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SUMMER TRAINING PROJECT REPORT

ON
"STUDY OF MARKETING STRATEGIES OF MARUTI
SUZUKI"

SUBMITTED IN PARTIAL FULFILLMENT

FOR THE DEGREE OF MASTERS OF BUSINESS ADMINISTRATION

Session -

SUBMITTED TO : SUBMITTED BY:

Mrs. PRIYA BUTOLIYA RAMABHARAT PRASAD

(Director IB) ROLL NO: 1556770114

MBA- IIIrd Semester

Bora Institute of Management Sciences Lucknow

DECLARATION

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ACKNOWLEDGEMENTS

I owe my sincere thanks and gratitude to MS who inspired me by his able

guidance and was a constant guiding light during the course of

project study.

The support and knowledge provided by him has been a great value

addition for me and will go a long way in building a promising career.

Last but not least, I am also thankful to all the respondents of my survey

without whom the project would not have been completed successfully.

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INDEX  INTRODUCTION OF THE COMPANY  OBJECTIVE OF THE COMPANY  RESEARCH METHODOLOGY  LIMITATIONS  CONCLUSION  QUESTIONNAIRE  BIBILIOGRAPHY 4 .

They see it as a unique resource. INTRODUCTION OF THE COMAPANY MARUTI UDYOG LIMITED Maruti is India's largest automobile company. they have a clear perspective on manpower. suppliers and dealers to face competition  Maximising Shareholder's value  Being a responsible corporate citizen At Maruti. has been a success story like no other in the annals of the Indian automobile industry. We must retain our leadership in India and should also aspire to be among the global players. Today. high quality fuel efficient vehicles in order to meet the need of different customers. The company. The basic philosophy of management that underlies the Maruti culture is that all employees of the company should be moulded into a team which then strives as 5 . This feat was achieved by the missionary zeal of our employees across the line and the far-sighted vision of our management. a joint venture with Suzuki of Japan. both in domestic and export markets. The Company Vision: We must be an internationally competitive company in terms of our products and services. in the sense that optimal productivity of other resources depends largely on the way human resources are utilised. Their focus is on:  Building a continuously improving organisation adaptable to quick changes  Providing value and satisfaction to the customer  Aligning and fully involving all our employees. Maruti is India's largest automobile company. The Company Mission: To provide a wide range of modern.

and an ethos of discipline and teamwork. at Maruti. must have the ability to rise above his own subjectivity. productivity-linked incentive schemes. the Company takes several initiatives. They understand that the process of creating a sense of belonging that all employees can identify with is a lengthy one. a collection of representatives of non-unionised employees. The Sahyog Samiti. As a matter of fact. and programmes being contemplated by the Company are discussed with the Union. To make this philosophy tenable. common transport and similar facilities for all levels of employees are other measures that reinforce their emphasis on genuine equality in the workplace. Maruti has a horizontal management structure with only four functional levels of responsibility to facilitate quicker decision making. Maruti believes that communication channels between labour and management cannot simply consist of having a labour representative on the Board of the Company. The Company has had good labour 6 . They have faith in the ability of labour to effectively participate in management and make constructive suggestions. they encourage leadership in the best sense of the word. to achieve commonly shared company goals and objectives. they have taken several simple but specific and well thought out measures. They have met all project and performance targets since inception. Another focus area of the Maruti culture is the maintenance of a smoothly functioning communication network. the management structure and systems in Maruti have been designed to promote decentralisation of authority. Meetings with the Union are held regularly. must practice what he preaches. Their productivity levels are constantly improving. they ensure that there is a thorough dissemination of information at all levels. through newsletters or via a letter from the Chief Executive to all employees. Another measure is the creation of a common canteen where all employees have lunch. training programmes in Japan. stand in common queues. Inputs are sought from employees at all levels. At Maruti They do not believe in the notion of organisational hierarchies. The first step in this direction has been the introduction of a common uniform for all employees. They believe that everyone should contribute to the formulation of company policies. Common toilets. and sit on the same table. all contribute to the Maruti culture. goals and objectives. Several measures of performance have made amply clear that Maruti has established a truly healthy work culture. To encourage this. a leader is one who must be impartial. Secondly. To ensure that this translates into concrete reality. and. Quality Circles. most importantly.one. According to us.

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament. which was necessary for economic growth. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world). and they have been successful in the export market.  Production of large number of motor vehicles. Yet. Suzuki Motor Company was chosen from seven prospective partners worldwide. A licence and a Joint Venture agreement was signed between Government of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. the Maruti culture is one that does not believe in resting on its laurels.relations with employees from the very beginning. which states that constant improvement is always possible. to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. The most basic tenet of productivity that they hold dear is that " Today should be better than Yesterday and Tomorrow should be better than Today". They adhere to the spirit of Kaizen. The objectives of MUL then were:  Modernization of the Indian Automobile Industry.  Production of fuel-efficient vehicles to conserve scarce resources. Core Value  Customer Obsession  Fast. Flexible and First Mover  Innovation and Creativity  Networking and Partnership  Openness and Learning 7 .

December 1983 1. just 14 hours to make a car. 1994 15.000 vehicles produced by August. our cars have become even more pleasurable to drive. More importantly. 1997 25.000 vehicles produced by April. This results in better and greater maneuverability.000 vehicles produced by June. And dream.3 million vehicles. 2000 8 . In other words. the Maruti Udyog Plant has already rolled out over 4. two vehicles roll out of the factory every minute.Vision The leader in the India Automobile Industry. This new technology harnesses the power of a brainy 16-bit computer to a fuel- efficient 4-valve engine to create optimum engine delivery.00. A pride of India” Technological Advantage We have introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. In fact. with an incredible range of 11 models available in 50 variants.00. on an average.00. And it takes on an average. Production/R&D Spread over a sprawling 297 acres with 3 fully-integrated production facilities. Our other innovation has been the introduction of Electronic Power Steering (EPS) in select models. 1990 10.000 vehicles produced by October. 1996 20.00. there's a Maruti Suzuki made here to fit every car-buyer's budget. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car.00.000 vehicles produced by June.00.00. 1999 30. Creating Customer Delight and Shareholder’s Wealth. 1986 5.000 vehicles produced by March.000 vehicles produced by March. Production Milestones 1st vehicle produced.

Esteem number one in its segment for the 3rd year in a row. Swift number one in the premium compact segment WagonR and Esteem top their segments in the JD Power APEAL study TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05 Maruti bagged the "Manufacturer of the year" award from Autocar- CNBC ( 2nd time in a row)-Feb 05 First Indian car manufacturer to reach 5 million vehicles sales Business World ranks Maruti among top five most respected companies in India-Oct 04 Maruti ranked among top ten (Rank7) greenest companies in India by Business Today .000 vehicles produced by December 2001 40. No.00. 1 in Customer atisfaction.000 vehicles produced by April.Alto number one in its segment for the 2nd time in a row.00.00.1 in Product Quality (Esteem and Alto) and No. 2003 45.000 vehicles produced by April.Sep '04 2004 Maruti Suzuki was No. 1 in Sales Satisfaction No. WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study Leadership in the JD Power Initial Quality Study .the only car to win it so many times M800. 1 9 .35. 2004 AWARDS 2005 Number one in JD Power SSI for the second consecutive year Number one in JD Power CSI for the sixth time in a row .

Zen and Esteem Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003. Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003" J D Power ranked 3 models of Maruti on top: Wagonr. Central Board of Excise & Customs awards Maruti with "Samman Patra". for contribution to exchequer and being an ideal tax assessee 1998 CII's Business Excellence Award 1996 Maruti wins INSSAN award for "Excellence in Suggestion Scheme" Awarded the Star Trading House status by Ministry of Commerce 1994-95 Engineering Exports Promotion Council's award for export 10 . achieves highest CSI rating. MUL tops in J D Power CSI (2001) for 4th time in a row 2001 MUL tops in J D Power CSI (2001) for 2nd time in a row: another international first 2000 Maruti bags JD Power CSI .1st rank. in Product Appeal (Esteem and Wagon R) No. Zen and Alto) Business World ranked us among the country's five most respected companies Business World ranked us the country's most respected automobile company Voted Manufacturer of the year by CNBC Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG 2003 Maruti 800. unique achievement by market leader anywhere in the world 1999 MSM launched as model workshop in India. 1 in Total Customer Satisfaction (Maruti 800.

performance 1994 Best Canteen award among Haryana Industries as part of employee welfare 1992-93 Engineering Exports Promotion Council's award for export performance 1991-92 Engineering Exports Promotion Council's award for export performance 11 .

Ford. This study measures owner delight in terms of design. content. Maruti Suzuki has a sales network of 307 state-of-the-art showrooms across 189 cities*. Our high sales and customer care standards led us to achieve the No. No. layout and performance of vehicles across 8 parameters. Actual users of our technology are saying something very clearly Maruti Suzuki is No. Power SSI study 2004.1 in the premium compact car segment and the Esteem in the entry level mid-size car segment across 9 parameters.1 nameplate in the J. Power SSI study 2004.000 vehicles a day.1 in quality: Maruti Suzuki owners experience fewer problems with their vehicles than any other can manufacturer in India (J. with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car.D. delivery timing and delivery process. only as good as the technology used to make it. salesperson.D.1 nameplate in customer satisfaction in India for the fifth year in a row. dealer facility. Mitsubishi and Hyundai. paperwork. Maruti Suzuki has not only got the No. What is significant is that it was ranked above Skoda. Power APEAL Study 2004 proclaimed the Wagon R. 12 . but also ranked way above the industry average (Maruti Suzuki was at 784 while industry average was at 760). a feat unprecedented for any automobile market leader in the world. To be really happy with the car you own. The Alto was chosen No. Power IQS Study 2004). Chevrolet.1 nameplate in the J.D. The SSI study measures sales satisfaction across 6 parameters: deal received. No wonder Maruti Suzuki has been awarded the No. 1 in the premium compact car segment and the Esteem No.1 in the entry level mid-size car segment. Their 1036 city strong service network is equipped to service 20. WHY MARUTI SUZUKI The Quality Advantage A car is an engineering product.D. The J. it should have a reliable service network at hand and within easy reach.

92% of Maruti Suzuki owners feel that work gets done right the first time during service. Power CSI study 2004. best service delivery. best in-service experience. most user-friendly service and best service initiation experience. Whether it is easy finance. while 90% owners would probably repurchase the same make of vehicle.D. 92% of Maruti Suzuki owners feel that work gets done right the first time during service. Power SSI Study 2004. A Buying Experience Like No Other Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probable recommend the same make of vehicle.D. most user- friendly service and best service initiation experience. highest service quality. The J. Quality Service Across 1036 Cities In the J. best service delivery. you will find all your car related needs met under one roof. Our high sales and customer care standards led us to achieve the No. best service advisor experience. insurance.Maruti Suzuki is set to provide a single-window solution for all your car related needs. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle.In the J. Power CSI Study 2004. best in-service experience. The Low Cost Maintenance Advantage 13 . exchange. with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. The J. One Stop Shop At Maruti Suzuki. Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced. while 90% owners would probable repurchase the same make of vehicle. fleet management services. best in-service experience.D. highest service quality.D.1 nameplate in the J. Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced. In fact.D.

it should be easy on the pocket to buy and to run-which is why the cost of ownership is so important. And here again. Maruti 800.422.the top 5 models are all Maruti Suzuki models: Maruti 800. Under this scheme. Esteem. employees are encouraged to make suggestions for improvement in any area of our operation. In the Upper Mid-size segment. In the Lower Mid-size segment as well. Alto. The Maruti-800 has the cheapest spares of any Indian car with a basket of just Rs. as some of its regularly used spare parts may be priced quite steeply. a Maruti Suzuki is a clear winner. The 6 highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen. Employee Quality Measures Kaizen is based on the concept of making incremental improvements in our products.Power CSI study 2004. Omni and Wagon R. price-consciousness is very high.The acquisition cost is unfortunately not the only cost you face when buying a car. 23. Wagon R. It is clear that a Maruti Suzuki delights you even when you run it for years. which aim at involving employees at all levels. and it is here where Maruti Suzuki shines. The Suggestion Scheme is based on the same principle. drivability and have comfortable interiors. In the Maruti Suzuki stable. it may not necessarily be affordable to maintain. In this segment. Lowest Cost of Ownership To be really happy with the car one owns. Zen. It incorporates a series of continuous small and simple improvements.D. as shown by the recent J. Alto and Omni. The recent Auto car Survey conducted in August 2004 bears testimony to this fact.000 suggestions are received from employees every year. It is in the economy segment that the affordability of spares is most competitive. Over 50. where the cars have to be not only affordable on purchase price but also need to combine quality. 14 . the Maruti Suzuki Versa has scored particularly well with the lowest cost of spares in the segment. Although a car may be affordable to buy. the Maruti Suzuki Baleno has the segment's lowest prices on a majority of the spares. Not so in the case of a Maruti Suzuki. They are proud to have the lowest cost of operation / km (among petrol vehicles) . the Omni has the lowest aggregate cost of spares followed by the Maruti-800.

