) (84-86)

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INTRODUCTION MARUTI UDYOG LIMITED
Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation the leader of the Indian car market for about two of Japan, has been

decades. Its manufacturing plant,

located some 25 km south of New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per annum, with a capability to produce about half a million vehicles. The company has a portfolio of 11 brands, including Maruti 800 ,Omni, premium small car Zen, international brands Alto and WagonR, off-roader Gypsy, mid size Esteem, luxury car Baleno, the MPV, Versa, Swift and Luxury SUV Grand Vitara XL7.In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor Corporation's R and D hub for Asia. It has introduced upgraded versions of WagonR, Zen and Esteem, completely designed and styled in-house. Maruti's contribution as the engine of growth of the Indian auto industry, indeed its impact on the lifestyle and psyche of an entire generation of Indian middle class, is widely acknowledged. Its emotional connect with the customer continues Maruti tops customer satisfaction again for sixth year in a row according to the J.D. Power Asia Pacific 2005 India Customer Satisfaction Index (CSI) Study. The company has also ranked highest in India Sales Satisfaction Study. The company's quality systems and\practices have been rated as a "benchmark for the automotive industry world-wide" by A V Belgium, global auditors for International Organization for Standardization. In keeping with its leadership position, Maruti supports safe driving and traffic management through mass media

In our paper we are attempting to identify the future of Maruti Udyog Ltd which is currently the market leader. lease and fleet management service for corporates (N2N). The main questions we will be addressing are. On 17 September 2007. It is a leading four-wheeler automobile manufacturer in South Asia. Maruti Udyog was renamed to Maruti Suzuki India Limited. . It was the first company in India to mass-produce and sell more than a million cars. one of the fast growing Indian auto manufacturer. Maruti Suzuki India Limited is a publicly listed automaker in India.. The company's service businesses including sale and purchase of preowned cars (True Value). the first brand that comes to Indian customer mind is Maruti. It is largely credited for having brought in an automobile revolution to India. Maruti Insurance and Maruti Finance are now fully operational. The company's headquarters remain in Gurgaon. These initiatives. near Delhi.5 messages and a state-of-the art driving training and research institute that it manages for the Delhi Government. • • • • • Can it sustain its market share Will their be a decline in profits What can it do to keep its growth rate? How can it compete in the highly competitive small car segment What are its strategic alternatives We will analyze the competitors briefly concentrating more on TATA motors. It is the market leader in India. Suzuki Motor Corporation of Japan holds a majority stake in the company. besides providing total mobility When it comes to Indian auto industry.

• To give suggestions for improvements on the points where they are lacking on the basis of feedback from the customer.6 OBJECTIVE OF THE STUDY • • To get overview of sales scenario of the company. . These objectives were achieved by following a well thought out plan and defining the problem for each objective separately. To know how much customers are satisfied with the services provided to them by Maruti Showroom Bareilly.

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Sanjay Gandhi was awarded the exclusive contract and licence to design. Over the next few years. Sanjay Gandhi's company was christened Maruti Limited. The media . the company had not started the production and a prototype test model was met with criticism and skepticism. the Indian car market had stagnated at a volume of 30. develop and manufacture the "People's Car".000 cars for the decade ending 1983. envisioned the manufacture of an indigenous. For the next ten years. Till the end of 1970s. The name of the car was chosen as "Maruti".000 to 40. low maintenance compact car for the Indian middle-class. In the early days under the powerful patronage of Sanjay Gandhi. the Premier Padmini which was slowly gaining a part of the market share dominated by the Ambassador. the company was sidelined due to the Bangladesh Liberation War and emergency. political advisor and younger son to the then Prime Minister of India. costeffective. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South Asian countries. the company was provided with free land.8 HISTORY OF THE COMPANY Maruti Udyog Limited (MUL) was established in February 1981. Marutis are sold in India and various several other countries. Indira Gandhi's cabinet passed a unanimous resolution for the development and production of a "People's Car". tax breaks and funds. Indira Gandhi. Around 1970. which was directly targeted at Indra Gandhi. and the company had come out with a new entrant. depending upon export orders. Maruti has produced over 5 Million vehicles. The company went into liquidation in 1977. Sanjay Gandhi. after a Hindu deity named Marut. though the actual production commenced in 1983. This exclusive rights of production generated some criticism in certain quarters. Through 2004. At that time Hindustan Motors' Ambassador was the chief car.

This was due not only to their undisputed leadership insmall 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). · Number one in JD Power CSI for the sixth time in a row . it produced one million vehicles. on April 19.A licence and a Joint Venture agreement was signed between Govt of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. It reached the two million mark in October. Maruti entered into this collaboration with Suzuki Motors. MUL launched its first car Maruti800 ondecember 14. mostly by selling its chief product the Maruti 800s.96. 1983.[5] . The car went on sale on December 14. including M800 and Alto. Indira Gandhi decided that the project should not be allowed to die. Maruti started to fly only after the death of Sanjay Gandhi. 2003.47. The collaboration heralded a revolution in the Indian car industry by producing the Maruti 800. [4] Unfortunately.820 cars. an Alto-LX. announced a price cut ranging between Rs. It created a record by taking 13 months time to go from design to rolling out cars from a production line. when Suzuki Motors joined the Government of India as a joint venture partner with 50% share.000-22.500. becoming the first Indian company to cross this milestone. 1997 and rolled out its 4 millionth vehicle. By March 1994.9 perceived it to be another area of growing corruption. 13.the only .000 across five models. Suzuki Motor Company was chosen from seven prospective partners worldwide. following the cut in excise duty on small cars -MUL unveils new WagonR in Punjab AWARD AND ACCOLADES 2005 · Number one in JD Power SSI for the second consecutive year. After his death. By the year 1993 the company had sold up to 1. Recent history YEAR EVENTS 2006 -Indian car market leader Maruti Udyog on Feb 28.1983 at initial price of Rs.

1 in Total Customer Satisfaction (Maruti 800. No. · First Indian car manufacturer to reach 5 million vehicles sales. WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study Leadership in the JD Power Initial Quality Study . . · WagonR and Esteem top their segments in the JD Power APEAL study. · Business World ranked us the country's most respected automobile company. Esteem number one in its segment for the 3rd year in a row. · Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC (2nd time in a row)-Feb 05. · Business World ranks Maruti among top five most respected companies in India-Oct 04. · M800. 1in Product Appeal (Esteem and Wagon R). · TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05.Alto number one in its segment for the 2nd time in a row.1 in Product Quality (Esteem and Alto) and No. · Maruti ranked among top ten (Rank7) greenest companies in India by Business Today Sep '04 2004 · Maruti Suzuki was No. 1 in Sales Satisfaction No. · Business World ranked us among the country's five most respected companies. · No. Swift number one in the premium compact segment. 1 in Customer satisfaction. Zen and Alto).10 car to win it so many times.

11 · Voted Manufacturer of the year by CNBC. Future of the Automobile in the Economy US based consultancy. . Overall size expected to exceed 20 million with compounded annual growth rate of over 12%. · Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG. keystone predicts that India will become world’s third largest automobile market by 2030.

