INTRODUCTION

Brand loyalty is defined as positive feelings towards a brand and dedication to purchase the

same product or service repeatedly now and in the future from the same brand, regardless of a
competitor's actions or changes in the environment. It can also be demonstrated with other
behaviors such as positive word-of-mouth advocacy. Brand loyalty is where an
individual buys products from the same manufacturer repeatedly rather than from other
suppliers. Businesses whose financial and ethical values, for example ESG responsibilities,
rest in large part on their brand loyalty are said to use the loyalty business model.

Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or continue

to use the brand. It can be demonstrated by repeated buying of a product, service, or other
positive behaviors such as word of mouth advocacy. This concept of a brand displays
imagery and symbolism for a product or range of products. Brands can have the power to
engage consumers and make them feel emotionally attached. Consumer’s beliefs and
attitudes make up brand images, and these affect how they will view brands with which they
come into contact. Brand experience occurs when consumers shop or search for, and
consume products. Holistic experiences such as sense, relation, acting and feeling occur when
one comes into contact with brands. The stronger and more relational these senses are to the
individual, the more likely repeat purchase behavior will occur. After contact has been made,
psychological reasoning will occur, followed by a buy or not-buy decision. This can result in
repeat purchase behavior, thus incurring the beginning brand loyalty. Brand loyalty is not
limited to repeat purchase behavior, as there is deeper psychological reasoning as to why an
individual will continuously re-purchase products from one brand. Brand loyalty can be
shortly defined as the "behavioral willingness" to consistently maintain relations with a
particular brand. In a survey of nearly 200 senior marketing managers, 68 percent responded
that they found the "loyalty" metric very useful.

True brand loyalty occurs when consumers are willing to pay higher prices for a certain brand
and go out of their way for the brand, or think highly of it.

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Core Concept of Marketing:

Marketing is a social and managerial process by which individuals and groups

obtained what they want through creating, offering and exchanging products of value with
others.

Needs, Wants and Demands

Products

Value, costs and satisfaction

Exchange and transaction

Market

Marketing and marketers

Services marketing, as the label suggests, relates to the marketing of services, as

opposed to tangible products (in standard economic terminology, a tangible product is called
a good).

A typical definition of a service (as opposed to a good) is thus:

 The use of it is inseparable from its purchase (,i.e. a service is used and consumed
simultaneously)
 It does not possess material form, and thus cannot be smelt, heard, tasted, or felt.
 The use of a service is inherently subjective, in that due to the human condition, all
persons experiencing a service would experience it uniquely.

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NEED FOR THE STUDY:
Although at first sight, customer satisfaction seems easy to understand, it can actually

be difficult to define and sometimes even more difficult to measure. This research presents a

general, pragmatic approach to customer satisfaction measurement, including tips and

recommendations to help contact center professionals implement a brand new initiative or

improve an existing program.

SCOPE FOR THE STUDY

In order to study the “Brand Loyalty” towards Maruti suzuki , Warangal which was

the dealer of Bajaj-Motor company for whole Warangal district.

This research was done to evaluate the Brand Loyalty about the product and its

performance. For this purpose 100 Maruti suzuki owners were selected under convenience

sampling method and extracted necessary data from them.

OBJECTIVES OF THE STUDY:

The following are the important objectives of the study:

• To study the Brand Loyalty towards motor cars

• To find the customer satisfaction towards Maruti suzuki

• To find out the services and benefits provided by the Maruti suzuki .

• To know different brands which are preferred by customers in Maruti suzuki .

• To offer some suggestion to improve the level of satisfaction of Maruti suzuki.