Maruti Udyog Ltd became one of the first automobile companies anywhere in the world to get an ISO 9000:2000 certification. The movement of quality indicators is reviewed in weekly meetings by the top management. covering varied parameters like Customer Focussed organisation. Process approach. ISO 9001:2000 At Maruti. AV Belgium. Technicians themselves inspect the quality of work. certified Maruti after a four day long audit. We believe that it is this unwavering commitment to quality that will lead to the further growth of the organization as competition increases. This contest is organized by Indian National Suggestion Schemes Association (INSSAN). System approach to Management. which is the 6th consecutive award won in as many years. Involvement of people.Maruti has won the First place in "Excellence in Suggestion Scheme Contest 2003". global auditors for International Organization for Standardisation(ISO). Supervisors educate and instruct technicians to continually improve productivity and quality. Leadership. 15 . our approach to quality is in keeping with the Japanese practice--"build it into the product". etc. Continual improvement. Since 1998 Maruti has won this award 10 times. In 2001. "Quality Circles" are groups of five to eight members from a particular work area who work as a team to identify priorities and solve work related problems in the area.

This authenticated our quality systems and testing facilities for export to Europe. The audit for this covered quality assurance in production. which is based on a European Union Directive. 16 . marketing and sales as well as after sales services. This commitment to quality has ensured a consistently satisfying product and world-class sales and after-sales services.In May 1995. TS16949:2002 . Their emphasis on total quality has meant that today they are in a position to guide vendors and dealers in establishing and consolidating their individual quality systems. Maruti got ISO 9002 certification. We were also one of the first companies in the world to pioneer ISO 9000 certification for our dealers. A new feather was added recently in Maruti’s cap in the field of quality when the Quality Management System of its Press Shop & associated functions (collectively termed as Press Function) got certification for conformance to the requirements of TS16949:2002 standard. In October 1993. MUL passed the Conformity Of Production (COP) Audit. installation.

is an extension of the ISO 9001:2000 standard that prescribes Quality management system requirements that are specifically applicable to the automotive industry.The need for TS certification of Press Function had its genesis in the prestigious project that Maruti earned for the supply of stamped panels to General Motors India for one of its forthcoming models. However. whereas QS 9000 would become defunct and cease to exist after Dec 2006. Daimler Chrysler. TS 16949 has gained high popularity and almost all major automobile players across the globe including GM. Ford. TS 16949 is going to be the standard of the future. Nissan. These standards address Quality System requirements. As a part of Quality system requirements. Honda are embracing & promoting it. GM requires all its suppliers to be certified to either ISO TS 16949 or QS 9000. which are particularly specific to the automotive industry and requires an organization to be in compliance with ISO 9000 systems as a basic requirement. ISO 9001:2000 THEORITICAL PERSPECTIVE 17 . brought out by ISO in the year 1999. The TS 16949 standard.

and the consumer evaluates the success of his purchase decides whether to buy that particular product and / or brand again. It the same time. the ultimate consumer of a product.Consumer is strictly. Consumer behavior is the study of buying habits or patterns of behaviour of consuming public either in general or in specific groups. THE BUYING PROCESS The complexity inherent in understanding consumer behaviour has led to the construction of models of the buying process which indicate the stages through which the consumer passes from the time he or she first becomes aware of a need for a product or service to the time when a product is purchased. consumable goods are sold to industry for corporate purposes and the consumers of these goods can be identified for marketing practice. the ultimate user of a product. since there are often 'customers' in the buying/ distribution chain. for instance. such models usually indicate the social and psychological forces which shape the potential buyer's action at each stage in the process. 18 . The two principal aims of such model building are the prediction of future behavior based on measurement of relevant variable and the explanation of this behavior in terms of theoretically relevant constructs. in the case of many household products. 'Consumer' is not normally applied to the purchase of industrial goods and services where the customer is usually a corporate body. moreover. Nevertheless. the consumer is frequently not the person who makes the buying decision. The 'consumer' is not necessarily the customer. where the housewife may make the purchase but consumption or use is by the whole family. the person who derives the satisfaction or the benefit offered. a brand selected.

evaluation of alternatives purchase decision and post-purchase behavior.The starting point for understanding the buyer is the stimulus-response model shown below Marketin Other Buyer's Buyer's Buyer's g stimuli stimuli Characterist decision decisions ics process Product Economic Cultural Problem Product choice recognition Price Technologic Social Brand choice al Information Place Personal Dealer choice search Political Promotion Psychological Purchase timing Evaluation Cultural decision Purchase amount Post-purchase behavior Stages in Buying Decision Process Need Informat Evaluation Purchas Post- recogniti ion of e purchase on search alternative decision behavior s The consumer passes through five stages : Problem recognition information search. Thus a woman buying her regular brand of toothpaste goes directly from the need for toothpaste to the purchase decision. because it captures the full range of consideration that arise when a consumer facer a highly involving new purchase. Clearly the buying process starts long before the actual purchase and has consequences long after the purchase. However. But this is not the case. We will allude again to Linda Brown and try to understand 19 . skipping information search and evaluation. especially in low-involvement purchase. we have already used the model in above. Consumers may skip or rreverse some stages. This model implies that consumers pass through all five stages in buying a product.

how she became interested in buying a laptop computer and the try to understand how she became interested in buying a laptop computer and stages she went through to make her final choice. MAJOR FACTORS INFLUENCING BUYING BEHAVIOR Cultural Social Culture Reference group Personal Subculture Family Age and life. Psychological Social Class Roles and cycle stage statuses Motivation Occupation Economic Perception circumstances Learning Buyer Lifestyle Beliefs and Personality and attitudes self-concept Rogers model for the adoption and diffusion of innovations Innovation Adoption CURVE 20 .

product or practice. but in a careful way. Innovators Brave people. Early Majority Thoughtful people. Laggards Traditional people. Also the categories and percentages can be used as a first draft to estimate target groups for communication purposes. Late Majority Skeptic people. 2) the decision-making process that occurs when individuals consider adopting a new idea. Diffusion research focus was on five elements: 1) the characteristics of an innovation which may influence its adoption. puling the change. It makes more sense in these circumstances to start with convincing innovators and early adopters first. The diffusion of innovations curve (innovation adoption curve) of Rogers is useful to remember that trying to quickly and massively convince the mass of a new controversial idea is useless. try out new ideas. are critical towards new ideas and will only accept it if the new idea has become mainstream or even tradition. careful but accepting change more quickly than the average. Is is also referred to as Multi-Step Flow Theory or Diffusion of Innovations Theory.The innovation adoption curve of Rogers is a model that classifies adopters of innovations into various categories. caring for the "old ways". based on the idea that certain individuals are inevitably more open to adaptation than others. opinion leaders. 3) the characteristics of individuals that make them likely to adopt an innovation. 21 . will use new ideas or products only when the majority is using it. Early Adopters Respectable people. Innovators are very important communication.

22 . you need to understand that people purchase products or services for three basic reasons:  To satisfy basic needs. TARGET MARKETING Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments. Target marketing is the selection of customers you wish to service.  To solve problems. The decisions involved in it are  Which segments to target  How many products to offer  Which products to offer in which segments There are three steps to targeting:  Market segmentation  Target choice  Product positioning One of the first things you need to do is to refine your product or service so that you are NOT trying to be 'all things to all people’. pricing and distribution of your products and/or services easier and more cost-effective.  To make themselves feel good. Next. The next step in creating an effective marketing strategy is to zero in on your target market. The beauty of target marketing is that it makes the promotion.

and then targeting smaller. the level of knowledge. attitude. occupation. and loyalty characteristics of your customers. based on their needs and the benefits they will receive. gender. density. size of the area. and education of your customers. 4. it is an attitude 23 . rate of use. benefits sought. yet more profitable customer groups within the total market. It helps to establish critical Operational goals and defines what must be done to achieve them What Customers Want  Marketing is more than an activity.Target marketing is one of corporate America's most effective business strategies. information sources. TARGET MARKETING  Who are your best customers? Where should you direct your marketing activities?  Where and how should you allocate your advertising and promotional efforts? Target Marketing. The idea is to increase sales by first identifying. One of the best ways to identify your target market is to look at your existing customer base. repetition of need. family composition and size. income. Four Ways to Identify Target Markets 1. Demographics: The age. provides Focus for your business. Geographic: The location. or if you are targeting a completely new audience. Who are your ideal clients? What do they have in common? If you do not have an existing customer base. and climate zone of your customers. Investigate competitors or similar businesses in other markets to gain insight. behavior. Behaviors: The needs they seek to fulfill. 3. Psychographics: The general personality. 2. use or response to a product of your customers. life-style. speculate on who they might be.

people have believed that advertising can be used to change people's minds about what they want. AS YOU ANALYZE YOUR MARKET AND CUSTOMER PROFILES. DESIRES. or happens to have on hand. AND SO GAIN AN UNDERSTANDING OF THEIR WANTS.  Instead of trying to get customers to buy what the firm likes to make. AND PERCEIVED NEEDS. the marketing oriented firm tries to produce or sell what its customers want which can be sold at a profit.  Do not simply throw out everything that you now have and replace goods or production machinery with completely new items. CONSIDER BOTH THE SHORT TERM AND LONG-TERM IMPLICATIONS OF DEVELOPING AND IMPLEMENTING THE RIGHT TARGET MARKETING STRATEGY FOR YOUR BUSINESS. This is an incredibly difficult process at best. and their identification becomes an important part of the marketing process. it is a process that smaller firms simply cannot afford to pursue. Because of these two factors. Instead. Once these customer attitudes. YOU CAN BEGIN TO REORIENT YOUR BUSINESS OVER TIME TO TAKE BEST ADVANTAGE OF THESE NEW INSIGHTS. they can begin to organize company resources needed to constructively address and satisfy these attitudes the key question is. Once they have identified the actual prevailing attitudes. the entire firm can then organize itself to satisfy these needs as completely and efficiently as possible. 24 . Customer Attitudes  For a long time. and an extremely expensive one.  HOWEVER. developing an understanding of existing customer attitudes becomes essential. "What are the existing customer attitudes?" With this as an objective. needs or preferences are identified. it is much more productive for any size firm to tune in to target customer attitudes as they currently exist.

Target Marketing 25 .