Mercedes Benz . Mitsubishi Honda Hyundai Baja tempo Marinara Maine elect. Chevrolet) Ford Hindustan motors.12 India Then & Now 1983 Number of brands 2 Number of models 2 2008 Number of brands 30 Number of models 70 Some of the Car companies in India: Maruti Suzuki Fiat General motors (Opel.

monde. wagon-r.13 San engineering Toyota Top three manufacturers: Maruti Suzuki Tata motors Hyundai Car segmentation: This is done on the basis of size and price of the car A segment: maruti800. accent. Mercedes . Octavia. indicia C segment: esteem. polio. indigo. Honda city. icon. Santo. Camry. sonata. civic D-segment: opera. omni B segment: Zen. corolla. accord. alto.

Mr Foster of M/s Crompton Greaves Company.JamshedJi Tata   1905 First Woman to drive a car in India . Suzanne RD Tata 1905 Fiat Motors 1911 First Taxi in India 1924 Formation of traffic police 1928 Chevrolet Motors 1942 Hindustan Motors 1944 Premier Automobiles Limited 1945 Tata Motors 1947 Mahindra & Mahindra Limited 1948 Ashok Motors 1948 Standard Motors 1974 Sipani Motors 1981 Maruti Suzuki 1994 Mercedes-Benz 1994 General Motors India .Opel brand launch 1995 Ford Motor Company 1995 Honda Siel Cars India                 . Mumbai 1901 First Indian to own a car in India .14 CHRONOLOGICAL ORDER OF AUTOMOBILE  1897 First Person to own a car in India .Mrs.

15            1995 REVA Electric Car Company 1995 Daewoo Motors 1996 Hyundai Motor Company 1997 Toyota Kirloskar Motors 1997 Fiat Motors (Re-Entry) 1998 Mitsubishi Motors 2001 Škoda Auto 2003 General Motors India . Indira Gandhi’s cabinet passed a unanimous resolution for the development and .Chevrolet brand launch 2005 BMW 2007 Audi 2009 Land Rover and Jaguar History of Maruti In 1970 . cost effective . low maintenance compact car for the Indian middle class . Sanjay Gandhi the son of Indira Gandhi envisioned the manufacture of an indigenous .

Maruti’s major influence was in helping the component industry in the country because of its emphasis on localization and indigenization.16 production of a people’s car. The name of the car was chosen after a Hindu deity named Maruti Ltd. As in the beginning that sector hadn’t . Sanjay Gandhi was awarded the exclusive contract and license to design. Sanjay Gandhi’s company was christened Maruti limited. 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. which was directly targeted at Indira Gandhi. middle class grew in size. In the early days under the powerful patronage of Sanjay Gandhi the company was provided with free land. The media perceived it to be another area of growing corruption. It created a record of taking 13 months time to go from design to rolling out cars from a production line. The company went into liquidation IN 1977. Unfortunately Maruti’s started to fly only after the death of Sanjay Gandhi. After his death Indira Gandhi decided that the project should not be allowed to die. Till the end of 1970 the company had not started the production and a prototype test model was welcomed with criticism and skepticism. develop and manufacture the “People’s Car.” These exclusive rights of production generated some criticism in certain quarters. when Suzuki motors joined the government of India as a joint venture partnered with 50% share. The collaboration heralded a revolution in the Indian car industry by producing the maruti-800. This in turn brought in more players in this segment. For the next ten years the Indian car market had stagnated at a volume of 30.000 to 40. tax breaks and funds. Maruti’s entered into this collaboration with Suzuki motors. Over the next few years the company was sidelined to Bangladesh liberation war and emergency. 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. 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.000 cars for the decade ending 1983. The production of Maruti-800 in 1983 marked the beginning of a revolution in the Indian automobile industry.

to buy cars.660 501.838.8 1.126 500. 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.58 1.622.20052006-072007-08 2008-09 03 04 05 06 723.33 989.22 1.8 7. It still remains the leader not only in the terms of market share but also in customer satisfaction surveys.70 391.2 5.69 275. including 2005.D.466.209. 96.7 6.In 2007 Maruti came up with SX4 and Grand Vitara.030 9 3 5 3 5.71 356.56 1.608.006 417.777.08 519.2003.Then it introduced Wagon-R followed by Swift . It has consistently topped J.22 374. Swift has been a great success in the market .2004.3 1.126 7 0 3 3 276.6 8.982 549.529. By the year 1993 the company had sold 1.820 cars.68 8.418.42 556. 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.44 434. INDUSTRY GROWTH Automobile Production Trends (Number of Vehicles) Category Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers 2002. power quality surveys. By March 1994 it produced 1 million vehicles becoming the first Indian company to cross the 2 million mark in October.309.026.17 grown much Maruti’s had to start dozens of joint ventures with Indian entrepreneurs.66 8.076.04 353.545.62 21 41 29 97 6 1 6 .69 0 0 76 00 3 3 7 203. 1997 and rolled out 4 millionth vehicles as Alto-LX .

9 11.9 10.743.087.853.243.9 7.18 Grand Total 6.467.5 11.4 67 64 53 03 97 30 79 .5 8.279.8 9.175.

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and 54. The Indian government held an Initial Public Offering of 25% of the company in June of 2003.2% by Suzuki of Japan.28% of the company is owned by the Indian government. 18. Ownership Govern ment Suzuki IPO others Suzuki others IPO Government .20 Structure Ownership MUL India's leading automobile manufacturers and the market leader in the car segment. both in terms of volume of vehicles sold and revenue earned is a public sector initiative.

Service is a major revenue generator of the company. Maruti Insurance • Launched in 2002 Maruti provides vehicle insurance to its customers with the help of the National Insurance Company. By December 2005 they were able to sell more than two million insurance policies since its inception. Ltd and Maruti Insurance Brokers Pvt. Prior to the start of this service Maruti had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide . Limited. Most of the service stations are managed on franchise basis. Maruti Finance • To promote its bottom line growth. Other automobile companies have not been able to match this benchmark set by Maruti. New India Assurance and Royal Sundaram. Sales of Automobiles Authorized Service Stations • Maruti is one of the companies in India which has unparalleled service network. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle.21 Main divisions (brand equity) The major services offered are. Bajaj Allianz. 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 service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. where Maruti trains the local staff. This service started as a benefit or value addition to customers and was able to ramp up easily. Maruti launched Maruti Finance in January 2002.

Maruti has sold over 12. one can Buy. DuPont. Kotak Mahindra.000 vehicles through SBI-Maruti Finance. HDFC Bank. which includes Leasing. Maruti Driving School • As part of its corporate social responsibility Maruti Udyog launched the Maruti Driving School in Delhi. Convenience services and Remarketing. Maintenance. Maruti tied up with ABN Amro Bank. Many international practices like road . These schools are modelled on international standards. Its impressive list of clients who have signed up of this service include Gas Authority of India Ltd. where learners go through classroom and practical sessions. It is a market place for used Maruti Vehicles. SBI-Maruti Finance is currently available in 166 cities across Maruti TrueValue • Maruti True Value is a service offered by Maruti Udyog to its customers. N2N Fleet Management • N2N is the short form of End to End Fleet Management and provides lease and fleet management solution to corporates. Later the services were extended to other citites of India as well. Again the company entered into a strategic partnership with SBI in March 2003. National Stock Exchange and Transworld. Reckitt Benckiser. and Sundaram to start this venture including its strategic parnters in car finance. Standard Chartered Bank. Since March 2003. Doordarshan. ICICI Limited.22 respectively to assist its client in securing loan. Singer India. This fleet management service include end-to-end solutions across the vehicle's life. Sona Steering. Sell or Exchange used Maruti Vehicles with the help of this service in India.

