Professional Documents
Culture Documents
TO
UNIVERISTY OF MUMBAI
SUBMITTED BY
I, the undersigned Mr. SALI VEDANT MANGESH here by, declare that the work embodied in
this project work titled “A COMPARATIVE STUDY ON MARKETING STRATEGY AND
AFTER SALES SERVICE OF MARUTI SUZUKI AND TATA MOTORS IN RAIGAD
DISTRICT”, forms my own contribution to the research work carried out under the guidance of
ASST. PROF. RUCHIKA BASSI is a result of my own research work and has not been
previously submitted to any other University for any other Degree/ Diploma to this or any other
University. Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography. I, here by further declare that all information
of this document has been obtained and presented in accordance with academic rules and ethical
conduct.
Mangesh)
CERTIFICATE
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous. I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project. I take this opportunity to thank the University of
Mumbai for giving me the chance to do this project.
I would like to thank my Principal, Dr. Gajanan Wader for providing the necessary facilities
required for completion of this project.
I take this opportunity to thank our BMS Co-ordinator Mrs. Nithya Varghese, for her moral
support and guidance.
I would also like to express my sincere gratitude towards my project guide Ms. Ruchika Bassi
whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books and
magazines related to my project.
My genuine thanks are due to the rest of the workforce, staff of the Mahatma Education
Society’s Pillai College of Arts, Commerce and Science (Autonomous), New Panvel for their
significant exhortation and direction.
This project was really a challenge for me but I learned a lot while preparing this project. This
project provides me a chance to study and analyse the practical aspects of the topic. It enhanced
my knowledge in the field of marketing. This project also gave me the chance to improve logical
thinking.
This project highlights the importance of marketing strategy and after sales service in car selling.
The project deals with the various aspects of marketing strategy and after sales service. New
marketing strategy means that creating a new market area, developing the new relation, doing
new promotion and advertising is done in relation to the four P’s of marketing. The good after
sales service of the company will develop the good relationship with existing customers as well
as the new customers.
The extract of the work is presented in this report under various headings as, Introduction,
Research Methodology, Literature Review, Data Analysis, Interpretation and Presentation and
Conclusions and Suggestions.
While working on the project, I came to know about the latest marketing strategies and various
after sales service techniques prevailing in the market. The way of promoting the products,
providing a better convenience of customer and developing the new after sales service
techniques to sell the products.
My topic of study is “A Comparative Study on Marketing Strategy and After Sales Service of
Maruti Suzuki and Tata Motors in Raigad District” compared the Maruti Suzuki products with
the Tata Motors products in the aspects of features, technology, price, average efficiency,
marketing strategies and after sales service in the Raigad District.
INDEX
The word automotive comes from the Greek autos (self), and Latin motivus (of
motion), referring to any form of self-powered vehicle. This term, as proposed by
Elmer Sperry (1860-1930), first came into use with reference to automobiles in
1898.
The automotive industry began in the 1860s with hundreds of manufacturers that
pioneered the horseless carriage. For many decades, the United States led the
world in total automobile production. In 1929, before the Great Depression, the
world had 32,028,500 automobiles in use, and the U.S. automobile industry
produced over 90% of them. At that time, the U.S. had one car per 4.87 persons.
After 1945, the
U.S. produced about 75 percent of the world's auto production. In 1980, the U.S.
was overtaken by Japan and then became world's leader again in 1994. In 2006,
Japan narrowly passed the U.S. in production and held this rank until 2009, when
China took the top spot with 13.8 million units. With 19.3 million units
manufactured in 2012, China almost doubled the U.S. production of 10.3 million
1
units, while Japan was in third place with 9.9 million units. From 1970 (140
models) over 1998 (260 models) to 2012 (684 models), the number of automobile
models in the U.S. has grown exponentially.
The automotive industry in India is the fifth-largest in the world (fourth largest in
2018, a bit ahead of Germany, then back to fifth the following year).
HISTORY
In 1897, the first car ran on an Indian road. Through the 1930s, cars were
imported only, and in small numbers.