Comparison of Automobile And Consumer Durable At Dealership Level S.No Attributes Automobile Consumer Durables 1 Turnover High Low 2 Margin 8%-12% 2%-4% Penetration More in small or large More in Rural areas 3 Level towns or cities or in cities also Training of Executives get Training Sales after every specific 4 Executives period As such no training Co->Distributor- 5 Supply-Chain Co->Dealer->Customer >Dealer >Customer Discount Depends on Dealer 6 Margin Cartel To Dealer Only Sales man is there to serve the 7 CSR Proper well organized customer Customer have to go Customer get 3free at manufactured 8 ASS service level Customer can Brand Customer first choice is change his or her 9 Association more pertinent choice More focus on Finance & 10 Payment Instantaneous Payment Installment Post-Sales 11 Follow UP More Very Less Buying Customer can wait for 12 Procedure new model Instant buying 13 Database Large Few Brand 14 Transition Single-Tier Multi-Tier 26 .

Defined & 17 Index Organized None 18 Promotion Free Service Camps None Customer 19 Retention More Very Less Only free service which customer can extend upto 4 years(first 2yr are Annual Maintenance 20 Maintenance free) Contract (AMC) 27 . Parent Company & dealer both give Only from Parent 15 Advertisement advertisement Company Loyality 16 Programs Yes No Customer Satisfaction Well.

premium small car Zen. For Investors: Maruti Udyog Limited. There are only three levels of responsibilities ranging from the Board Of Directors. This structure ensures better communication and speedy decision making processes. Division Heads to Department Heads. Versa.  Communication and information sharing. It also creates an environment that builds trust. has an installed capacity of 3. Swift and Luxury SUV Grand Vitara XL7. Maruti has made major strides towards its goal of becoming Suzuki Motor Corporation's R and D hub for Asia. transparency and a sense of belonging amongst employees. they have taken several measures like a flat organizational structure. Its manufacturing plant. has been the leader of the Indian car market for about two decades. located some 25 km south of New Delhi in Gurgaon. with a capability to produce about half a million vehicles. 28 .50. Omni.  Team work & Kaizen. It is this underlying philosophy that has moulded their workforce into a team with common goals and objectives. In recent years. the MPV.  Open office culture for easy accessibility To implement this philosophy. and a common canteen for all. off-roader Gypsy. It has introduced upgraded versions of WagonR Zen and Esteem. international brands Alto and WagonR. mid size Esteem. common uniforms (at all levels). Other visible features of this philosophy are an open office.000 units per annum. Their Employee- Management relationship is therefore characterized by:  Participative Management. completely designed and styled in-house. MARUTI CULTURE Their employees are their greatest strength and asset. a subsidiary of Suzuki Motor Corporation of Japan. The company has a portfolio of 11 brands. luxury car Baleno. including Maruti 800.

MUL is a Board-managed company. have helped improve economic viability of The company's dealerships. These initiatives. besides providing total mobility solutions to customers in a convenient and transparent manner. Managing Director  Mr Hirofumi Nagao. Joint Managing Director  Mr Shinichi Takeuchi.Maruti's contribution as the engine of growth of the Indian auto industry. Currently the directors on the Board are:  Mr Shinzo Nakanishi. The company's service businesses including sale and purchase of pre owned cars (TrueValue). Maruti tops customer satisfaction again for sixth year in a row according to the J. Director 29 . lease and fleet management service for corporates (N2N).D. In keeping with its leadership position. is widely acknowledged. Director (Marketing and Sales)  Mr Osamu Suzuki. Joint Managing Director  Mr Kinji Saito. Chairman  Mr Jagdish Khattar. The company is listed on Bombay Stock Exchange and National Stock Exchange.. Director  Mr S V Bhave. Maruti Insurance and Maruti Finance are now fully operational. Power Asia Pacific 2005 India Customer Satisfaction Index (CSI) Study. Its emotional connect with the customer continues. Director  Mr Kumar Mangalam Birla. 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 Organisation for Standardisation. indeed its impact on the lifestyle and psyche of an entire generation of Indian middle class. Director  Mr R C Bhargava. The company has also ranked highest in India Sales Satisfaction Study. Maruti supports safe driving and traffic management through mass media messages and a state-of-the art driving training and research institute that it manages for the Delhi Government.

 Mr Amal Ganguli. Director  Mr Manvinder Singh Banga. Director  Ms Pallavi Shroff. Director 30 .

A Maruti 800 A OMNI B Zen B Wagon R B Alto C Esteem C Baleno C Versa 31 . OBJECTIVE OF THE COMPANY Maruti’s marketing objective is to continually offer the customer new products and services that:  Reduce the customer’s cost of ownership of their cars. and utility vehicle segment of the Indian passenger car market. the version of the Maruti 800 brand currently sold in the market is a significantly upgraded version. To take advantage of the brand recognition associated with their products. in terms of technology. Their models and variants are designed to address the changing demands of the market and are periodically upgraded in technology. they manufacture nine models and import the Grand Vitara as a completely built unit from Suzuki in Japan. of the Maruti 800 launched in 1983. they retain the brand name of the product through various stages of product upgrades over time. and   a nticipate and address the customer’s needs and preferences in all aspects and stages of car ownership. to provide what they refer to as the “360 degree customer experience. Of these. B. For example. C.” They sell ten models with more than 50 variants in segments A. styling and features. design and styling.

C SWIFT Utility Vehicle GYPSY KING Utility Vehicle GRAND VITARA BALENO WAGON R 32 .

ESTEEM MARUTI 800 33 .

NEW ALTO OMNI 34 .

SWIFT VERSA 35 .

ZEN 36 .

RESEARCH METHODOLOGY The nature of the project work has been exploratory as no hypothesis. The reluctance of the company's personnel in parting with much of information led the project report to be based substantially on the secondary source of data. Though the conclusions drawn could be taken as the hypothesis and further tested by the research work undertaken in the relevant field. The market visits were useful in knowing the comparative prices and quality of the offered brands vis-à-vis the competitive brands. I personally visited a number of retail markets and collected data pertaining to the prices of the products offered. is taken to be tested. 37 . By interviewing these retailers valuable information was collected. The reason for choosing the exploratory research design is the fact the project report has been primarily based upon the secondary sources of data and whose authenticity could be assured of. I inquired from them about their marketing advertising and distribution strategies. The sources of data used in data collection are the following: Primary sources In order to gather information about the various products. Detail regarding the packaging of the products were collected were collected and I also inquired about the various sales promotion schemes followed by the three companies.

38 .  News releases.Secondary sources Information was collected from secondary sources such as public libraries.  Newsletters. newspapers. The information gathered included:  Their annual reports (Procter & Gamble and Johnson and Johnson). This particular way of data collection was used because of its low cost (except data collected through surfing the internet) and less time consumption.  Posters. business magazines.  Pictures. Beside these the use of Internet was also made in collecting relevant information.  Pamphlets.  Press clippings. The data collected from the above mentioned sources has been adequately structured and used at appropriate places in the report.

Zen.23% Omni (Eight Seater) 221268 220768 500 0. Ex-Showroom Prices in Delhi (in Rs) Change Model New Old Increase % M800 Std 191646 191146 500 0. FINDINGS OF THE STUDY PRICES OF MARUTI PRODUCTS Car market leader Maruti Udyog Limited has announced a marginal increase in price of certain models.17 percent to 1. the company has decided to pass on only a part of the increase in costs to the customers.04% Omni Cargo 213706 213206 500 0.22% 39 .19% Alto Lxi 283878 283378 500 0.24% Alto Std 231585 231085 500 0.22% Alto Lx 265262 264762 500 0.32% Esteem Lx 445968 444968 1000 0.18% Omni Cargo LPG 194725 192725 2000 1. varies from 0. which comes into effect from today. The increase.47 percent.23% Omni LPG 230388 227388 3000 1. The price increase is due to rise in input costs and freight costs. In this phase. There is no change in the prices of Swift.26% M800 Std Ac 213062 212562 500 0. which increased following the rise in oil prices. Baleno (Vxi) and WagonR (Petrol).

36% 40 .47% WagonR Lxi LPG 373160 368160 5000 1.Esteem Lxi 476223 475223 1000 0.21% Esteem Vxi 511520 510520 1000 0.23% Versa Dx2 471779 470779 1000 0.28% WagonR Lx LPG 345106 340106 5000 1.21% Versa Std 360182 359182 1000 0.17% Versa Dx 433575 432575 1000 0.20% Baleno Lxi 576173 575173 1000 0.

EX.E. ORGANISATION STRUCTURE AT MUL Maruti Udyog ltd. Has a flat organisation structure with a maximum of three levels. Head office MD MFG FIN OTHER DIRECTOR N CONTROLLER GM DGMS AGMS GM/ DGMS DGMSAGMS MGRS/AMS MGRS/AMS MGRS/AM SR GM/EX ENGINEERS(EX) SR. (TRAINEES) 41 ./EX TRAINEES J.

THE PRODUCTION PROCESS AT MARUTI STEEL COILS BLANKING PRESSING WELDING PAINTING FROM FROM ASSEMBLY VENDOR VENDOR S S VEHICLE FROM INSPECTION VENDOR S TEST RUN SUPPLY & DISPATCH 42 .

Germany. Bahrain. Djibouti. Chile. 43 . it is exporting in over 70 countries. Ethiopia. UK. Greece. in the current year. Saudi Arabia.K. Srilanka and Bangladesh. Chile.00 mark was crossed by the shipment of 571 units to the same country. Benin. Kuwait. has been very popular in Europe where a landmark 200. Maruti exported more than 51. which meets the Euro-3 norms. Nepal. France and Italy Maruti vehicles have made a mark. Maruti has entered some unconventional markets like Angola. Uganda. Europe is the largest destination of Maruti’s exports and coincidentally after the first commercial shipment of 480 units to Hungary in 1987.000 vehicles in 2003- 04 which was 59% higher than last year. U. Hungary. In the financial year 2003-04 Maruti exports contributed to more than 10% of total Maruti sales. where it is selling over 70% of its exported quantity. Costa Rica and El Salvador. Morocco. Italy. INTERNATIONAL BUSINESS In August. Qatar and UAE. are Algeria. the 300. France and Poland in that order. Though the main market for the Maruti vehicles is Europe. The markets outside of Europe that have large quantities.. are Saudi Arabia.000 vehicles since its first export in 1986. Even in the highly developed and competitive markets of Netherlands. The Middle-East region has also opened up and is showing good potential for growth. Some markets in this region where Maruti is. The top ten destinations of the cumulative exports have been Netherlands.000 vehicle were exported till March 2003. Germany. 2003 Maruti crossed a milestone of exporting 300. The Alto.

44 .

/Prem.669 7% Industry 3 MUV (Utility Vehicles) 3.402 16% 527.Total 758.Hatchback) 167.MUL 417.223 -23% A2 (Compact .3 8% Industry 0 46 16 45 .MUL 420.664 8% 2 Passenger Cars .561 17% 116.637 109% 31.526 15% 65.198 16% 522.262 -31% 89.374 -16% Passenger Vehicles .050./Luxury) C (Van Type) 59.280 54% 335.366 2% Passenger Cars .019 9% 66.555 12% 5.136 24% A3 (Mid Size) 14.173 28% 29.12 26% 885.2 17% 1.Total 901.Growth 2004-05 Growt 2005-06 Growt 04 h h A1 (Mini .94 28% 487.204 46% 4.Hatchback) 176.15 24% 1.029 17% 948.038 8% 7 Passenger Vehicles .MARUTI ALL INDIA SALES – 3 YR TREND Segment 2003.132 47% 271.39 28% 482.939 8% A4/A5/A6 NA NA NA NA NA NA (Exec.129.

MARKET SHARE 2005-06 Market Share-Segment A2 TATA 20% MARUTI HYUNDAI 59% 21% 2005-06 Market Share-Segment A3 HYUNDAI TATA 16% 20% MARUTI 17% FORD 14% OTHERS GM 7% HONDA 6% 20% 2005-06 Market Share-Passenger Cars TATA FORD HONDA HYUNDAI 16% 3% 4% GM 17% 1% TOYOTA 1% OTHERS MARUTI 3% 55% 46 .

