Professional Documents
Culture Documents
Project Jabeer
Project Jabeer
1 INTRODUCTION
The word ‘Brand’ has its Origin in the Norwegian word “Brand”, which means to
burn. In ancient times, farmers used to put burn marks as identification on lively
stock to distinguish their possessions.
A brand is defined as “a name, term, sign, symbol (or) special design of these
elements that is intended to identify the good (or) service of one seller (or) a group
of seller.
Brand
A brand is the identity of a specific product, service, or business. A brand can take
many forms, including a name, sign, symbol, color or slogan. The word brand
began simply as a way to tell one person's cattle from another by means of a hot
iron stamp. A legally protected brand name is called a trademark. The word brand
has continued to evolve to encompass identity - it affects the personality of a
product, company or service.
People engaged in branding seek to develop or align the expectations behind the
brand experience, creating the impression that a brand associated with a product or
service has certain qualities or characteristics that make it special or unique. A
brand is therefore one of the most valuable elements in an advertising theme, as it
demonstrates what the brand owner is able to offer in the marketplace. The art of
creating and maintaining a brand is called brand management. Orientation of the
whole organization towards its brand is called brand orientation.
Brands also perform valuable functions for firms. First, they simplify product
handling or tracing. Brands help to organize inventory and accounting records. A
brand also offers the firm legal protection for unique features or aspects of the
product. The brand name can be protected through registered trademarks;
manufacturing processes can be protected through patents; and packaging can be
protected through copyrights and designs. These intellectual property rights ensure
that the firm can safely invest in the brand and reap the benefits of a valuable asset.
Brands can signal a certain level of quality so that satisfied buyers can easily choose
the product again. Brand loyalty provides predictability and security of demand for
the firm and creates barriers to entry that make it difficult for other firms to enter the
market. Loyalty also can translate into a willingness to pay a higher price often 20
to 25 percent more. Although competitors may easily duplicate manufacturing
processes and product designs, they cannot easily match lasting impressions in the
minds of individuals and organizations from years of marketing activity and product
experience. In this sense, branding can be seen as a powerful means to secure a
competitive advantage.
To firms, brands thus represent enormously valuable pieces of legal property that
can influence consumer behavior, be sought and sold, provide the security of
sustained future revenues to their owner. Large earning multiple have been paid for
brands in mergers or acquisitions, starting with the boom years of the mid-1980s.
Maruti Suzuki Limited 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 has produced over 5 Million
vehicles. Marutis are sold in India and various several other countries, depending
upon export orders. Models similar to Marutis (but not manufactured by Maruti
Suzuki) are sold by Suzuki and manufactured in Pakistan and other South Asian
countries.
Global Brand
A global brand is one which is perceived to reflect the same set of values around the
world. Global brands transcend their origins and create strong, enduring
relationships with consumers across countries and cultures.
Global brands are brands sold to international markets. Examples of global brands
include Coca-Cola, McDonald's, Marlboro, Levi's etc.. These brands are used to sell
the same product across multiple markets, and could be considered successful to the
extent that the associated products are easily recognizable by the diverse set of
consumers.
TYPES OF BRAND
Product
The most common brand is that associated with a tangible product, such as a car or
drink. This can be very specific or may indicate a range of products. In any case,
there is always a unifying element that is the 'brand' being referred to in the given
case
Individual product
Product brands can be very specific, indicating a single product, such as classic
Coca-Cola. It can also include particular physical forms, such as Coca-cola in a
traditional bottle or a can.
Product range
Product brands can also be associated with a range, such as the Mercedes S-class
cars or all varieties of Colgate toothpaste.
Service
As companies move from manufacturing products to delivering complete solutions
and intangible services, the brand is about the 'service'.
Service brands are about what is done, when it is done, who does it, etc. It is much
more variable than products brands, where variation can be eliminated on the
production line. Even in companies such as McDonald's where the service has
been standardized down to the eye contact and smile, variation still occurs.
Organization
In once sense, the brand of the organization is created as the sum of its products
and services. After all, this is all we can see and experience of the organization.
Looking at it another way, the flow also goes the other way: the intent of the
managers of the organization permeates downwards into the products and the
services which project a common element of that intent.
Person
The person brand is focused on one or a few individuals, where the branding is
associated with personality.
