Arvind Maruti Projet

Automobile & Customer Satisfaction Survey of Maruti
Udyog Ltd.
CERTIFICATE
This is to certify that Arvind yadav student of second

semester, Master of Business administration (MBA) in
the year 2008 - 2010 has completed the project
report work entitled “Automobile” based on syllabus
and has submitted a satisfactory account of his work in
this report.
Lecturer
MISS. RUCHI TIWARI
Mditm,indore
Mathura Devi Institute Of Technology &

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ACKNOWLEDGEMENT
The research on “Automobile & Customer Satisfaction

Survey of Maruti Udyog Ltd.” has been given to me as part of
the curriculum in the completion of 2-Years Master of business
Administration.
I have tried my best to present this information as clearly as
possible using basic terms that I hope will be comprehended by
the widest spectrum of researchers, analysts and students for
further studies.
I have completed this project under the able guidance and
supervision of Miss Ruchi Tiwari and my project guide. I will
be failed in my duty if I do not acknowledge the esteemed
scholarly guidance, assistance and knowledge I have received
from them towards fruitful and timely completion of this work.
Mere acknowledgement may not redeem the debt I owe to
my parents for their direct/indirect support during the
entire course of this project.
We also thanks Rukmani moter’s
who believed in us and by providing ALL valuable information and data
that helped us in understanding the problem areas of their organization
and hence developing the application as per their requirements.
I also thankful to my friend sourabh sohani & anshul joshi who
helped me a lot in the completion of this project.
From-
ARVIND YADAV

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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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INDEX
1. Executive Summary
2. Introduction to the Automobile Industry
3. History of Maruti
4. Research Methodology
5. Questionnaire Analysis
6. Conclusion & Suggestions
7. Bibliography
8. Questionnaire

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Executive Summary
It was in 1970 that Sanjay Gandhi envisioned the manufacture of maruti which
is known popularly as the people’s car it is maruti which is known to give
wheels to the nation. The first car of mauti was rolled out on Dec. 14, 1983 after
s collaboration with Suzuki motors.
Satisfaction is a person’s feeling of pleasure or disappointment resulting from a

comparing perceived performance in relation to his or her expectation. If the
performance falls short of expectation, the consumer is dissatisfied. If the
performance matches the expectations, he consumer is satisfied. If the
performance exceeds expectation, the customer is highly
satisfied or delighted.
In today’s competitive scenario firms consistently tries to satisfy his existing

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

customers for which I did Exploratory Research to check the
satisfaction level amongst the customers of Maruti as the popular
punchline also says “Count On Us.”

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AUTOMOBILE
INTRODUCTION
Ferdinand Verbiest, a member of a Jesuit mission in China, built the first

steam-powered vehicle around 1672 which was of small scale and designed as
a toy for the Chinese Emperor that was unable to carry a driver or a passenger,
but quite possibly, was the first working steam-powered vehicle ('auto-
mobile').[6][7]
Although Nicolas-Joseph Cugnot is often credited with building the first self-
propelled mechanical vehicle or automobile in about 1769 by adapting an
existing horse-drawn vehicle, this claim is disputed by some[citation needed], who
doubt Cugnot's three-wheeler ever ran or was stable. What is not in doubt is
that Richard Trevithick built and demonstrated his Puffing Devil road
locomotive in 1801, believed by many to be the first demonstration of a steam-
powered road vehicle although it was unable to maintain sufficient steam
pressure for long periods, and would have been of little practical use.
In Russia, in the 1780s, Ivan Kulibin developed a human-pedalled, three-

wheeled carriage with modern features such as a flywheel, brake, gear box,
and bearings; however, it was not developed further.[8]

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François Isaac de Rivaz, a Swiss inventor, designed the first internal

combustion engine, in 1806, which was fueled by a mixture
of hydrogenand oxygen and used it to develop the world's first vehicle, albeit
rudimentary, to be powered by such an engine. The design was not very
successful, as was the case with others such as Samuel Brown, Samuel
Morey, and Etienne Lenoir with his hippomobile, who each produced vehicles
(usually adapted carriages or carts) powered by clumsy internal combustion
engines.[9]
In November 1881 French inventor Gustave Trouvé demonstrated a working

three-wheeled automobile that was powered by electricity. This was at the
International Exhibition of Electricity in Paris.[10]
Although several other German engineers (including Gottlieb Daimler, Wilhelm

Maybach, and Siegfried Marcus) were working on the problem at about the
same time, Karl Benz generally is acknowledged as the inventor of the modern
automobile.[9]
An automobile powered by his own four-stroke cycle gasoline engine was built
in Mannheim, Germany by Karl Benz in 1885 and granted apatent in January of
the following year under the auspices of his major company, Benz & Cie.,
which was founded in 1883. It was an integraldesign, without the adaptation of
other existing components and including several new technological elements
to create a new concept. This is what made it worthy of a patent. He began to
sell his production vehicles in 1888.
Karl Benz

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A photograph of the originalBenz Patent Motorwagen, first built in 1885 and

awarded the patent for the concept
In 1879 Benz was granted a patent for his first engine, which had been
designed in 1878. Many of his other inventions made the use of the internal
combustion engine feasible for powering a vehicle.
His first Motorwagen was built in 1885 and he was awarded the patent for its
invention as of his application on January 29, 1886. Benz began promotion of
the vehicle on July 3, 1886 and approximately 25 Benz vehicles were sold
between 1888 and 1893, when his first four-wheeler was introduced along with
a model intended for affordability. They also were powered with four-stroke
engines of his own design. Emile Roger of France, already producing Benz
engines under license, now added the Benz automobile to his line of products.
Because France was more open to the early automobiles, initially more were
built and sold in France through Roger than Benz sold in Germany.
In 1896, Benz designed and patented the first internal-combustion flat engine,
called a boxermotor in German. During the last years of the nineteenth
century, Benz was the largest automobile company in the world with 572 units
produced in 1899 and because of its size, Benz & Cie., became a joint-stock
company.
Daimler and Maybach founded Daimler Motoren Gesellschaft (Daimler Motor