Swift Indica & Palio. Toyota - Corolla & Camry. Tata - Hatchback) Alto.Ikon. Toyota .Accent. Versa MUV (Utility Gypsy. GM .Endeavor. Honda .Indigo & Petra. Grand Mitsubishi .Corsa Sail A3 (Mid Size) Esteem. WagonR. Tata .Hatchback) M800 A2 (Compact .Forrester & Tavera. Nissan . C (Van Type) Omni.Pajero. COMPETITION MODELS Maruti Competition SEGMENT A1 (Mini . Skoda . Honda - (Exec.Prado & Innova. Fusion.Vectra.E. Optra. Ford .Octavia & Superb. Daimler Chrysler - C. GM . Tata .X Trail.City. Scorpio. Baleno Hyundai . GM .Sumo & Safari. Ford ./Prem. Mahindra .Corsa.Elantra & Sonata. Honda . & Bolero 47 .Mondeo. Ford .Santro & Getz. Hyundai . Hyundai - Vehicles) Vitara Terracan & Tucson./Luxury) Accord. Zen.Jeeps. & Aveo. GM .CRV. & S Class. & Fiesta A4/A5/A6 Hyundai .

on account of their competitive strengths. and utility vehicles. the Alto and the Wagon R. - COMPETITIVE STRENGTHS MUL believes that they are well positioned to maintain and enhance their leadership position in the small car segment in India. the development of their supply chain and the training of their personnel. in segment B (priced between Rs. which include the following: Expertise in small car technology: As a subsidiary of Suzuki.300. the Maruti 800 and the Omni.500. primarily in order to benchmark our products against international quality standards. They are the only manufacturer of cars in segment A (priced below Rs. a versatile vehicle that can seat more passengers than the Maruti 800 or be used as an ambulance or cargo vehicle. the absence of other manufacturers in segments A gives their dealers greater flexibility in promoting models in segment B.5% in fiscal 2002. They are also the only manufacturer to sell three distinct models. The Omni. Extensive product portfolio: Their diverse product range includes cars in segments A. B and C. They believe that theirdominance in segment A and extensive product range in segment B enables us to offer the customer a wider choice in the small car segment than any of their competitors. they were one of the first automobile manufacturers in the world to receive the ISO 9001:2000 certification. They have the advantage of Suzuki’s expertise in all aspects of small car technology and design. In addition. while continuing to offer products in most segments of the Indian market. The Maruti 800 has been the largest selling car in India for several years. with a market share of 25.000) where they have two models. They began to export products in 1988.000 and Rs. Quality products: In November 2001. They have exported products to approximately 70 48 . the Zen. They manufactured five out of the ten models that were sold in the combined A and B segments in India in fiscal 2002. had a market share of 10. their manufacturing processes and business practices.300.000). with respect to their products. and continued to have the highest sales volumes of any model.3%. they have access to globally respected technology in the small car segment.

in order to promote customer loyalty. NFO Automotives 2002 Total Customer Satisfaction Survey ranked Maruti products as No. This has contributed to the strength of their brand. automobile insurance.545 Maruti Authorized Service Stations. J. 2003. As a result. or have left the market altogether. which assesses customer satisfaction with product quality and dealer service. at March 31. As of March 31. they had 342 dealer workshops and 1. Extensive sales and service network: They believe that they have the largest network of dealers and service centers amongst car manufacturers in India. In addition to the distribution of their cars. Brand strength: They have been present in the Indian market for almost twenty years and have built their brand on the basis of the values of trust and reliability. and leasing and fleet management. their first plant set up in fiscal 1984 is technologically at par with their newer plants and is 49 . D. their dealership network is a critical resource in our efforts to provide customers with a “one-stop shop” for automobiles and automobile related products and services such as automobile finance. or MASSs. They believe that this was the first time that a volume leader in the automobile industry anywhere in the world was ranked first on the JD Power Customer Satisfaction Index. including countries in Western Europe. “Premium Compact” and “Entry Midsize” segments respectively. 1 in the India Customer Satisfaction Index. which covered 898 cities in India backed by Express Service Centers on 30 highways across the country.5 million vehicles. Power Asia Pacific. Maruti-certified pre- owned cars available for purchase. we had 178 authorized dealers with 243 sales outlets in 161 cities. ranked us No. they continue to support the maintenance of their products. Inc. Their facility has advanced engineering capability and each plant is upgraded on an ongoing basis to improve productivity and quality. 2001 and 2002. Certain manufacturers have ceased to manufacture certain products shortly after introducing them.countries. In contrast. 1 in the “Economy”. Most of their principal competitors have been present in the Indian passenger car market for a significantly shorter period. for 2002. To service this car parc. They estimate their car parc to be in excess of 3. Integrated manufacturing facility: Their manufacturing facility comprises three integrated plants with flexible assembly lines located at Gurgaon in the northern state of Haryana. In 2000. 2003. Their products for export are manufactured using the same assembly line as our products for the domestic market.

002.000 cars per year with minimal additional capital expenditure. 2003. and intend to continue to reduce the number of our vendors. This has helped them reduce the cost of their components. which is the highest among passenger car manufacturers in India and among the passenger car manufacturing facilities of Suzuki’s subsidiaries outside Japan. A number of their vendors are their dedicated suppliers in that they account for a majority of their turnover. in collaboration with their vendors. who together supply a substantial portion of their purchases of components. 2003 were in technical collaboration with foreign entities. 1. to increase the rate at which they are able to localise production of their new models over time. 113 of their vendors at March 31.900 of their employees had been trained at Suzuki’s facilities in Japan. As of March 31. This would enable them to benefit from significant economies of scale. They believe that they would be able to expand their production to 500. They 50 . we had strategic equity interests through joint venture agreements in 13 of their vendors. Strong vendor base and higher rates of localization: They work closely with their vendor base for the supply of raw materials. including training by Suzuki. They have an installed capacity of 350. Vendors located within a radius of 100 kilometers from their facility supply the majority of their components. They believe that they are one of the most efficient among the vehicle manufacturing facilities of Suzuki’s subsidiaries outside Japan in terms of productivity measured as the ratio of number of vehicles produced to number of employees. 2000 to 299 as of March 31. They have been able. In order to improve quality and generate economies of scale. a concept they refer to as localisation. components and spare parts of their products.000 vehicles per year. The production systems of their vendors are generally aligned to their need for a reliable and timely supply of components that meet their quality requirements. This has enabled them to increase the proportion of locally sourced. they have reduced the number of their vendors of components in India from 370 as of March 31. Skilled labour and experienced management : Thei highly skilled labour force has become increasingly productive in terms of vehicles produced per employee and receives training on an ongoing basis. As of the same date. They have consistently produced in excess of their installed capacity in the five fiscal years ended March 31.also used in the production of their new models. 2003. lower cost components in their models.

for their working capital and capital expenditure in the future. Capital resources: They have cash and bank balances and current investments amounting to Rs. their managing director has almost ten years of experience with them. they had relatively low levels of outstanding indebtedness. As a result. For instance. and most of the heads of their divisions have more than 15 years of experience with them. 51 . if necessary.9. they have relatively low interest expense and flexibility to raise funds.555 million. in the amount of Rs.4. they have been able to build a highly experienced management team that is familiar with conditions in the Indian passenger car market. As of the same date. As a result.992 million.have been present in the Indian passenger car market for a significantly longer period than most of their principal competitors.

The components of this strategy are:  Higher levels of localization  Vendor participation in cost reduction  Cost reduction on warranties 52 . high quality products. They aim to achieve their principal objectives by pursuing the following business strategies: Maintain and enhance their product range: They intend to utilize Suzuki’s expertise in small car technology to produce new variants of their existing models and to upgrade their products with contemporary technology and features. in terms of sales volumes. Continue to reduce costs to offer more competitive products: Cost competitiveness has been. Secure repeat purchases by offering a “360 degree customer experience ”: On the basis of their belief that securing repeat purchases from an existing customer requires less expenditure than acquiring a new customer. they have recently entered into an agreement with the State Bank of India. and penetration. Increased availability of automobile finance: They continue to seek opportunities to expand the size of the Indian passenger car market. they aim to provide customers with a “one-stop shop” for automobiles and automobile-related products and services. Continue to benchmark their manufacturing capabilities: They plan to continue to benchmark our manufacturing capabilities with the most efficient car manufacturing facilities of Suzuki and its subsidiaries. especially in the small car segment. while offering products in most segments of the Indian passenger car market. central to their strategy as the leading manufacturer in the small car segment to expand the size of the market by offering competitively priced. of their products across India. and continues to be. BUSINESS STRATEGY They intend to continue to focus on the small car segment. through facilitating easy availability of automobile finance. To that end. Increase reach and penetration: They plan to continue to utilize their extensive sales and service network to increase the reach. in terms of geographical spread.

during the life of the vehicle. insurance. they seek to reduce the consumer’s cost of ownership of their cars. 53 .  Reduction in initial investment cost  Reduction in number of vehicle platforms  Achieve further cost reduction through higher productivity Lower cost of ownership: Through their business strategies. the cost of fuel and maintenance. and resale value. including spare parts and repairs. which comprises the cost of purchase.

their regional offices and their area offices monitor and assist their dealer network. Their dealers employed more than 3. Enhancing dealer performance: Their central office in Delhi. spares and accessories. The agreements typically permit termination by either the dealer or them with six months’ prior notice. In order to assist their dealers in enhancing their performance and capabilities. Their dealers provide services to customers such as pre- delivery inspection of vehicles. they have introduced a concept of “Balanced Scorecard”. They are linked to their sales network through their secure extranet-based information network. They believe that the availability of these related products and services at sales outlets also helps to attract customers to the outlets and promotes sales of their cars. Using this tool. financial management and management systems. Their agreements with their dealers usually have terms of five years. Agreements with dealers: They generally appoint a limited number of dealers for a certain geographical territory. They reward dealers who perform well on the “Balanced Scorecard” with a cash payment at the end 54 . SALES NETWORK Dealers: They offer their products to the customer through a network of 178 authorized dealers with 243 sales outlets across 161 cities. whether or not one of their dealers is already established in that territory. by mutual agreement. sales of cars. They have the right to sell their products and services through other dealers or intermediaries in any territory. they seek to measure the performance of a dealership in several areas of operations. accessories and automobile-related services such as insurance and finance serve as additional sources of revenue for our dealers. The sales of their spares. Their dealers are required to maintain their outlets in accordance with their specifications and employ well-trained sales staff. including sales. after sales service. These agreements are generally renewable for successive terms of three years. They have nine regional offices. service. five area offices and 187 sales and marketing personnel.500 sales executives. They believe that this is the largest network of dealers amongst car manufacturers in India. supply of spare parts and other services that promote sales of cars within the territory for which they are appointed. They follow the performance of their dealers and frequently suggest improvements.

