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Customer Retention With Maruti Suzuki Product
Customer Retention With Maruti Suzuki Product
ON
SESSION: 2009-2011
BY
VINIT SHARMA
STUDENT DECLARATION
EXAMINER’S CERTIFICATION
Date:
ACKNOWLEDGEMENT
I would like to give my sincere thanks to a host of friends and the teachers who,
think there will be always need of improvement. Apart from this, I hope this study
paper would stimulate the need of thinking and discussion on the topics like this
one.
VINIT SHARMA
ROLL NO. 520928921
STUDY CENTER CODE: 0963
TABLE OF CONTENTS
CONTENT
1. EXECUTIVE SUMMARY
o INTRODUCTION OF TOPIC
o OBJECTIVE OF STUDY
o FINDINGS
o SUGGESTIONS
o CONCLUSIONS
2. INDUSTRY PROFILE
3. COMPANY PROFILE
4. RESEARCH METHODOLOGY
WHAT IS RESEARCH
WHAT IS MARKETING RESEARCH
TYPES
PROCESS
EXPLANATION ON CUSTOMER RETENTION
OBJECTIVE OF STUDY
Executive summary
# To know about code of conduct and which rules and procedures are followed by
employees.
# To determine and compare educational development of the project-assisted and non-
assisted institutes as perceived by teachers, administrators, and current students.
Findings
# Out of the total respondents of 100 customers, 20 of the total customers come to know
about the competent automobile ltd delhi(counght place) from Auto fair medium, 25
from Media, 15 from Newspapers, 40 from friends. Most of the customers know about
competent automobile ltd from friends and media.
# All the customers surveyed at competent automobile ltd delhi (rama road) are using the
after sales service provided by the dealer.
# Competent automobile ltd can achieve 100% success in customer’s satisfaction, if they
will motivate their employees with handsome incentives & reward for creating customer
delight. Many global automotives giant are practicing this marketing strategy these days.
Suggestions
# looking to the result of the factor analysis Competent Automobiles Ltd. has to make the
future strategy by considering the 3 important representative factors like as
RELIABILITY, ATTRACTIVENESS, and CUSTOMER HANDLING.
# They must keep in their mind that the “customer is king in the market” and his full
satisfaction in respect of all the parameters are very essential other wise goal cannot be
achieved.
# Free samples should be distributed among the prospects. Sales promotion tools like
gifts, contests and coupons must be given to customers.
• Conclusion
# This Competent also handles the Customer in a very politely way after the sale of the
vehicle and is ready to give any time service.
# It had Company Authorized Service Shop where there are well trained mechanics who
quickly solves the problem of the vehicle.
# All the paper work done in purchasing the car and all the different policies are
completed by this dealer in a very short period of time which saves the time of the
customer.
Industry profile
Automobile Industry History: In the year 1769, a French engineer by the name of Nicolas
J. Cugnot invented the first automobile to run on roads. This automobile, in fact, was a
self-powered, three-wheeled, military tractor that made the use of a steam engine. The
range of the automobile, however, was very brief and at the most, it could only run at a
stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the
steam engines made them very heavy and large, and required ample starting time. Oliver
Evans was the first to design a steam engine driven automobile in the U.S.
A Scotsman, Robert Anderson, was the first to invent an electric carriage between
1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert
Davidson were amongst the first. To invent more applicable automobiles, making use of
non-rechargeable electric batteries in 1842. Development of roads made traveling
comfortable and as a result, the short ranged, electric battery driven automobiles were no
more the best option for traveling over longer distances. The Automobile Industry finally
came of age with Henry Ford in 1914 for the bulk production of cars. This lead to the
development of the industry and it first begun in the assembly lines of his car factory.
The several methods adopted by Ford, made the new invention (that is, the car) popular
amongst the rich as well as the masses.
In 2007, a total of 79.9 million new automobiles were sold worldwide: 22.9 million
in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million
in Latin America, 2.4 million in the Middle East and 1.4 million in Africa.[2] The markets
in North America and Japan were stagnant, while those in South America and other parts
of Asia grew strongly. Of the major markets, China, Russia, Brazil and India saw the
most rapid growth.
About 250 million vehicles are in use in the United States. Around the world, there were
about 806 million cars and light trucks on the road in 2007; they burn over 260 billion
gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially
in China.[3] In the opinion of some, urban transport systems based around the car have
proved unsustainable, consuming excessive energy, affecting the health of populations,
and delivering a declining level of service despite increasing investments. Many of these
negative impacts fall disproportionately on those social groups who are also least likely
to own and drive cars.[4][5][6] Thesustainable transport movement focuses on solutions to
these problems.
In 2008, with rapidly rising oil prices, industries such as the automotive industry are
experiencing a combination of pricing pressures from raw material costs and changes in
consumer buying habits. The industry is also facing increasing external competition from
the public transport sector, as consumers re-evaluate their private vehicle usage.