In 1952, the government appointed the first Tariff Commission, one of whose
purposes was to come out with a feasibility plan for the indigenization of the
Indian automobile industry. In 1953, the commission submitted their report,
which recommended categorizing existing Indian car companies according to
their manufacturing infrastructure, with licensed capacity to manufacture a certain
number of vehicles, with capacity increases allowable, as per demands, in the
future.
The Tariff commission policies, including similar restrictions that applied to other
industries, came to be known as the Licence Raj, which proved to be the greatest
undoing of the Indian automotive industry, where bureaucratic red tape ended up
causing demand to outstrip supply, with month-long waiting periods for cars,
scooters, and motorcycles.
1970-1983
However, growth was relatively slow in the 1950s and 1960s, due to
nationalisation and the license raj, which hampered the growth of the Indian
private sector.
The beginning of the 1970s saw some growth potential; and most of the
collaboration license agreements came to an end, but with the option to continue
manufacturing with renewed branding. Cars were still meant for the elite and
Jeeps were largely used by government organizations and in some rural regions.
By the end of the decade, some developments were made in commercial vehicle
segments to facilitate the movement of goods. The two-wheeler segment
remained unchanged except for increased sales to the middle class in urban areas.
There was emphasis on having more farm tractors, as India was embarking on a
new Green Revolution; and Russian and eastern bloc imports were brought in to
meet the demand.
But after 1970, with restrictions on the import of vehicles set, the automotive
industry started to grow; but the growth was mainly driven by tractors,
commercial vehicles and scooters.
Cars still remained a major luxury item. In the 1970s, price controls were finally
lifted, inserting a competitive element into the automobile market. However, by
the 1980s, the automobile market was still dominated by Hindustan and Premier,
who sold superannuated products in fairly limited numbers. The rate of car
ownership in 1981 was about one in every thousand citizens - understandable
when the annual road tax alone cost about half the average income of an Indian at
the time.
During the eighties, a few competitors began to arrive on the scene. Of the 30,487
cars built in India in 1980, all but six came from the two main players Hindustan
and Premier: Standard had led a shadow existence in the latter half of the 1970s,
producing only a handful of cars to keep their license active.
A new contender was tiny Sipani, who had tried building locally developed three-
wheeled vehicles since 1975 but introduced the Reliant Kitten-based Dolphin in
1982. Nonetheless, all eyes were on Sanjay Gandhi's Maruti project, which was
destined to cause major upheaval to the Indian automobile industry.
The OPEC oil crisis saw an increased need to install or redesign some vehicles to
fit diesel engines on medium commercial vehicles. Until the early 1970s
Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol
model options. The Defence sector too had most trucks on Petrol engines.
1984-1992
From the end of the 1970s to the beginning of the 1980s India saw no new
models, the country continuing to depend on two decades-old designs. The Sipani
Dolphin, which arrived in 1982, was not a serious contender, with its plastic body
and without rear doors - essential to Indian car buyers. This situation forced the
government to encourage and let more manufacturers into fray.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance
Factory Medak, near Hyderabad. It started manufacturing Infantry Combat
Vehicles christened as Sarath, the backbone of India's mechanised infantry.
OFMK is still the only manufacturing facility of ICVs in India. To manufacture
the high- power engines used in ICVs and main battle tanks, Engine Factory
Avadi, near Chennai was set up in 1987. In 1986, to promote the auto industry,
the government established the Delhi Auto Expo.
The 1986 Expo was a showcase for how the Indian automotive industry was
absorbing new technologies, promoting indigenous research and development,
and adapting these technologies for the rugged conditions of India. The nine-day
show was attended by then Prime Minister Rajiv Gandhi.
POST-1992 LIBERALISATION
The variety of options available to the consumer began to multiply in the nineties,
whereas before there had usually only been one option in each price class. By
2000, there were 12 large automotive companies in the Indian market, most of
them offshoots of global companies.
1.3 INTRODUCTION TO MARUTI SUZUKI INDIA LTD.
HISTORY
In 1982, a license and joint venture agreement (JVA) was signed between Maruti
Udyog Ltd., and Suzuki of Japan. At first, Maruti Suzuki was mainly an importer
of cars. In India's closed market, Maruti received the right to import 40,000 fully
built-up Suzuki in the first two years, and even after that the early goal was to use
only 33% indigenous parts.
