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PROJECT REPORT

ON

By: Naman
Class: XII-A
Roll No.: 24
CONTENTS
I. Acknowledgment
II. Preface
III. Introduction
IV. Company at a Glance
V. Profile
VI. Board Of Directors
VII. Industrial Relations
VIII. Services Offered
IX. Exports
X. Questionnaire
XI. Conclusion
XII. Recommendations
XIII. Bibliography
XIV. Remarks
Acknowledgment
I owe a great many thanks to many
people who helped & supported me
during the preparation of my
project.

My deepest thanks to Lecturer, Mr.


Vishal Jain, the Guide of the project
for guiding and correcting various
documents of mine with attention
and care. He has taken pain to go
through the project and make
necessary correction as and when
needed.
I would also like to thank my
Institution & my faculty members
without whom this project would
have been a distant reality. I also
extend my heartfelt thanks to my
family and well-wishers.
I thank everyone once again &
especially God,who made all things
possible.

PREFACE
If we can compare marketing to a long
train with a multiple compartment then
each bogie represents a different
aspect of marketing. Marketing
strategy formulation depends upon the
every aspect of related terms and,
marketing research plays vital role to
connect each compartment to form a
cohesive functional unit.
The automotive industry is at the
center of India’s new global dynamic. It
plays major roles in retaining
manufacturing industry growth over
12.5% per annum.
The motivation behind the project was
to gain clear understanding about
marketing research. Through this
project I have tried to understand the
complexities involved in gathering of
data for drawing inferences .The final
objective is to produce a result that is
accurate, useful, and free from bias.
The project has been presented in a
simple format & gives a clear-cut idea
about Maruti Suzuki (An Indian
automotive brand).

INTRODUCTION
Maruti Suzuki India Limited subsidiary
of Suzuki Motor Corporation of Japan,
is India's largest passenger car
company, accounting for over 45% of
the domestic car market. The company
offers a complete range of cars from
entry level Maruti 800 and Alto, to
hatchback Ritz, A star, Swift, Wagon-R,
Estillo and sedans DZire, SX4 and
Sports Utility vehicle Grand Vitara.
It was the first company in India to
mass-produce and sell more than a
million cars. It is largely credited for
having brought in an automobile
revolution to India. It is the market
leader in India and on 17 September
2007, Maruti Udyog Limited was
renamed Maruti Suzuki India Limited.
The company’s headquarters are
located in New Delhi.

Company at a Glance
PROFILE
Maruti Suzuki is India and Nepal’s
number one leading automobile
manufacturer and the market leader in
the car segment, both in terms of
volume of vehicles sold and revenue
earned. Until recently, the Indian
government, and 54.2% by Suzuki of
Japan owned 18.28% of the company.
The BJP-led government held an initial
public offering of 25% of the company
in June 2003. As of 10 May 2007, Govt.
of India sold its complete share to
Indian financial institutions. With this,
Govt. of India no longer has stake in
Maruti Udyog.
Maruti Udyog Limited (MUL) was
established in February 1981, though
the actual production commenced in
1983 with the Maruti 800, based on the
Suzuki Alto kei car which at the time
was the only modern car available in
India, its only competitors- the
Hindustan Ambassador and Premier
Padmini were both around 25 years out
of date at that point. Through 2004,
Maruti Suzuki has produced over 5
Million vehicles. Maruti Suzukis are
sold in India and various several other
countries, depending upon export
orders.

Models similar to Maruti Suzukis (but


not manufactured by Maruti Udyog) are
sold by Suzuki Motor Corporation and
manufactured in Pakistan and other
South Asian countries.
The company annually exports more
than 50,000 cars and has an extremely
large domestic market in India selling
over 730,000 cars annually. Maruti
800, till 2004, was the India's largest
selling compact car ever since it was
launched in 1983. More than a million
units of this car have been sold
worldwide so far. Currently, Maruti
Suzuki Alto tops the sales charts and
Maruti Suzuki Swift is the largest
selling in A2 segment.
Due to the large number of Maruti 800s
sold in the Indian market, the term
"Maruti" is commonly used to refer to
this compact car model ("Maruti" is
another name of the Hindu god,
Hanuman).
Maruti Suzuki has been the leader of
the Indian car market for over two
decades.
Its manufacturing facilities are located
at two facilities Gurgaon and Manesar
south of Delhi.