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 RESEARCH METHODOLOGY:
This chapter describes the methodology of the study. This project is based on
information collected from primary sources. After the detailed study, an attempt has been
made to present comprehensive analysis of Brand Loyalty in Maruti suzuki . The data had
been used to cover various aspects like consumer loyalty behavior and customer’s satisfaction
regarding Maruti suzuki . In collecting requisite data and information regarding the topic
selected, I went to the residents of Warangal and collected the data.
Survey design:
The study is a cross sectional study because the data were collected at a single point of time.
For the purpose of present study a related sample of population was selected on the basis of
convenience.
Primary Data: This data is obtained by interacting and interviewing the dealers in
Hyderabad district.
Secondary Data: This data is obtained directly from the company in the form of broachers,
charts, diagrams, document and other forms.
Sample Size and Design:
A sample of 100 people was taken on the basis of convenience. The actual consumers were
contacted on the basis of random sampling.
Research Period:
Research work is only carried for 5 or 6 weeks.
Research Instrument:
This work is carried out through self-administered questionnaires. The questions included
were open ended and offered multiple choices.
Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
Primary Source:
The primary data comprises information survey on “Brand Loyalty towards Bajaj with
Special Reference to Maruti suzuki ”. The data has been collected directly from respondent
with the help of structured questionnaires.
Secondary Source:
The secondary data was collected from internet, References from Library.

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TOOLS AND TECHNIQUES
Data analysis involves converting a series recorded observation about descriptive statement
and information about relationship
 Simple percentage methods
 Cross tabs
 Graphical representations

PROPOSED OUTCOMES

 The study helps to understand how brand efficiency improves customer satisfaction and
brand loyalty.

 The study helps to investigate the role of brand performance in customer satisfaction and
loyalty.

 It also helps to understand the role of customer satisfaction for enhancing brand loyalty.

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 REVIEW OF LITERATURE

What is Brand Loyalty?

Brand loyalty is a consumer’s preference to buy a particular brand in a product category. It

occurs because consumers perceive that the brand offers the right product features, images.
or    level of quality at the right price.

The American Marketing Association defines brand loyalty as:

"The situation in which a consumer generally buys the same manufacturer-originated product
or service repeatedly over time rather than buying from multiple suppliers within the
category" (sales promotion definition).

"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.

Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand
due to situational constraints (such as vendor lock-in), a lack of viable alternatives, or out of
convenience. Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when
customers have a high relative attitude toward the brand which is then exhibited through
repurchase behavior. This type of loyalty can be a great asset to the firm: customers are
willing to pay higher prices, they may cost less to serve, and can bring new customers to the
firm. For example, if Joe has brand loyalty to Company A he will purchase Company A's
products even if Company B's are cheaper and/or of a higher quality.

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).

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As a result, suppliers often segment their customers into 'heavy', 'medium' and 'light' users; as
far as they can, they target 'heavy users'.

Loyalty

A second dimension, however, is whether the customer is committed to the brand. Philip
Kotler, again, defines four patterns of behaviour:

1. Hard-core Loyals - who buy the brand all the time?

2. Split Loyals - loyal to two or three brands.
3. Shifting Loyals - moving from one brand to another.
4. Switchers - with no loyalty (possibly 'deal-prone', constantly looking for bargains or
'vanity prone', looking for something different).

Factors influencing brand loyalty

It has been suggested that loyalty includes some degree of pre-dispositional commitment
toward a brand. Brand loyalty is viewed as multidimensional construct. It is determined by
several distinct psychological processes and it entails multivariate measurements. Customers'
perceived value, brand trust, customers' satisfaction, repeat purchase behavior, and
commitment are found to be the key influencing factors of brand loyalty. Commitment and
repeated purchase behavior are considered as necessary conditions for brand loyalty followed
by perceived value, satisfaction, and brand trust. Fred Reichheld, One of the most influential
writers on brand loyalty, claimed that enhancing customer loyalty could have dramatic effects
on profitability. Among the benefits from brand loyalty — specifically, longer tenure or
staying as a customer for longer — was said to be lower sensitivity to price. This claim had
not been empirically tested until recently. Recent research found evidence that longer-term
customers were indeed less sensitive to price increases.

Industrial markets

In industrial markets, organizations regard the 'heavy users' as 'major accounts' to be handled
by senior sales personnel and even managers; whereas the 'light users' may be handled by the
general sales force or by a dealer.

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Portfolios of brands

Andrew Ehrenberg, then of the London Business School said that consumers buy 'portfolios
of brands'. They switch regularly between brands, often because they simply want a change.
Thus, 'brand penetration' or 'brand share' reflects only a statistical chance that the majority of
customers will buy that brand next time as part of a portfolio of brands they favour. It does
not guarantee that they will stay loyal.