This upset the local manufacturers considerably. There were also some concerns
that the Indian market was too small to absorb the comparatively large production
planned by Maruti Suzuki, with the government even considering adjusting the
petrol tax and lowering the excise duty in order to boost sales. Local production
commenced in December 1983.
In 1984, the Maruti Van with the same three-cylinder engine as the 800 was
released and the installed capacity of the plant in Gurgaon reached 40,000 units.
In 1985, the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, was
launched. In 1986, the original 800 was replaced by an all-new model of the 796
cc hatchback Suzuki Alto (SS80) and the 100,000th vehicle was produced by the
company. In 1987, the company started exporting to western markets, when a lot
of 500 cars were sent to Hungary. By 1988, the capacity of the Gurgaon plant was
increased to 100,000 units per annum.
Market liberalisation
In 1989, the Maruti 1000 was introduced and the 970 cc, three-box was India's
first contemporary sedan. By 1991, 65 percent of the components, for all vehicles
produced, were indigenized. After liberalization of the Indian economy in 1991,
Suzuki increased its stake in Maruti to 50 percent, making the company a 50-50
joint venture with the government of India as the other stakeholder.
In 1993, the Zen, a 993 cc engined hatchback was launched and in 1994 the 1,298
cc Esteem sedan was introduced. Maruti produced its 1 millionth vehicle since the
commencement of production in 1994. Maruti's second plant was opened with
annual capacity reaching 200,000 units. Maruti launched a 24-hour emergency
on- road vehicle service. In 1998, the new Maruti 800 was released, being the first
change in design since 1986. Zen D, a 1,527 cc diesel hatchback, and Maruti's
first diesel vehicle, and a redesigned Omni were introduced. In 1999, the 1.6-litre
Maruti Baleno three-box sedan and Wagon R were also launched.
In 2000, Maruti became the first car company in India to launch a call center for
internal and customer services. The new Alto model was released. In 2001,
Maruti True Value, selling and buying used cars was launched. In October of the
same year the Maruti Versa was launched. In 2002, Esteem Diesel was
introduced.
Two new subsidiaries were also started: Maruti Insurance Distributor Services
and Maruti Insurance Brokers Limited. Suzuki Motor Corporation increased its
stake in Maruti to 54.2 per cent.
In 2003, the new Suzuki Grand Vitara XL-7 was introduced while the Zen and the
Wagon R were upgraded and redesigned. The four millionth Maruti vehicle was
built and they entered into a partnership with the State Bank of India.
Maruti Udyog Ltd. was listed on BSE and NSE after a public issue, which was
oversubscribed tenfold. In 2004, the Alto became India's best selling car
overtaking the Maruti 800 after nearly two decades. The five-seater Versa 5-
seater, a new variant, was created while the Esteem was re-launched. Maruti
Udyog closed the financial year 2003–04 with an annual sale of 472,122 units, the
highest ever since the company began operations and the fiftieth lakh (5
millionth) car rolled out in April 2005. The 1.3-litre Suzuki Swift five-door
hatchback was introduced in 2005.
In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki
Automobiles India", to build two new manufacturing plants, one for vehicles and
one for engines. Cleaner cars were also introduced, with several new models
meeting the new Bharat Stage III emission standards. In February 2012, Maruti
Suzuki sold its ten millionth vehicle in India. In July 2014 it had a market share of
more 45%. In May 2015, the company produced its fifteen millionth vehicle in
India, a Swift Dzire.
On 25 April 2019, Maruti Suzuki announced that it would phase out production of
diesel cars by 1 April 2020, when the Bharat Stage VI emission standards come
into effect. The new standards would require a significant investment from the
company to upgrade its existing diesel engines to comply with the more stringent
emission standards.
Chairman R.C. Bhargava stated, "We have taken this decision so that in 2022 we
are able to meet the corporate average fuel efficiency (CAFE) norms and higher
share of CNG vehicles will help us comply with the norms. I hope the union
government's policies will help grow the market for CNG vehicles." Diesel cars
accounted for about 23 percent of Maruti Suzuki's annual sales.