Company, DMG) in Cannstatt in 1890 and under the brand name,Daimler, sold
their first automobile in 1892, which was a horse-drawn stagecoach built by
another manufacturer, that they retrofitted with an engine of their design. By
1895 about 30 vehicles had been built by Daimler and Maybach, either at the
Daimler works or in the Hotel Hermann, where they set up shop after falling
out with their backers. Benz and the Maybach and Daimler team seem to have
been unaware of each other's early work. They never worked together because

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by the time of the merger of the two companies, Daimler and Maybach were no
longer part of DMG.
Daimler died in 1900 and later that year, Maybach designed an engine
named Daimler-Mercedes, that was placed in a specially-ordered model built to
specifications set by Emil Jellinek. This was a production of a small number of
vehicles for Jellinek to race and market in his country. Two years later, in 1902,
a new model DMG automobile was produced and the model was named
Mercedes after the Maybach engine which generated 35 hp. Maybach quit DMG
shortly thereafter and opened a business of his own. Rights to
the Daimler brand name were sold to other manufacturers.
Karl Benz proposed co-operation between DMG and Benz & Cie. when
economic conditions began to deteriorate in Germany following the First
World War, but the directors of DMG refused to consider it initially.
Negotiations between the two companies resumed several years later when
these conditions worsened and, in 1924 they signed an Agreement of Mutual
Interest, valid until the year 2000. Both enterprises standardized design,
production, purchasing, and sales and they advertised or marketed their
automobile models jointly—although keeping their respective brands.
On June 28, 1926, Benz & Cie. and DMG finally merged as the Daimler-
Benz company, baptizing all of its automobiles Mercedes Benz as a brand
honoring the most important model of the DMG automobiles, the Maybach
design later referred to as the 1902 Mercedes-35hp, along with the Benz name.
Karl Benz remained a member of the board of directors of Daimler-Benz until
his death in 1929 and at times, his two sons participated in the management of
the company as well.
In 1890, Emile Levassor and Armand Peugeot of France began producing

vehicles with Daimler engines and so laid the foundation of the automobile
industry in France.
The first design for an American automobile with a gasoline internal

combustion engine was drawn in 1877 by George Selden of Rochester, New
York, who applied for a patent for an automobile in 1879, but the patent
application expired because the vehicle was never built. After a delay of
sixteen years and a series of attachments to his application, on November 5,
1895, Selden was granted a United States patent (U.S. Patent 549,160) for
a two-stroke automobile engine, which hindered, more than encouraged,

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development of automobiles in the United States. His patent was challenged

by Henry Ford and others, and overturned in 1911.
In Britain there had been several attempts to build steam cars with varying
degrees of success with Thomas Rickett even attempting a production run in
1860.[11] Santler from Malvern is recognized by the Veteran Car Club of Great
Britain as having made the first petrol-powered car in the country in
1894[12] followed by Frederick William Lanchester in 1895 but these were both
one-offs.[12] The first production vehicles in Great Britain came from
the Daimler Motor Company, a company founded by Harry J. Lawson in 1896
after purchasing the right to use the name of the engines. Lawson's company
made its first automobiles in 1897 and they bore the name Daimler.[12]
In 1892, German engineer Rudolf Diesel was granted a patent for a "New
Rational Combustion Engine". In 1897 he built the first Diesel Engine.[9] Steam-,
electric-, and gasoline-powered vehicles competed for decades, with gasoline
internal combustion engines achieving dominance in the 1910s.
Although various pistonless rotary engine designs have attempted to compete

with the conventional piston and crankshaft design, only Mazda's version of
the Wankel engine has had more than very limited success.
Production

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Ransom E. Olds.
The large-scale, production-line manufacturing of affordable automobiles was

debuted by Ransom Olds at his Oldsmobile factory in 1902. This concept was
greatly expanded by Henry Ford, beginning in 1914.
As a result, Ford's cars came off the line in fifteen minute intervals, much
faster than previous methods, increasing productivity eight fold (requiring 12.5
man-hours before, 1 hour 33 minutes after), while using less manpower.[13] It
was so successful, paint became a bottleneck. Only Japan black would dry
fast enough, forcing the company to drop the variety of colors available before
1914, until fast-drying Duco lacquer was developed in 1926. This is the source
of Ford's apocryphal remark, "any color as long as it's black".[13] In 1914, an
assembly line worker could buy a Model T with four months' pay.[13]
Portrait of Henry Ford (ca. 1919)
Ford's complex safety procedures—especially assigning each worker to a

specific location instead of allowing them to roam about—dramatically
reduced the rate of injury. The combination of high wages and high efficiency