S.00. Bhaskarudu as the Manging Director on August 27.23 behaviour and attitudes are also taught in these schools.000 vehicles produced by June. Mr. 1997. Productions and Projects. 2000 ➢ 35.00. 2003 . Currently he is on the Board of Directors.000 vehicles produced by April. 1990 ➢ 10.C.L.00. 1994 ➢ 15. 1989 Director.00.S.000 vehicles produced by March. 1998 as Director. Before driving actual vehicles participants are trained on simulators.000 vehicles produced by June.00.00. 1986 ➢ 5.000 vehicles produced by December 2001 ➢ 40.00. Production Milestones ➢ 1st vehicle produced. 1996 ➢ 20.000 vehicles produced by August. was the managing director of the company since the inception of the joint venture. Key personnel Initially R.Bhargava.00. Materials and in 1993 as Joint Managing Director. 1997 ➢ 25. December 1983 ➢ 1. Later in 1987 he was promoted as Chief General Manager. Bhaskarudu had joined Maruti in 1983 after spending 21 years in the Public sector undertaking Bharat Heavy Electricals Limited as General Manager. Mr.000 vehicles produced by March.000 vehicles produced by October. Bhargava later assumed the office of Part-Time Chairman. Till today he is regarded as instrumental for the success of Maruti Udyog.00. After completing his five year tenure. Joining in 1982 he held several key positions in the company before heading the company as Managing Director.000 vehicles produced by April. The Government nominated Mr.N. 1999 ➢ 30.

24 ➢ 45.000 vehicles produced by April.00. 2007-2008 OTHER PRODUCTS OF MARUTI SUZUKI Maruti  M   aruti 800 STD BS III  M   aruti 800 AC BS III Omni  5 seater Maruti Omni   8 seater Maruti Omni   LPG Maruti Omni  Maruti Alto A  lto A  lto Lx A  lto Lxi Maruti Zen  M   aruti Zen Lx  M   aruti Zen Lxi  M   aruti Zen Vxi .

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Wagon R WagonR Lx WagonR Lxi WagonR Vxi WagonR Ax

Versa  5 seater   8 seater ( DX & DX2) 

Maruti Esteem M  aruti Esteem Lx M  aruti Esteem Lxi M  aruti Esteem Vxi

Baleno  Baleno Sedan VXi   Baleno Sedan Lxi 

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Brands and Models
Till recently whenever we think of Maruti we think of it as 800 due to the huge sales it achieved. It was like a symbol of luxury for the middle class. Now situations are changing and people are looking at Maruti stable for the wide range of products they are offering. The various models and brands that are sold by Maruti in the order of their launch are, • • • • • • • • • • • • • Maruti 800: Launched 1983. India’s largest selling car till 2004. Maruti Omni: Launched 1984. Maruti Gypsy: Launched 1985. Maruti 1000: Launched 1990 Maruti Zen: Launched 1993.Modified 2003.Production to be halted Maruti Esteem: Launched 1994 Maruti Wagon- R: Launched 1999 Modified 2006 Maruti Baleno : Launched 1999 Maruti Alto: Launched 2000. Currently the largest selling car in India Maruti Grand Vitara: Launched 2003 Maruti Grand Vitara XL-7 Maruti Versa: Launched 2004 Maruti Swift: Launched 2005 2006 New

generation Zen (First generation MR Wagon in Japan) to be introduced 2006

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BRAND PORTFOLIO OF THE COMPANY
CLASS BRAND NAME Maruti 800 Maruti Alto City Car Maruti Zen Estilo Suzuki Alto (A-star) Suzuki Splash Super Car mini Maruti Wagon-R Maruti Suzuki Swift Maruti Suzuki SX4 Compact Car Maruti DZiRE Sports Utility Vehicle Suzuki Grand Vitara Maruti Gypsy Maruti Omni Microvan Maruti Versa 2003 2008 2007 1985 1984 The heart car Play it your way King YEAR INTRODUCED 1983 2000 2005 2008 Upcoming model in 2009 1999 2005 2007 For the smarter race You're the fuel Men are back SLOGAN Change your life Let's go Shape your world Stop @ nothing

Fits all The joy of travelling

together

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Manufacturing Markets
Maruti has a strong domestic market presence in India. It has a market share of 47% in the domestic market. The current market share of Indian car industry is given below, Maruti Exports Limited is the subsidary of Maruti Udyog Limited with its major focus on exports and it does not operate in the domestic Indian market. The first commercial consignments of 480 cars were sent to Hungary. By sending a consignment of 571 cars to the same country Maruti crossed the benchmark of 3, 00,000 cars. Since its inception export was one of the aspects government was keen to encourage. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Sri Lanka, Uganda, Chile, Costa Rica and El Salvador are some of the markets served by Maruti Exports.

23% 46% 17% 14%

MUL Hyundai Tata Others

24. Overall passenger car market registered 24. The auto major expects its exports to Chile and Morocco to go above 5.000 units of the model annually.300. respectively. . In fact.700 this year. compact cars emerged as the main driver of passenger car growth in the period. Maruti is quite bullish on markets like. 1. 00. Egypt and Sudan apart from the neighbouring countries.25 per cent in the April-July 2006 period compared with 64.29 Maruti also has markets in other countries depending on export demand. Suzuki is selling cars similar to Maruti in Pakistan and South Asian countries. a growth of over 50%. Algeria has emerged as Maruti's largest overseas market with sales growing from a few hundred in FY02 to over 6.21.9 per cent in the same period last year.2 per cent to 2. over 1.000 and 2. Morocco.598 units in the April-July 2006 period. Its volumes from there have moved from under 700 in FY02 to 3.06. In FY07 it was under 200 few years back.200 units to Nepal. Meanwhile. While the overall passenger car market increased by 24. The company targets to export 1.900 and 2. Maruti. sales of compact cars jumped by 31.500 (FY06). Hyundai Motor. The company says it may cross 9.115 (FY06) and exports to Sudan was nil two years back.800 this year. our numbers are estimated to grow to over 2." according to Mr Khattar.175 to Bhutan and 700 to Bangladesh. this year.86 per cent to 3. Not surprisingly. Loss of sales in Europe is due to stoppage of Alto which accounted for 80% of their exports and introduction of Swift.200 units to Sri Lanka this year. Chile.86% growth Sales of compact cars jumped by 31. Maruti is also reporting a high on current year exports to the neighboring countries is on a high too.7%.671 units. which will target the European market. and Tata Motors) saw a sizeable jump in their compact car sales in the period.2% Mid-size car segment grew slower at 14. The company expects to export 9. "In Egypt. all the three major carmakers (Maruti Udyog. with the share of compact cars increasing to 68. which saw exports dip by 29% last fiscal. They have a major non European market which grew 78% in 05. The Government's small car policy seems to be yielding results. also plans to launch a new export model during '08-09.