MANUFACTURING FACILITIES
The Manesar plant produces the Alto, Swift, Ciaz, Baleno and Celerio. On 25
June 2012, Haryana State Industries and Infrastructure Development Corporation
demanded Maruti Suzuki to pay an additional Rs 235 crore for enhanced land
acquisition for its Haryana plant expansion. The agency reminded Maruti that
failure to pay the amount would lead to further proceedings and vacating the
enhanced land acquisition.
In 2017, the new Suzuki Motor Gujarat facility was opened. This third facility is
not owned by Maruti Suzuki, but instead wholly owned by Suzuki Motor
Corporation. Despite that, the plant supplied vehicles to Maruti without any
additional cost. Located in Hansalpur, Ahmedabad, the plant has a total annual
capacity of 500,000 units.
In 2012, the company decided to merge Suzuki Powertrain India Limited (SPIL)
with itself. SPIL was started as a JV by Suzuki Motor Corp. along with Maruti
Suzuki. It has the facilities available for manufacturing diesel engines and
transmissions. The demand for transmissions for all Maruti Suzuki cars is met by
the production from SPIL.
INDUSTRIAL RELATIONS
Since its founding in 1983, Maruti Udyog Limited has experienced problems with
its labour force. The Indian labour it hired readily accepted Japanese work culture
and the modern manufacturing process. In 1997, there was a change in ownership,
and Maruti became predominantly government controlled. Shortly thereafter,
conflict between the United Front Government and Suzuki started. In 2000, a
major industrial relations issue began and employees of Maruti went on an
indefinite strike, demanding among other things, major revisions to their wages,
incentives and pensions.
The worker's union opposed this sell-off plan on the grounds that the company
will lose a major business advantage of being subsidised by the Government, and
the union has better protection while the company remains in control of the
government.
The standoff between the union and the management continued through 2001.
The management refused union demands citing increased competition and lower
margins. The central government privatized Maruti in 2002 and Suzuki became
the majority owner of Maruti Udyog Limited.
Manesar violence
The workers also allegedly injured nine policemen. However Maruti Suzuki
Workers Union (MSWU) President Sam Meher alleged that management ordered
300 hired security guards to attack the workforce during the violence. The
incident is the worst-ever for Suzuki since the company began operations in India
in 1983.
Since April 2012, the Manesar union had demanded a three-fold increase in basic
salary, a monthly conveyance allowance of ₹10,000, a laundry allowance of
₹3,000, a gift with every new car launch, and a house for every worker who wants
one, or cheaper home loans for those who want to build their own houses.
According to the Maruti Suzuki Workers Union a supervisor had abused and
made discriminatory comments to a low-caste worker, Jiya Lal. These claims
were denied by the company and the police. Maruti said the unrest began, not
over wage discussions, but after the workers' union demanded the reinstatement of
Jiya Lal who had been suspended for allegedly beating a supervisor. The workers
claim harsh working conditions and extensive hiring of low-paid contract workers
which are paid about
$126 a month, about half the minimum wage of permanent employees. On 27
June 2013, an international delegation from the International
Commission for Labor Rights (ICLR) released a report alleging serious violations
of the industrial right of workers by the Maruti Suzuki management.
Company executives denied harsh conditions and claim they hired entry-level
workers on contracts and made them permanent as they gained experience. Maruti
employees currently earn allowances in addition to their base wage.
The police, in its First Information Report (FIR), claimed on 21 July that Manesar
violence is the result of a planned violence by a section of workers and union
leaders and arrested 91 people. Maruti Suzuki in its statement on the
unrest, announced that all work at the Manesar plant has been suspended
indefinitely. The shut down of Manesar plant is leading to a loss of about Rs 75
crore per day.
The report claimed the salary difference between contract workers and permanent
workers has been much smaller than initial media reports – the contract worker at
Maruti received about ₹ 11,500 per month, while a permanent worker received
about ₹12,500 a month at start, which increased in three years to ₹21,000-22,000
per month. In a separate report, a contractor who was providing contract
employees to Maruti claimed the company gave its contract employees the best
wage, allowances and benefits package in the region.
Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India,
said this type of violence has never happened in Suzuki Motor Corp's global
operations in Hungary, Indonesia, Spain, Pakistan, Thailand, Malaysia, China and
the Philippines. Nakanishi apologised to affected workers on behalf of the
company, and in press interview requested the central and Haryana state
governments to help stop further violence by legislating decisive rules to restore
corporate confidence amid emergence of this new 'militant workforce' in Indian
factories. He announced, "we are going to de-recognise Maruti Suzuki Workers'
Union and dismiss all workers named in connection with the incident.
The company dismissed 500 workers accused of causing the violence and re-
opened the plant on 21 August, saying it would produce 150 vehicles on the first
day, less than 10% of its capacity. Analysts said that the shutdown was costing the
company 1 billion rupees ($18 million) a day and costing the company market
share. In July 2013, the workers went on hunger strike to protest the continuing
jailing of their colleagues and launched an online campaign to support their
demands.
A total of 148 workers were charged with the murder of Human Resources
Manager Avineesh Dev. The court dismissed charges against 117 of the workers.
On 17 March 2017, 31 workers were found guilty of variety of offences. 18 were
convicted on charges of rioting, trespassing, causing hurt and other related
offences under Indian Penal Code sections.
The remaining 13 workers were sentenced to life in imprisonment after being
found guilty of the murder of General Manager of Human Resources Avineesh
Dev. Twelve of the thirteen sentenced were office-bearers of the Maruti Suzuki
Workers Union at the time of the alleged offences. The prosecution had sought
the death penalty for the thirteen.
Both prosecution and defence have announced they will appeal against the
sentences. Defence counsel Vrinda Grover stated, "We will file appeals against all
convictions in the HC. The evidence, as it stands, cannot withstand legal scrutiny.
There is no evidence to link these workers to the murder. The 13 who have been
convicted, it’s important to remember that they were the leaders of the union.
Therefore, it is clear that this is targeted framing of these persons. We hope for
justice in the superior court".
The Maruti Suzuki Workers Union is continuing to organise industrial action and
protests calling for the workers to be released and criticising the judgement and
sentences an unjust. An international appeal for the release of the workers has
been made by the International Committee for the Fourth International (ICFI) and
other organisations such as the Peoples Alliance for Democracy and Secularism.
Discontinued models
Maruti Suzuki has 3,598 sales outlets across 1,861 cities in India. The company
aims to increase its sales network to 4,000 outlets by 2020. It has 3,792 service
stations across 1,861 cities throughout India. Maruti's dealership network is larger
than that of enough known companies combined. 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. Also, The Express Service
stations exist, sending across their repairman to the vehicle if it is away from a
normal service center.
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.
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.
MARUTI TRUEVALUE
As part of its corporate social responsibility Maruti Suzuki launched the Maruti
Driving School in Delhi. Later the services were extended to other cities of India
as well. These schools are modelled on international standards, where learners go
through classroom and practical sessions. Many international practices like road
behaviour and attitudes are also taught in these schools. Before driving actual
vehicles participants are trained on simulators.
At the launch ceremony for the school Jagdish Khattar stated "We are very
concerned about mounting deaths on Indian roads. These can be brought down if
government, industry and the voluntary sector work together in an integrated
manner. But we felt that Maruti should first do something in this regard and hence
this initiative of Maruti Driving Schools."
Mission
Develop products of superior value by focusing on the customer, establish a
refreshing and innovative company through teamwork and strive for individual
excellence through continuous improvement.
Vision
To be The Leader in the Indian Automobile Industry, Creating Customer Delight
and Shareholder’s Wealth; A pride of India.
Values
Customer obsession
Openness and learning
Networking and partnership
Fast, flexible first mover
Innovation and creativity
FUTURE PLANS
Recent internet reports suggested that Maruti Suzuki has imported CKD kits of
the Jimny into India and the shipments are awaiting clearance from customs as the
largest carmaker in the country is said to manufacture 4,000 to 5,000 units of the
Jimny bound for the global marketplaces. As per Emkay Global Financial
Services’ report, Maruti Suzuki is working on launching a range of new vehicles
over the course of the next 24 months.