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is called "Fordism," and was copied by most major industries. The efficiency
gains from the assembly line also coincided with the economic rise of the
United States. The assembly line forced workers to work at a certain pace with
very repetitive motions which led to more output per worker while other
countries were using less productive methods.
In the automotive industry, its success was dominating, and quickly spread
worldwide seeing the founding of Ford France and Ford Britain in 1911, Ford
Denmark 1923, Ford Germany 1925; in 1921, Citroen was the first native
European manufacturer to adopt the production method. Soon, companies had
to have assembly lines, or risk going broke; by 1930, 250 companies which did
not, had disappeared.[13]
Development of automotive technology was rapid, due in part to the hundreds

of small manufacturers competing to gain the world's attention. Key
developments included electric ignition and the electric self-starter (both
by Charles Kettering, for the Cadillac Motor Company in 1910-1911),
independent suspension, and four-wheel brakes.
Ford Model T, 1927, regarded as the first affordable American automobile
Since the 1920s, nearly all cars have been mass-produced to meet market
needs, so marketing plans often have heavily influenced automobile design. It
was Alfred P. Sloan who established the idea of different makes of cars
produced by one company, so buyers could "move up" as their fortunes
improved.
Reflecting the rapid pace of change, makes shared parts with one another so
larger production volume resulted in lower costs for each price range. For
example, in the 1930s, LaSalles, sold by Cadillac, used cheaper mechanical
parts made by Oldsmobile; in the 1950s, Chevrolet shared hood, doors, roof,
and windows with Pontiac; by the 1990s, corporate drivetrains and

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shared platforms (with interchangeablebrakes, suspension, and other parts)

were common. Even so, only major makers could afford high costs, and even
companies with decades of production, such
as Apperson, Cole, Dorris, Haynes, or Premier, could not manage: of some two
hundred American car makers in existence in 1920, only 43 survived in 1930,
and with the Great Depression, by 1940, only 17 of those were left.[13]
In Europe much the same would happen. Morris set up its production line
at Cowley in 1924, and soon outsold Ford, while beginning in 1923 to follow
Ford's practise of vertical integration,
buying Hotchkiss(engines), Wrigley (gearboxes), and Osberton (radiators), for
instance, as well as competitors, such as Wolseley: in 1925, Morris had 41% of
total British car production. Most British small-car assemblers,
from Abbey to Xtra had gone under. Citroen did the same in France, coming to
cars in 1919; between them and other cheap cars in reply such
as Renault's 10CV and Peugeot's 5CV, they produced 550,000 cars in 1925,
and Mors, Hurtu, and others could not compete.[13] Germany's first mass-
manufactured car, the Opel 4PS Laubfrosch (Tree Frog), came off the line
at Russelsheim in 1924, soon making Opel the top car builder in Germany, with
37.5% of the market.[13]
See also: Automotive industry
Fuel and propulsion technologies
A Radio Taxi in New Delhi. A court order requires all commercial vehicles
including trucks, buses and taxis in India to run on Compressed Natural Gas
See also: Alternative fuel vehicle

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Most automobiles in use today are propelled by gasoline (also known as

petrol) or diesel internal combustion engines, which are known to cause air
pollution and are also blamed for contributing to climate change and global
warming.[14] Increasing costs of oil-based fuels, tightening
environmental laws and restrictions on greenhouse gas emissions are
propelling work on alternative power systems for automobiles. Efforts to
improve or replace existing technologies include the development of hybrid
vehicles, and electricand hydrogen vehicles which do not release pollution
into the air.
Petroleum fuels
Main article: Petroleum fuel engine
Diesel
Main article: Diesel engine
Diesel-engined cars have long been popular in Europe with the first models
being introduced as early as 1922 [15] by Peugeot and the first production
car, Mercedes-Benz 260 D in 1936 by Mercedes-Benz. The main benefit of
diesel engines is a 50% fuel burn efficiency compared with 27%[16] in the best
gasoline engines. A down-side of the Diesel engine is that better filters are
required to reduce the presence in the exhaust gases of fine soot particulates
called diesel particulate matter. Manufacturers are now starting to
fit[when?] diesel particulate filters to remove the soot. Many diesel-powered cars
can run with little or no modifications on 100% biodiesel and combinations of
other organic oils.
Gasoline
Main article: Petrol engine
2007 Mark II (BMW) Mini Cooper
Gasoline engines have the advantage over diesel in being lighter and able to
work at higher rotational speeds and they are the usual choice for fitting in

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high-performance sports cars. Continuous development of gasoline engines

for over a hundred years has produced improvements in efficiency and
reduced pollution. The carburetor was used on nearly all road car engines until
the 1980s but it was long realised better control of the fuel/air mixture could be
achieved with fuel injection. Indirect fuel injection was first used in aircraft
engines from 1909, in racing car engines from the 1930s, and road cars from
the late 1950s.[16]Gasoline Direct Injection (GDI) is now starting to appear in
production vehicles such as the 2007 (Mark II)BMW Mini. Exhaust gases are
also cleaned up by fitting a catalytic converter into the exhaust system. Clean
air legislation in many of the car industries most important markets has made
both catalysts and fuel injection virtually universal fittings. Most modern
gasoline engines also are capable of running with up to 15% ethanol mixed
into the gasoline - older vehicles may have seals and hoses that can be
harmed by ethanol. With a small amount of redesign, gasoline-powered
vehicles can run on ethanol concentrations as high as 85%. 100% ethanol is
used in some parts of the world (such as Brazil), but vehicles must be started
on pure gasoline and switched over to ethanol once the engine is running.
Most gasoline engined cars can also run on LPG with the addition of an LPG
tank for fuel storage and carburettor modifications to add an LPG mixer. LPG
produces fewer toxic emissions and is a popular fuel for fork-lift trucks that
have to operate inside buildings.
The hydrogen powered FCHV (Fuel Cell Hybrid Vehicle) was developed
by Toyota in 2005
Biofuels
Main articles: Biofuel, Ethanol fuel, and biogasoline
Ethanol, other alcohol fuels (biobutanol) and biogasoline have widespread use
an automotive fuel. Most alcohols have less energy per liter than gasoline and
are usually blended with gasoline. Alcohols are used for a variety of reasons -
to increase octane, to improve emissions, and as an alternative to petroleum
based fuel, since they can be made from agricultural crops. Brazil's ethanol
program provides about 20% of the nation's automotive fuel needs, as a result
of the mandatory use of E25 blend of gasoline throughout the country, 3
million cars that operate on pure ethanol, and 6 million dual or flexible-fuel
vehicles sold since 2003.[17] that run on any mix of ethanol and gasoline. The
commercial success of "flex" vehicles, as they are popularly known, have
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allowed sugarcane based ethanol fuel to achieve a 50% market share of the
gasoline market by April 2008.[18][19][20]
Electric
Main articles: Electric car, Hybrid vehicle, and Plug-in hybrid
The Henney Kilowatt, the first modern (transistor-controlled) electric car.