Influencing the statistical probabilities facing a consumer choosing from a portfolio of

preferred brands, which is required in this context, is a very different role for a brand
manager; compared with the — much simpler — one traditionally described of recruiting and
holding dedicated customers. The concept also emphasizes the need for managing continuity.

      There Are Three Main Reasons why Brand Loyalty is important 

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. 

 2) Premium Price Ability: 

Studies show that as brand loyalty increases consumers are less sensitive to price changes.
Generally they are willing to pay more for their preferred brand because they perceive some
unique value in brand that other alternatives do not provide.

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. 

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Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal
buying behavior — behavior which is potentially of benefit to the firm.

In marketing generally and in retailing more specifically, a loyalty card, rewards card, point’s
card, advantage card, or club card is a plastic or paper card, visually similar to a credit card or
debit card, which identifies the card holder as a member in a loyalty program. Loyalty cards
are a system of the loyalty business model.

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 Link Points Programmer has more than 1 million members and over 600 participating
merchant outlets.
Friends card is a loyalty card for Shoppers of Centro Department Stores. The Body Shop
People card is the loyalty card for The Body Shop stores in Indonesia. Other notable
programs in Asia include Kris Flyer, the Singapore Airlines rewards program, and Asia
Miles, which was part of Cathay Pacific.
India-mint is India's largest coalition loyalty program, with approximately 5 million
members.[ BPCL's PetroBonus is a pioneering program and also one of the largest in the
country with about 2 million members for the fuel card program. It also has variants for fleets
and convenience store customers. Likewise IOC's Fleet Card Program XTRAPOWER has
recently crossed 1 million mark. IOC has launched a loyalty program XTRAREWARDS for
Retail Customers.

The Maruti Suzuki Auto CAD, launched in association with Citibank and Indian Oil had
370,000 cardholders as at October 2008.

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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.

To some, participating in a loyalty program (even with a fake or anonymous card) funds
activities that violate privacy. There has also been concern expressed regarding RFID
technology being introduced to loyalty cards.
Loyalty and credit card reward plans might be viewed as modern day examples of a kickback.
An employee who needs to buy something (such as a hotel room or an airline flight) for a
business trip but who has discretion to decide which airline or hotel chain foots strengthens
its brand loyalty program by re launching.

Emphasizing on brand-awareness campaigns, loyalty programs, and assistance with local

end-user events  

How do you plan to empower your channel network in India?

Watch Guard has a strong channel network and we are closely working with our professional
and expert partners to strengthen their business, increase the attach rate of security
subscriptions, and grow as they grow.

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
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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.
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.

Additionally, it also means an inherent assurance to the customers of quality. Many

Consumer Products, besides their basic features, need attractive packaging and a ‘brand
name’. A brand is a symbol or a mark that helps a customer in instant recall, differentiating it
there by from the competing products of a similar nature. 

According to the American Marketing Association (AMA), “A brand name is a

part of a brand consisting of a word, letter, group of words, or letters to
identify the goods or services of a seller or group of sellers and to
differentiate them from those of the competitors.”David Ogilvy defined a brand as
“The Consumer’s idea of a product.”  

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.

Concepts
A brand is the personality of a product, service or company and how it relates to key
constituencies: Customers, Staff, Partners, and Investors etc. Some people distinguish the
psychological aspect of a brand from the experiential aspect. The experiential aspect consists
of the sum of all points of contact with the brand and is known as the brand experience. The
psychological aspect, sometimes referred to as the brand image, is a symbolic construct
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created within the minds of people and consists of all the information and expectations
associated with a product 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.

Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or

otherwise continue using the brand and can be demonstrated by repeated buying of a product
or service, or other positive behaviors such as word of mouth advocacy.

The extent of the faithfulness of consumers to a particular brand, expressed through their
repeat purchases, irrespective of the marketing pressure generated by the competing brands.
Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand
due to situational constraints (such as vendor lock-in), a lack of viable alternatives, or out of
convenience. Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when
customers have a high relative attitude toward the brand which is then exhibited through
repurchase behavior. This type of loyalty can be a great asset to the firm: customers are
willing to pay higher prices, they may cost less to serve, and can bring new customers to the
firm. 