The three-row hatchback based on the Wagon R dubbed the XL5, Jimny and a
mid- size SUV spanning more than four metres in length are in the pipeline. An
electric hatchback and an entry-level 800 cc hatch that could act as a replacement
to the Alto are also rumoured.
Moreover, a new 1.5-litre BS VI compliant diesel engine that could power the
Ciaz, S-Cross, Ertiga, XL6 and Vitara Brezza is also said to be in development.
Speculations aside and getting back to the reality, Maruti Suzuki does not have
any intention to introduce a BSVI diesel engine in the immediate future but its
decision will depend on how the market evolves as it is closely monitoring it.
The company has plans to expand the footprint of the Nexa premium dealerships
and thus brand new vehicles are definitely on the cards. As early as the beginning
of next year, Maruti Suzuki is widely believed to launch the India-spec five-door
version of the Jimny with a four-wheel-drive configuration paired with a 1.5-litre
petrol engine.
Tata launched the Indica in 1998, a fully indigenous Indian passenger car tailor-
made to suit Indian consumer needs though styled by I.D.E.A, Italy. Although
initially criticised by auto analysts, its excellent fuel economy, powerful engine,
and an aggressive marketing strategy made it one of the best-selling cars in the
history of the Indian automobile industries. A newer version of the car, named
Indica V2, was a major improvement over the previous version and quickly
became a mass favourite. Tata Motors also successfully exported large numbers
of the car to South Africa. The success of the Indica played a key role in the
growth of Tata Motors.
On 27 September 2004, Ratan Tata, the Chairman of Tata Motors, rang the
opening bell at the New York Stock Exchange to mark the listing of Tata Motors.
In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and
coach manufacturer Hispano Carrocera. Tata Motors continued its market area
expansion through the introduction of new products such as buses (Starbus and
Globus, jointly developed with subsidiary Hispano Carrocera) and trucks (Novus,
jointly developed with subsidiary Tata Daewoo).
In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata
Marcopolo Bus, to manufacture fully built buses and coaches.
In 2008, Tata Motors acquired the English car maker Jaguar Land Rover,
manufacturer of the Jaguar and Land Rover from Ford Motor Company.
In May 2009, Tata unveiled the Tata World Truck range jointly developed with
Tata Daewoo; the range went on sale in South Korea, South Africa, the SAARC
countries, and the Middle East at the end of 2009.
In 2009, its Lucknow plant was awarded the "Best of All" Rajiv Gandhi National
Quality Award.
In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering
company Trilix for €1.85 million. The acquisition formed part of the company's
plan to enhance its styling and design capabilities.
In 2014, Tata Motors introduced the first Truck Racing championship in India
"T1 Prima Truck Racing Championship".
On 26 January 2014, the Managing Director Karl Slym was found dead. He fell
from the 22nd floor to the fourth floor of the Shangri-La Hotel in Bangkok, where
he was to attend a meeting of Tata Motors Thailand.
On 3 May 2018, Tata Motors announced that it sold its aerospace and defence
business to another Tata Group Entity, Tata Advanced Systems, to unlock their
full potential.
Tata Motors has vehicle assembly operations in India, Great Britain, South Korea,
Thailand, Spain, and South Africa. It plans to establish plants in Turkey,
Indonesia, and Eastern Europe.
Tata Motors Cars is a division of Tata Motors which produces passenger cars
under the Tata Motors marque. Tata Motors is among the top four passenger
vehicle brands in India with products in the compact, midsize car, and utility
vehicle segments. The company's manufacturing base in India is spread across
Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh),
Pantnagar (Uttarakhand), Dharwad (Karnataka) and Sanand (Gujarat).
Tata's dealership, sales, service, and spare parts network comprises over 3,500
touch points. Tata Motors has more than 250 dealerships in more than 195 cities
across 27 states and four Union Territories of India. It has the third-largest sales
and service network after Maruti Suzuki and Hyundai. Tata also has
franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,
Russia, and Senegal. Tata has dealerships in 26 countries across 4 continents.