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2007 Tesla electric powered Roadster
Tata/MDI OneCAT Air Car
A CNG powered high-floorNeoplan AN440A, run onCompressed Natural Gas
The first electric cars were built around 1832, well before internal combustion
powered cars appeared.[21]For a period of time electrics were considered
superior due to the silent nature of electric motors compared to the very loud
noise of the gasoline engine. This advantage was removed with Hiram Percy
Maxim's invention of the muffler in 1897. Thereafter internal combustion
powered cars had two critical advantages: 1) long range and 2) high specific
energy (far lower weight of petrol fuel versus weight of batteries). The building
of battery electric vehicles that could rival internal combustion models had to
wait for the introduction of modern semiconductor controls and improved
batteries. Because they can deliver a high torque at low revolutions electric
cars do not require such a complex drive train and transmission as internal
combustion powered cars. Some post-2000 electric car designs such as
the Venturi Fétish are able to accelerate from 0-60 mph (96 km/h) in
4.0 seconds with a top speed around 130 mph (210 km/h). Others have a range
of 250 miles (400 km) on the United States Environmental Protection
Agency (EPA) highway cycle requiring 3-1/2 hours to completely
charge.[22] Equivalent fuel efficiency to internal combustion is not well defined

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but some press reports give it at around

135 miles per US gallon (1.74 L/100 km; 162 mpg-imp).
Steam
Main article: steam car
Steam power, usually using an oil- or gas-heated boiler, was also in use until
the 1930s but had the major disadvantage of being unable to power the car
until boiler pressure was available (although the newer models could achieve
this in well under a minute). It has the advantage of being able to produce very
low emissions as the combustion process can be carefully controlled. Its
disadvantages include poor heat efficiency and extensive requirements for
electric auxiliaries.[23].
Air
Main article: Compressed-air car
A compressed air car is an alternative fuel car that uses a motor powered
by compressed air. The car can be powered solely by air, or by air combined
(as in a hybrid electric vehicle) with gasoline/diesel/ethanol or electric plant
and regenerative braking. Instead of mixing fuel with air and burning it to drive
pistons with hot expanding gases; compressed air cars use the expansion of
compressed air to drive their pistons. Several prototypes are available already
and scheduled for worldwide sale by the end of 2008, though this has not
happened as of January 2009. Companies releasing this type of car
include Tata Motors and Motor Development International (MDI).
Gas turbine
In the 1950s there was a brief interest in using gas turbine engines and several
makers including Rover andChrysler produced prototypes. In spite of the
power units being very compact, high fuel consumption, severe delay in
throttle response, and lack of engine braking meant no cars reached
production.
Rotary (Wankel) engines
Rotary Wankel engines were introduced into road cars by NSU with the Ro
80 and later were seen in theCitroën GS Birotor and several Mazda models. In
spite of their impressive smoothness, poor reliability and fuel economy led to
them largely disappearing. Mazda, beginning with the R100 then RX-2, has
continued research on these engines, overcoming most of the earlier
problems with the RX-7 and RX-8.

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Rocket and jet cars

A rocket car holds the record in drag racing. However, the fastest of those cars
are used to set the Land Speed Record, and are propelled by propulsive jets
emitted from rocket, turbojet, or more recently and most
successfully turbofan engines. The ThrustSSC car using two Rolls-Royce
Spey turbofans with reheat was able to exceed the speed of sound at ground
level in 1997.

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History of car
With the invention of the wheel in 4000 BC, man’s journey on the road of
mechanized transport had begun. Since then he continually sought to devise
an automated, labor saving machine to replace the horse. Innumerable
attempts reached conclusion in the early 1760s with the building of the first
steam driven tractor by a French Captain, Nicolas Jacob Cugnot.
It was however left to Karl Benz and Gottlieb Damlier to produce the first
vehicles powered by the internal combustion engine in 1885. It was then that
the petrol engine was introduced, which made the car a practical and safe
proposition. The cars in this period were more like the cars on our roads today.
With cars came the era of speed.
The first ever land-speed record was established about a 100 years back, in
1898. Count Gaston de Chasseloup-Laubat of France drove an electric car (in
Acheres near Paris) at a speed of 39.24 miles per hour. This flagged off the era
of ‘wheels racing’, which lasted till 1964, after which jet and rocket -propelled
vehicles were allowed.
Then onwards, it has been one big journey...on the roads.
India is an emerging country with huge potential. The domestic economy

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

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

The domestic market expanding rapidly as incomes rise and consumer
credit becomes more widely available. Manufacturer’s product lines are
being continually expanded, as is the local automotive manufacturing
base. Expectation are high that India can develop as a global hub for
vehicle manufacturers and as an outsourcing center that offers the global
automotive industry solution high up the automotive value chain.
India eyes 25 million automotive jobs.
India's GDP is set to double over the next decade

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

further 5 million two- and three-wheelers.
The implications, market drivers and scope of a future massive Indian
vehicle market are covered in the India Strategic Market Profile, a brand-
new forecast of Indian automotive and related activity to 2020. Based on
Max Pemberton's unique relational long-term forecasting model, it
forecasts car and CV sales, demographics, materials usage, auto industry
employment, and explains their inter- year of healthy growth in auto
industry.