Maruti Suzuki’s Gurgaon facility has an


installed capacity of 350,000 units per
annum. The Manesar facilities,
launched in February 2007 comprise a
vehicle assembly plant with a capacity
of 100,000 units per year and a Diesel
Engine plant with an annual capacity of
100,000 engines and transmissions.
Manesar and Gurgaon facilities have a
combined capability to produce over
700,000 units annually.
More than half the cars sold in India
are Maruti Suzuki cars. The company is
a subsidiary of Suzuki Motor
Corporation, Japan, which owns 54.2
per cent of Maruti Suzuki. Public and
financial institutions own the rest. It is
listed on the Bombay Stock Exchange
and National Stock Exchange in India.
During 2007-08, Maruti Suzuki sold
764,842 cars, of which 53,024 were
exported. In all, over six million Maruti
Suzuki cars are on Indian roads since
the first car was rolled out on 14
December 1983.

Maruti Suzuki offers 14 models, Maruti


800, Alto, WagonR, Estilo, A-star, Ritz,
Swift, Swift DZire, SX4, Omni, Eeco,
Gypsy, Grand Vitara, Kizashi. Swift,
Swift DZire, A-star and SX4 are
manufactured in Manesar, Grand Vitara
and Kizashi are imported from Japan as
completely built units(CBU), remaining
all models are manufactured in Maruti
Suzuki's Gurgaon Plant.
Suzuki Motor Corporation, the parent
company, is a global leader in mini and
compact cars for three decades.
Suzuki’s technical superiority lies in its
ability to pack power and performance
into a compact, lightweight engine that
is clean and fuel-efficient.
Nearly 75,000 people are employed
directly by Maruti Suzuki and its
partners. J D Power Asia Pacific has
rated it first in customer satisfaction
among all car makers in India from
1999 to 2009.

Board of Directors
Chairman: Mr. R.C.
Bhargava

Managing Director and CEO: Mr. S.


Nakanishi

Directors: Mr.
Manvinder Singh
Ms. Pallavi
Shroff
Mr. Kenichi
Ayukawa
Mr. Amal
Ganguli
Mr. D. S.
Brar
Mr. Osamu
Suzuki

Director & MEO(Engineering): Mr. Keiichi


Asai

Director & MEO (Marketing & Sales): Mr.


Shuji Oishi

Director and Managing Executive Officer


(Production):
Mr. Tsuneo

Industrial relations
For most of its history, Maruti Udyog
Limited had relatively few problems
with its labour force. The workforce of
the company without any difficulty
accepted its emphasis of a Japanese
work culture and the modern
manufacturing process, first instituted
in Japan in the 1970s. But with the
change in management in 1997, when
it became predominantly government
controlled for a while, and the conflict
between the United Front Government
and Suzuki may have been the cause of
unrest among employees. A major row
broke out in September 2000 when
employees of Maruti Udyog Ltd (MUL)
went on an indefinite strike,
demanding among other things,
revision of the incentive scheme
offered and implementation of a
pension scheme.

Employees struck work for six hours in


October 2000, irked over the
suspension of nine employees, going
on a six-hour tools-down strike at its
Gurgaon plant, demanding revision of
the incentive-linked pay and
threatened to fast to death if the
suspended employees were not
reinstated. About this time, the NDA
government, following a
disinvestments policy, proposed to sell
part of its stake in Maruti Suzuki in a
public offering.

The Staff union opposed this sell-off


plan on the grounds that the company
will lose a major business advantage of
being subsidised by the Government.