Historical & Technical Background of Brands

Brands identify the source of market of a product and allow consumers-either individuals or
organizations-to assign responsibility to a particular manufacturer or distributor. Consumers
may evaluate the identical product differently depending on how it is branded. Consumers
learn about brands through past experiences with the product and its marketing program.
They find out which brands satisfy their needs and which ones do not. As consumers’ lives
become more complicated, rushed, and time-starved, the ability of a brand to simplify
decisions making and reduce risk is invaluable.
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

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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. The price premium is often
justified on the basis of assumptions of the extra profits that could be extracted and sustained
from the brands, as well as the tremendous difficulty and expense of creating similar brands
from scratch. Wall Street believes that strong brands result in better earnings and profit
performance for firms, which, in turn, creates greater value for shareholders. Much of the
recent interest in brands by senior management has been result of these bottom-line financial
considerations. “Marketing Memo: The brand Report card” lists 10 key characteristics based
on a review of the world’s strongest brands.

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.

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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.

Benefits of Global Branding

In addition to taking advantage of the outstanding growth opportunities, the following
drives the increasing interest in taking brands global:
 Economies of scale (production and distribution)
 Lower marketing costs
 Laying the groundwork for future extensions worldwide
 Maintaining consistent brand imagery
 Quicker identification and integration of innovations (discovered worldwide)
 Preempting international competitors from entering domestic markets or locking you
out of other geographic markets
 Increasing international media reach (especially with the explosion of the Internet) is
an enabler
 Increases in international business and tourism are also enablers

Global Brand Variables

The following elements may differ from country to country:
 Corporate slogan
 Products and services
 Product names
 Product features
 Positioning
 Marketing mixes (including pricing, distribution, media and advertising execution)
These differences will depend upon:

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  Language differences
 Different styles of communication
 Other cultural differences
 Differences in category and brand development
 Different consumption patterns
 Different competitive sets and marketplace conditions
 Different legal and regulatory environments
 Different national approaches to marketing (media, pricing, distribution, etc.)

Local Brand
A brand that is sold and marketed (distributed and promoted) in a relatively small and
restricted geographical area. A local brand is a brand that can be found in only one country or
region. It may be called a regional brand if the area encompasses more than one metropolitan
market. It may also be a brand that is developed for a specific national market; however an
interesting thing about local brand is that the local branding is mostly done by consumers
then by the producers.

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.

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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.

Consistency can be a problem in service: we expect some variation, and the same smile
every time can turn into an annoyance as we feel we are being manipulated. Service brands
need a lot more understanding than product brands.

Organization

Organizations are brands, whether it is a company that delivers products and services or
some other group. Thus Greenpeace, Mercedes and the US Senate are all defined
organizations and each has qualities associated with them that constitute the brand.

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.

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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.

Organizations can also be linked closely with the brand of an individual, for example
Virgin is closely linked with Richard Branson. 

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

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 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 travelling
comfortable and as a result, the short ranged, electric battery driven automobiles were no
more the best option for travelling 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.
According the History of Automobile Industry US, dominated the automobile markets
around the globe with no notable competitors. However, after the end of the Second World
War in 1945, the Automobile Industry of other technologically advanced nations such as
Japan and certain European nations gained momentum and within a very short period,
beginning in the early 1980s, the U.S Automobile Industry was flooded with foreign
automobile companies, especially those of Japan and Germany.
The current trends of the Global Automobile Industry reveal that in the developed
countries the Automobile Industries are stagnating as a result of the drooping car markets,
whereas the Automobile Industry in the developing nations, such as, India and Brazil, have
been consistently registering higher growth rates every passing year for their flourishing
domestic automobile markets.

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The automotive industry designs, develops, manufactures, markets, and sells the world's
motor vehicles. In 2008, more than 70 million motor vehicles, including cars and commercial
vehicles were produced worldwide.
In 2007, a total of 71.9 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. 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, Russia, Brazil, India and China 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 and India. 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. The sustainable 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. 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.
Combined with robust growth in China, in 2009, this resulted in China becoming the largest
automobile market in the world.