[7]
Roughly half of the US's fifty-one light vehicle plants are projected to permanently
close in the coming years, with the loss of another 200,000 jobs in the sector, on top of
the 560,000 jobs lost this decade.[8] China became both the largest automobile producer
and market in the world after experiencing massive growth in 2009.
Indian automobile industry has grown leaps and bounds since 1898, a time when a car
had touched the Indian streets for the first time. At present it holds a promising tenth
position in the entire world with being # 2 in two wheelers and # 4 in commercial
vehicles. Withstanding a growth rate of 18% per annum and an annual production of
more than 2 million units, it may not be an exaggeration to say that this industry in the
coming years will soon touch a figure of 10 million units per year. The Automobile
industry has strong backward and forward linkages and hence provides employment to a
large section of the population. Thus the role of Automobile Industry cannot be
overlooked in Indian Economy. All kinds of vehicles are produced by the Automobile
Industry.
The major Car manufacturer are Hindustan Motors, Maruti Udyog, Fiat India Private
Ltd., Ford India Ltd ., General Motors India Pvt. Ltd., Honda Siel Cars India
Ltd.,Hyundai Motors India Ltd., Skoda India Private Ltd., Toyota Kirloskar Motor Ltd.,
to name a few.
The two-wheeler manufacturing is dominated by companies like TVS, Honda
Motorcycle & Scooter India (Pvt.) Ltd., Hero Honda, Yamaha, Bajaj, etc.
The heavy motors like buses, trucks, defense vehicles, auto rickshaws and other multi-
utility vehicles are manufactured by Tata-Telco, Ashok Leyland, Eicher Motors, Bajaj,
Mahindra and Mahindra, etc.
The Commercial Vehicle Segment has been contributing to the automobile market to a
great extent. So as in passenger luxury cars now/ Many foreign companies
cars, same as Mahindra with Renault, hero joint ventures Honda in two
wheeler segment, ashoka with Leyland in commercial vehicle segment. The
auto market in India can boast of attractive finance schemes, increasing
purchasing power, and launch of the latest products. Investments in the
automobile industry by the foreign companies in India help in strengthening
the India’s economy.
Driving the most luxurious car has been made possible by the stiff competition in the
automobile industry in India, with overseas players gathering the same momentum as the
domestic participants.
Every other day, we have been hearing about some new launches, some low cost cars –
all customized in a manner such that the common man is not left behind. In 2009, the
automobile industry is expected to see a growth rate of around 9%, with the disclaimer
that the auto industry in India has been hit badly by the ongoing global financial crisis.
The automobile industry in India happens to be the ninth largest in the world. Following
Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of
automobiles. Several Indian automobile manufacturers have spread their operations
globally as well, asking for more investments in the Indian automobile sector by the
MNCs.
Today, vehicles are in great demand between all segments of society. With to huge
demand of vehicles, automobile industry is the fastest growing industry all over the
world. Automobile industries play a vital role in economic development of any country.
Every week a new model of car or bike has been launching to accomplish the
requirement of buyers. Various automobile manufacturing companies are in the market,
which provide a lot of vehicle according to the requirements of different segment of
peoples. Automobile companies are offering various products according to users budget.
Gone are the days, when one had to wait for their dream vehicles. Today, it is not
difficult to buy a dream vehicle because of various financial institutions. Many banks are
providing loan and converting your dream into reality. Buyer needs to pay some extra
money as interest rate for that finance amount. This amount depends on various factors
such as buyer’s credit past, finance amount, loan period and the term and conditions of
financial institution.
If we consider the Indian automobile industry, there are various companies, which are
offering all type of vehicles in the market. Automobile manufacturing companies are
offering different cars, two wheelers, three wheelers, commercial vehicles, sport vehicles
and other utility vehicles according to the user’s requirement. As we all know, cars have
become a need for today’s world. Automobile companies are offering various premium
cars to entry-level cars for the customers. There are various car-manufacturing companies
in Indian market. Some giants in manufacturing of cars are Audi, Ford, Fiat, Honda,
Hyundai, Skoda, Maruti, BMW, Mercedes, Mahindra & Mahindra, Hindustan Motors
and General Motors. Some awaited car models, which are about to launch in the year
2008 are Fiesta 1.4 SXi Duratorq, Opel GT, Aveo U-VA, Getz Next Generation, Logan,
Rhino Rover, Audi Q7, Montero, Outlander, Grandis, Santa Fe and Roomster. Tata
motors also working to produce their low budget car till the July 2008. All the companies
are offering various attractive models in different color and designs. In two-wheeler
industries, Hero Honda, Bajaj Auto, TVS Motors, Yamaha, Honda, Suzuki and kinetic
motors are offering various motorcycles, scooters and scooterettes to the market. One can
choose among the various models according to his need and budget.
In the initial years after independence Indian automobile industry was plagued by
unfavourable government policies. All it had to offer in the passenger car segment was a
1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the
Maruti 800. The automobile sector in India underwent a metamorphosis as a result of the
liberalization policies initiated in the 1991. Measures such as relaxation of the foreign
exchange and equity regulations, reduction of tariffs on imports, and refining the banking
policies played a vital role in turning around the Indian automobile industry. Until the
mid 1990s, the Indian auto sector consisted of just a handful of local companies.