The standoff with the management


continued to December with a proposal
by the management to end the two-
month long agitation rejected with a
demand for reinstatement of 92
dismissed workers, with four MUL
employees going on a fast-unto-death.
In December the company's
shareholders met in New Delhi in an
AGM that lasted 30 minutes. At the
same time around 1500 plant workers
from the MUL's Gurgaon facility were
agitating outside the company's
corporate office demanding
commencement of production linked
incentives, a better pension scheme
and other benefits.
The management has refused to pass
on the benefits citing increased
competition and lower margins.

Services offered
Current sales of automobiles:
Manufactured locally:
1. 800 (Launched 1983)
2. Omni (Launched 1984)

3. Gypsy (Launched 1985)

4. WagonR (Launched 2002)

5. Alto (Launched 2000)

6. Swift (Launched 2005)

7. Estilo (Launched 2009)

8. SX4 (Launched 2007)

9. Swift DZire (Launched 2008)

10. A-star (Launched 2008)


11. Ritz (Launched 2009)
12. Eeco (Launched 2010)

13.Alto K10 (Launched 2010)

Imported:
1. Grand Vitara (Launched 2007)
2. Kizashi (Launched 2011)

Discontinued car models:


1. 1000 (1990–1994)
2. Zen (1993–2006)
3. Esteem (1994–2008)
4. Baleno (1999–2007)
5. Zen Estilo (2006–2009)
6. Versa (2001–2010)
7. Grand Vitara XL7 (2003–2007)

II.Manufacturing facilities:
Maruti Suzuki has two state-of-the-art
manufacturing facilities in India. Both
manufacturing facilities have a
combined production capacity of
1,250,000 vehicles annually.

III.Gurgaon Manufacturing Facility:

The Gurgaon Manufacturing Facility


has three fully integrated
manufacturing plants and is spread
over 300 acres (1.2 km2). All three
plants have an installed capacity of
350,000 vehicles annually but
productivity improvements have
enabled it to manufacture 700,000
vehicles annually. The Gurgaon
facilities also manufacture 240,000 K-
Series engines annually.

The entire facility is equipped with


more than 150 robots, out of which 71
have been developed in-house. The
Gurgaon Facilities manufactures the
800, Alto, WagonR, Estilo, Omni, Gypsy
and Eeco.

IV.Manesar Manufacturing Facility:


The Manesar Manufacturing Plant was
inaugurated in February 2007 and is
spread over 600 acres (2.4 km2). Initially it
had a production capacity of 100,000
vehicles annually but this was increased to
300,000 vehicles annually in October 2008.
250,000 vehicles taking total production
capacity to 550,000 vehicles annually
further increased the production capacity.
The Manesar Plant produces the A-star,
Swift, Swift DZire and SX4.

V.Sales and service network:


As of 31 March 2011 Maruti Suzuki has
933 dealerships across 666 towns and
cities in all states and union territories
of India. It has 2,946

service stations (inclusive of dealer


workshops and Maruti Authorised
Service Stations) in 1,395 towns and
cities throughout India. It has 30
Express Service Stations on 30
National Highways across 1,314 cities
in India.
Service is a major revenue generator of
the company. Most of the service
stations are managed on franchise
basis, where Maruti Suzuki trains the
local staff. Other automobile
companies have not been able to
match this benchmark set by Maruti
Suzuki. The Express Service stations
help many stranded vehicles on the
highways by sending across their
repair man to the vehicle.

VI.Maruti Insurance:
Launched in 2002 Maruti Suzuki
provides vehicle insurance to its
customers with the help of the National
Insurance Company, Bajaj Allianz, New
India Assurance and Royal Sundaram.
The service was set up the company
with the inception of two subsidiaries
Maruti Insurance Distributors Services
Pvt. Ltd and Maruti Insurance Brokers
Pvt. Limited.
This service started as a benefit or
value addition to customers and was
able to ramp up easily. By December
2005 they were able to sell more than
two million insurance policies since its
inception.