They believe that the “Balanced Scorecard” serves as an effective incentive for dealers to enhance their performance. These are distributed through their dealer network and through authorised sellers of their spare parts. through their dealership network. provides value-added services. or MSMs. reliable spare parts for their products.545 Maruti Authorised Service Stations. AFTER-SALES SERVICE Network As on date there are 342 Maruti dealer workshops and 1. They seek to provide customers with the opportunity to customize their vehicles with 55 . to their dealers.of the fiscal year. in terms of sales volumes.. or MGP. To promote sales of their spare parts and the availability of high quality. They provide periodic training through their training centres located at their manufacturing facility and at Chennai.600 and 3. showroom ambience and service quality standards for dealerships. or MASSs. they sell spares under the brand name “Maruti Genuine Parts”. Many of their MASSs are at remote locations where they do not have dealers. Genuine Accessories They have also entered the business of marketing car accessories under the brand name “Maruti Genuine Accessories”. They have trained more than 2. they have launched service stations under the brand “Maruti Service Masters. They have service stations on 30 highways in India under the brand “Express Service Stations”. In addition. of their products in these remote areas. insurance and financing. in three locations in India. In order to increase the penetration. Kolkata. Their subsidiary. to whom they refer as stockists. True Value Solutions Ltd. they are exploring opportunities to integrate some of the MASSs into the sales process in order to increase sales of their cars and related products and services such as spares and accessories. covering 898 cities in India. Guwahati and Pune.400 dealer sales personnel. As a benchmark for dealers with respect to service quality and infrastructure facilities. such as manpower recruitment and training. Dealer training: They have established standard operating procedures. They intend to extend this service to an additional 25 cities over the next three years. 24-hour mobile service is offered in 38 cities under the brand “Maruti On-road Service”. or MGA.

or upgrade to a new Maruti car. The extended warranty program is intended to maintain the dealer’s contact with the customer and increase the revenue generated from sale of spares. car-care products and utility products. Their dealers are required to address any claim made by a customer. in the case of defective components. under the provisions of the warranty in force at that time. They have entered into arrangements with insurance companies to cover the costs of warranties offered under this program.accessories such as music systems. The dealers subsequently claim the warranty cost from them. They analyse warranty claims from dealers and either claim the cost from vendors. They offer an extended paid-warranty program marketed under the brand. Warranty and Extended Warranty Program They offer a two-year warranty on all their vehicles at the time of sale. accessories and automobile-related services. in the case of manufacturing defects. 56 . An effort is made during the period of the extended warranty to encourage the customer to exchange his existing Maruti car for a new Maruti car. security systems. “Forever Yours” for the third and fourth year after purchase. in accordance with practices and procedures prescribed by them. or bear the cost ourselves.

It's also the inspiration for the welcome you’ll receive at a Maruti Suzuki dealership. you will find all your car related needs met under one roof. finally. fleet management. range of products and extensive sales and service network to expand the size of the passenger car market in India. Maruti Finance an agglomeration of the biggest finance companies in India brought together by Maruti Suzuki to ensure that the dream car is within everyone's reach. exchange Maruti Suzuki is set to provide a single window solution for all your car related needs. NEW BUSINESS INITIATIVES As the largest manufacturer and leader in the small car segment. means “a guest is like God”. Atithi Devo Bhava. Atithi Devo Bhava: One-stop shop Inspired by the spirit of India. there is N2N. Then. Maruti Insurance brings together some of the biggest names in the car insurance industry to provide insurance solutions to every type of car consumer. which offers fleet related solutions. services. They have recently launched new initiatives to develop the market for automobile insurance. Similarly. in Sanskirit. At Maruti Suzuki. 57 . Whether it is easy finance. That's why they have Maruti True Value. and build on their wide customer base and extensive sales and service network to make available to their customers a wide range of Maruti-branded services at different stages of ownership. automobile finance. insurance. It captures the Indian tradition of honouring guests. they continually seek new ways to utilize their vast car parc. leasing and fleet management. and pre-owned cars. which they refer to as the “360 degree customer experience”. the best place to buy and sell reliable used cars. They aim to provide customers with a “one-stop shop” for automobiles and automobile-related products and services. and the caring relationship they share with those who drive their cars.

the Elantra in the D segment. 1.800 crores.000 cars in just over 80 months since its inception and is the largest exporter of passenger cars with exports of over Rs. The Santro in the B segment. It achieved a significant milestone by rolling out the fastest “200.000 in 2006.000 per annum by 2007.2% in exports over the year 2004. HMIL presently markets 31 variants of passenger cars in six segments. the Accent in the C segment. THE PLAYERS IN THE INDIAN AUTOMOBILE INDUSTRY Hyundai Motor India Ltd Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company. And with the company’s greater focus on the quality of its after- sales service.000 units per annum. HMIL has recorded a growth of 27. HMIL exports to around 60 countries globally and recently made a foray into the highly competitive UK market by exporting its first shipment of 820 cars. HMIL has announced plans for its second plant.26% over year 2004. HMIL is India's fastest growing car company having rolled-out over 970. HMIL plans to expand its dealer network. The company recorded combined sales of 252. South Korea and is the second largest and the fastest growing car manufacturer in India.HMIL is investing to expand capacity in line with its positioning as HMC’s global export hub for compact cars. the Sonata Embera in the E segment and the Tucson and Terracan in the SUV segment. 58 .000th” export car. Getz in the B+ segment. The plant will be built on a 2. The year 2005 has been a significant year for Hyundai Motor India.851 during calendar year 2005 with a growth of 17. quality and testing capabilities in the country. raising HMIL’s total production capacity to 600. In continuation of its investment in providing the Indian customer global technology. which will be increased from 157 to 200 this year. Apart from expansion of production capacity. HMIL’s service network will be expanded to over 1. which will produce 300.1 million square meter site adjacent to the existing facility . HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production.

More than 3 million Tata vehicles ply on Indian roads making Tata a dominant force in the Indian automobile industry. Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenisation.The Tata Indigo. is carried out meticulously. reached the 2. launched in 1998. Tata Motors Tata Motors is one of the largest companies in the Tata Group with a total income of US$ 2. manufacturing.000 sales mark within 52 months of launch. 59 . It would be no exaggeration to say that Tata Motors provides the wheels for India's growth. Lincoln. It has manufactured notable brands such as the Ford. This focus has driven the Company to set up world-class manufacturing units with state-of-the-art technology. buses. development. Every stage of product evolution-design. The Indica. utility vehicles and passenger cars. It is among the top five industrial corporations in the world and is available in more than 200 countries around the world. assembly and quality control. Tata Motors is India's only fully integrated automobile manufacturer with a portfolio that covers trucks. Tata Motors has the unique distinction of giving India its first and only indigenously built passenger car .Propelled by the strong performance in year 2005. Their manufacturing plants are situated at Jamshedpur in the East. Pune in the West and Lucknow in the North. Ford India Limited The Ford Motor Company has a rich legacy of translating better motoring ideas to the roads. Mercury and the Jaguar. Hyundai Motor India is on the threshold of yet another grand milestone of rolling out its ‘One millionth’ car which is expected soon.50.35 billion.The Tata Indica and the premium feature sedan .

This is secured through a quality check program based on the principles of NOVA . Acknowledgement has come in the form of the J D power 1997 India Initial Quality and Customer Satisfaction Awards. equipped with state-of-the-art vehicle manufacturing technology from Ford. The Maraimalai Nagar Plant of Ford India Limited. provides employment to over 20000 people.The plant has the capacity to manufacture 1. These internationally acclaimed and recognized awards voted the Ford Escort as the Best Quality car and the Mahindra Ford and its dealerships were rated the highest in Customer Satisfaction. To be doubly sure. and Holden (Australia) holds 14 percent. The company was restructured in 1999 and was converted from a Public Limited company to a Private Limited company. Ford India Limited (FIL) is catching up fast with the Indian consumer.from Chennai. A project that has been set up with a investment of Rs. General Motors India General Motors India.00. GM APH LLC currently holds 86 percent of voting shares. The SPO business was integrated with the main business in the same company in 2000. Birla Group of Companies. became a fully owned subsidiary of GM in 1999 when GMOC bought the remaining shares. which is going up to 92% soon. 60 .up with Mahindra Motors to manufacture the Ford Escort.000 vehicles per annum.Ford has entered the Indian market through a tie . Ford India Limited is a subsidiary of Ford Motor Company. routine calls are made to dealerships to check the quality of cars delivered to them.m. incorporated in 1994 as a 50-50 joint venture company with the C. located roughly 45k.K. Presently offering seven different models. advanced service equipment and dedicated consumer satisfaction are the are its plus points which is being followed by the entire industry. This is an honour as it its only the second time in automotive history that the same brand/manufacturer has received both the awards in the same year. At Mahindra's dealerships are present trained professionals who provide the best levels of service in India.1700 crore.C (New Overall Vehicle Audit .Customer) wherein daily random checks are conducted from a customer's point of view. Its intensive manpower training. currently Ford has a 78% stake.

The sales volume in 2003 was 15. first one is ‘South Delhi Toyota’ and second one is in Moti Nagar in which I have visited during my survey. Brochures to the customers. These included 9191 Chevy Optras in Entry 'D' Luxury sedan segment. With sales volume going up. in the western state of Gujarat. They work by dividing their work like in one showroom they have separate teams for every product like relating to Corolla it comprises of 7 or 8 executives who handle all the work weather it is of sale or any enquiry or telemarketing call that team must have some specific target to achieve.In India. In 1994. Toyota Motor Corporation is the third largest automaker in the world. the market share of GM India has gone to nearly 2%. GM India entered into a 50% Joint Venture partnership with Hindustan Motors and modernized the 45. basically they work for creating a lifetime customer. They reach to the customers either by distributing Leaflets. Recently they organized one drawing competition between the kids of their existing customers just to interact with the customer and build loyalty of their company products. 8369 Opel Corsas and 8417 units of the new generation premium multi-utility vehicle (MUV) Chevrolet Tavera. The plant produces the Opel Corsa. GM bought the holdings of Hindutan Motors and GM India became a 100% subsidiary of General Motors Corporation of USA. 45 kilometers northwest of Vadodara. Dealer in Moti Nagar which is “Galaxy Toyota” have predetermined mission that-Customer comes first and everything they do is to meet their customer needs. the company sold a total of 26. 1999.000 units. They collect customer database from Directory (Yellow Pages) or through customer references even they solve customers query online and give information through e-mails. The existing GM India plant was originally built by Hindustan Motors.166 cars as against 15. In February. GM India is expected to register a growth of 90% over 2003. and Chevrolet Tavera. GM strengthened its presence with new product launches Chevrolet Optra in 2003 and Chevrolet Tavera (Multi Utility Vehicle) in 2004. They judge their customer 61 .155 cars in 2003 registering a growth of 73% while overall passenger car growth during the year was only around 23-24%. The Chevrolet Forester and Opel Vectra are sold as CBUs (Completely Built in Units) and as imported from Japan and Germany respectively. Corsa Sail. Similarly in 2004.155 units while 2004 figure is expected to be around 27. In 2004. Chevrolet Optra. They have 34 dealers in India and in Delhi they have 2 dealers.000-square-meter plant near Halol.

I have visited one of them. events. adjustment and lubrication that will keep vehicle in the safest and most efficient condition. They target either existing or their perspective customers by giving advertisement in the newspaper or through there satisfied customers 62 . various cash discounts like currently they are running one discount scheme on purchase of any of their car (Innova. which will help them to improve their service. they provide one booklet in which they give simple and useful tips for maintenance of the car. which will ensure that vehicle. They target only high profile customers. This Credit Card will give Toyota customers a better payment flexibility and convenience. like Customer gets free service voucher with the card.satisfaction by analyzing that repeat buyers are more or not & moreover they have customer feedback form in which they can analyze customers background and can forecast customer future demands. In New Delhi they have 6 dealers. To promote their product they organize exchange mela. Personal accident insurance coverage: Up to 20 lakhs etc. They have 20 dealers in 42 different cities around India.7 month. They do road shows to attract customers. HONDA Honda is one of the leading manufacturers of automobiles and power products and the largest manufacture of motorcycles in the world. which is in Najafgarh Road. They build customer loyalty by giving happy calls to the customer after sale of every 1. They provide 4 free services after sale and with full clean diesel. is kept in best able-bodied at all times. They have one Guest Book in which they store valuable comments of customers. They do surveys to know customers need. All employees of Galaxy Toyota shall consider how they should act and how they might change their ways to benefit the company. The maintenance schedule may include periodic inspection. Toyota) they are giving free accessories worth Rs15000.3. Special Invite to co-sponsored events. They offer good schemes like providing free Test Drive worth Rs 250 petrol at the time of sale of any car. They launch one “Co Branded Credit Card” to provide additional benefits and services to the Toyota customers. They provide Periodic maintenance schedule. which they think are very important for them.

which give references. They don’t believe on targeting competitor’s customers because by not
doing so they have such a brand reputation with good quality products, only through this they
are able to make good sales.