However, after the sector opened to foreign direct investment in 1996, global majors
moved in. Automobile industry in India also received an unintended boost from stringent
government auto emission regulations over the past few years. This ensured that vehicles
produced in India conformed to the standards of the developed world.
Indian automobile industry has matured in last few years and offers differentiated
products for different segments of the society. It is currently making inroads into the rural
middle class market after its inroads into the urban markets and rural rich. In the recent
years Indian automobile sector has witnessed a slew of investments. India is on every
major global automobile player's radar. Indian automobile industry is also fast becoming
an outsourcing hub for automobile companies worldwide, as indicated by the zooming
automobile exports from the country. Today, Hyundai, Honda, Toyota, GM, Ford and
Mitsubishi have set up their manufacturing bases in India. Due to rapid economic growth
and higher disposable income it is believed that the success story of the Indian
automobile industry is not going to end soon.
The online vehicle market in India has been providing excellent services to online vehicle
sellers as well online vehicle buyers. The advantage of online vehicle buying is that one
can get an exhaustive list of cars and bikes and even make a purchase without having to
leave the comforts of one's house.Many websites likeautoindia.com,ebay.ca.in are their to
promote online business of auto industry. Sellers can make their vehicles available
instantly through the Internet to
millions of buyers at the domestic level. Online vehicle selling sites advertise in
dailynewspapers and magazines ensuring buyer as well as seller attentionbenifitting
both.Online Vehicle Marketin India provides valuable information on vehicleoverviews,
dealers, financing institutions, insurance companies, and alsoproduct comparisons. All
information is with regard to the region of theonline vehicle purchaser. Many customer
services are offered online. Theonline Indian automobile market is part of the growing
automobile industry in India.
The Online Vehicles market in India provides full security to its buyers and
Possibility of fraud.
• Reliable websites like Cartradeindia.com, ebay.ca.in make sure that that their
customers are not victims of manipulated electronic paper work.
The automotive sector is one of India’s largest and fastest growing manufacturing
sectors. It is ranked the 11th largest passenger car producer in the world. In the category
of motorcycles and scooters, India is ranked 1st and 2nd respectively. With India
increasingly liberalizing its market place, many new joint ventures evolved, resulting in
close to 24 global auto manufacturers setting up their shop in India.
Competition in India
As a result, competition in India’s automobile had been heating up in the recent years.
Many global players in the automobile have already set up presence in India. Most of
them are through tie-ups with dominant local players, while some are done entirely on
their own.
In the absence of strong competition in the past, the local car manufacturer Maruti Udyog
Ltd (MUL) has virtually dominated the Indian automotive market in the passenger
segments since the 1980s. As the automotive manufacturing sector rapidly evolved
through the dynamics of open market and deregulation, many new joint ventures (both
technical and financial) were formed between local players with leading global
manufacturers. In 1982, MUL, then a wholly government-owned company, signed up a
collaboration agreement with Suzuki of Japan to establish the volume production of
contemporary models. Subsequently, the licensing regime was scrapped in 1993 paving
way for 17 new ventures, of which 16 are now manufacturing cars .
since then; there has also been an emergence of new competition for higher value
segments of the passenger car market. Hence, local players like MUL also began to face
competition from new foreign car makers. Ford entered the mid-range market with the
Icon model in April 1998, a move which was followed by Honda, Mitsubishi, Hyundai,
and Daewoo. Other players, Hyundai and Daewoo, have since improved their share of the
passenger car market with new models For the 4-wheelers segment, MUL/Suzuki
dominates the automotive landscape holding a 33% share of the passenger car market in
2004/05. In the second place is Tata Motors, a local company, commanding 26% share,
while Hyundai Motor ranked third with 15% share and the rest split amongst close to 2
dozen other manufacturers.
For the 2-wheelers segment, it remains quite a local dominant game but global players
also have obvious presence in the market. Major players in this segment include Bajaj
Auto, TVS Suzuki, LML Limited, Hero-Honda Motors, Yamaha Motor India, Kinetic
Engineering, Maharashtra Scooters Majestic Auto, Kinetic-Honda Motors, Royal Enfield
(India), Scooters (India), Greaves Ltd. Foreign manufacturers also have presence in India
through their 100% owned subsidiaries, e.g. Honda Motorcycle, Scooter India Pvt. Ltd.
M/s Honda Motor Co., Japan, Yamaha Motor, Japan. The largest player is Hero Honda
Motors, accounting for 40% of market share, followed by Bajaj Auto and TVS Motor,
which account for 27% and 18% respectively.
Besides on the competition observed amongst all global players in the domestic Indian
market, India as an automotive manufacturing country is also pitting against other
competitors in the international market. In terms of exports of automobile, India is ranked
29th, while China, the other huge automotive factory ranked 17th. For exports of auto
parts, India was 26th, while China came in 11th. The top country for exports of
automobile and auto parts was Germany.