Indian Automobile History

The origin of automobile is not certain. In this section of automobile history, we will
only discuss about the phases of automobile in the development and modernization process
since the first car was shipped to India. We will start automotive history from this point of
time.
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

19
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.
The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that
suited more to the needs of families. In 1930s, vehicles were less boxy and more streamlined
than their predecessors. The 1940s saw features like automatic transmission, sealed-beam
headlights, and tubeless tires. The year 1957 brought powerful high-performance cars such as
Mercedes-Benz 300SL. It was built on compact and stylized lines, and was capable of 230
kmh (144 mph).
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.
As per survey conducted by Society of Indian Auto Manufacturers, total number of
automobiles manufactured by auto industry in India, throughout financial year 2006-07, was
20
very close to 15.5 lakh (1.5 million) margin. Huge of number of automobiles manufactured
by auto industry in India was an enormous growth upon number of autos manufactured
during previous fiscal, that ended in 2006.
Total number of cars that were exported from India were very close to 2.0 lakh (2.0 hundred
thousand) margin, an encouraging sign for auto industry in India. Export of cars
manufactured in India comprised nearly 13 percent of total number of cars manufactured
domestically by 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.
Auto industry in India mainly comprises of small car section, which enjoys nearly a 2/3rd
market share of entire market for autos in India. In this respect, Indian markets are largest in
world for small cars, behind Japan.

The 4 – wheelers industry is passing through is passing through a critical but interesting
phase. For many years, it was growing continuously but the turning point came in 1996 Feb.,
when it started slowing down. The impact was rally felt in the next year when the overall
growth was hardly 10%. This was also possible only because, the cars segment showed a
healthy growth of 50%. The net result is that is that Maruti cars now account for 62% of the 4
– wheelers market in April, May & June 2015.The Varun Motors Ltd. mainly is the only
dealers of the mature Branded cars. 

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.

21
 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.

22
 COMPANY PROFILE

HISTORY:  

Maruti Udyog Limited (MUL) was established as a private limited company in India on
February 1981, through an Act of Parliament to meet the growing demand of a personal mode
of transport caused by the lack of an efficient public transport system. MUL is wholly owned
by the Govt. of India at the time of its birth.

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:

Modernizing the Indian Automobile Industry by bringing in the latest technology Production
of fuel- efficient vehicles to conserve scarce resources. Production of a large number of
motor vehicles which is necessary for economic growth. Maruti created history by going into
production in a record 13 months. On 14 December 1983, the then Prime Minister of India.
Mrs. Indira Gandhi released the first Vehicle for sale by handing over the keys of a Maruti
800 to Mr. Harpal Singh of Delhi.

Maruti exceeded the volume targets, and in March 1994, it became the first Indian Company
to produce over one million vehicles, a landmark yet to be achieved by any other car
company in India. Maruti is the highest volume cat manufacture in Asia, outside Japan and
Korea, having produced over 4 million vehicles by April 2003.  Maruti revolutionized the
way Indians looked at cars.

 
 

23
VISION, VALUES & ETHOS OF MUL:  

MUL Vision is to be a leader in the Indian Automobile Industry, Creating Customer Delight
and Shareholder’s Wealth, transforming Maruti to be a pride of India.

      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.

Open office culture for easy accessibility  

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. 

24
MARUTI SUZUKI

Industry Automotive
Founded 1981 (as Maruti Udyog Limited)
Headquarters New Delhi, India
Mr. Shinzo Nakanishi, Managing
Key people
Director and CEO
Products Automobiles
Revenue US$4.8 billion (2015)
Parent Suzuki Motor Corporation

Maruti Suzuki India Limited (NSE: MARUTI, BSE: 532500) a partial subsidiary of Suzuki

Motor Corporation of Japan, is India's largest passenger car company, accounting for over
45% of the domestic car market. The company offers a complete range of cars from entry
level Maruti 800 and Alto, to hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans
DZire, SX4 and Sports Utility vehicle Grand Vitara.

It was the first company in India to mass-produce and sell more than a million cars. It is
largely credited for having brought in an automobile revolution to India. It is the market
leader in India and on 17 September 2007, Maruti Udyog Limited was renamed Maruti
Suzuki India Limited. The company's headquarters are located in New Delhi.