INDIVIDUAL
A pure individual brand is based on one person, such as celebrity actor or singer.
The brand can be their natural person or a carefully crafted projection.
Politicians work had to project a brand that is attractive to their electorate (and
also work hard to keep their skeletons firmly in the cupboard). In a similar way,
rock stars who want to appear cool also are playing to a stereotype.
Group
Not much higher in detail than an individual is the brand of a group. In particular
when this is a small group and the individuals are known, the group brand and the
individual brand overlap, for example in the way that the brand of a pop group and
the brand of its known members are strongly connected.
Event
Events have brands too, whether they are rock concerts, the Olympics, a space-
rocket launch or a town-hall dance.
Event brands are strongly connected with the experience of the people attending,
for example with musical pleasure or amazement at human feats.
Product, service and other brands realize the power of event brands and seek to
have their brands associated with the event brands. Thus sponsorship of events is
now big business as one brand tries to get leverage from the essence of the event,
such as excitement and danger of car racing.
Geography
Areas of the world also have essential qualities that are seen as characterizations,
and hence also have brand. These areas can range from countries to state to cities
to streets and buildings. Those who govern or represent these geographies will
work hard to develop the brand. Cities, for example, may have de-facto brands of
being dangerous or safe, cultural or bland, which will be used by potential tourists
in their decisions to visit and by companies in their decisions on where to set up
places of employment
MARUTI SUZUKI holds a good name and fame in the market in its long run.
With lots of changes and adoptions the company has established a brand image in
the market.
The automobile industry has changed the way people live and work. The earliest of
modern cars was manufactured in the year 1895. Shortly the first appearance of the
car followed in India. As the century truned, three cars were imported in Mumbai
(India). Within decade there were total of 1025 cars in the city.
The dawn of automobile actually goes back to 4000 years when the first wheel was
used for transportation in India. In the beginning of 15th century Portuguese arrived
in China and the interaction of the two cultures led to a variety of new technologies,
including the creation of a wheel that turned under its own power. By 1600s small
steam-powered engine models was developed, but it took another century before a
full-sized engine-powered vehicle was created.
The actual horseless carriage was introduced in the year 1893 by brothers Charles
and Frank Duryea. It was the first internal-combustion motor car of America, and it
was followed by Henry Ford's first experimental car that same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver
Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens
and hood, and an aluminum body. It was usually driven by chauffeurs and emphasis
was on comfort and style rather than speed.
During the 1920s, the cars exhibited design refinements such as balloon tires,
pressed-steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929
featured an 8-cylinder engine and an aluminum body.
This was the Indian automobile history, and today modern cars are generally light,
aerodynamically shaped, and compact.
Emerging India Auto market
India auto market is a promising industrial sector that is growing immensely every
passing year. Passenger cars are referred to, through use of word "automobile."
Whooping growth experienced by Indian auto market in last financial year itself that
is financial year end in February, 2007 was very close to a 18 percent over previous
fiscal. This statistical fact is a glittering example of potential of growing auto
industry in India.
India auto market looks set to prosper, largely due to growing market for
automobiles that is developing in India. In financial year that ended in February,
2004, Indian auto markets were fastest growing in world, with registered growth
rate touching nearly 20 percent.
NEW SEGMENTS
A step through segment like Maruti alto, ZEN, VERSA and WAGONR,A-star and
SX-4 .
DRAMATIC CHANGES
The new products have contributed to 35% of the growth and helped the producers
improve their bottom line. The coming years will see increasing competition due to
the priority in products in products and prices. The only differentiate will be
technology, quality, product range and service. Imaginative market will emphasize
relationship building and customer satisfaction. New techniques such as direct
marketing and institutional sales are being explorer by all. Some of them are taking
the vehicle actually to the customers door step. Now the customer is king. Luxury
cars, Passenger cars & Multipurpose/Commercial cars. Product range from MUL
had offers different cars of all these classifications, i.e., Bale no & Esteem Cares in
luxury days, M-800, ALTO, ZEN, WAGON-R falls in passenger cars, while OMNI,
VERSA & GYPSY for multipurpose / commercial cars. According to MUL
managing director Jagdish Khattar, Swift has been positioned on
the“aspirational”plank for young Indians.
Suzuki Motor Company was chosen from seven prospective partner’s world wide.