Market segment
Despite increased competition, Maruti Suzuki, which is now majority owned by Suzuki
Motor Corp, remains the market leader in India with a share of nearly 44%. Its strength
lies in its wide range of small car models, which form the bulk of the Indian car market.
Maruti Suzuki also has the largest dealer network and its annual manufacturing capacity
is close to 1 million vehicles.
Tata Motors has a wider product range, from SUV’s to the world’s cheapest car, the
Nano.
Company profile
Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading four-
wheeler automobile manufacturer in South Asia. Suzuki Motor
Corporation of Japan holds a majority stake in the company. 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. On 17
September, 2007, Maruti Udyog was renamed to Maruti Suzuki India Limited. The
company's headquarters remain in Gurgaon, near Delhi.
Maruti Udhyog Limited is India's largest automobile company. Its main factory is
situated in Gurgaon district, Haryana. The company, a joint venture with of Government
of India with Suzuki of Japan, has been a success story like no other in the annals of the
Indian automobile industry. The first cars rolled out for sale on 14th December 1983, (the
Company went into production in a record 13 months), marking the beginning of a
revolution in the Indian automobile industry.
On 14th December, 1983, first Maruti 800, India's iconic car rolled-off the assembly line
at company's Gurgaon plant. Late Mrs. Indira Gandhi, the then Prime Minister of India,
handed over keys for this car to the first Maruti customer. Since then, Maruti Suzuki has
produced and sold around 75 lakh (7.5 million) cars to address the needs of customers
across segments.Maruti's current efforts mirror the government's vision to put India in the
international map for producing compact small cars. All over the world, Suzuki is
acknowledged for its know-how in producing small cars. The government's renewed
focus on promoting small cars, offers a major opportunity for Maruti Suzuki.
The Indian car market had stagnated at a volume of 30,000 or 40,000 cars a year for the
decade ending 1983. In 1993, this figure reached a number of 1, 96,820. Maruti's figures
are a different story altogether. Maruti reached a total production of one million
motorcars in March 1994, becoming the first Indian company to cross this milestone and
crossed the two million mark in 1997.For the year ended 1997-98, Maruti posted a
turnover of US$ 2.1 billion and a Profit before Tax of US$ 244 million. During the year,
Maruti produced over 350,000 vehicles, out of which 26,000 were exported. Through the
years Maruti has provided world-class Japanese technology, suitably adapted to Indian
conditions and Indian car users.
biles
Maruti Omni
India's Corps of Military Police personnel patrolling the Wagah border crossing in thePunjab in a Maruti Gypsy.
Maruti Alto
Manufactured locally
Imported
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.[16]
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[17]
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.[18]
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.[19] 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[20] 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.
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.
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.
(1)
(2)
(3)
Monthly Sale
MUL OBJECTIVES
"Maintaining an international viewpoint, we are dedicated to supplying products
of the highest efficiency, yet at reasonable prices, for worldwide customer
satisfaction.
To make good adverts, and great car...and keep the shareholders happy...
Vision:
Visions of any company are those values on which company works. As the MUL is
started by Governmental initiatives it tends to be more consumer oriented and hence cost
effective, but on the other hand Suzuki’s participation ensures not only need of the profit,
but of the need of maximum profit. The only way for this Nora’s dilemma of selecting
principals for company’s working vision ,was to maximize profit and reducing cost by
maximizing output and sales Hence MUL declared its Vision as-
“The Leader in the Indian Automobile Industry, Creating Customer Delight1 and
Customer Delight1 is making sure that performance, after sales service and customer
support are best and beyond expectation. Shareholder’s wealth2 is the prime concern for
running business smoothly.MUL knows this and understands “customer is king”, he can
change the fortune of any company, hence goes company’s brand line: COUNT ON US!
Mission:
larger environment and its goals which are specific, realistic and motivating. Missions are
described over visions and visions demand certain objectives. The main
- Production of large number of motor vehicles which was necessary for economic
growth.
Diversification.
Early mover advantages. Recruitment is done in very tedious manner ensuring talent and
R&D
WEAKNESS: Still depends upon SUZUKI COPORATION, Japan For tech. support,
10% components are manufactured outside India. Though MUL has launched luxury cars
as well it’s still considered as poor man’s brand. Diversification is not supported with all
OPPURTUNITY: first company to roll out suitably designed cars before 2008 as per
Govt.’s Proposal of new ethanol (renewable)mixed fuel. Other companies lacks economy
of scale, so market is still open. Importing new technology is controlled by Govt. so there
is plenty of untapped market and with increase in Income scale, Demand is rising
THREAT: Numbers of new Technology driven players and manufactures are in market.
Govt .reducing support and cutting down the Gas supply quota.(TOI, New Delhi,11th
june,07).