They display their models in 8th Auto Expo, which held in New Delhi. They are now
focusing on their new model ‘Civic’. Honda's Civic perhaps drew the maximum
attention. The reason is simple: Civic is a new car from the house of Honda. During
my survey I get to know that Honda City Model is the second largest selling car in the
‘C’ segment. They have a good superiority with superior brand name in the country.

They prefer to have mode of communication with the customer through mail,
telephone and sometimes by letter. Customers who don’t have time even to see the
model or to call the dealer to make inquiries about their reservation they desire to
solve their query online itself.

To judge customer satisfaction they some times invite their customers to have a get together,
to have interaction with customer in a minute to know that are they satisfied with their
services and what they are expecting from them in the near future. They make maximum of
their sales from the fresh customers rather than their repeat purchasers. To increase their sales
they try to extort surreptitious information from the customers and on their end they aim to
ensure that the product quality and product quantity should be available in required quantity
in their dealership.

They have Feedback form in which they take feedback of the customer as well as their
salesperson because through this they are able to get the information of both the customer &
their salesperson that are they giving the full information to the customer. This Dealership
even provide technical skills and techniques to their employees that how to deal with the
customer thoughtfully every after 6 months.

63

NEED FOR CRM IN AUTOMOBILE INDUSTRY

The global automotive industry exhibits most of the characteristics of mature industries and
closely follows their business cycles. While vehicle industry sales have been strong for the
past several years, they have started to slow recently due to the current global economic
slowdown. Deteriorating economic conditions result in a drop in consumer confidence, which
quickly impacts automotive sales due to their big-ticket status and the relative low cost of
extending the life of an existing vehicle through maintenance and repair.

The advent of the Internet as a research tool (75 to 80 percent of auto consumers research
using the Internet) has shifted power to consumers, further increasing pressure on prices. At
the same time, government regulation and consumer demands for sophisticated features have
increased development, production, and marketing costs. Regional economic fluctuations
favor consolidation among car companies, suppliers, and retailers -resulting in fewer, larger
companies that have more complete product lines targeted at existing and new markets.
Consolidation has heightened competition in all vehicle segments. Low-cost manufacturers
are expanding beyond their home markets with entry level vehicles, traditional passenger car
manufacturers are expanding into the light truck markets, and luxury manufacturers are
moving down market with passenger cars and SUVs. As a result of these product and market
extensions, consumers find it difficult to exhibit brand loyalty because vehicles have unclear
brand identities, similar features, and comparable prices. In addition, an overpopulation of
dealers has resulted in local and regional competition among same make dealers. This further
reduces margins and damages the brand images the car companies spend large amounts of
money to build.

Relations between the car companies and their suppliers traditionally have been difficult. In
response to competitive pressure, suppliers have been forced by the car companies to provide
higher-quality components at constantly lower costs. The resulting decrease in margins and
the reduction in volume due to slowing sales have increased the pressure to consolidate and
forced some suppliers to the brink of bankruptcy. Dealers too have a long history of
adversarial relationships with the car companies. Independent entrepreneurs who view some
of the car companies with skepticism or serious mistrust, dealers believe that many
manufacturer-sponsored customer satisfaction programs are actually designed to force

64

smaller dealers out of business or to gain control of customer relationships that the retailers
believe they "own."

These difficult relationships have prevented car companies and dealers from maximizing the
lifetime value of their combined customers. There are few incentives or efficient methods for
dealers and car companies to share critical data, resulting in ineffective management of
product, service, and household information. In addition, consumers receive conflicting
marketing communications from the two groups, which results in reduced brand value.

KEY INDUSTRY PAIN POINTS

 Decreasing sales and market share - The long-term battle for market share
continues to intensify. In the mature automotive industry, where business cycles
drive sales fluctuations, market share is critical to survival. Consumers are less
brand-loyal than in the past, and every market segment has an increasing
number of vehicle choices. To increase sales and gain ground in the market
share battle, companies must improve their ability both to acquire first-time
customers and to develop customer loyalty to their current brands. To achieve
these related objectives, companies must set an aggressive goal -deliver the
best customer experience in the automotive industry.
 Difficult dealer relationships and a lack of dealer collaboration - As the
consumer 's primary touch point ,the dealer network is a critical component of
customer-facing operations. Therefore, the integration of the dealer network is
absolutely essential to improving the quality of the customer experience. Only
with an infrastructure that enables the effective flow of information to and from
dealers can companies create a complete view of their customers. Car
companies must take the initiative in understanding the customer 's perspective
throughout the buying cycle.

 Lack of multichannel capabilities - With the advent of the Internet as a
research tool, the majority of customers are accessing the automotive
enterprises through several different channels. Many times, the switch between

65

and visit a retail store within days or even hours of an initial contact. Rationalizing these systems offers significant cost savings. companies must be able to capture these multiple interactions. In addition. and marketing is more critical now than ever before. global automotive enterprises operate a wide variety of IT systems in their various business units and functional groups. programs. and touch points.  Complex data governance requirements . While customer 66 . products.  Lack of effective information sharing . internal alignment between business units and functional groups is required to create a unified view of consumers. and services. channels happens very rapidly as a prospect or customer can view a Web site.Cost reduction is an ongoing competitive requirement. each business unit. To improve customer satisfaction and secure customer lifetime value. Just as supply chain management must be supported by a sophisticated information infrastructure. and brand operates through independent systems. and true integration of core competencies. Only by sharing customer information can customer lifetime value be maximized among different groups. provide seamless management between channels. Currently. As a result. make a phone inquiry. and most important.Global automotive enterprises have large. Synergy between traditionally independent business units such as captive finance companies and between functional groups such as sales. service.  Inefficient demand chain planning and high associated IT cost . complex information technology ecosystems.Car companies must integrate global operations in order to achieve the benefits of consolidation -cost reduction. functional group. efficient lead generation and management. effective demand chain management also requires the right supporting infrastructure. leading to significant inefficiencies. In addition. lack of coordination. there is limited synergy across the ecosystem. and effective promotions and campaigns. an inability to maximize "share of wallet "from every customer through well-targeted marketing and cross-selling. and leverage shared customer information to create rewarding experiences and to develop and execute highly targeted marketing campaigns. effective communication. enabling car companies to fully leverage each customer relationship through exceptional customer service.

and provide employees with the training necessary to service customers in a volatile and demanding market.In today 's fast-paced business environment. instill a common corporate culture across a geographically dispersed and diverse workforce. automotive companies need to ensure that their most valuable asset -their employees -have immediate access to the critical information. equip employees with effective search tools to access corporate knowledge bases. Global automotive enterprises must be able to enact and enforce consistent policies across business units. Target Marketing Procedure Of Various Companies TARGET SEGMENT To reach to rural and lower middle class consumers. and applications required to be productive. it must also be protected. They begin with small concentrated markets appealing to local culture and aspirations of the targeted area 67 . enhance customer relationships.  Difficulty managing employee relationships . work collaboratively. and maximize productive time. services. Organizations must enable employees to make better decisions. Proper management of customer information requires a sophisticated capability to manage a variety of access rules and to accommodate legal restrictions that can change very quickly. The trust required for successful collaboration between groups in the automotive enterprise must be built by demonstrating that customer information can be shared while observing these complex requirements. information must be shared within this ecosystem in order to fully maximize global operations.

STRATEGY THEIR STRATEGY IS TO CAPTURE THE RURAL MARKET BY EMPLOYING WOMEN WHO BELONG TO THEIR LOCAL COMMUNITY THROUGH WHICH THEIR PRODUCT CAN REACH TO LOCAL CONSUMERS. 10. ITC’s extensive India-wide distribution network enables its greeting cards reach over 12. or through radio. their policies were flexible and they could adapt to fast changing marketing situations. In this way many educated women get work in rural sector and on the other hand HLL Corporate Social Responsibility (CSR) also increases towards society by introducing educative programs for the benefit of the rural sector Mode of Communication They reach to customers by giving advertisements in the T. E-mail usage. communication media like telephone and mail facility this mode of communication is possible to a great extent.000 greeting card designs have reached these outlets with the help of ITC's web-enabled e-commerce model –Communication Model ITC markets Opportunity 68 . In the last three years. Through Internet.V. THEIR STRATEGY IS TO PROVIDE WORK FOR WOMEN TO CREATE AWARENESS AMONG CONFINED CONSUMERS Process They started with Project Shakti in which their basic aim is to educate a rural person about their products through women who belongs to their own local community and who can communicate well in their language with them.000 multi brand outlets in over 700 cities across the country. through wall painting. mela or local bazaars and most importantly. or through promotional activities like weakly haats.

is divided between ITC. This could be an emerging revenue earning opportunity for content providers. But many greeting card sites are moving from a 'free' to a 'pay' mode. The greeting card market in India is estimated to be around Rs. controlling 60 per cent of the market. Archie’s and Hallmark. These days’ consumers are looking for convenience and instant gratification. The unorganized sector in the greeting card market will be close to 40 per cent. Communication media like the telephone and e-mail facilitate communication to a great extent. The organized sector. 250 crore in terms of yearly consumer spent. While Archie’s has licensing agreements with international greetings brands 69 . Threats 'Expressions' which is a competitor of ITC in this segment is currently the second biggest greeting card brand in India with a market share of 20 per cent. ITC has a five per cent share in the stationery market.

- Limited Rarely Average 0% 0% Quite Frequently 33% Frequently 67% 70 . - Ford India . - Limited Hyundai Motors . 2 . - Tata Motors 3 2 . 2 . - India Ltd General Motors . FINDINGS FROM SURVEY Total Number of Respondents: 15 Officials Number of Respondents Maruti Udyog Limited 5 Hyundai Motors India Ltd 2 General Motors 2 Tata Motors 5 Ford India Limited 1 Do you face problems in maintaining good and effective relationships with customers? Quite Frequently Average Rarely Frequently Maruti Udyog 2 3 . 1 .

across all socio-economic & lifestyle groups. in just 6 years of HMI's young life. a much admired lifestyle brand in Europe and elsewhere. corporate lease and fleet management and resale of pre-owned cars in partnership with its dealers. the company’s endeavor is to be close to the customer. The way they look at it is that this will provide complete mobility solutions to the Maruti customer. For the first time. backed by the leader brand. scaled up state-of-the-art manufacturing capacity. to anticipate and fulfill their needs. auto finance. launched global-standard cars in rapid succession and exported cars made-in-India across the globe. assurance and convenience. Getz. They have therefore. the new initiatives enable them to offer Maruti owner’s greater value. car customers in India are able to access these services through a one-stop shop. For HMI's focus and commitment to the Indian automobile customers is of critical importance. is a step in 71 . How well can your company identify its end user customers?  Maruti Udyog Limited: According to the officials of MUL. established nationwide sales & service network. With changing customer needs its quite obvious that maintaining good relations with customers need an effort on part of the Dealers and Manufacturers.  Hyundai Motors India Ltd: According to the officials of Hyundai Motor India is at a very exciting stage in India today. they need to continuously work on building their corporate reputation while aggressively positioning their products.Findings: According to the responses of the respondents it can be concluded that all the respondents face problems in maintaining good and effective relationships with customers. In order to strengthen their position further in the Indian market. They are experiencing tremendous growth - which is a true sign of enjoying customer confidence. This also enables them to extend their relationship with the customer beyond the point of purchase to the entire ownership life cycle. Maruti offers auto insurance. Since these services play a vital role in the car customer's ownership experience. They believe that the new business initiatives taken by MUL have expanded the scope of this relationship. Its been their continuous endeavor to fulfill the entire spectrum of customer needs and desires.