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 an initial public offering of 25% of
the company in June 2003. As of 10 May 2007, Govt. of India sold its complete share to
Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983 with the Maruti 800, based on the Suzuki Alto 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.

25
Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold
in India and various several other countries, depending upon export orders. Models similar to
Maruti Suzukis (but not manufactured by Maruti Udyog) are sold by Suzuki Motor
Corporation and manufactured in Pakistan and other South Asian countries. The company
annually exports more than 50,000 cars and has an extremely large domestic market in India
selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling
compact car ever since it was launched in 1983. More than a million units of this car have
been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts and Maruti
Suzuki Swift is the largest selling in A2 segment.

Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is
commonly used to refer to this compact car model ("Maruti" is another name of the Hindu
god, Hanuman).

Maruti Suzuki has been the leader of the Indian car market for over two decades. Its
manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi.
Maruti Suzuki’s Gurgaon facility has an installed capacity of 350,000 units per annum. The
Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a
capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of
100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined
capability to produce over 700,000 units annually.

More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of
Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is
owned by public and financial institutions. It is listed on the Bombay Stock Exchange and
National Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all,
over six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on
14 December 1983.

Maruti Suzuki offers 14 models, Maruti 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift
DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara, Kizashi. Swift, Swift Drier, A-star and SX4
are manufactured in Manesar, Grand Vitara and Kizashi are imported from Japan as

26
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 and reduced or removal of excise tariffs. This ensured that Suzuki conscientiously
nursed Maruti Suzuki through its infancy to become one of its flagship ventures.

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

27
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 went on record to
state that Mr. Bhaskarudu was "incompetent" and wanted someone else. However, the
Ministry of Industries, Government of India refuted the charges. Media stated from the
Maruti Suzuki sources that Bhaskarudu was interested to indigenise most of components for
the models including gear boxes especially for Maruti 800. Suzuki also felt that Bhaskarudu
was a proxy for the Government and would not let it increase its stake in the venture. [10] If
Maruti Suzuki would have been able to indigenise gear boxes then Maruti Suzuki would have
been able to manufacture all the models without the technical assistance from Suzuki. Till
today the issue of localization of gear boxes is highlighted in the press.

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
28
government controlled for a while, and the conflict between the United Front Government
and Suzuki may have been the cause of unrest among employees. A major row broke out in
September 2000 when employees of Maruti Udyog Ltd (MUL) went on an indefinite strike,
demanding among other things, revision of the incentive scheme offered and implementation
of a pension scheme. Employees struck work for six hours in October 2000, irked over the
suspension of nine employees, going on a six-hour tools-down strike at its Gurgaon plant,
demanding revision of the incentive-linked pay and threatened to fast to death if the
suspended employees were not reinstated. About this time, the NDA government, following a
disinvestments policy, proposed to sell part of its stake in Maruti Suzuki in a public offering.
The Staff union opposed this sell-off plan on the grounds that the company will lose a major
business advantage of being subsidized by the Government.

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

ORGANISATIONAL STRUCTURE

Chairman- _ Mr. R. C. Bhargava

29
Managing Director and CEO – Mr. Shinzo Nakanishi

Director _ Mr. Manvinder Singh Banga

Director _ Mr. Amal Ganguli

Director _ Mr. D. S. Brar

Director _ Mr. Keiichi Asai

Director _ Ms. Pallavi Shroff

Director _ Mr. Osamu Suzuki

Director _ Mr. Shuji Oishi

Director _ Mr. Kenichi Ayukawa

Director and Managing Executive Officer (Production) - Mr. Tsuneo Ohash

CAR MODEL MODEL-SHOW ROOM PRICE

30
Maruti Suzuki 800
RS. 1,98,466

Maruti Suzuki Omni

Rs. 2,13,615

Maruti Suzuki Alto

Rs. 2,33,172

Maruti Suzuki Eeco

Rs. 2,95,194

Maruti Suzuki Zen Estilo

Rs. 3,36,125

Maruti Suzuki Wagon R 1.0

Rs. 3,44,110

Maruti Suzuki A-Star

Rs. 3,67,392

Maruti Suzuki Ritz

Rs. 4,13,130

31
 Maruti Suzuki Swift
Rs. 4,32,891

Maruti Suzuki Swift Dzire

Rs. 5,05,346

Maruti Suzuki Gypsy

Rs. 5,63,223

Maruti Suzuki SX4

Rs. 7,18,531

Maruti Suzuki Kizashi

Rs. 16,86,411

Maruti Suzuki Grand Vitara

Rs. 17,33,133

Manufactured locally

1. 800 (Launched 1983)