Conclusion:
Maruti Udyog limited had a prime objective to meet the growing demand of a personal
mode of transport, which is caused due to lack of efficient public transport system. It
changed the 4Ps of marketing mix into 4Cs.Product to Customers Solution, Price to
Customer’s Communications. This enabled MUL to become Market leader. Things are
now changing with LPG polices and disinvestment ;the real competitions has already
began. The smarter will certainly will be next leader, but till then...MUL will going to the
References:
3). The TIMES OF INDIA (Internet editions and New Delhi Edition-11.06.07).
Authorized Maruti Suzuki Car Dealer in Delhi and Dehraduni - offers a wealth of
variety to the Maruti automotive consumers.
We believe that our impressive strides in the marketplace stem in equal parts from our
proactive approach and our customers' unstinting support, earned the only way we know:
by giving our customers the most appropriate car luxury solutions for each of their needs,
and by backing them up with consultancy, finance, after sales services and a responsive
after-market network. We are conscious of the fact that vehicles are more than just a
means of transporting people and goods; we understand that they have a deep and far-
reaching impact on society, the national economy and the environment.
As we start our second century of business, we are in a position to appeal to the widest
network of showrooms and service stations. Each of our Maruti automotive brands has a
unique personality and holds a distinct value in itself. We carefully select those
opportunities that enable us to deliver better ideas into the marketplace in new and
exciting ways. At Competent, we create network to better connect with our customers.
We strengthen our relationships with our customers through our services like MGP,
MOS, MF We collaborate with others to revolutionize our core business processes and to
stay ahead of our rapidly changing industry. We choose new view to help system that
maximizes efficiency and operational services.
Competent Group has its sights set firmly on the economic & premium sector of the
national automobile market. To achieve its aims, the company knows how to deploy its
strengths with an efficiency that is unmatched in the automotive industry. From research
and development to sales and marketing, Competent Group is committed to the very
highest in quality for all its products and services. The company's phenomenal success is
proof of this strategy's correctness.
Research methodology
What is research?
Research can be defined as the search for knowledge or any systematic investigation to
establish facts. The primary purpose for applied research (as opposed tobasic research)
is discovering, interpreting, and the development of methods and systems for the
advancement of human knowledge on a wide variety of scientific matters of our world
and the universe. Research can use the scientific method, but need not do so.
Historical research is embodied in the scientific method.The term research is also used
to describe an entire collection of information about a particular subject
Types of Research
BASIC RESEARCH
APPLIED RESEARCH
It is use of basic research or past theories, knowledge and methods for solving an existing
problem. It deals with practical problems. It is opposed to pure research which is not
problem-oriented but for the increase in knowledge which may or may not be used in
future.
In the present world situation, more emphasis is being given to applied research to solve
problems arising out of overpopulation and scarcity of natural resources.
Applied research should not be treated the same as Research & Development (R&D)
which is involved in developing products demanded by the existing clients. Applied
Research, on the other hand, focuses on uncovering what needs are not being met and use
that information in designing products or services that would create their own demand.
Thus, applied research brings in new customers and also provides better products and
services to the existing customers. In old days, the mobile phone was expensive, bulky
and had a short range. Applied Research foresaw that this product would have a limited
market and stressed on cost-cutting, reduced weight and long-distance communication.
Such measures caused a heavy demand.
JUSTIFICATION:
What is Methodology?
Concept
Methodology may refer to nothing more than a simple set of methods or procedures, or it
may refer to the rationale and the philosophical assumptions that underlie a particular
study relative to the scientific method. For example, scholarly literature often includes a
section on the methodology of the researchers.
What is Marketing Research?
Marketing research is the systematic gathering, recording, and analysis of data about
issues relating to marketing products and services. The term is commonly interchanged
with market research; however, expert practitioners may wish to draw a distinction, in
that market research is concerned specifically with markets, while marketing research is
concerned specifically about marketing processes.
Marketing research is often partitioned into two sets of categorical pairs, either by target
market:
-The first is consumer market research. The goal is to study the purchasing habits of
consumers. This can be done by tallying up how much of a product is sold, through
surveys or through other means. The information gathered from consumers can be used to
analyze current marketing campaigns and to create new ones. Consumer marketing
research is a form of applied sociology that concentrates on understanding the
preferences, attitudes, and behaviors of consumers in a market-based economy, and it
aims to understand the effects and comparative success of marketing campaigns. The
field of consumer marketing research as a statistical science was pioneered by Arthur
Nielsen with the founding of the ACNielsen Company in 1923.
- The second type of marketing research is business to business (B2B) research, which
studies how businesses sell products and services to other businesses. For example,
Company A sells computer equipment to companies B and C. Someone may be interested
in seeing how companies B and C found out about the equipment, how company A
marketed its product and how good the market for that product is.
Marketing research is not the same as market research. Marketing research studies how
and why consumers and businesses buy, and how those sales can be increased or why
they have decreased. It involves in-depth studies into the affect of advertisements and
market conditions on consumers. Market research is the research that may be done into a
single market, focusing on the size and trends in that market.