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INDUSTRY GROWTH
Automobile Production Trends (Number of

Vehicles)
Category 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Passenger
723,330 989,5601,209,8761,309,300 1,545,223 1,777,583 1,838,697
Vehicles
Commercial
203,697 275,040 353,703 391,083 519,982 549,006 417,126
Vehicles
Three Wheelers 276,719 356,223 374,445 434,423 556,126 500,660 501,030
Two Wheelers 5,076,2215,622,7416,529,8297,608,697 8,466,666 8,026,681 8,418,626
Grand Total 6,279,9677,243,5648,467,8539,743,50311,087,99710,853,930 11,175,479

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Future of the Automobile in the

Economy
US based
consultancy, keystone predicts that India will become world’s

third largest automobile market by 2030. Overall size expected to
exceed 20 million with compounded annual growth rate of over
12%.
India Then & Now
1983
Number of brands 2
Number of models 2
2008
Number of brands 30
Number of models 70
Some of the Car companies in India:
Maruti Suzuki
Fiat

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General motors (Opel, Chevrolet)

Ford
Hindustan motors, Mitsubishi
Honda
Hyundai
Baja tempo
Marinara
Maine elect.
Mercedes Benz
Nissan
San engineering
Soda
Toyota
Top three manufacturers:
Maruti Suzuki
Tate motors
Hyundai
Car segmentation: This is done on the basis of size and price of the car
A segment: maruti800, omni

B segment: Zen, wagon-r, alto, Santo, polio, indicia
C segment: esteem, accent, indigo, icon, Honda city, civic
D-segment: opera, Octavia, sonata, monde, accord, corolla, Camry,
Mercedes
CHRONOLOGICAL ORDER OF AUTOMOBILE
 1897 First Person to own a car in India - Mr Foster of
M/s Crompton Greaves Company, Mumbai
 1901 First Indian to own a car in India - JamshedJi Tata
 1905 First Woman to drive a car in India - Mrs. Suzanne RD
Tata
 1905 Fiat Motors
 1911 First Taxi in India
 1924 Formation of traffic police
 1928 Chevrolet Motors
 1942 Hindustan Motors

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 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
 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 - Chevrolet brand launch
 2005 BMW
 2007 Audi
 2009 Land Rover and Jaguar

Management Page 26
Udyog Ltd.
History of Maruti
In 1970 , Sanjay Gandhi the son of Indira Gandhi envisioned the
manufacture of an indigenous , cost effective , low maintenance compact
car for the Indian middle class . Indira Gandhi’s cabinet passed a
unanimous resolution for the development and production of a people’s
car. Sanjay Gandhi’s company was christened Maruti limited. The name of
the car was chosen after a Hindu deity named Maruti Ltd. That time
Hindustan Motors’ Ambassador was the chief car and the company had
come out with a new entrant the premier Padmini that worked slowly
gaining a part of the market share dominated by the ambassador. For the
next ten years the Indian car market had stagnated at a volume of 30,000
to 40,000 cars for the decade ending 1983.
Sanjay Gandhi was awarded the exclusive contract and license to design,
develop and manufacture the “People’s Car.” These exclusive rights of
production generated some criticism in certain quarters, which was
directly targeted at Indira Gandhi. Over the next few years the company
was sidelined to Bangladesh liberation war and emergency.
In the early days under the powerful patronage of Sanjay Gandhi the
company was provided with free land, tax breaks and funds. Till the end of
1970 the company had not started the production and a prototype test
model was welcomed with criticism and skepticism. The company went
into liquidation IN 1977. The media perceived it to be another area of
growing corruption. Unfortunately Maruti’s started to fly only after the
death of Sanjay Gandhi, when Suzuki motors joined the government of
India as a joint venture partnered with 50% share. After his death Indira
Gandhi decided that the project should not be allowed to die. Maruti’s
entered into this collaboration with Suzuki motors. The collaboration
heralded a revolution in the Indian car industry by producing the maruti-
800. It created a record of taking 13 months time to go from design to
rolling out cars from a production line.
The production of Maruti-800 in 1983 marked the beginning of a
revolution in the Indian automobile industry. It brought in the latest
technology of that time more fuel efficiency and lower prices that led to
the creation of a huge market for all car segments as the Indian, middle
class grew in size. This in turn brought in more players in this segment. A
number of auxiliary car parts making units were set up as more car

Management Page 27
Udyog Ltd.
manufacturers realized it was more cost effective to make their car parts
in India rather than importing them.
Maruti’s major influence was in helping the component industry in the

country because of its emphasis on localization and indigenization. As in
the beginning that sector hadn’t grown much Maruti’s had to start dozens
of joint ventures with Indian entrepreneurs. It got them from foreign
collaborations that led to collaborations for other manufacturers so that
over a period of time the whole component industry was able to upgrade
itself and improve its quality who had given their income leading to major
existing export potential vehicle components. It also brought in better
methods of financing that allowed more people who given their income
levels could not afford to buy a car on their own, to buy cars. It still
remains the leader not only in the terms of market share but also in
customer satisfaction surveys. It has consistently topped J.D. power
quality surveys, including 2005. By the year 1993 the company had sold
1, 96,820 cars. By March 1994 it produced 1 million vehicles becoming the
first Indian company to cross the 2 million mark in October, 1997 and
rolled out 4 millionth vehicles as Alto-LX .Then it introduced Wagon-R
followed by Swift . Swift has been a great success in the market .In 2007
Maruti came up with SX4 and Grand Vitara.