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)
MUL was classified in the Public Sector as long as the equity of Government of
India remained over 51% . A license and a Joint Venture agreement were signed
between Govt. of India and Suzuki Motor Company (now Suzuki Motor
Corporation of Japan) in Oct 1982, with Suzuki Motor Corporation (SMC)
acquiring 26% of the equity. This newly formed organisation was given the primary
objectives of:
The Core values of MUL are customer Obsession, Fast, Flexible and First Mover,
Innovation and Creativity, Networking and Partnership Openness and Learning,
Quality Systems and Consumer Satisfaction through Continuous Improvement of
our Products and Services by following PDCA (PLAN-DO-CHECK-ACT) in all
functions of our organization.
At Maruti, the approach to quality is in keeping wit the Japanese practice – “build it
into the product”. Technicians themselves inspect the quality of work. Supervisors
educate and instruct technicians to continually improve productivity and quality.
The movement of quality indicators is reviewed in weekly meetings by the top
management
MUL believes that its employees are its greatest strength and asset. It is this
underlying philosophy that has molded the workforce at Maruti into a team with
common goals and objectives. The Employee- Management relationship is therefore
characterized by Participative Management, Team work & Kaizen communication
and information sharing.
To implement this philosophy, several measures have been adopted like, a flat
organizational structure. There are only three levels of responsibilities ranging from
the Board of Directors, Division Heads to Department Heads. Other visible features
of this philosophy are an open office, common uniforms (at all levels), and a
common canteen.
Industry Automotive
Founded 1981 (as Maruti Udyog Limited)
Headquarters New Delhi, India
Mr. Kenichi Ayukawa, Managing
Key people
Director and CEO
Products Automobiles
Revenue US$4.8 billion (2015)
Parent Suzuki Motor Corporation
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.
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, 18.28% of the company was owned by the
Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held
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 key 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.
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
Drier, 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. It
has been rated first in customer satisfaction among all car makers in India from
1999 to 2009 by J D Power Asia Pacific.
While the major companies were personally represented in the initial rounds of
discussion, Osamu Suzuki, Chairman and CEO of the company ensured that he was
present in all the rounds of discussion. Osamu in an article writes that it subtly
massaged their (Indian delegation's) egos and also convinced them about the
sincerity of Suzuki's bid. Suzuki in return received a lot of help from the
government in such matters as import clearances for manufacturing equipment
(against the wishes of the Indian machine tool industry then and its own socialistic
ideology), land purchase at government prices for setting up the factory Gurgaon
Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-
Star, Suzuki's fifth global car model, was designed and is made only in India. [6]
Besides being Suzuki's largest subsidiary in terms of car sales, Maruti Suzuki is also
Suzuki's leading research and development arm outside Japan
Relationship between the Government of India, under the United Front (India)
coalition and Suzuki Motor Corporation over the joint venture was a point of heated
debate in the Indian media till Suzuki Motor Corporation gained the controlling
stake. This highly profitable joint venture that had a near monopolistic trade in the
Indian automobile market and the nature of the partnership built up till then was the
underlying reason for most issues. The success of the joint venture led Suzuki to
increase its equity from 26% to 40% in 1987 and further to 50% in 1992. In 1982
both the venture partners had entered into an agreement to nominate their candidate
for the post of Managing Director and every Managing Director will have tenure of
five years
Initially R.C.Bhargava was the managing director of the company since the
inception of the joint venture. Till today he is regarded as instrumental for the
success of Maruti Suzuki. Joining in 1982 he held several key positions in the
company before heading the company as Managing Director. Currently he is on the
Board of Directors.[8] After completing his five year tenure, Mr. Bhargava later
assumed the office of Part-Time Chairman. The Government nominated Mr.
S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr. Bhaskarudu
had joined Maruti Suzuki in 1983 after spending 21 years in the Public sector
undertaking Bharat Heavy Electricals Limited as General Manager. Later in 1987 he
was promoted as Chief General Manager, 1988 as Director, Productions and
Projects, 1989 Director, Materials and in 1993 as Joint Managing Director.