JUSTIFICATION:
Market research can also prove helpful if you want to explore business opportunities in
new markets. Market research can be conducted by two methods, primary
research or secondary research.
-Primary Research
Primary research refers to information that is directly collected from the source. Another
simple method of primary research would be to directly talk to your customers and get
their feedback. Primary research can be both qualitative and quantitative.
• Surveys can provide you with the information you require if the survey has
meaningful questions. More people would be willing to take a survey as it takes
less time. The cheapest and easiest way of conducting a survey is through the
telephone and on the place where your product is being sold.
JUSTIFICATION:
In this COMPETENT AUTOMOBILES Quantitative Primary Research is followed up as
it provides the information at less time and the consumers are also interested to fill up the
questionnaires.
By investing in secondary market research you can analyze your target markets, evaluate
your competitors and assess political, social and economic factors. The internet has a
large number of secondary data sources and most resources, magazines and press releases
are now available online.
There are a large number of resources from which secondary research information can be
obtained. Some of these sources are:
1. Trade associations
From the reports available with trade associations you can get information on the
industries served, the standards that they observe and the leaders in their field. You can
also get information on the latest trends, issues and competitors.
The marketing department of any college can give you access to special research projects
and reports prepared by students.
3. Chamber of commerce
The local chamber of commerce in your area can give you information on your local
community and local businesses. You can also get access to the maps of the area.
You can information on the statistics of the communities to whom they provide services.
JUSTIFICATION:
Marketing research process is a set of six steps which defines the tasks to be
accomplished in conducting a marketing research study. These include problem
definition, developing an approach to problem, research design formulation, field work,
data preparation and analysis, and report generation and presentation.
The first step in any marketing research project is to define the problem. In defining the
problem, the researcher should take into account the purpose of the study, the relevant
background information, what information is needed, and how it will be used in decision
making. Problem definition involves discussion with the decision makers, interviews with
industry experts, analysis of secondary data, and, perhaps, some qualitative research, such
as focus groups. Once the problem has been precisely defined, the research can be
designed and conducted properly.
JUSTIFICATION:
In COMPETENT AUTOMOBILES the main problem definition of this dealer can be the
customer’s satisfaction
More formally, formulating the research design involves the following steps:
Data collection involves a field force or staff that operates either in the field, as in the
case of personal interviewing (in-home, mall intercept, or computer-assisted personal
interviewing), from an office by telephone (telephone or computer-assisted telephone
interviewing), or through mail (traditional mail and mail panel surveys with prerecruited
households). Proper selection, training, supervision, and evaluation of the field force help
minimize data-collection errors.
Data preparation includes the editing, coding, transcription, and verification of data. Each
questionnaire or observation form is inspected, or edited, and, if necessary, corrected.
Number or letter codes are assigned to represent each response to each question in the
questionnaire. The data from the questionnaires are transcribed or key-punched on to
magnetic tape, or disks or input directly into the computer. Verification ensures that the
data from the original questionnaires have been accurately transcribed, while data
analysis, guided by the plan of data analysis, gives meaning to the data that have been
collected. Unvaried techniques are used for analyzing data when there is a single
measurement of each element or unit in the sample, or, if there are several measurements
of each element, each RCH variable is analyzed in isolation. On the other hand,
multivariate techniques are used for analyzing data when there are two or more
measurements on each element and the variables are analyzed simultaneously.
The entire project should be documented in a written report which addresses the specific
research questions identified, describes the approach, the research design, data collection,
and data analysis procedures adopted, and present the results and the major findings. The
findings should be presented in a comprehensible format so that they can be readily used
in the decision making process. In addition, an oral presentation should be made to
management using tables, figures, and graphs to enhance clarity and impact. For these
reasons, interviews with experts are more useful in conducting marketing research for
industrial firms and for products of a technical nature, where it is relatively easy to
identify and approach the experts. This method is also helpful in situations where little
information is available from other sources, as in the case of radically new products.
In today's challenging economy and competitive business world, retaining their customer
base is critical to organization success. If they don't give their customers some good
reasons to stay, organization’s competitors will give them a reason to leave. Customer
retention and satisfaction drive profits. It's far less expensive to cultivate organization
existing customer base and sell more services to them than it is to seek new, single-
transaction customers. Most surveys across industries show that keeping one existing
customer is five to seven times more profitable than attracting one new one.
A customer-focused approach among its employees is still not present. In this era of
intense competition, it is very important for any service company to understand that
merely acquiring customers is not sufficient because there is a direct link between
customer retention over time and profitability & growth. Customer retention to a great
extent depends on service quality and customer satisfaction. It also depends on the ability
of the organization to encourage customers to complain and then recover when things go
wrong. Complaints are natural part of any service activity as mistakes are an unavoidable
feature of all human endeavor and thus also of service recovery. Service recovery is the
process of putting things right after something goes wrong in the service delivery.