Ford India continues to expand its distribution network and will grow to 115 dealer outlets in 79 locations by the end of 2005. a global corporate identity program to offer a world-class purchase experience to the customer. the same direction and is a cutting-edge. and the ability to translate them into customer-desired offerings through leading edge R&D.  Ford India Limited: According to the officials of Ford India has reaffirmed its commitment to enhancing the purchase and ownership experience for its customers with the rollout of Ford Brand@Retail concept across the country. Can your company differentiate its customers based on their value to you and their needs from you? Yes No Maruti Udyog Limited 5 - Hyundai Motors India 2 - Ltd General Motors 2 - Tata Motors 5 - Ford India Limited 1 - 72 . The company leverages its global expertise to manufacture and market well engineered and safe products through its well- established retail network that provide an excellent ownership experience to its customers. which offers great value-for-money products to its customers.  Tata Motors: According to the officials of Tata Motors the foundation of the company’s growth over the last 50 years is a deep understanding of economic stimuli and customer needs. addition to HMI's extensive product portfolio.  General Motors: According to the officials at General Motors is positioned as a mature and responsible car manufacturer. sales. technical and non-technical aspects of the business and in the financial management of the dealership. The officials also mentioned that Ford India provides training support to dealers in areas including customer satisfaction. Ford India has been revamping all dealerships under the Ford Brand@ Retail.

Maruti's consistent performance over the past several years has resulted in a steady increase in the percentage of its customers who say they intend to remain loyal to the brand. it is essential that we should have multiple avenues of one-to-one interaction with our customers. As a major step in this direction they have started Call Center service with toll-free number for the people of National Capital Region in year 2000. Customers in over 700 cities/towns across India can contact them any time during the day and all days of the week. named Anytime Maruti. This service. is now available nation-wide. No 0% Yes 100% Findings: According to the respondents (officials) at all the Five Automobile Majors their company was able to differentiate its customers based on their value to them and their needs from the company. The Anytime Maruti Call- center can also be accessed using telephones on other networks by dialing 09811801515 73 . This is important for the automobile industry because the dynamics of selling cars is changing and manufacturers and dealers who fail to meet the rising needs and expectations of their customers will lose out to those who can. it is accessible from any fixed-line or mobile phone of BSNL/MTNL network across the nation. n order to be closer to the customers. How well do you interact with your customers?  Maruti Udyog Limited: According to the officials of MUL. their overall strength lies in building an organization that is sharply focused on the voice of the customer. Buying a new car is an experience customer will remember for a long time and ensuring that this experience is a satisfactory one is essential in building brand loyalty and customer advocacy. The toll-free service is 1800 1800 180.

across the country.specially equipped Santro that can provide emergency service to all its customers anytime.  General Motors: According to the official at GM. For prospective buyers. and international quality press. machinery. With their 24-hour workshops. and the locations of our numerous service stations. Anytime Maruti helps customers to learn more about their Maruti Cars and also about other services offered by Maruti. Customers can be assured of yet another great moment from General Motors. Widespread sales and service outlets across the country ensure that you have the assurance of great service wherever you travel in India.26924645 (For all GSM Connections / Landline other than MTNL & BSNL numbers) for any queries & customer complaints. they have introduced the GM Service Plus – a unique cluster of services. when they use it the least. Anytime Maruti can help them deciding amongst various Maruti Models and benefits of buying from Maruti. body and paint shops.  Ford India Limited: According to the officials at Ford solutions aims to provide quality. customers can now conveniently get their car serviced. value added services. Hyundai also has a fleet of 78 emergency road service cars . customers can call 24-hour assistance at 30308080.  Tata Motors: according to the officials of Tata Motors the company has strengthened its distribution and customer care network and today has 77 dealers and 230 authorized service outlets spread across 119 locations in India. The objective of this service is to ensure that customers have quick and easy access to all information on their models. The customers can also call on 1800-11-4645 (Toll Free . So be it emergency assistance. thereby providing a one-stop shop for a Hyundai customer. (not toll-free). finance options. designed to compliment every aspect of owning a car and ensuring complete peace of mind. The unique 3- hour service programme comes with a promise of servicing your car in just 3 hours. an urgent car servicing or even sourcing genuine accessories. peace-of-mind products for the customer and embodies a brand 74 . to bring greater value and service to customers. or you get the service free.  Hyundai Motors India Ltd: According to the officials at HMI The Company has set up more than 70 dealer workshops that are equipped with the latest technology. dealers. anywhere. prices. For any car related query or emergency requirement.Only from MTNL & BSNL numbers) 011.

Your Ford Dealership is simply the best place to have your vehicle serviced. 75 . When your vehicle needs a repair or a component replaced. batteries or anything your vehicle may need. your dealership is the place to get it. you need Quality Care service. Ford Solutions serve to develop products for Ford and the Dealer body that enhance customer satisfaction. Brakes. Customers can place a online service request at Ford.synonymous with its ability to provide products that can be tailored to suit one's individual needs. shocks.

76 . - Motors India Ltd General 2 . - Ford India 1 . - Motors Tata Motors 5 .How well does your company customize its products and services based on what it knows about its customers? Highly Somewhat Not Customer Customer Customer centric centric centric Maruti Udyog 5 . - Limited Hyundai 2 . - Limited Somewhat Not Customer Customer centric centric 0% 0% Highly Customer centric 100% Findings: All the officials of the Automobile Majors agree that all products and services are highly customer centric and based on the information they know about the customers.

Does the company have established quality assurance processes? Yes No Maruti Udyog Limited 5 - Hyundai Motors India 2 - Ltd General Motors 2 - Tata Motors 5 - Ford India Limited 1 - No 0% Yes 100% Findings: According to all the respondents their respective companies have established quality assurance processes. 77 .

They have been targeted at different segments and they presently witness a healthy mix. Though it is an international product. They have put in place a customer contact programme where they interact with customers in groups as well at an individual level at regular intervals to assess their needs and overall experience with their product. At Hyundai Segment-needs and budgets are specific and a suitable variant strategy is inevitably required to meet different segment-needs and to be a volume player in the segment. The variants are decided after considerable research.Does the company take customers' needs into consideration when selecting and implementing technology? Yes No Maruti Udyog Limited 5 - Hyundai Motors India 2 - Ltd General Motors 2 - Tata Motors 5 - Ford India Limited 1 - No 0% Yes 100% Findings: According to all the respondents their respective companies take customers' needs into consideration when selecting and implementing technology. the car has been totally re-engineered for Indian market requirements. 78 . As this segment evolves they rationalise the variant strategy and add or delete variants to meet market requirements. As per officials of GM the Tavera is a classic case of an India-specific product.

The typical Indian consumer looks for value and does not mind paying a little more for it. Employee and Dealer Training is a part of every company Customer Service Initiative. Does the company provide its employees with technology that enables them to help customers? Yes No Maruti Udyog Limited 5 - Hyundai Motors India 2 - Ltd General Motors 2 - Tata Motors 5 - Ford India Limited 1 - No 0% Yes 100% Findings: According to all the respondents the company provides its employees with technology that enables them to help customers. Does the company maintain a strategy for collecting and using information about customers? Yes No Maruti Udyog Limited 5 - 79 . Fuel efficiency. airconditioning and reliability along with ease of service and low cost of ownership are major considerations during the purchase process in India. This enables them to provide the customers with state of art products and service to customers.

Companies use Informal Meetings. According to the officials Customer and Supplier Feedback are gathered through Call Centers.Hyundai Motors India 2 - Ltd General Motors 2 - Tata Motors 5 - Ford India Limited 1 - No 0% Yes 100% Findings: According to all the respondents they have proper information about their most profitable customers. The most effective companies like Tata Motors use all the above while most of other track the data during sales interaction. - Motors India 80 . Mails and Direct Interviews. How effectively does the company combine information on customers with its experiences to generate knowledge about its customers? Highly Effective Somewhat Not Effective Effective Maruti Udyog 4 1 - Limited Hyundai 2 . There are other methods too but the above three are the most cost effective. All the Automobile majors surveyed used CRM software for tracking Customer Information. Sales Interaction and calls to collect relevant information needed to maintain good customer relationship.

- Limited Not Effective 0% Somewhat effective 20% Highly Effective 80% Findings: All the 80% officials of the Automobile Majors their company highly effective in combining information on customers with its experiences to generate knowledge about its customers while 20% said that the company was somewhat effective. - Motors Tata Motors 3 2 - Ford India 1 .Ltd General 2 . 81 .

Hyundai offers service for less. Correct Quantity & Correct Location and 5S – Sorting. TPM (Total Productivity Maintenance). 82 . The campaign has been initiated across the Hyundai vendor fraternity. Service was identified as a powerful differentiator to the way things were done and word of mouth did the rest. It was one of the ways to keep the Hyundai customer within our fold. The campaign will also help the suppliers to improve their 3C5S (3C – Correct Container. which were reliable and of high quality. low-cost vehicles. Standardizing & Self- Discipline). overall honesty and integrity of the dealership personnel and sufficient time to make the decision. Maruti entered the Indian car market. When Hyundai forayed into the Indian market it moved quickly to set up a network of dealers and service stations . It also offered customers a friendly sales and after sales service. benchmarking activities and upgrade quality systems. training and improve the Tier 2 suppliers. Systematizing.  According to Hyundai Motors (India) Officials: Hyundai's big hit was its compact family car named Santro which became a huge hit with its launch and capture hearts of millions with increasing satisfied customers day by day. Hyundai Motor India Ltd (HMIL) launched “Achieve Q1P1” quality campaign on March 24. which can't be repaired by a corner mechanic. Shining.1 Quality & Brand image. these are advanced cars. to provide fuel efficient. Also. accounting for 37 per cent of the SSI score. With high customer satisfaction ratio and Total automobile value these objectives shaped Maruti as big Giant in the field of automobiles. it's easily reachable and allows flexibility and customers appreciate that.it has close to 260 of the latter. This new initiative will strengthen the Vendor quality organisation and will ensure the major part quality improvement such as Six Sigma Activity. and includes issues such as fulfillment of commitments and lack of hassles during the sales process.What steps has the company taken to improve the total experience of its customers?  According to the Maruti Udyog Limited Officials: Sales experience is the most important factor. 2006 primarily focusing on achieving the Global No.

They have consistently adapted the specification of the Ikon to ensure it meets the needs of Indian consumers. They have also developed a hydraulically activated clutch system. They look for customers for life who will have a choice of products to buy from their stable. products which have progressive styling and are great to drive. which has received a very positive response and given us rich dividend in terms of brand building and imagery. A product refreshment plan ensures that they remain competitive and are ready to meet future challenges in this segment. The Intensified Customer Concern Definition (ICCD) is a telephone survey of customers conducted to assess problems in three areas: They recognise the need for additional products. However. FIL was the first subsidiary of a multinational car manufacturer in India to launch a car designed specifically for India.According to Ford India Limited officials: Presently Ford is offering seven different models. They also have a regular Customer 83 . Ford India Limited (FIL) is catching up fast with the Indian consumer. Satisfying our customers They have introduced initiatives to assess customer satisfaction and to act on their concerns. This is part of a continuous improvement process. They have recently launched a limited edition of 150 cars. improved ground clearance and upgraded air conditioning to satisfy the specific needs of the Indian customer. They have improved the horn and the steering column switch so that they are more robust. • Vehicle quality concern • Design and general comments • Negative sales and service  According to GM officials: General Motors target is to offer a choice of products to their customers to match their different needs and budgets. They are already present in most segments and will shortly have products in additional segments. they are focusing on the fast growing MPV segment with the Chevrolet Tavera and have invested substantially in this product line. they have access to a range of products through their global alliances. They have refreshed the product through continuous product improvements and have emerged as segment leader in fuel efficiency. They are working towards introducing products to match our customer’s dynamic lifestyle. Being the world’s largest car manufacturer. Sustained brand building efforts coupled with intensive ground-level activity has ensured that Optra has remained among the top two players in its segment. the new combination switch has proved so effective that it is used worldwide.