VII.Maruti Finance:
To promote its bottom line growth,
Maruti Suzuki launched Maruti Finance
in January 2002. Prior to the start of
this service Maruti Suzuki had started
two joint ventures Citicorp Maruti and
Maruti Countrywide with Citi Group and
GE Countrywide respectively to assist
its client in securing loan. Maruti
Suzuki tied up with ABN Amro Bank,
HDFC Bank, ICICI Limited, Kotak
Mahindra, Standard Chartered Bank,
and Sundaram to start this venture
including its strategic partners in car
finance. Again the company entered
into a strategic partnership with SBI in
March 2003. Since March 2003, Maruti
has sold over 12,000 vehicles through
SBI-Maruti Finance. SBI-Maruti Finance
is currently available in 166 cities
across India.
Citicorp Maruti Finance Limited is a
joint venture between Citicorp Finance
India and Maruti Udyog Limited its
primary business stated by the
company is "hire-purchase financing of
Maruti Suzuki vehicles". Citi Finance
India Limited is a wholly owned
subsidiary of Citibank Overseas
Investment Corporation, Delaware,
which in turn is a 100% wholly owned
subsidiary of Citibank N.A. Citi Finance
India Limited holds 74% of the stake
and Maruti Suzuki holds the remaining
26%. GE Capital, HDFC and Maruti
Suzuki came together in 1995 to form
Maruti Countrywide.Maruti claims that
its finance program offers most
competitive interest rates to its
customers, which are lower by 0.25%
to 0.5% from the market rates.

VIII.Maruti TrueValue:
Maruti True service offered by Maruti
Suzuki to its customers. It is a market
place for used Maruti Suzuki Vehicles.
One can buy, sell or exchange used
Maruti Suzuki vehicles with the help of
this service in India. As of 31 March
2010 there are 341 Maruti True Value
outlets.

IX.N2N Fleet Management:


N2N is the short form of End to End
Fleet Management and provides lease
and fleet management solution to
corporates. Its impressive list of clients
who have signed up of this service
include Gas Authority of India Ltd,
DuPont, Reckitt Benckiser, Sona
Steering, Doordarshan, Singer India,
National Stock Exchange and
Transworld. This fleet management
service include end-to-end solutions
across the vehicle's life, which includes
Leasing, Maintenance, Convenience
services and Remarketing.

X.Accessories:
Many of the auto component
companies other than Maruti Suzuki
started to offer components and
accessories that were compatible. This
caused a serious threat and loss of
revenue to Maruti Suzuki. Maruti
Suzuki started a new initiative under
the brand name Maruti Genuine
Accessories to offer accessories like
alloy wheels, body cover, carpets, door
visors, fog lamps, stereo systems, seat
covers and other car care products.
These products are sold through dealer
outlets and authorized service stations
throughout India.

XI.Maruti Driving School:

As part of its corporate social


responsibility Maruti Suzuki launched
the Maruti Driving School in Delhi.
Later the services were extended to
other cities of India as well. These
schools are modelled on international
standards, where learners go through
classroom and practical sessions. Many
international practices like road
behaviour and attitudes are also
taught in these schools. Before driving
actual vehicles participants are trained
on simulators.

XII.Lean Manufacturing:
Maruti Production System or MPS
draws learning's from its parent
company Suzuki Motor Corporation's
concepts on `lean manufacturing'
under Suzuki Production System i.e.
SPS. Setting trends in new products
and achieving customer delight starts
with Manufacturing Excellence and
Maruti's manufacturing excellence
hinges around

four important pillars-Cost, Quality,


Safety and Productivity.

Cost
Every employee working on the line is
'cost sensitive' and functions in
capacity of a Cost Manager. He is a key
contributor in suggesting how to keep
costs of production under control.