000.00 6.00 which is the lowest offer on road.95.000. Sl.000.05.000.58.00 4. It has a car priced at Rs.30 I.00 5.1.19.) 16.00 5.000.39.00 4.72.00 3 MARUTI ESTEEM 4 MARUTI VERSA 5 MARUTI SWIFT . Here is how every price point is covered. BRAND 1 GRAND VITARA 2 MARUTI BALENO VARIANTS XL7 Lxi Vxi LX VX DX DX2 Lxi Vxi PRICE IN DELHI (Rs.000.00 4.66.87.00 3.000. Their sole motive of having so many product offering is to be in the consideration set of every passenger car customer in India. Their pricing strategy is to provide an option to every customer looking for up gradation in his car.No. PRICING STRATEGY - CATERING TO ALL SEGMENTS Maruti caters to all segment and has a product offering at all price points.00 4.000. Maruti gets 70% business from repeat buyers who earlier had owned a Maruti car.97.42.000.000.

00 4.87.05.000.00 5.00 3.63.00 3.000.68.000.83.000.000.58.00 .00 5.000.00 1.20.31 Zxi 6 MARUTI WAGON-R LX Lxi AX Vxi VXi ABS 7 MARUTI GYPSY ST HT 8 MARUTI ZEN D LX Lxi Vxi 9 MARUTI OMNI CARGO CARGO LPG 5 SEATER 4.000.62.000.000.41.00 3.000.00 3.29.35.00 2.000.000.93.000.27.00 4.00 3.85.000.000.06.00 3.00 3.00 2.

37.00 2.74.00 2.000.00 2. With Maruti True Value customer has a trusted name to .32 8 SEATER XL 5 SEATER XL 8 SEATER 10 MARUTI ALTO MARUTI ALTO STANDARD LX Lxi STD.38.19. They are offered loyalty discounts in return.000. MPFI A/C MPFI 2.21.000. This helps them retain the customer. Maruti Insurance is a hassle-free way for customers to have their cars repaired and claims processed at any Maruti dealer workshop in India.00 2. II.94. by paying the difference.000.000.00 2.00 2. allowing customers to bring their vehicle to a 'Maruti True Value' outlet and exchange it for a new car.00 2.000. From identifying the most suitable car coverage to virtually hassle-free claim assistance it's your dealer who takes care of everything. TRUE VALUE – INITIATIVE TO CAPTURE USED CAR MARKET Another significant development is MUL's entry into the used car market in 2001.000.000.14.00 11 MARUTI 800 Sundaram to bring this service for its customers.31.

Here are the certain changes observed in different models of Maruti. Maruti knows its strength in Indian market and has filled this gap of providing trust in Indian used car market. It has received a very good response . A new variant called Omni Cargo. Maruti has created a system where dealers pick up used cars. The used car market in developed markets was 2-3 times as large as the new car market. and sell them again. Omni has been given a major facelift in terms of interiors and exteriors two months back. III. All investments for True Value are made by dealers. The used car market has a huge potential in India. Other changes have been made from time to time based on market responses or consumer feedbacks or the competitor moves. REPOSITIONING OF MARUTI PRODUCTS Whenever a brand has grown old or its sales start dipping Maruti makes some facelifts in the models. Maruti has build up a strong network of 172 showrooms across the nation. give them a fresh warranty. which has been positioned as a vehicle for transporting cargo and meant for small traders.33 entrust in a highly unorganized market and where cheating is rampant and the biggest concern in biggest driver of sale is trust. recondition them.

A variant with LPG is receiving a very good response from customers who look for low cost of running. .Maruti 800 has so far been facelifted two times. The customer centric attitude is imbibed in its employees.sector laid back attitude image and has inculcated the customer-friendly approach in its organization culture. Zen has been modified four times till date. Maruti dealers and employees are answerable to even a single customer complain. Maruti has successfully shed off the public. Now it’s of the most successful models in Maruti stable. This made it a big failure on launch. In 2003 they launched a lower variant as Baleno LXi at 5. Wagon-R was perceived as dull boxy car when it was launched. In 2002 they slashed prices to 6. This was to reduce the price and attract customers. Focus on customer satisfaction is what Maruti lives with. This was a result of intensive survey done all across the nation regarding the consumer perception of Versa.4 lacs. Baleno was launched in 1999 at 7. Esteem has gone through three facelifts.34 from market. They decreased the engine power from 1600cc to 1300cc and modified it again considering consumers perception. head light. Once it came with MPFi technology and other time it came up with changes in front grill.46 lacs.3 lacs. Versa prices have been slashed and right now the lowest variant starts at 3.2 lacs. There are instances of cancellation of dealerships based on customer feedback. They had come up with a limited period variant called Zen Classic. rear lights and with round curves all around IV. That was limited period offer to boost short term sales. A new look last year has helped boost up the waning sales of Esteem. Then further modifications in engine to increase performance and a facelift in the form of sporty looking grills on the roof. CUSTOMER CENTRIC APPROACH Maruti’s customer centricity is very much exemplified by the five times consecutive wins at J D Power CSI Awards.

V.Maruti enjoys seventy percent repeat buyers which further bolsters their claim of being customer friendly. Maruti has proper customer complain handling cell under the CRM department. is trained on greeting etiquettes. Maruti partnerships with State Bank of India and its Associate Banks took organized finance to small towns to enable people to buy Maruti cars. The Dealer Sales Executive. Towards this end. Their Market Research department remains on its toes to study the changing consumer behaviour and market needs. Maruti is investing a lot of money and effort in building customer loyalty programmes. 2599 scheme was one of the outcomes of this effort. who is the first interaction medium with the Maruti customer when the customer walks in Maruti showroom. Rs. COMMITTED TO MOTORIZING INDIA Maruti is committed to motorizing India. Maruti is right now working towards making things simple for Indian consumers to upgrade from two-wheelers to the car.35 Maruti has taken a number of initiatives to serve customer well. They have even changed their showroom layout so that customer has to walk minimum in the showroom and there are norms for service times and delivery of vehicles. The Maruti call center is another effort which brings Maruti closer to its customer. .

that the EMI (equated monthly instalments) would range between Rs 4. DISINVESTMENT AND IPO OF MARUTI UDYOG LIMITED It was a long and tough journey. That. maintenance need not be. plus another Rs 1. favorable regulatory framework.000 and Rs 5. when Maruti Udyog Limited (MUL) was formally set up.000.500-2. Control over the fuel bill is in the consumer's hands. The size of Maruti’s sell. Robust economic growth." VI. the company is working on a novel idea. But. the sale represents a .36 Maruti expects the compact cars.000 for monthly maintenance. to be the engine of growth in the future. another Rs 1. Maruti is busy fine-tuning another innovation. we will charge a little extra in the EMI and offer free maintenance. affordable finance and improvements in infrastructure favor growth of the passenger vehicles segment. but a rewarding one at the end.off deal is proof of its success. As far as the maintenance cost is concerned. if you want it that way. A reward worth Rs 2. To counter that apprehension. The low penetration levels at 7 per thousand and rising income levels will augur well for the auto industry.000 for fuel (would be the cost of using the car).424 crore. On the investment of Rs 66 crore it made in 1982. making it the biggest privatization in India till date. Says Khattar: "What the company is doing now is saying how much you spend on fuel is in your hands anyway. While researching they found that rural people had strange notions about a car . which currently constitute around 80% of the market.