Management Page 28
Udyog Ltd.
Role of the Sales Person
He should be neatly dressed

He should have knowledge about various product’s
Features
Variants
Colors
Prices
Sales promotion campaigns
Competitor products , their features , prices ,etc.
Latest service and warranty policies
Current availability
Carry copy of ready reckoner
“Do not leave the customer unattended for more than 3 minutes”
Customer Care Team:

Role of the Customer Care Manager:
Customer Care Manager is the leader of the customer care team. He is

accountable for the sales satisfaction index of the dealership. The
customer care manager ensures that every customer is properly followed
up and feedback is recorded. Also the customer complaints are recorded
and resolved as soon as possible to the level of satisfaction. The customer
care executives report to the customer care manager.
Customer Care Executive:-
Initially does the Post Sales Follow up (PSF) and monitors the feedback
forms at the showroom
Post sales follow up
PSF’s are done in order to get the first hand feedback form the customer
about the experience that they had during the sales and delivery process.
The first PSF is done within the 72 hours of delivery and the voice or exact
wordings of the customer are recorded. The next PSF call is made after 15
days after the vehicle is delivered. The feedback form system is a very

Management Page 29
Udyog Ltd.
important tool to obtain customer’s feedback on the experience that the

customer had during the purchase of his/her car.
Steps to be followed after receiving

customer complaint:
Firstly customer acre manager gives a control number to all complaints

received and records the same in the customer complaints control
register.
Then customer acre manager gets in touch with the customer over the
phone and expresses regret on the inconvenience faced by the customer
Immediate action is taken to ensure that the customer complaint is

resolved and writes a letter of apology
The customer care manager along with the concerned DSE, then visits the
customer, hands over the letter and takes satisfaction note from the
customer
Then he sends a copy of the letter and the satisfaction note to Maruti
Udyog Ltd. And also files a copy of the same in the customer complaints
register/file.
Then the CCM discusses the customer complaints in the weekly meeting
with the general manager on SSI with the entire showroom staff.
Necessary counter measures are taken to ensure that such complaints are
not repeated in future.
All sales staff and managers review customer care activities on daily,
weekly and monthly basis. The SSI review meet is conducted regularly.

Management Page 30
Udyog Ltd.
According to Maruti
“A customer is the most important visitor on our premises

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

Your words 7%
Your voice 35%
Your body language 58%
Moments of truth
Expectation---------------satisfaction---------------------reality
If you get what you expected
Expectation---------------dissatisfaction----------------reality
If you get less than you expected
Expectation---------------delight--------------------------reality
If you get more than you expected
When customers don’t complain they go somewhere else……….

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

Management Page 31
Udyog Ltd.
Maruti’s Strategic Goal
-Maintained its materials cost despite change in product mix.

-Growing shipments of Alto.
-Has 55% of the market.
-Introduced both petrol and diesel variants of Swift.
-Maruti has cut the prices of models including Maruti 800, Omni, Zen,
Wagon R, Swift Diesel and Alto. The amount of this price cut varies from
Rs. 6,500 for Maruti 800 to Rs. 18,030 for Swift Diesel (in New Delhi).
-Maruti Suzuki to invest 200 billion Yen on expansion in India.
-Sri Lanka currently is the largest export market for Maruti where it sells
8,000-9,000 cars a year.
-Maruti Udyog to enter South African market.
-Invest more on marketing and research and development.
-They are working on identifying their dealership in the region in
collaboration with the parent company Suzuki.

Management Page 32
Udyog Ltd.
Market Research Project
Title – “Customer Satisfaction Survey of Maruti Udyog

Limited”
Project involves:
-Introduction about Maruti

-Procedure followed by Maruti for catering to the needs and queries of the
customers
-Application of Five Force’s Model in the Automobile Industry
-Quantitative research
-Awareness regarding the facilities provided by Maruti
-Overall opinion about Maruti
Research Methodology:
The purpose of methodology is to describe the process involved in

research work. This includes the overall research design, data collection
method, the field survey and the analysis of data.
Research Objective:
To find the satisfaction amongst the customers of Maruti.
Research Design:
Detailed and structured questionnaire was designed.

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

Management Page 33
Udyog Ltd.
Field of Survey:
The field work for the survey was conducted in Delhi. The exercise
involved face to face interview with the customers.
Analysis:
The important factors and data’s collected were sequentially analyzed and
graphed.
Limitations of the Study:
The sample size is only 100 so the sample may not be truly representative
of the Delhi population.

Management Page 34
Udyog Ltd.