2. Omni (Launched 1984)
3. Gypsy (Launched 1985)

32
 4. WagonR (Launched 2002)
5. Alto (Launched 2000)
6. Swift (Launched 2005)
7. Estilo (Launched 2009)
8. SX4 (Launched 2007)
9. Swift DZire (Launched 2008)
10. A-star (Launched 2008)
11. Ritz (Launched 2009)
12. Eeco (Launched 2010)
13. Alto K10(Launched 2010)
14. Suzuki Grand Vitara (Launched 2007
15. Kizashi (Launched 2015)

Discontinued car models

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

Manufacturing facilities

Maruti Suzuki has two state-of-the-art manufacturing facilities in India.[14] Both

manufacturing facilities have a combined production capacity of 1,250,000 vehicles annually.

Gurgaon Manufacturing Facility

The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is
spread over 300 acres (1.2 km2). All three plants have an installed capacity of 350,000
vehicles annually but productivity improvements have enabled it to manufacture 700,000
vehicles annually. The Gurgaon facilities also manufacture 240,000 K-Series engines
annually. The entire facility is equipped with more than 150 robots, out of which 71 have

33
been developed in-house. The Gurgaon Facilities manufactures, the 800, Alto, WagonR,
Estilo, Omni Gypsy and Enesco.

Manesar Manufacturing Facility

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.

Sales and service network

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

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.

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.

34
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 superior service and
competitive rates in the marketplace".Jagdish Khattar, Managing director of Maruti Udyog
Limited in a press conference announcing the launch of Marot Finance on 7 January 2002
Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti
Udyog Limited its primary business stated by the company is "hire-purchase financing of
Maruti Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank
Overseas Investment Corporation, Delaware, which in turn is a 100% wholly owned
subsidiary of Citibank N.A. Citi Finance India Limited holds 74% of the stake and Maruti
Suzuki holds the remaining 26%. GE Capital, HDFC and Maruti Suzuki came together in
1995 to form Maruti Countrywide. Maruti claims that its finance program offers most
competitive interest rates to its customers, which are lower by 0.25% to 0.5% from the
market rates.

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

35
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.

DATA ANALYSIS & INTERPRETATION

1. Analysis of Gender
Gender No. of respondents Percentage
Male 96 96%
Female 4 4%

36
 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.

2. Analysis of Age groups

Age No. of respondents Percentage

25to 30 16 16%
31 to 35 18 18%
36to 40 26 26%
41to 45 30 30%
46 and above 10 10%

37
 Analysis of Age groups

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%.

3. Analysis of Occupation

Occupation No. of respondents Percentage

Doctors 20 20%
Business 46 46%
employees 34 34%

38
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

4. Income of Respondents

Income per month No. of respondents Percentage

0 – 10000 4 14%
10001 – 15000 24 30%
15001- 20000 52 34%
> 20001 20 22%

39
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

Car Model No. of respondents Percentage

Maruti 800 40 40%
Swift 24 24%
Wagon R 12 12%
others 24 24%

40
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.

6. Awareness of Maruti Suzuki brand

Awareness No. of respondents Percentage

Yes 100 100%

No 0 0%

41
Interpretation:

The above table shows that 100% respondents known the brand name of Maruti.

7. Age of Your Car

Number of
age of car Percentage
respondents

0-1year 24 24%

1-2years 20 20%

2-4years 44 44%

42
 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

8. Awareness of the show room

Awareness of Show room No of Respondents Percentage

advertisement 44 44%
friends 36 36%
Relations 20 20%
other 0 0%

43
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.