Both the projects will be implemented by two different companies. The two-wheeler unit will have a capacity of 250.37 staggering return of 35 times The best part of the deal is the Rs 1. of course. Quoting from the report that appeared in The Economic Times. They flowed fund in India for the major revamp in MUL.000 units a year. The disinvestment followed by IPO gives the insight in the fact that now all the strategic decisions are taken by Maruti Suzuki Corporation. After the disinvestment Suzuki became the decision maker at MUL. which will be located in Haryana. would start making motorcycles and scooters by the end of 2005 through a joint venture.000 crore control premium the Government has been able to extract from Suzuki Motor Corporation for relinquishing its hold over India’s largest car company.271. 4th April 2005. complete control of MUL means a lot.” says Jagdish Khattar. managing director. The response to changing market conditions and technological needs will be faster. “Decisions will now become quicker. The Indian car giant Maruti Udyog Limited has finalized its two mega investment plans — a new car plant and an engine and transmission manufacturing plant. Maruti is its most profitable and the largest car company outside Japan. Disinvestment had helped by removing the red tape and bureaucracy factor from its strategic decision making process. . in which Maruti has 51 per cent stake. MUL. Now looking at the strategy point of it – for Suzuki. At its meeting the company's board approved a total investment of Rs3. Suzuki will now be in the driver’s seat and will not have to mind the whims and fancies of ministers and bureaucrats. Suzuki's proposed two-wheeler facility in India. The above signifies when GOI was a major stakeholder in the MUL strategies which lead to investment have had a bureaucracy factor in it but after the disinvestment strategy followed is a TOP DOWN approach with a fast implementation.9 crore for these two ventures.

. In this scheme. you know where the company's revenues come from. the company's operations could be boiled down to a simple three-box flowchart.38 VII. REALISATION OF IMPORTANCE OF VEHICLE MAINTENANCE SERVICES MARKET In the old days. The new scheme is more complicated. Components came from the 'vendors' to the 'factory' where they were assembled and then sent out to the 'dealers'. It revolves around the total lifetime value of a car.

" If a buyer spends Rs 100 on a car during its entire life. Maruti has increased its authorized service stations to 1567 across 1036 cities. Kalsi. when a MUL team. how can I make sure that it comes back to me each time it changes hands ? So Maruti has changed gears to take a big share of this final one-third spent on maintenance.39 Work on this began in 1999. Another third went into fuel. Says R. The lowest car on road is from Maruti stable i. The ability to keep lowering the . Every regional office is having a separate services and maintenance department which look after the growth of this revenue stream. PLAYING ON COST LEADERSHIP Maruti is the price dictator in Indian automobile industry. trying to capture more of the total lifetime value of a car.S. Maruti 800.e. wondering about new revenue streams. MUL was just making and selling cars. VIII. Maintenance market has a huge market potential. Even after having fifty lakh vehicles on road Maruti is only catering to approximately 20000 vehicles through its service stations everyday. For this they are conducting free service workshops to encourage consumers to come to their service stations. Maruti achieves this through continuous improvements in operational efficiency and productivity. one-third of that is spent on its purchase. a life span of 10 years. Says Kalsi: "So the question was. It’s the low cost provider of car. if a car is going to see three users in. The company has set itself (and its vendors) the target of a 50% improvement in productivity and a 30% reduction in costs in three years. customers began to change cars faster. Maruti was getting only the first one-third of the overall stream. MUL: "While car companies were moving from products to services. Earlier. general manager (new business). And the final third went into maintenance. say. As the Indian market matured. traveled across the world.

Another . Based upon such activities.40 prices sets Maruti apart from other players in the league. smoothened Maruti’s Just In Time operations. MAJOR FUTURE STRATEGIES I. The impressive sales and profits were the result of major efforts within the company. adopted from Suzuki Motor Corporation. assuring them that for every drop in price. The e Nagare system. This has provided its vendors with higher volumes and higher efficiencies. Maruti consolidated its vendor base. Perhaps being the flagship product phasing out of Maruti 800 faced lots of resistance from dealers all over. volumes will go up. A new Vehicle Tracking System improved efficiency on the shop floor and enhanced quality control. Maruti is now encouraging its vendors to develop R&D capability for specialized components. Maruti also increased focus on vendor management. PHASING OUT ZEN IN 2007- The launch of Swift and phasing out Zen is a strategic move. Maruti does that by working with vendors. Maruti also made strides in applying IT to manufacturing. product competitiveness in the market will further increase. Alto was launched keeping in mind that it will take over Maruti 800 market in future. Maruti spread the overheads over a larger base.

2005 in the price band starting from 4 lacs. It will manufacture new generation CRDI (common rail direct injection) engines in collaboration with Fiat-GM Opel and engines will be of 1200 cc. At present. While the annual growth in the diesel segment was 13 per cent in the last three years. Maruti is offering Rs.41 reason behind not phasing out Maruti 800 was the fear of brand shift of customers to other competitor’s product. Before launch of Swift Maruti management had decided that they will phase out Zen since it had already came up with two modifications. will be a joint venture between Maruti Udyog and Suzuki Motor Corporation holding a 70 per cent and 30 per cent stake respectively. This will further reduce . Maruti would set up a diesel engine plant at Gurgaon in line with its plan to become a major player in diesel vehicles in a couple of years. MARUTI PLANS FOR A BIG DIESEL FORAY The new car manufacturing company. It is a rational decision to kill a product before it starts facing the decline stage in product cycle.5 lakh units per annum. This has been done in the wake of major competition from Tata Indica and meets the growing demand of diesel cars in India.2 crore plant will have a capacity to roll out 1 lakh cars per year with a capacity to scale up to 2. Peugeot of France. Swift was launched in May. it was 19-20 per cent in the first quarter (April-June) of the current fiscal.00 more margins to dealer on the sale of Wagon-R as compared to Zen. 3000. called Maruti Suzuki Automobiles India Limited. The new car manufacturing plant will begin commercial production by the end of 2010. The major reason behind this decision was cannibalization of Wagon R and Swift due to overlapping of price band. The Rs1.524. supplies diesel engines for Maruti's Zen and mid-sized Esteem models. This is to let dealer push Wagon R instead of Zen. Maruti has currently an insignificant presence in diesel vehicle. The plant with a capacity to produce one lakh diesel engines would be operational in 2006. II.