Suzuki Motor Corporation didn't attend the Annual General Meeting of the Board
with the reason of it being called on a short notice. Later Suzuki Motor Corporation
The relation strained when Suzuki Motor Corporation moved to Delhi High Court to
bring a stay order against the appointment of Mr. Bhaskarudu. The issue was
resolved in an out-of-court settlement and both the parties agreed that R S S L N
Bhaskarudu would serve up to 31 December 1999, and from 1 January 2000,
Jagdish Khattar, Executive Director of Maruti Udyog Limited would assume
charges as the Managing Director.[12] Many politicians believed, and had stated in
parliament that the Suzuki Motor Corporation is unwilling to localize manufacturing
and reduce imports. This remains true, even today the gear boxes are still imported
from Japan and are assembled at the
For most of its history, Maruti Udyog Limited had relatively few problems with its
labour force. Its emphasis of a Japanese work culture and the modern manufacturing
process, first instituted in Japan in the 1970s, was accepted by the workforce of the
company without any difficulty. 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
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.
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)
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 Enesco.
The Manresa 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. The
production capacity was further increased by 250,000 vehicles taking total
production capacity to 550,000 vehicles annually. The Manesar Plant produces the
A-star, Swift, Swift DZire and SX4.
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 Authorized 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.
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.
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.
"Maruti Finance marks the coming together of the biggest players in the car finance
business. They are the benchmarks in quality and efficiency. Combined with Maruti
volumes and networked dealerships, this will enable Maruti Finance to offer
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 was 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.
MITHRA AGENCIES
The Mithras Agencies is one of the best car showrooms in Hyderabad located at
Himayat Nagar.The Mithra Agencies provide a wide variety of services for your
car. People here speak very good English and they are very kind at receiving
customers. The Mithra Agencies provide services at reasonable prices. Also one
can see a wide variety of cars kept for display in the showroom.All company cars
SELLING CAPACITY: The Company has sold, since its inception more than
1, 00,000 cars. Its turnover is more than 100 crores per annum. It is the senior most
dealer-ship in Andhra Pradesh.
ACHIEVEMENTS&STRENGTHS
It has been awarded the All India Dealer Award for excellence in 1995 for
highest growth and lifting of Maruti Esteem and 1000cc cars.
Another award in 1997 was given to The Mithra Agencies “All India Dealer
Award” in category A for the highest counter sale of Maruti Spares in 1997.
This company has been awarded with a special citation for maximum growth
in Maruti Finance Penetration at the All India Dealers’ Conference at
Bangkok in 2003.
It has been ranked All India 16th in the Balanced Score Card for 2004-
05among 230 odd dealers in the entire country by registering growth in
ancillary businesses like Maruti Insurance, MGA, Maruti Finance.
WORKSHOPS
The Mithra agencies have four state- of- the- art workshops situated in the prime
localities of the city. The following below are the workshops offered by Mithra
agencies.
Madhapur
RTC X roads
Moosapet
LB-Nagar.
BRANCHES
The Mithra agencies have three branches situated in the prime localities of the city.
The following below are the branches of Mithra agencies
Mithra Agencies Himayathnagar
Mithra Agencies Mehadipatnam.
Mithra Agencies L.B.nagar.
TRUE VALUE:
Mithra agencies offering a true value service for a pre owned cars.
Here cars are sold by the customers after evaluations.
It brings a huge profit for the organization in second sales also.
SECTIONS
RTA
DELIVERYSECTION
EDP
A/C DEPT
SELLING UNITS
Mithra agencies usually sell 300 cars in all 3 branches per month.
The total turnover yields approximately 15 crores.
Organizational Structure
MD
CEO&GM
DGM
The MITHRA AGENCIES is involved in both inbound sales and out bound Sales
(marketing) providing both permanent and non permanent jobs. Good in retaining
the experienced and talented employees by providing Promotions, good incentives,
good salaries, provident funds, bonus and other allowances.
It provides good quality of work life to feel interest in doing the job. The employers
and employees are very friendly and their motto is “25 YEARS DEDICATED
CUSTOMER SERVICE’’. The team members (employees) will play games and
also celebrates parties that are they are very sportive in nature.
The period of free warranty is up to 2 years and extended warranty offer is also
available for next two years.
1.EXPERIENCED AND EFFICIENT CUSTOMER CARE STAFF
IN SHOW ROOMS.