9. Purpose of your usage

Purpose of Your Use No of Respondents Percentage

family use 24 24%
Business 56 56%
leisure riding 20 20%
Other 0 0%

44
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

10. What make you buy the brand

What make you buy the brand No of Respondents Percentage

brand image 32 32%
safety 20 20%
mileage 40 40%
features 8 8%

45
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

11. Satisfaction of the car

Satisfaction of car No of Respondents Percentage

Yes 84 84%
No 16 16%

46
Interpretation

The above table shows that 84% customers are satisfied, 16% customers are not satisfied.

12. Rating of Maruti brand

Rating of Maruti Brand No of Respondents Percentage

Excellent 44 44%
Good 36 36%
Average 20 20%
Poor 0 0%

47
Interpretation:

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

13. Performance of the car

Performance of the car No of Respondents Percentage

Excellent 32 32%
Good 46 46%
Average 22 22%
Poor 0 0%

48
Interpretation:
The above table shows that 32% customers are response are excellent, 46% customers are
response is good , 22% customers are response is good o% customers are response is poor
so company increase level of satisfaction

14. Change of customers brand in future

change of brand No of Respondents Percentage

Yes 76 76%
No 34 34%

49
Interpretation:

The above table shows that 76% customers are response are change their brand, 34%
customers are not change their brand

15. Why are you using Maruti Suzuki brand

Using Maruti Suzuki brand No of Respondents Percentage

Mileage 30 30%
Low price 32 32%
Comfort 28 28%
Style 20 20%

50
Interpretation
The above table shows that 30% customers response is mileage, 32% customers response is
low price , 28% customers response is comfort and 20% customers response is style as they
are using the Maruti Suzuki company cars.

16. How do compare Maruti Suzuki with others

Comparison No of Respondents Percentage

Excellent 35 35%
Good 45 45%
Average 11 11%
Poor 9 9%

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Interpretation:

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.

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 SUGGESTIONS

 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.

 As a promotional measure Mithra can increase free services camps which increases
the Customers’ loyalty.

 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.   
 

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 CONCLUSION

The Brand Loyalty for Maruti Suzuki at Mithra is very positive; the reasons contributing here
is both the Brand Maruti and the services by Mithra Agencies. Hence the companies should
further try to integrate even more and see that they give a product as per the customer
requirements and services to satisfy the customers and thereby increase the brand loyalty. 

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 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

4) Monthly Income (INR)

a) 0 - 10000 b) 10000-15000
c) 15000-20000 d) 20000 and above

5) Which of the following car are you using?

a) Maruthi 800 b) Swift

c) Wagon R d) others

6) Are you aware of Maruthi Suzuki brand

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 a) Yes b) No

7 ) How old is your car ?

a) 0-1year b) 1-2year
c) 2-4years d) 4years-above

8) How are you aware about the showroom?

a) Advertisement b) Friends
c) Relations d) others

9) What purpose do you use?

a) family use b) business
c) Leisure riding d) other

10) What make you to buy the brand?

a) brand image b)safety
c) mileage d)features

11) Are you satisfied with your car?

a) yes b)no

12) How do you rate maruthi brand?

a) excellent b)good
c) average d)poor

13) The performance of the car?

a) excellent b)good
c) average d)poor

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 14) If you get better car than Maruti, will you change your brand?
a) yes b )no

15) Why are you using Maruti Suzuki brand?

a) mileage b) low price
c) style d) comfort

16) How do compare Maruti Suzuki with others?

a) excellent b)good
c) average d)poor

17) Any other Suggestions

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
_______________________________________________________

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 BIBLIOGRAPHY

Books:

1.PHILIP KOTLER,MARKETING MANAGEMENT” PRIENTICE HALL OF INDIA NEW

DELHI.2001
2.VS RAMASWAMY,MARKETING MANAGEMENT 3rd EDITION, WEST PUBLISHING NEW
YORK,2005
3.C.R KOTHRI RESEARCH METHODOLOGY,7th EDITION SOUTH WESTERN PUBLISHING ,
2005

Journal:
 Indian Journal of brand awareness
 Journal of marketing
 Business World
 Business Line

Web sites:
 www.google.com
 http://www.MarutiSuzuki.com
 www.Marutitruevalue.com

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