Investment in this facility will be Rs. McKinsey did an exercise to figure out just how much money could be saved if automobiles were to be made in overseas locations like India.747.000 petrol engines and 1.7 crore.42 the imported component in Maruti vehicles. MARUTI PLANS FOR A NEW ENGINE AND TRANSMISSION PLANT The engine and the transmission plant will be owned by Suzuki Power train India Limited in which Suzuki Motor Corporation would hold 51 per cent stake and Maruti Udyog holding the balance.an automobile BPO. the initial production would be 1 lakh diesel engines. III. The result was staggering: the industry stands to gain $ 150 billion annually in cost savings. making them more competitive in the Indian market. The ultimate total plant capacity would be three lakh diesel engines. 20. INDIA AS EXPORT HUB FOR MARUTI Three years back as an experiment. so to speak. and an additional $ 170 . The commercial production will start by the end of 2006. However.4 lakh transmission assemblies. based on the increasing design capabilities of suppliers in countries like India. Mexico and South Africa -. IV.1.

and Ikons from Ford. Till recently. so there's a lot of money to be made by shifting the production overseas. just 100. among others. U.000 cars produced in low-cost countries were exported to high-cost ones -. Though the main market for the Maruti vehicles is Europe. has been very popular in Europe where a landmark 200. Morocco. Djibouti. Uganda. The Middle-East region has also . According to the study. which meets the Euro-3 norms.presumably this figure is going up now that Altos from Maruti. The Alto. and the combination of which means a 25 per cent increase in existing revenue levels. Greece. Italy. Even in the highly developed and competitive markets of Netherlands. France and Poland in that order. after factoring in higher import duties for components/steel.000 vehicle were exported till March 2003. Nepal. The top ten destination of the cumulative exports have been Netherlands. Chile. In August. Maruti has entered some unconventional markets like Angola.43 billion annually in new revenues once demand shoots up following the drop in prices. lower levels of automation. Europe is the largest destination of Maruti’s exports and coincidentally after the first commercial shipment of 480 units to Hungary in 1987. are being regularly exported out of India. 2003 Maruti crossed a milestone of exporting 300. as McKinsey points out. it will cost 22-23 per cent less. the study says. Indicas from Tata Motors.00 mark was crossed by the shipment of 571 units to the same country. UK. and transport costs. over 90 per cent of automobiles today are sold in the countries they are made in. the 300. Costa Rica and El Salvador.K. why produce cars in highwage islands? If a car was produced in India instead of in Japan. Santros from Hyundai. Benin.000 vehicles since its first export in 1986. Germany. Ethiopia. Chile. Germany.. France and Italy Maruti vehicles have made a mark. since it just costs $ 500 and just three weeks (and both figures are falling) to ship out a car to anywhere in the world. Yet. where it is selling over 70% of its exported quantity. Hungary. it is exporting in over 70 countries.

are Saudi Arabia. MARUTI EMERGING AS R&D HUB FOR SUZUKI MOTOR CORPORATION Japanese auto major Suzuki is all set to convert Maruti Udyog Ltd’s research and development (R&D) facility as its Asia hub by 2007 for the design and development of new compact cars. Maruti exported more than 51. The markets outside of Europe that have large quantities. Bahrain. In the financial year 2003-04 Maruti exports contributed to more than 10% of total Maruti sales.000 vehicles in 2003-04 which was 59% higher than last year. The country’s leading car . V. Kuwait. Some markets in this region where Maruti is. Qatar and UAE. in the current year. Srilanka and Bangladesh. are Algeria.44 opened up and is showing good potential for growth. Saudi Arabia. according to a top official of the firm.

The reasons as to why it can be good for R&D is that  cost. Thirdly. is also important as it has completely divested now as a result MUL will now become a 100% subsidiary of Suzuki in the coming year Firstly the cost involved in R&D and infrastructure is low in India as compared to other countries.45 manufacturer will make substantial investments to upgrade its research and development centre at Gurgaon in Haryana for executing design and development projects for Suzuki. Apart from working on innovative features. The company will be hiring more software engineers and technocrats to handle Suzuki’s R&D projects. modernisation and greater use of composite technologies in upcoming models. This includes localisation. again at a cheaper ADVERTISING OF MARUTI Impact of Advertising for Product Presentation • Creates awareness • Provides Information . Investment would be more in terms of manpower than in infrastructure. the R&D teams will focus on latest technologies using CAD-CAM tools to roll out new models that will meet the needs of MUL’s diverse customers in the future. India is growing as an export hub along with the Indian market growing aggressively into becoming an attractive one for investors. which is already in place.  Secondly. Also the technical skills are abundantly available. Suzuki’s investment in India.

50.000 • Sponsor cricket matches • Promotion at malls • Launch around a month before festivals like Diwali or Navratri So it was yesterday when I saw this new advertising campaign or Marketing Campaign of Maruti Suzuki. 1. 75.50. 3.Rs. 10 to 12 lakh (Prime Time) Magazine : Double page . 4. 2. 5.000 Hoardings : Rs.10.46 • Generates Association with the audience • Helps in creating an image • Reaches large audience • Develops brand preference • Competitive weapon Advertising moves consumers being unaware of a product or service to finally purchasing it. Advertising Strategy • Start advertising 2 weeks before launch • Advertise on all major media TV : 10 Sec – Rs.03.500 Full Page – Rs.02.500 Newspaper : Rs. What followed was a bit of discussion about the .000 (Match) 30 sec – Rs.000 per month Radio : 10 sec – Rs.

47 Advertising Commercial amongus. It shows a typical large gathering of a family most probably for a family function. and the infant kid is somewhere away from her.Maruti wants all its customers to utilize the services of its own dealer and service networks. However. So the ad does generate a lot of interest . but since she is busy with the work. an infant kid. The Advertising Commercial starts with showing the mom busy with work and the baby starts crying. instead of the customers going to other brand services or going toa roadsideunbrandedgarage. It straightaway gets to the main point to pacify the kid .The timeline of ad is perfect . Unfortunately. she is unable to attend to her. The cycle continues and the kid is passed on from one person or relative to the other (uncle. but no success. around 4-5 months old and some other relatives. The message for the Advertising Commercial comes up on screen: Always take your Maruti Car to the Maruti Authorized Service Network . the mom signals another relative (a lady) to attend the kid.The theme chosen is realistic . but the kid doesnt get quite.. it is apparent that he is the kid's father). etc.Nobody has been focussed for a longer time. The lady then passes on the kid to the kid's father (from the gestures between the kid's mom and the male person in the ad. immediately came a reply from other person kya bakwas commercial hai?. The Advertising Commercial goes as follows: The mom is busy with some work. my first impression after watching this Advertising Campaign was It is a Good Advertising Commercial. grandfather. everyone trying a hand to pacify the kid. aunty. singing.Indian Family.The ad message is clear. everyone is busy. Before we get into the details. The main characters are a mom. It was an Advertising Commercial for the most successful car brand in India Maruti Suzuki. So.) They all try all methods including scolding. At last the kid reaches the mom and there he is happily playing again. Function. so that she can see her from a distance. Now personally. let me first describe the ad as it went through. let's observe some good and bad points of this Advertising Commercial Good: . Now. etc. the kid continues to cry. grandma.