1. TATA Motors use a manual dealer management system. Established in 1945 as TATA Engineering & Locomotive Company (TELCO).  Collaboration between vehicle manufacturers and dealers. a more comprehensive view of customers.  According to Tata Motors Officials: TATA Motors is India's foremost. the environment produced inconsistent data. making interpretations difficult and resulting in inefficient planning for capacity and spare parts. a cyclical business environment. Tata Motors implemented Siebel Automotive. improve capacity planning and increase profitability. enhanced customer experiences and improved loyalty. A strong feedback mechanism and interface for communicating with customers. It is today one of the biggest and most prominent companies in the TATA group. IBM created a Siebel solution to provide a DMS solution for TATA Motors and then provided a reliable and scalable IT infrastructure for developing and deploying its DMS application. TATA Motors was also previously known as TATA Engineering. So far. the company is today among the world's top 10 producers of commercial vehicles.  Improved accuracy of dealer-captured information. with an annual revenue of $1. to manufacture locomotives and other engineering products. Relation Management programme whereby existing customers are offered loyalty programmes and great offers. Faced with increasing competition from abroad. The IBM solution has simplified the IT infrastructure for TATA Motors. a comprehensive customer relationship management (CRM) solution 84 .8 billion in 2001-02. The benefits include .low total cost of ownership. With reengineered business process. With legacy-based systems. where every dealer managed details. The winners of these rallies are given healthy cash rewards. TATA Motors chose IBM as its partner to provide an infrastructure solution. the company can also analyse customer interactions and other information more accurately. and the challenge of a widely dispersed dealer network. they have organised six Optra Max Mileage Rally meets where Optra customers compete to extract the best fuel efficiency out of their cars and all participants are treated to an overnight stay at an exotic locale with an evening of entertainment. Today TATA motors' vehicles run in more than 70 countries. TATA Motors required a standardised solution that would provide them with:  Increase in sales and profitability by easy management. and the only fully integrated automobile manufacturer. These vents go a long way in building goodwill and brand loyalty.

Tata Motors established a crash-testing facility. and reduced costs. Several cases have been cited where passengers driving Tata vehicles have been saved after terrible accidents. How much 'influence do customers' needs have on the company's products and services? Very High Substantial Very Low Maruti Udyog 3 2 - Limited Hyundai Motors 2 . the only one of its kind in the country. The company believes that this factor has been vital to the success of the Indica and other products under the company’s passenger car unit. Apart from providing its customers with high performance automobiles. Commitment to quality manufacturing standards 2. in Pune in 1996. - India Ltd General Motors 2 . Siebel Automotive has delivered significant benefits across the extended organization. The key things that the critical people spend time on 1. Seamlessly integrated with Tata Motors’ dealer management system and SAP back-office applications. The small workforce of 21 members including engineers aims to control the serious risks and intrusions in accidents. increased revenue and productivity. Global expansion Norms. including improved customer satisfaction. Customer Safety and satisfaction 4. Developing new products 3. Tata Motors strongly believes in customer safety. -- Limited 85 . designed specifically for companies in the automotive industry. - Tata Motors 2 1 2 Ford India 1 .

Very Low
13%

Substantial Very High
20% 67%

Findings: All the 67%(10) responding officials of the Automobile Majors customer
needs have a very high influence on company’s products and services while 20%(3)
respondents said that it had substantial influence while 13%(2) respondents said that
customer needs had very low influence on company’s product and services.

ANALYSIS

Corporates, don't talk about exceeding customer satisfaction - that's passe - the time has come
to `dazzle the customer'. But to do that, first you must get customer relationship management
(CRM) in place. In the context of India, this is very crucial as the recent World Economic
Forum Report on Global Competitiveness has ranked India 43 out of 49 nations surveyed, on
`customer orientation'.

Managing customer relationships is not only complex but is also multi-faceted and thus calls
for an inter-disciplinary approach. Particularly, as in the New Economy, the customer has
become very demanding and the emphasis needs to be on being consumer-centric.
Technology solutions as applied to various front-end functions could aid in building a viable
link between the organisations and customers irrespective of geographical separation. This
86

has to be backed with appropriate systems and processes to mine the right type of data by the
right function in an organisation.

Besides technology, systems and processes, another important link is human resource, If
CRM is the key, HR would be the nerve centre for any CRM activity.

At Maruti Udyog Ltd the first step for a company to enhance value through CRM was to
identify its target base. At Maruti, the categories which emerged were:

* Two-wheeler owners;

* Customers taken away from the competition;

* Services sector.

After identifying the target, the next stage was to build on customer relationships. Maruti,
therefore, began evaluating the current database of consumers to identify those who wanted
Maruti service or better still, wanted to upgrade up the value chain in Maruti products. Third,
it began working in tandem with the oil industry to get data feedback on two-wheeler
consumers-and identify those ready to move into four-wheeler purchases. Ultimately, CRM is
all about value enhancement for the organisation.

Faced with increasing competition from abroad, a cyclical business environment, and the
challenge of a widely dispersed dealer network, Tata Motors implemented Siebel Automotive,
a comprehensive customer relationship management (CRM) solution designed specifically
for companies in the automotive industry. Seamlessly integrated with Tata Motors’ dealer
management system and SAP back-office applications, Siebel Automotive has delivered
significant benefits across the extended organization, including improved customer
satisfaction, increased revenue and productivity, and reduced costs.

The Siebel CRM solution enables Tata Motors to gather feedback on products to improve
design or manufacturing quality as well as measure the effectiveness of marketing campaigns
and programmes. The automaker selected Siebel Automotive because of its partner
management capabilities to handle its large dealer network, the solution's zero-footprint web-
based architecture and user-friendly interface-critical to support thousands of salespeople
with various skill levels.

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 Improved demand forecasting, planning, logistics management, and inventory
management
 Overall reduction in quality-related costs due to faster product performance
feedback
 Improved workflow and escalation of customer grievances for faster resolution
 Increased revenue growth from both higher vehicle sales and a rise in the
company's after-sales parts business

Limitations of the Study

Since the road to improvement is never ending, so this study also suffers from certain
limitations. Some of them are as follows:

 Because of illiteracy, it was a time consuming method in which continuous
guidance was required.

 Questionnaire method involves some uncertainty of response. Co-operation on
the part of informants, in some cases, was difficult to presume.

 It is possible that the information supplied by the informants may be incorrect.
So, the study may lack accuracy.

88

Maruti Suzuki stands for value as much as it stands for performance. you don’t buy a Maruti Suzuki. In the JD Power CSI study 2005. You invest in it. we try our best to keep prices down. According to TNS Automotive. CONCLUSION The price of a car is just one-third of what it cost you over its lifetime.000 new car buyers. 89 . Take into account resale value and its real cost becomes clear. vehicle performance and design. The study is one of the largest syndicated automotive studies in India. representing the responses of more than 7. After the rash of new cars launches the past two years. Their running costs and resale values are unbeatable too. the relative lull in the auto industry is showing up in the customer satisfaction indices. product quality. In spite of rising input costs. the automobile ownership experience or customer ownership experience has declined in all areas compared to 2004. 85% of Maruti Suzuki owners stated that they would definitely recommend the car they drive to someone else. the decline is predominantly for older. small and entry mid-size car models. Nothing matches the delight their cars deliver. Infact. Running and maintaining it make up the other two-thirds. The TCS index score provides a measure of satisfaction and loyalty a given model enjoys with its customers. The ageing of these models seems to be posing a stiffer challenge for manufacturers to sustain past performance levels at a time when customer expectations are rising sharply. brand image. after-sales service. and cost-of-ownership. The comprehensive study covers over 50 models with customer evaluations taken in the key areas of sales satisfaction. According to the 2005 four-wheeler Total Customer Satisfaction (TCS) study conducted by the specialist division of TNS Automotive.

with the two vehicles achieving segment-best ratings by performing well in areas of greater relevance. Sales satisfaction is weak in both these models. This year's study shows the Maruti Suzuki Swift and the Toyota Innova as the winners. 90 . particularly product and brand image.The study reveals a significant increase in the importance of sales satisfaction. indicating rising customer expectations over the years. largely because of the longer waiting time for new deliveries. product quality (both performance and design) and brand image since 2005.

indicators and inferences from the 2005 study are: Progressive reduction in car ownership cycle-time from an average of 61 months in 2002 to 53 months in 2005: This shortened cycle-time is bringing these owners for repeat purchases sooner and will. 91 . Some of the key findings.TNS Automotive's TCS Study has.000 car buyers and hasbuilt a sizeable sample base. This trend is already visible in the growing additional/replacement purchases. therefore. since its inception in 2002. Growth in additional (multi- car households) and replacement purchases up from 51 per cent in 2002 to 65 per cent in 2005: This will impact the volume growth in higher-end segments as the current car owners show upward mobility. further fuel the growth of the four-wheeler market. surveyed over 25.

Maruti Esteem Diesel. TNS has a global network spanning 70 countries and is listed on the London Stock Exchange. Good Technology Uniform Pricing Good Strength More Coverage Area Frequent /Regular Product Launch Market Leader (with 47% share) Oriented Driven Company More Product Offering Healthy Annual Report Brand Image 92 . both in terms of volume of vehicles sold and revenue. Ford Fusion. The TCS study was conducted from August through October across 21 cities. Maruti Suzuki Grand Vitara. While first-time buyers are declining as a composition of total volumes. and Opel Corsa Sail. the figure in absolute terms is high. Maruti Udyog Ltd is one of India 's leading automobile manufacturers and the market leader in the car segment. Small sample models have not been featured in the charts.Increasing budget for future purchases: Future intenders with a budget of Rs 6 lakh plus have increased from 44 per cent in 2002 to 58 per cent in 2005. Ford Mondeo. Of course a shift in composition is also to be expected with the upper premium compact and mid-size segments projected to grow at a much faster rate than rest of the industry. These include the Fiat Petra Diesel. Hyundai Terracan. Maruti Zen Diesel. fuelled by the up-gradation by two-wheeler owners The study also throws up the question as to whether it is also possible that the first-time car buyer who is generally a two-wheeler owner. is getting more fuel efficiency conscious and tending towards postponing the car purchase decision due to the high cost of fuel.

Sieton. and Diwali to gear-up their sales Maruti should advertise in Sports because sports are increasingly cutting into the share of mass entertainment channels Maruti can start Money Bond Scheme instead of giving Cash Discount with more value. BIBLOGRAPHY 93 . encashable after a 15year period. Maximum Dealership as compared to other brands Good Sale Service Spare parts are cheap as compared to any other brand Cheap & reliable quality AREAS FOR IMPOVEMENT / RECOMMENDATION Facade/Quality of Dealership should be improve Uniform of Sales Executives Proper visiting cards should be available to the executives Mostly dealers don’t have their specific website All Japanese 5’s concept (Seiro. Dusshera. Customers eligible for an income bond. Shitsuke) should be put into practice at Dealership Maruti should regard as generous discount offers during Festival Season like Navratra. Seioetse. Sciso.

maruti. Prentice hall of India Ltd. Newspaper. Planning Implementation & Control Edition 1998. Journals. Business Today: 15-22May 2000 Name of the articles.yahoo.com www. Marketing Management Analysis.com www.com 94 . The times of India . Mumbai: 21st May 2000 www.Reference Books. etc are to be listed. New Delhi Magazines Jourals & Newapaper Name of the articles. Web Sites. Reports. out here Books Kotler Philips.google.