Tata is present in many countries, it has managed to create a large consumer base
in the Indian Subcontinent, namely India, Bangladesh, Bhutan, Sri Lanka and
Nepal.
Tata is also present in Italy, Spain, Poland, Romania, Turkey, Chile, South Africa,
Oman, Kuwait, Qatar, Saudi Arabia, United Arab Emirates, Bahrain, Iraq, Syria
and Australia.
Tata Daewoo
The principal reasons behind the acquisition were to reduce Tata's dependence on
the Indian commercial vehicle market (which was responsible for around 94% of
its sales in the MHCV segment and around 84% in the light commercial vehicle
segment) and expand its product portfolio by leveraging on Daewoo's strengths in
the heavy-tonnage sector.
Tata Motors has jointly worked with Tata Daewoo to develop trucks such as
Novus and World Truck and buses including GloBus and StarBus. In 2012, Tata
began developing a new line to manufacture competitive and fuel-efficient
commercial vehicles to face the competition posed by the entry of international
brands such as Mercedes-Benz, Volvo, and Navistar into the Indian market.
Tata Hispano
Tata Hispano Motors Carrocera, S.A. was a bus and coach manufacturer based in
Zaragoza, Aragon, Spain, and a wholly owned subsidiary of Tata Motors. Tata
Hispano has plants in Zaragoza, Spain, and Casablanca, Morocco. Tata Motors
first acquired a 21% stake in Hispano Carrocera SA in 2005, and purchased the
remaining 79% for an undisclosed sum in 2009, making it a fully owned
subsidiary, subsequently renamed Tata Hispano. In 2013, Tata Hispano ceased
production at its Zaragoza plant.
Jaguar Land Rover has two design centres and three assembly plants in the United
Kingdom. Under Tata ownership, Jaguar Land Rover has launched new vehicles
including the Range Rover Evoque, Jaguar F-Type, the Jaguar XE, the Jaguar XJ
(X351), the second-generation Range Rover Sport, and Jaguar XF, the fourth-
generation Land Rover Discovery, Range Rover Velar and the Range Rover
(L405). JD Power, of the US, rates Land Rover and Jaguar as the two worse
brands for initial quality. The Jaguar F-Pace made Consumer Reports February
2019 list of the 10 Least Reliable Cars. The editors cited "electronics, drive
system, power equipment, noises and leaks" as problematic aspects.
The Jaguar Land Rover subsidiary was struggling by 2019 and Tata Motors wrote
down its investment in JLR by $3.9 billion. Much of the financial problem was
due to a 50% drop in sales in China during 2019, although the situation was
improving. Still, Tata was open to considering a partnership with another
company according to a statement in mid-October, as long as the partnership
agreement would allow Tata to maintain control of the business. The company
ruled out the possibility of a sale of JLR to another entity.
TML Drivelines
TML Drivelines Ltd. is a wholly owned subsidiary of Tata Motors engaged in the
manufacture of gearboxes and axles for heavy and medium commercial vehicles.
It has production facilities at Jamshedpur and Lucknow. TML Forge division is
also a recent acquisition of TML Drivelines. TML Drivelines was formed through
the merger of HV Transmission and HV Axles. .
Tata Technologies
JOINT VENTURES
Tata Marcopolo
Fiat-Tata
The two companies formerly also had a distribution joint venture through which
Fiat products were sold in India through joint Tata-Fiat dealerships. This
distribution arrangement was ended in March 2013; Fiats have since been
distributed in India by Fiat Automobiles India Limited, a wholly owned
subsidiary of Fiat.
PRODUCTS
Passenger vehicles
Commercial vehicles
Electric vehicles
Tata Motors has unveiled electric versions of the Tata Indica passenger car
powered by TM4 electric motors and inverters, as well as the Tata Ace
commercial vehicle, both of which run on lithium batteries.
In December 2019, Tata Motors unveiled the Nexon EV, an SUV with a
30.2KWh lithium ion battery and a consistent range of 312km on a single charge.
It is also equipped with fast charging technology, which can charge the vehicle
from 0% - 80% in 60 minutes.