This organization is having very good customer care and experienced Staff in
handling the customers very carefully; if the customer is treated very rashly the
customer goes to other competitors. The customer is provided with full fledged
information about the products about all facilities and services very peacefully so
that the customer feels confident and happy.
2.GOOD SERVICING
There is a good word of mouth for this organization in doing service, very
effectively among his competitors. Among its competitors like Varun Motors Pvt.
Ltd R.K.S Motors, Acer, The Mithra is having very good name for servicing of the
vehicles and this is also one of the reason for customer visits to this show room.
"The degree to which a consumer consistently purchases the same brand within a
product class" (consumer behavior definition). In a survey of nearly 200 senior
marketing managers, 69 percent responded that they found the "loyalty" metric very
useful.
From the point of view of many marketers, loyalty to the brand — in terms of
consumer usage — is a key factor.
Usage rate
Most important of all, in this context, is usually the 'rate' of usage, to which
the Pareto 80-20 Rule applies. Kotler's 'heavy users' are likely to be
disproportionately important to the brand (typically, 20 percent of users accounting
for 80 percent of usage — and of suppliers' profit). As a result, suppliers often
segment their customers into 'heavy', 'medium' and 'light' users; as far as they can,
they target 'heavy users'.
Loyalty
Industrial markets
Portfolios of brands
The concept of brand loyalty has sparked renewed interest in resent years this seams
to echo the emergency of relationship marketing (Morais, Dorsch and
Backman2005) ,which emphasizes the importance of establishing relationship
between customers and 6 businconsistently criticized for lacking theoretical
grounding and conceptual depth it is particularly disquieting that no consensus has
been reached on what loyalty is? that is what component should be include when
conceptualized measuring customers “brand loyalty and where to drawn the line
between loyalty and its outcomes. more ever the vast majority of previous loyalty
have focused on goods while the advent of the service
economy(gummerssom,2002)or “experience economy”(pine&Gilmore,1999)has
called for the more and services and therefore this study seeks to systematically
examine the conceptual domino structure of brand loyalty in eService context
1)Higher Sales Volume:The average United States Company loses half of its
customers every five years, equating to 13% annual loss of customers. This statistic
illustrates the challenges companies face when trying to grow in competitive
environments.
3)Retain Rather Than seek: Brand Loyalists are willing to search for their
favorite brand and are less sensitive to competitive promotions. The result is lower
costs for advertising marketing and distribution. Specifically it costs four to six
times as much to attract a new customer as it does to retain an old one. Loyalty
programs are structured marketing efforts that reward, and therefore encourage,
loyal buying behavior — behavior which is potentially of benefit to the firm.
Best Buy's loyalty program similarly offers points redeemable for dollar-amount
discounts after accumulating a set number of points along with other discounts from
time to time, though the card is not required to receive their advertised price in most
cases.
Independent hardware stores such as Ace Hardware and True Value added customer
loyalty programs in order to compete more effectively against larger chains as well
as gather customer data. In addition, office supply retailers Staples, Inc. and Office
Depot started issuing club cards in 2005.
The three largest loyalty programs are Link Points:- World Card
(aggregate program of Gentling Resorts, Sundeck City Mall, Star Cruises &
Indigos)and SAFRA Card.
The Maruti Suzuki Auto CAD, launched in association with Citibank and Indian Oil
had 370,000 cardholders as at October 2008.
Program management
Across the globe loyalty programs are increasingly finding the need to outsource
strategic and operational aspects of their programs, given the size and complexity a
loyalty program entails. Program managers are typically agencies with specialist
skills in loyalty consulting, creative and communication, data analytics, loyalty
software, and back end operations.
Understanding and cultivating luxury consumer loyalty is critical now for dealing
with economic downturn. Luxury marketers today face an increasingly resistant
consumer, one who is less likely to splurge and increasingly immune to advertising
focused on image and prestige. 'The fact is today's affluent consumer is less likely to
give a new brand a chance,' says Pam Danziger, author of the new book, Shopping:
Why We Love It and How Retailers Can Create the Ultimate Customer Experience.
'It is in tough times like these where marketers are rewarded for their investment in
brand loyalty programs. A brand loyal customer is one who buys your brand more
frequently and spends more when they do,' Danziger explains.