our is a country that gives a very high regard to family relations . What other members differed were the following points (& the inference that can be derived): . it's a problem of the kid that he is not happy with other family members.so anything can be interpreted in any way. making faces. We have a 5 months old baby at my home. Just wanted to mention the reaction of others who saw the ad with me. .Maruti is known for having the biggest network of service stations across the country for car repair and services. it may be taken in a completely different way by someone else.There is a variety of methods included .None of the other family members were able to control the kid .everyone wonders what's happening. when the kid reaches the mom. So the kid is at fault . and many family members keep him busy and happy. if they have to go out. and the kid stays happily .Finally. but what has that to do with going to the authorized service network ? . Dick & Harry from a road side garage. hence its a problem with the car itself.something contrary to what was shown in the Advertising Commercial. he is happy . this advertisement campaign appears to be good to me (personal thoughts). singing.someone dancing. Remember. But shouldn't it be easy to fix the problems of the car by not any Tom. reliable garages (like the relatives) Overall. and there comes the Advertising Commercial Punchline conveying the message.basically meaning that the car is not easy to get repaired if there are any problems. so it was a real life scenario for us. mom & dad leave the kid at home in others care. toys and even scolding it all looks perfect . but atleast by some known.It is true that all family members cannot repair (or even drive a car). Before we get into the bad part.48 .Basically. but as pointed above. Moreover. FINANCIAL ANALYSIS OF THE COMPANY Financial highlights .

49 Parameters Q3’F09 Q3’F08 change Net sale(Rs Mn) 45126 Other Income Operating (Rs Mn) Other Income Non Operating (Rs Mn) EBITDA (Rs Mn) 4745 Depreciation (Rs Mn) Profit Before Tax (Rs Mn) Profit After Tax (Rs Mn) EPS (Rs) 2136 7.17 1775 2925 867 6828 105% 57% 54 54% 7839 39% 1777 854 108% 887 853 4% 46540 -3% SWOT ANALYSIS OF THE COMPANY ➢ STRENGTHS .39 4670 16.

.1 in the entry level mid . highest service quality.D. Power APEAL Study 2004 proclaimed the Wagon R no.D.D. A Buying Experience Like No Other Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities.1 in the premium compact car segment and the Esteem in the entry level mid . Power CSI Study 2004.D.50 ➢ WEAKNESSES ➢ OPPORTUNITIES ➢ THREATS STRENGTH The Quality Advantage Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.size car segment across 9 parameters. The J.size car segment. content. with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. layout and performance of vehicles across 8 parameters. 1 in the premium compact car segment and the Esteem No.1 nameplate in the J. The Alto was chosen No. This study measures owner in terms of design. Power SSI Study 2004. Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced. Quality Service Across 1036 Cities In the J. Our high sales and customer care standards led us to achieve the No. Power\ IQS Study 2004).

Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle.D. 92% of Maruti Suzuki owners feel that work gets done right the first time during service. while 90%owners would probably repurchase the same make of vehicle. WEAKNESS . The J.51 best in-service experience. most user-friendly service and best service initiation experience. best service advisor experience. best service delivery.

• • ESTABLISH PROPER POLICIES AND PROCEDURE FOR LEAVE PROPER COMMUNICATION OF POLICIES TO WORKERS • • ATTITUDE OF SUPERVISOR INSTALLATION OF HIGH CAPACITY GENERATORS OPPORTUNITIES • • ESTABLISH PROPER POLICIES AND PROCEDURE FOR LEAVE PROPER COMMUNICATION OF POLICIES TO WORKERS .52 • COMPARATIVELY LESS MILEAGE -This is also a weakness of maruti Suzuki.So this is a big weakness of maruti. Milage of maruti product is less than other .

53 • • ATTITUDE OF SUPERVISOR INSTALLATION OF HIGH CAPACITY GENERATORS THEARTS .

There is also a threat to Suzuki from R&D investment by Toyota and Honda in Hybrid cars. Maruti Baleno has failed due to one of the major reasons being that customers could not identify Maruti with a car as sophisticated as Maruti Baleno. Ford is launching Focus and Fiesta. Maruti is planning phasing out Zen in 2007 and there were rumors of phasing out Maruti 800 also. Rise in petrol prices and growing popularity of other substitute fuels like CNG will be another threat to Maruti.54 Maruti has always been identified as a traditional carmaker producing value-for-money cars and right now the biggest hurdle Maruti is facing is to shed this image. The next threat Maruti faces is the growing competition in compact cars. Ford. There is a threat to Maruti models ageing. New emission norms like Bharat Stage 3 which has come into effect from April 2005 has increased car prices by Rs. It’s a style statement from Maruti to Indian market. Maruti . GM is has reduced prices of its Corsa. Companies like Toyota. Maruti wants to change it for a more aggressive image. Chevrolet is launching Spark in 2006. Fiat is coming up with Panda and new Fiat Palio. This all makes Suzuki to replace these brands with new launches . Maruti is looking forward to bring about a perception change about the company and its cars.20000 and Bharat Stage 4 which is coming into force in 2007 will contribute in increasing car prices further. GM is launching Aveo in 2006. All this will pose a major threat to Maruti leadership in compact cars. Honda is launching Jazz in 2006. Maruti models like Maruti 800 which is in market for the last twenty years and others like Zen and Esteem which have also entered the decline phase are the other threats. The major thrust in the facelift endeavour is with the launch of 1. Hybrid cars could run on both petrol and gaseous fuels. This could be of concern to Maruti which is low cost provider of passenger cars.Maruti started the exercise with the new-look Zen. Hyundai is launching its new compact car in 2006. It has replaced the traditional Maruti logo on grill ‘stylish ‘M’ with S’. and Suzuki's decision to pick India as one of the first markets for this radically different-looking car gave this endeavor a nethrust. Skoda is launching Fabia. Honda and Fiat are planning to come out with small segment cars in near future. Maruti has also changed its logo at the front grill. As Swift and Wagon R are replacing the Zen market.3 litre Swift.

55 will have to keep on makingN modifications in its present models or its models will face extinction. .

56 RESEARCH METHODOLY .

It may be understood as a science of studying how research is done scientifically. All this means that it is necessary for the researcher to design his methodology for his objective under study as the same may differ objective to objective. Thus when we talk of research methodology we not only talk of the research method but also consider the logic behind the methods we use in the context of a research study and explain why we are using a particular method or techniques and so that research results are capable of being evaluated. Researcher not only need to know how to apply particular research technique. It is necessary for the researcher to know not only the research methods/ techniques but also the methodology. SOURCES OF DATA COLLECTION .57 Research methodology is a way to systematically solve the research objective. In it we study the various steps that are generally adopted by researcher in studying his research objective along with logic behind it. but also need to know which of these methods or techniques are relevant and which are not and what would they mean and indicate and why.