• Delivering service that’s consistent with your value proposition and brand
• Cross-selling, up-selling and asking for referrals from existing customers
• Developing programs to increase customer loyalty and decrease turnover
• Knowing the lifetime value for different segments and using that data to improve
your marketing.
• Prioritizing retention as a major focus in your annual marketing plan.
Customer retention has always been an important topic for the marketing. For sure, the
advantages of loyal clients are obvious. In the last years the concept had a renaissance
because of the new term CRM (Customer Relationship Management). However, CRM
comprises nearly every customer oriented activity from a complaint hotline to client cards
and client clubs. Often CRM is only implementing new systems for data mining and
client segmentation or operational systems like a complaint management. But the thing
is: data mining systems or client clubs are not the basis. They are the cherry of the cake
called client retention. A company like Porsche needs no client club to tie up the
customer to the brand. According to Buchanan and Gilles the increased profitability
associated with customer retention efforts occurs because of several factors that occur
once a relationship has been established with a customer.
percentage of revenue).
• Long-term customers tend to be less inclined to switch, and also tend to be fewer
prices sensitive. This can result in stable unit sales volume and increases in dollar-
sales volume.
• Long-term customers may initiate free word of mouth promotions and
referrals.
• Long-term customers are more likely to purchase ancillary products and high
margin supplemental products.
• Customers that stay with you tend to be satisfied with the relationship and are less
likely to switch to competitors, making it difficult for competitors to enter the
market or gain market share.
Objective of study
Small car
Sedan
Luxury
Interpretation:- In the above graph we can come to know that there are 14% people
who prefers luxury cars ,29% of the people using sedan cars and 57% of the people using
the small cars.
Suggestion:-Best services should be provided to the high-end customers and loans should
be given to the customers at cheaper rates who prefer luxury and sedan cars so it can
increase the sales of luxury and sedan cars.
Very good
Good
Average
Bad
Interpretation:-From the above graph we can come to know that about 70% of the
customers have good perception about Maruti Suzuki,15% of the customers has very
good perception about Maruti cars,12% of the customers having average perception for d
Maruti cars and 3% of the customers are having bad perception.
Suggestion:-The management team of Maruti Suzuki should look after the marketing
team and train them in such a way that customers get influenced in much better way and
hilting the key services provided by the company to increase the perception of customers.
Media
Hoardings
Newspapers
Others ___________.
Media 25%
Hoardings 20%
Newspapers 15%
Others 40%
Interpretation:-From the above graph we can see that 25% of the people come to know
from media about competent automobiles,20% of the people come to know from the
banners n hoardings,15% of the people come to know from the newspapers and 40% of
the people come to know from their relatives,friends,parents etc…
Suggestion:-The dealer should increase their advertising expenditure in order to bring the
attention of customers as well as people through media n other such activities.
Product quality
Low maintenance
Cheaper rates
Product quality 45%
Low maintenance 30%
Cheaper rates 25%
Interpretation:-From the above graph we can come to know that about 45% of the
people select this brand coz of product quality,30% of the people select this brand coz
they think maintenance is low and 25% of the people think that the rates of this brand is
cheaper.
Suggestion:-Its people’s choice for selecting the brand There can’t be any suggestion for
this as it fully depends upon the customer choice.
Interpretation:-From the above Chart we can see that 45% of the people expecting more
varities of cars from this brand,25% of the people want to change them the quality of cars
and 30% of the people likes the after sales services of competent automobiles.
Bad
Average
Good
Worst
Bad 5%
Average 30%
Good 60%
worst 5%
Interpretation:-From the above chart we can say 60% of the people thinks that the
behavior of sales executives is good, 30% thinks that the behavior is average,5% of the
people thinks its bad and other 5% thinks that its worst when they are not treated well.
Suggestion:-I would like to suggest that the company must appoint the sales executives
which understands the customers needs and can satisfies his needs, he should be capable
of solving all the difficulties which local people are in.
Yes
No
Yes 90%
No 10%
Interpretation:-In the above chart we can see that around 90% of the people are
satisfied with the executives of competent automobiles and rest 10% of the people are not
satisfied with their requirements provided by executives.
Suggestion: - It may sound straightforward, but unless every hour of a sales executive’s
time is optimized and not allowed to waste, the company can never hope to achieve its
ultimate potential. Without proper territorial alignment, the sales executive could be
faced with having to deal with far too many potential customers.
Extremely spacious
Average
Less space
Suggestion:-The suggestion is different for each of the cars, we get the spacy cars which
is of luxury cars but for todays generation people believes in small car n prefer more so
they dealers should make the small budget cars wit more space.
9. Do you think that the cars of Maruti Suzuki (competent automobiles) are capable
to attract today’s generations?
Yes
No
Cannot say
Yes 65%
No 25%
Cannot say 10%
Interpretation:-From the above graph we can say that 65% of the people are attracted to
the maruti Suzuki cars of todays generations,25% people are not attracted by maruti
Suzuki cars as they prefer other dealers and 10% of people say that as per the competition
in the market its difficult to suggest.