For luxury brands that haven't yet taken steps to build a brand loyalty program, it
isn't too late. But before you start printing membership cards and issuing points,
take a step back. Only the best constructed and most strategic loyalty programs are
capable of encouraging affluent consumers to come back to your brand time and
again.
'Over three-quarters of all luxury consumers are members of at least one loyalty
program, so these programs have a powerful appeal to affluent. What luxury brands
and retailers need to learn are the key attributes of their brand as viewed by their
customers so that they can design their loyalty program to appeal to their unique
customer,base says _ Danziger.
'Deciding to offer a loyalty program is the easy part. However, understanding what
makes these programs attractive to luxury consumers can mean the difference
between cultivating an enthusiastic repeat customer and simply becoming another
plastic key fob or card in the wallet,' says Danziger.
The motive of any company generally is to acquire larger market share, high % of
sales in the industry; this could be only achieved by building a higher % of brand
loyal customers.
Any company can survive if there is computational activity in the market and brand
loyal customers. Today many major companies in the market try to maintain and
improve their branded equity without creating proper brand awareness they can not
build brand image.
The 4 – Wheeler industry has been expanding rapidly these days have gone to feel
possessing a four wheeler is a luxury and also viewed as necessary. This industry
has customers, ranging from all demographic segments. It has been common signals
that even college going students are using 4 – wheelers.
The motive of the company generally is to acquire longer market system and high %
of sales by industry this could be only achieved by building higher brand loyal
customer
Any company can survive if there is computerize zonal activity in the market and
the brand loyalty customers. Today many major companies in the market try to
maintain and improve the brand equity without creating a proper brand awareness
they cannot build brand image strong brands help build the corporate image and also
buy marketing it eager for the launch a new brand therefore this concept of brand
loyalty requires detailed study.
Brand loyalty of beliefs held a specific brand. In short, it is nothing but the
customer’s perception about the product. It is the manner in which a specific brand
is positioned in the market. Brand loyalties emotional value and not just a mental
loyalty is nothing but an organization’s character. It is an accumulation of contact
and observation by people external to an organization. It should highlight an
organization’s mission and vision to all. The main elements of positive brand
loyalty que logo reflecting organization’s image, slogan describing organization’s
business in brief and brand identifier supporting the key value. If the concept of
Brand is ignored in the present days of competitive world, the survival of companies
will be very difficult. As such a study is required to probe into the concepts of
Brand loyalty.
RESEARCH PROBLEM :
Since Maruti is one for the most popular brands in India , there is a high need to
understand whether the customers are loyal to the brand and have any kind of
influence from its awareness. Retaining customers is the main objectives of any
company, so a study to understand the influence of brand awareness seems to be not
going vain.
DATE SOURCE:
The data for the study will be collected both from primary and secondary sources.
A well defined questionnaire will be distributed to the customers, together required
information. Data will be also be collected through books, journals and will be
conducted websites.
SAMPLE SIZE :
A survey among 100 customers who will select based on convenience sampling
x 2 (O E )2 / E
Where O = observed frequencies
E = expected frequencies
r = (r-1) (c-1)
Obtain (O E )2 / E
OPERATIONAL DEFINITION:
BRAND AWARENESS:
Brand Awareness of the ability of a potential buyer to recognize /recall that a brand
is part of a product category
PERCEIVED QUALITY:
Perceived quality is the bench mark by which the customer evaluate different brand
on quality.
BRAND STRATEGY:
Brand strategy is a set of actions deliberately chosen after a careful evaluation of
alternatives, to help the strategist actualize his vision and achieve brand long-term
objectives.
BRAND ASSOCIATIONS:
Invariably are brands come to acquire a meaning in the mind of the customers.
Customer association different dimensions of the product, including its use and use
situations to the brands.
CO- BRANDING:
Co-branding effort in today’s marketing era is that of Intel and computer
manufacturers around the world, which created strong brand awareness and identify
for Intel.
Due to certain constrains, the survey is limited to the Twin Cities Hyderabad
and Secunderabad.
The survey can not be generalized to rural areas as it is limited to twin cities
only.
The comparison between Mithra Agencies and other dealers has not been
made due to the flack of information.
New customers who bought the four wheelers recently were not aware of
services offered
1. Analysis of Gender
Gender No. of respondents Percentage
Male 96 96%
Female 4 4%
Total 100 100%
Analysis of Gender
Interpretation:
The above table shows that 96%customers are male, and only 4% customers are
female so the company has to increase the level of female users.