Management Page 35
Udyog Ltd.
Porter’s Five Forces Model
pppppppotep

Management Page 36
Udyog Ltd.
Threat of New Entrants –

When the industry is profitable there is a threat of the entry of new
entrants as they want to share the growth prospects so the existing firms
either have to share the growing market pie or part with their own market
share o the new entrants like the coming of new Tata Nano in the market
which is an A segment car and is known for its low price and would give
direct competition to Maruti-800 and would cause lesser sales volume and
revenue and lower the returns. As the switching costs from the existing
products to a new one is not high so this encourages the foreign
companies like Renault and also Indian companies to bring in new models
and enter the industry. Today the customer is not brand loyal and if there
is product differentiation the promotion is so attractive that it supports the
new entrants. Access to the distribution channels is not difficult as can be
done by forming joint ventures like Mahindra-Renault. India offers a huge
market for small, mid segment cars as the middle class is coming up in a
big way and even for the prestige class as new and elite brands have
come up and India is producing good number of entrepreneurs. Some of
the ways of entering the industry is either directly or by acquisition, joint
ventures, licensing, franchises, mergers.
Rivalry Amongst Competitors –

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

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

Management Page 37
Udyog Ltd.
Number of competitors in the automobile

industry in India are:
Audi
Bentley
BMW
Chevrolet
Daewoo
Fiat
Ford
Hindustan motors
Honda
Hyundai
ICML
Lambhorgini
Mahindra
Mahindra-Renault
Maini
Maruti-Suzuki
Maybach
Mercedes Benz
Mitsubishi
Nissan
Opel
Porsche
Premier
Rolls-Royce
San
Skoda
Tata
Toyota
Volkswogen
Volvo

Management Page 38
Udyog Ltd.
Bargaining Power of Buyers-

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

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

collectively, to force an increase in the price of the products or services or
make the buyers accept a lower quality of product or level of service a
higher supplier bargaining power constitutes a negative feature for
existing firms or new entrants of an industry . A low supplier bargaining
power enables a firm to negotiate price increases in its favor or to make
the suppliers offer higher quality of inputs at a lower price. Suppliers have
the ability to integrate forward and backward. But the product is
expensive so cannot ignore the customer and has to provide better
product like in India now even the B segment cars have advanced
technology features like airbags, anti braking systems,etc. Bargaining
power in this industry in not very high for the suppliers as there in intense
competition and substitutes are easily available. Switching costs are low
so more discounts are available and also the prices are reduced to fight
competition. The raw material is expensive like steel due to the demand
still companies are trying to reduce the cost of production.

Management Page 39
Udyog Ltd.
Threat of Substitute Products-

Substitute products or services are those which are apparently different
but satisfy the same needs of customers. For example when the demand
for swift diesel was high and the supply was less then the customers who
could not wait switched to Tata as it makes diesel cars. These days
segment B cars are promoted in a way as segment C cars are done so that
they can attract the customer and give him a feeling of belonging to the
esteem segment.
No. of
Knowledgeable Salesperson Respondents Percentage
Strongly Disagree 0 0%
Disagree 0 0%
Neither Disagree Nor Agree 0 0%
Agree 86 86%
Strongly Agree 14 14%
86% people agreed that the sales persons are knowledgeable and 14%
strongly disagreed that the sales persons are knowledgeable.
Employees spent enough No. of

time with you before sales Respondents Percentage
Disagree 0 0%
Agree 64 64%

Management Page 40
Udyog Ltd.
64% people agreed that the sales persons spent enough time with them
before the sales and 36% strongly agreed with this.

time with you during sales Respondents Percentage
Disagree 4 4%
Agree 62 62%
62% agreed that sales persons spent enough time with them during the sales ,
while 34% strongly agreed that the sales persons spent enough time with them
during sales and only 4% disagreed with this.

time with you after sales Respondents Percentage
Disagree 22 22%
Agree 54 54%

Management Page 41
Udyog Ltd.
60% agreed that the sales persons spent enough time with them after
sales ,26% strongly agreed with this and 14% disagreed that the sales
persons spent enough time with them after sales.
No. of
Display of Merchandize Respondents Percentage
Disagree 0 0%
Agree 94 94%
Strongly Agree 6 6%
94% agreed that the display of merchandize was attractive and 6%

strongly agreed that the display of merchandize was attractive.

Management Page 42
Udyog Ltd.
No.Of
Availability of the Product Respondents Percentage
Disagree 4 4%
Agree 91 91%
Strongly Agree 5 5%
91% agreed that the availability of the product was there, 5% strongly
agreed that the availability was there while only 4% said they disagreed
with this.
Variety/Selection of No.of
Merchandize Respondents Percentage
Disagree 6 6%
Agree 87 87%
Strongly Agree 7 7%

Management Page 43
Udyog Ltd.
87% agreed that there was variety/selection of merchandize whereas 7%

strongly agreed that enough variety was there and 6% disagreed with this.
No. of
Vehicle in Good Condition Respondents Percentage
Disagree 2 2%
Agree 82 82%
82% agreed that the vehicle was in good condition when delivered ,16%
strongly agreed with this whereas only 2% disagreed with this.
No. of
Prices Are Affordable Respondents Percentage
Disagree 12 12%
Agree 21 21%

Management Page 44
Udyog Ltd.
64% strongly agreed that the prices are affordable , 21% agreed that the
prices are affordable whereas only 15% said that they neither disagreed
nor agreed with this.
No. of
Attractive Discounts Offered Respondents Percentage
Disagree 26 26%
Agree 47 47%
55% agreed that the discounts offered are attractive , 34% strongly
agreed with this while 11% disagreed and said that the discounts offered
were not attractive.
Décor Of The Waiting Area Is No. of

Pleasing Respondents Percentage
Disagree 0 0%
Agree 80 80%

Management Page 45
Udyog Ltd.
80%agreed that the décor of the waiting area was pleasing while 20%
strongly agreed that the décor of the waiting area was pleasing
No. of
Offered A Test Drive Respondents Percentage
Disagree 20 20%
Agree 74 74%
Strongly Agree 6 6%
74%agreed that the test drive was offered to them ,6% strongly agreed
that the test drive was offered while 20% disagreed with this.
Post Sales Follow Up Done No. of

Regularly Respondents Percentage
Disagree 15 15%
Agree 59 59%
59%agreed that the post sales follow ups are done regularly , 26% srongly
agreed and 15%disagreed with this.