Quality
A product of poor quality requires
repeated inspections, entails wastage
in terms of repairs and replacements.
"Do it right first time", is the principle
followed to avoid wastage.
To ensure quality, robots were devices
and deployed especially where they
reduced worker fatigue and were
critical in delivering consistent quality.
With consistent improvements in the
plant the company was able to
manufacture over 600,000 vehicles in
2006-07 with an installed capacity of
just 350,000 vehicles per year.

Safety
"Home or work place; Safety takes First
Place". This has been the motto of the
company where safety is concerned.
Maruti attaches great significance to
safety of its people and strongly
advocates that safety at work place
adds to quality of the products and
improves productivity of the plant
significantly.
In the Japanese manufacturing system,
the central role is accorded, not so
much to Quality, Productivity or Cost,
but to Safety. When process flow, lay-
out and systems are designed for
maximum safety, they automatically
contribute to better quality and
productivity.

EXPORTS
Maruti Exports Limited is the
subsidiary of Maruti Suzuki with its
major focus on exports and it does not
operate in the domestic Indian market.
The first commercial consignment of
480 cars were sent to Hungary. By
sending a consignment of 571 cars to
the same country Maruti Suzuki
crossed the benchmark of 300,000
cars. Since its inception export was
one of the aspects government was
keen to encourage. Every political
party expected Maruti Suzuki to earn
foreign currency.
Angola, Benin, Djibouti, Ethiopia,
Europe, Kenya, Morocco, Nepal, Sri
Lanka, Uganda, Chile, Guatemala,
Costa Rica and El Salvador are some of
the markets served by Maruti Exports.
QUESTIONNAIRE
Being an esteem customer of Maruti
Udyog Limited you are requested to
Take out a few minutes and fill the
following questionnaire:

Name:_______________________

Age: <25 25-40 40-55 55+

Gender: Male Female

How long have you been associated


with Maruti: 1-3 yrs. 3-5 yrs. +5 yrs.

What segment does your car fit in:


Hatchback Sedan S.U.V/M.U.V

Do you consider the Brand name during


your purchase: Yes No

Are you satisfied with the service


offered by Maruti Suzuki: Yes No

How will you rate the overall


experience with Maruti Suzuki:

Excellent Good Fair


Poor
Suggestions if any:

Would you recommend Maruti to


others: Yes No Can’t Say
Thank you for your prestigious time.

CONCLUSION
On an average more than 73% people
feel that the prices are affordable
whereas 17% do not agree, 74%
believe that attractive discounts are
offered whereas 26% are not satisfied
with the discounts offered. 20%
said that the test drives are not
offered and 15% said that post sales
follow ups are not done regularly
whereas 85% said that they were done
regularly, but people feel that Maruti
Suzuki’s the people’s car as it is
satisfactory on all other parameters:
knowledgeable sales persons,
employees spent enough time before
and during sales, display of
merchandise is attractive, availability
of product, variety of merchandize,
vehicle in good condition, affordable
prices, attractive discounts are
offered, décor of the waiting area is
pleasing, responds to complaints
quickly, service at Maruti service
station is excellent, careful with
personal information and is value for
money .

The overall opinion about Maruti is


very good.

RECOMMENDATIONS
I would like to provide certain
Recommendations towards this Project
Report. They are as Follows:-
1) I would like to suggest that the
Marketing areas for Sales should be
increased. Maruti Suzuki should try to
adopt new strategies to regain whole
sales force in the market.

2) As far as Launching of New Models


is concerned, The Company
should try to offer sales of such
products at an affordable Price.

3) The Company should try bringing


attractive offers & discounts for their
valued customers.It would make
customers more Brand Loyal towards
them.

4) Research should be carried out on a


large scale in selected areas.Ex:-
Vehicles running on Renewable
Sources (Wind,Sunlight etc.)

BIBLIOGRAPHY
Google.com

En.Wikipedia.org
Marutisuzuki.com

One Up Motors, Alambagh, Lucknow

Mr. Zubair, Anand Motors, Lucknow

E-Brochures & Pamphlets etc.

REMARKS