Interpretation:
The above table shows that 20-25 age group customers are 16%; 26-30 age group
customers are 18%; 31-35 age group customers are 26%; 36-40 age group
customers are 30% and 41 and above age customers are 10%.
Interpretation:
The above table shows that 20% of customers are Doctors, 34% customers are
employees and 46% are customers are business. So company has to look in to
increasing using of students
Interpretation:
The above table 4.4 shows that income of 0-10,000 are 4%, income of 10001
-15,000 are 24%, income of 15001-20000 are 52% and income of 20001 above are
20%.
5.Car Model
Interpretation:
The above table 4.5 shows that 40 % of the customers are using Maruti 800
followed by 24 % using Swift and 12 % using Wagon R where the company should
further try to increase the brand usage.
Interpretation:
The above table shows that 100% respondents known the brand name of Maruti.
Number of
age of car Percentage
respondents
0-1year 24 24%
1-2years 20 20%
2-4years 44 44%
4years-above 12 12%
Interpretation:
The above table shows that 24% of the customers using below one year, 20% of the
customers cars 1-2 years, 44% customers are using cars 2-4 years, 12% of
customers are using cars 4- years above where the company should increase usage
levels
Interpretation:
The above table shows that 44% customer awareness advertisement, 36% of
customers is awareness with friends, 20% customer’s awareness through papers. So
the company should increase through papers.
Interpretation:
The above table shows that 24%customers using for family use, 56% customers
using for business use, 20% customers using for riding users. So the company
should increase family users
Interpretation:
The above table shows that 32% customers using for brand image ,20% customers
using for safety ,40% customers using for mileage, 8% customers using for features.
So the company should increase features
The above table shows that 84% customers are satisfied, 16% customers are not
satisfied.
The above table shows that 44% customers are response is excellent, 36%
customers are response is good , 20% customers are response is good o%
customers are response is poor so company increase level of satisfaction
The above table shows that 76% customers are response are change their brand,
34% customers are not change their brand
The above table shows that 35% customers are response are excellent, 45%
customers are response is good , 11% customers are response is good 9%
customers are response is poor for the comparison between Maruti Suzuki and other
brand cars.
The study reveals that majority of the Customers age was between 25 – 45
years
The target customers were mainly in upper middle class income group and
Upper class.
Percentage of Customers using the Four Wheelers of Maruti not less then 1-
2 years.
Alto, Baleno, Maruti 800CC, Zen and all types of Brands are the specialized
brands for Mithra.
The main reason for Customers to choose Mithra for the service orientation
provided
100 % of the Customers were satisfied with the service of Mithra Agencies.
50% of the Customers were recommended for the modification offered by
Mithra to the loyalty customers
Mithra should maintain the stock of spares of all brands of Maruti Four
wheelers so that it does not cause any inconvenience to the Customers.
The charges for servicing the four wheelers may be slightly reduced. For the
quality of unpaid service should be kept at par with that of paid service.
A few more service stations smaller in size may be set up in various areas
across the city where there is more demand which satisfy more customers of
all areas.
As per the study after service, cleaning and servicing vehicles should be
given importance and improved upon.
Care should be taken to see that delivery of new car as well as serviced car
should be on time.
Customers are expecting some complaints during the delivery of Car. Hence,
such items may be given to improve Customer satisfaction.
5.3 CONCLUSION
QUESTIONNAIRE
Name:
Age:
Contact No.:
Qualification:
1) Gender
a) Male b) Female
2) Age
a) 20-25 b) 25-30
c) 30-35 d) 40-45
e) 45 and above
3) Occupation
a) Student b) Employee
c) Business d) Others
a) 0 - 10000 b) 10000-15000
5) Which of the following factors impressed you while using MARUTI SUZUKI
product?
a) M-800 b) M-swift
c) Belano d) other
a) Yes b) No
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…..THANK YOU…..
BIBLIOGRAPHY
Books:
Journal:
SV DEGREE & PG COLLEGE - ANANTAPUR Page 71
Indian Journal of brand awareness
Journal of marketing
Business World
Business Line
Web sites:
www.google.com
http://www.MarutiSuzuki.com
www.Marutitruevalue.com