• Primary Data: It can be collected directly or indirectly. • Sample Size: A sample size of 50 respondents was taken to conduct the study of Questionnaire. The data collection is focused on a limited sample of population and has minimal application in terms of generalization of findings. It was done through a well structured and designed questionnaire which contain 14 number of questions which were asked directly to the peple belonging to Bareilly region.58 Data collection methods are credible with validated surveys and/or other methods are clearly described such as observational strategies. Secondary data has also been collected through the Hyundai Sales training handout. . It consists of internet and books etc. the data or information is current. • Secondary Data: It refers to data which have been collected and analyzed by someone else.

the data or information is current. It consists of internet and books etc. Secondary data has also been collected through the Maruti Sales training handout .59 SECONDRY SOURCES OF DATA COLLECTION Data collection methods are credible with validated surveys and/or other methods are clearly described such as observational strategies. • Secondary Data: It refers to data which have been collected and analyzed by someone else. The data collection is focused on a limited sample of population and has minimal application in terms of generalizing the findings.

60 Q1.What age group are you in? .

61 18-25 yrs 12% 26-35 yrs 40% 36-45 yrs 32% Above 45 16% 16% 12% 32% 40% 18-25 Yrs 26-35 Yrs 36-45 Yrs Above 46 Yrs Q2.What category of income do you fit into? .

000-1.000-2.50.000-1.000-2.000 50.00.00.50.00.000 Q3.00.000 32% 1.000 20% 20% 8% 32% 40% Below 50.000 1.000 Above 2.000 8% 50.50.50.62 Below 50. Which kind or segment of Car do you have? .000 40% Above 2.

63 Premium Segment 30% Utility Segment 45% Entry Segment 25% 25% 30% 45% Premium Utility Entry Q4. What is your main purpose of using a Car? .

64 Personal 25% Business 40% Status 20% Leisure 15% 15% 25% 20% 40% Personal Business Status Leisure .

Look & Style Image & Brand Maintenance Resale Value Av. What are your main preferences while buying a Car? . Which factor would you consider the most while buying a Car? Fuel Efficiency 33% Image & Brand 24% Resale Value 18% Look Style 15% & Maintenance Availability 5% Of Product 5% 5% 15% 5% 33% 18% 24% Fuel Eff.65 Q5. Of Product Q6.

66 Brand 20% Price 25% Dealer’s Advice 10% Features 20% Service 10% Promotional Schemes 15% 15% 10% 20% 20% 10% 25% Brand Dealer's Advice Service Price Features Promotional Schemes .

67 Q7. Which facilities would you expect while buying? Low Price 25% After Sale Service 55% Incentives 12% Others 8% 12% 8% 25% 55% Low Price After Sale Service Incentives Others .

68 Q8. Which mode of payment would you prefer while buying a Car? Lump-Sum 30% Installment 70% 30% 70% Lump-Sum Installment .

69 Q9.Do you get spare parts of car easily from the market? YES 76% NO 24% 24% 76% YES NO .

Are you brand loyal? YES 52% NO 48% 48% 52% YES NO .70 Q10.

71 Q11.Would you like to buy more premium car in future? YES 72% NO 28% 28% 72% YES NO .

72 Q12.Does celebrity endorsement of a car give it more appeal? Agree 44% Strongly Agree 36% Disagree 8% Strongly Disagree 4% Don’t Know 8% 8% 4% 8% 44% 36% Agree Strongly Disagree Strongly Agree Don't Know Disagree .

73 Q13.Are you satisfied with the after sales service by dealer? YES 86% NO 14% 14% 86% YES NO .

74 .

. • • Commitment of delivery of vehicle to its customers is appreciated by them. Customers are satisfied with the type of test drive facility provided to them. Customers are satisfied by the way all the documents and services are explained to them. • • Customers are highly satisfied with the way products are displayed to them. • • • Customers are satisfied with the kind of attention they get at Maruti Showroom. Customers are satisfied with the kind of information provided to them about different cars by the sales executives.75 FINDINGS • At Maruti customers are highly satisfied with the range of product and sufficient color choice availability. Customers are satisfied with the delivery process at Sachin Hyundai.

76 .

The various course of action for these strategic thrust areas and suitable matrixes evaluate them are identified. .77 CONCLUSION Net sale of Maruti- Based on these factors the various strategic alternatives were evaluated. The areas of strategic thrust which Maruti can concentrate on are identified.

Percentage of cannibalization Percentage profit for each business unit Number of Maruti 800s sold Market rationalization Finding rural markets. Product Experience. . To consolidate and protect its leadership position. the market research team conducts a continuous Brand Track study with an all-India scope.78 Strategic Thrusts Increases Scope New product Same market New product New market Action Tap the huge component & accessories market Enter fast growing CV segment and global platforms Expand geographically – Europe and alternate energy Measures Percentage of sales from new products ROE. Advertising Recall.ROA Increase in profitable market share Customer satisfaction Dealer profitability. Online trade Distribution rationalization Wallet shares HOLD ON Concentrate more on customer solution “4 for 2”when 1 lac car is introduced Separate dealers based on value Maruti Suzuki India Ltd (MSIL) has the highest market share in the automobile sector in India. Amongst other things them survey looks at: Brand Awareness. Company Image and Competition Analysis.

79 .

• By improving their rest of the services they can convert their unsatisfied customers into satisfied customers.80 SUGGESTIONS • Reception is the first point where customer will get the first impression about Maruti showroom and there need to be some improvements at reception as customers are not properly attended over there. . • Customers are not satisfied with the after sales services so there should be some improvements in order to engage more customers.

81 .

 Interaction skills as well as the behaviour of the respondents also played as a constraints during the research.82 LIMITATION  The time period allotted for the study was only of two months.  Most of the customers were so furious that they refused to part with any information. . which may provide a deceptive picture in comparison of the study based on long run.

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co.com www. maruti. Google.84 BIBLIOGRAPHY • • • • Maruti Sales Training Handout www. Indianautomobileindustry.in .com www.

Which kind or segment of Car do you have?    Premium / Performance Segment Utility / Medium Segment Entry / Economy Segment 4.000-Rs.2. What age group are you in?   18-25 26-35   36-45 Above 45 2.000-Rs. : ----------------------------------------------------------- 1.1.2. What category of income do you fit into?   Below Rs.50.50.000  Rs.50.1.000 Above Rs. 3.00.000 Rs.50. What is your main purpose of using a Car?   Personal Business   Status Leisure .00.85 QUESTIONNAIRE PERSONAL DETAILS:Name: -----------------------------------------------------------------------Occupation: ------------------------------------------------------------Contact No.000.

What are your main preferences while buying a Car?    Brand Price Dealer’s Advice    Features Service Promotional Schemes 7. Would you like to buy more premium Car in future?  Yes  No 12. Are you satisfy with the after sales service by dealer?  Yes  No . Which factor would you consider the most while buying a Car?    Fuel Efficiency Image & Brand Resale Value    Look & Style Maintenance Availability of the product 6. Are you Brand Loyal?  Yes  No 11. Do you get the spare-parts of your Car easily from the market?  Yes  No 10.86 5. Which facilities would you expect while buying?   Low Price Incentives   After Sale’s Service Others _______________ 8. Does Celebrity Endorsement of a Car gives it more appeal? 1 Strongly Agree 2 Agree 3 Don’t Know 4 Disagree 5 Strongly Disagree 13. Which mode of payment would you prefer while buying a Car?  Lump-sum  Installment 9.