Management Page 46
Udyog Ltd.
Responds To complaints No. of

Quickly Respondents Percentage
Disagree 9 9%
Agree 61 61%
64% agreed that the response to complaints is quick ,18% strongly agreed
, 12% neither agreed nor disagreed and 6% disagreed with this.
Service At Maruti Service No. of

Station Is Excellent Respondents Percentage
Disagree 4 4%
Agree 82 82%
82% said that the service at maruti service station is excellent , 14%
strongly agreed while only 4% disagreed with this.
Careful With Personal No. of Percentage

Management Page 47
Udyog Ltd.
Information Respondents
Disagree 0 0%
Agree 85 85%
Strongly Agree 7 7%
85% agreed that yes they were careful with personal information, strongly
agreed with this and 8% neither agreed nor disagreed.
All The Commitments Are No. of

Fulfilled Respondents Percentage
Disagree 7 7%
Agree 6 6%
94% strongly agreed that all the commitments were fulfilled and 6%
agreed with this.
Value For Money No. of Percentage

Management Page 48
Udyog Ltd.
Respondents
Disagree 0 0%
Agree 2 2%
98% strongly agreed that maruti provides value for money while 2%
agreed with this.
Are you aware of the following facilities provided by maruti
No. of Percentag
Maruti insurance Respondents e
Yes 98 98%
No 2 2%
98% said yes that they are aware about maruti insurance while only 2%
said that they were not aware.
No. of Percentag
Extended warranty Respondents e
Yes 97 97%
No 3 3%
97% said they were aware about extended warranty and 3% said that
they did not know about this.

Management Page 49
Udyog Ltd.
No. of Percentag
True value Respondents e
Yes 98 98%
No 2 2%
98% said they were aware about true value and 2% said they were not
aware.
No. of Percentag
Maruti finance Respondents e
Yes 75 75%
No 25 25%
75% said that they were aware about maruti finance and 25% said that
they were not aware of it.
No. of Percentag
Autocard Respondents e
Yes 84 84%
No 16 16%
84% said that they were aware about autocard and 16% said that they
were not aware of it.
No. of Percentag
Genuine Accessories Respondents e
Yes 85 85%
No 15 15%

Management Page 50
Udyog Ltd.
85% said that they were aware of genuine accessories available and 15%
said they were not aware.
What is your overall opinion about Maruti ?
No. of Percentag
Choice Respondents e
Very bad 0 0%
Bad 0 0%
Neither bad nor good 0 0%
Good 4 4%
Very good 96 96%
96% said that there overall opinion about maruti was that it is ver good
while 4% said that it is good.
How likely would you recommend maruti?
90% people said they would very likely recommend maruti to other people
and 10% said they would likely recommend maruti to others.

Management Page 51
Udyog Ltd.
Net sale of Maruti-
CONCLUSION
On an average more than 73% people feel that the prices are affordable
whereas 12% do not agree, 74% believe that attractive discounts are
offered whereas 26% are not satisfied with the discounts offered. 20% said
that the test drives are not offered and 15% said that post sales follow ups
are not done regularly whereas 85% said that they were done regularly but
people feel that it is the people’s car as it is satisfactory on all other
parameters: knowledgeable sales persons , employees spent enough time
before and during sales, display of merchandise is attractive, availability of
product, variety of merchandize, vehicle in good condition, prices are
affordable, attractive discounts are offered, décor of the waiting area is
pleasing, responds to complaints quickly, service at maruti service station is
excellent, careful with personal information and is value for money . The
overall opinion about maruti is very good.

Management Page 52
Udyog Ltd.
SUGGESTIONS
➢ More test drives should be offered.
➢ Should be more particular about Post Sales Follow Up as it

shows the concern of the company with the customer.
➢ Should put in more efforts to promote Maruti Finance ,

Autocard and Accessories.

Management Page 53
Udyog Ltd.
Bibliography:
www.google.com
www.marutiudyog.com
Automobile Magazines
Marketing Management by Philip Kotler
Kothari. C. R, Research Methodology, New Age International(P)

Ltd., New Delhi

Management Page 54
Udyog Ltd.
Being an esteem customer of Maruti Udyog Limited you are requested to

take out a few minutes and fill the following questionnaire.
Q.1) How long have you been associated with Maruti?
Q.2.)How would you rate Maruti on the following parameter

Strongly Disagre Neither agree Strongl
disagre e agree y agree
e Nor
disagre
e
Knowledgeable sales
person
Employees spent enough
time with you: before
sales
During sales
After sales
Display of merchandise is
attractive
Availability of the product
Variety/selection of
merchandise
Vehicle in good condition
Prices are affordable
Attractive discounts
offered
Décor of the waiting area
is pleasing
Offered a test drive
Post sales follow ups are
done regularly
Responds to complaints

Management Page 55
Udyog Ltd.
quickly
Service at Maruti service
station is excellent
Careful with personal
information
All the commitments are
fulfilled
Value for money
Q.3)Are you aware of the following facilities provided by maruti
Yes No
Maruti insurance
Extended warranty
True value
Maruti finance
Autocard
Genuine accessories
Q.4) What is your overall opinion about Maruti?
Very Bad Neither Bad Good Very

Bad Nor Good
Good
1 2 3 4 5
Q.5) How likely would you recommend Maruti?
Very Very
Unlikely Likely
1 2 3 4 5
Date Sign
Thank You for your prestigious time.

Management Page 56
Udyog Ltd.

Management Page 57

Arvind Maruti Projet

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