10. What do you think about the style and design of Maruti Suzuki cars?
Very good
Good
Average
Bad
Suggestion:-I would like to suggest that the seats need to rise when we open the door.
Solid supportive seats impressed, but the main thing was the massive access when you
opened the door Fold away steering wheels is another way to make it easier for driver
entry
Excellent
Very good
Good
Average
Excellent 40%
Very good 35%
Good 20%
Average 5%
Interpretations:-In the above figure we can come to know that 40% of the people are
happy with the technologies provided by the Maruti Suzuki,35% of the people thinks that
its good for them,20% of the people thinks that technologies are good and 5 % thinks that
it’s a average technologies.
Suggestion:-I would like to suggest that rather system, Bluetooth devices, parking sensor
etc should be provided by the Co. only it should be with cars this work should not be
done separately.
12) A Competent automobile has got the largest boot space in its segment, what do you
think about it?
Very good
Good
Average
Interpretation:-In the above chart we can see that about 52% of the people are satisfied
by the boot space provided in Maruti cars,40% thinks that boot space segment is good
and 5% of the people thinks that its average.
Suggestion:-I would like to suggest that their should be small two light near the boot
space when its too spacious.
13) What do you think about the different variations’ of price level provided by
competent automobiles?
Highly price
Moderate/average price
Low price
Suggestion:-no suggestion
6. Very often the respondent do not express their true feelings, in such case their
7. Some of the respondents refuse to give the important information best known to them.
8. There is a chance of mistake in the answer because of the limited knowledge of the
respondent.
9. Probability sampling was not used due to time and cost constraints and therefore
the results cannot be generalized to the population.
3. Majority of the respondents in Dehradun suggested that the company should open
some more service centre in Dehradun. Moreover, they also suggested that the
company should increase their current servicing capacity.
4. The company should focus more on Auto fair medium, Magazines, Demo, should
be the main weapon for the company.
5. Looking to the result of the factor analysis Competent Automobiles Ltd. has to
make the future strategy by considering the 3 important representative factors like
as RELIABILITY,ATTRACTIVENESS,CUSTOMER HANDLING
6. More test drives should be offered. Should be more particular about Post Sales
Follow Up as it shows the concern of the company with the customer.
8. They must keep in their mind that the “customer is king in the market” and his
full satisfaction in respect of all the parameters are very essential other wise goal
cannot be achieved.
Here, below are some points which conclude the whole project:
• During the work I knew that which way employees are follow their employer
rules with customer relationship management.
• One is the biggest benefit is to make me punctual and profession person for the
good relationship with customers..
• Motivate me to perform in work with the customer & increase the good
relationship with customers.
• How to save the time & how to do the work in just short time.
• This Competent also handles the Customer in a very politely way after the sale of
the vehicle and is ready to give any time service.
• It had Company Authorized Service Shop where there are well trained mechanics
who quickly solves the problem of the vehicle.
Glossary
1. Reliability:- reliability (systemic def.) is the ability of a person or system to
perform and maintain its functions in routine circumstances, as well as hostile or
unexpected circumstances.
5. Deregulation:- Every industry has certain rules and regulations that it must abide
by. These rules are created by industry associations and watchdogs, as well as the
government. Deregulation occurs when the government pulls back from the
industry a bit, therefore loosening its grip on particular rules and regulations.
Bibliography
Books
• KOTHARI CK (2008): “Research Methodology”
Sites
1. www.wikepedia.com
2. www.scribd.com
3. www.google.com
Annexure
Respected sir/Madam
I Vinit Sharma Student of MBA program from Sikkim Manipal University in Delhi is
working on a Project in the area of marketing specialization on the topic Customer
Retention with reference to Maruti Suzuki products for the partial fulfillment for the
master’ss Degree of Business Administration.
Kindly spare few minutes of your valuable time to fill in the below questionnaire.
• NAME :-
• GENDER:-
• AGE:-
• CONTACT NO. :-
• OCCUPATION:-
1. What type of car do you prefer from Maruti Suzuki (competent automobiles)?
Small car
Sedans
Luxury
Very good
Good
Average
Bad
Media
Hoardings
Newspapers
Others ___________.
4. Why do you choose this Maruti Suzuki brand?
Product quality
Low maintenance
Cheaper rates
Bad
Average
Good
Worst
Yes
No
Extremely spacious
Average
Less space
9. Do you think that the cars of Maruti Suzuki (competent automobiles) are capable
to attract today’s generations?
Yes
No
Cannot say
10. What do you think about the style and design of Maruti Suzuki cars?
Very good
Good
Average
Bad
Excellent
Very good
Good
Average
12. A Competent automobile has got the largest boot space in its segment, what do
you think about it?
Very good
Good
Average
13. What do you think about the different variations’ of price level provided by
competent automobiles?
Highly price
Moderate/average price
Low price
14. Finally, what is your suggestion for the Competent automobiles for the conditions
and requirement provided by them?
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