MISSION, VISION AND VALUES OF TATA MOTORS LTD.
Mission
We innovate mobility solutions with passion to enhance the quality of life.
Vision
By FY 2024, we will become the most aspirational Indian auto brand, consistently
winning, by
Delivering superior financial returns
Driving sustainable mobility solutions
Exceeding customer expectations, and
Creating a highly engaged workforce
Values
Integrity
Teamwork
Accountability
Customer focus
Excellence
Speed
FUTURE PLANS
Tata Motors has recently filed new trademark applications for three new names -
Epiq, Spyk and Taureo. The patented names shall be utilised by the carmaker in
the future for its upcoming range of cars. There is no further information as to the
class of vehicles to which the name will be assigned.
The Indian automaker is at present gearing up to launch the Hornbill; new SUV in
the coming year. Tata Motors has also recorded healthy sales of 23,600 units in
the last month, an increase of 11 percent over September, 2020 and an impressive
79.2 percent year-on-year growth for the same period last year.
The upcoming proffer from Tata’s stable is the seven-seater Gravitas slated to be
launched early next year. The model was last showcased at the Auto Expo 2020
and will be based on the five-seater Tata Harrier. Under the hood, it is expected to
be powered by the BS6 compliant 2.0-litre Kryotec diesel engine making 168bhp
and 350Nm torque coupled with a six-speed manual and six-speed torque
converter automatic transmission.
1.5 COMMON MARKETING STRATEGIES OF
AUTOMOBILE COMPANIES
Grand Launch
Recently Tata Motors launched Safari in the SUV segment. Company grandly
launched and created a buzz in the market. After the launch the media
aggressively took interest in providing minute details about the cars to the
customer by demonstrating test drives, interior details, additional features,
comparison with available cars etc. Once the car is launched, an exodus of
advertisements takes place in every possible newspaper, car magazines,
hoardings, mall displays, etc.
Exchange Offers
This is one of the most effective ways adopted by the companies and a very
successful marketing strategy, which has helped companies to increase their sales.
In this method, companies provide an option to buy a new car of the customer’s
choice in exchange for their old cars, but the price of the old car is decided by the
dealer after examining its condition. It helps customers, as they don’t need to go
anywhere else to sell their old car. This also helps companies to increase their sale
of new cars.
Adding Star Value to the
product Brand Ambassador
Companies choose brand ambassadors for their cars to reach wide masses. For
e.g. Shahrukh Khan promoted Hyundai, Abhishek Bachan promoted Ford Fiesta,
Virat Kohli promoted Toyota Etios Liva, Saif Ali Khan and Rani Mukherjee
promoted Chevrolet Aveo and Amir Khan promoted Toyota Innova. Ambassadors
give a special identity to the products.
Potential customers find a familiar face in popular celebrities and hence tend to
understand more what the celebrity says than what an unfamiliar person would
say. The trust and love people have for their celebrities eventually gets transferred
towards the marketers’ product.
Mall Displays
Various companies display their cars in Malls so as to get prime attention. People
go to Malls for shopping and hangout with their friends and family. They conduct
small contests and give gift hampers as prizes. Thus they try to attract crowds
towards them.
Companies enter market with help of Films
In terms of marketing strategies Chevrolet Aveo found a unique way of
advertising by way of a Yash Raj Film production, Tara Rum Pum. The main
motive behind this was to popularize and promote the product in youth. Marketers
select top film banners because they assure high visibility and thus promote the
product in high numbers.
Personal selling
Personal Selling largely takes place at the Dealers’ End. The way the customer is
attended depends mainly on the Dealer as he acts as an interface between the
company and the Consumer. The various cases in which Personal Selling takes
place is Individual Sales, Corporate Sales, Sales Presentations, Fair and trade
Shows. Mostly in case of Individual Sales the Customer goes to the showroom
and takes a look at the product. There he is attended to by the Sales Personnel of
the Dealership. Sometimes the Senior Sales Executive has to make a Sales
Presentation to Corporate Buyers. Personal Selling is also practiced at Trade Fairs
and Auto Shows wherein the Company appointed Sales Personnel attend
prospective customers and also book their orders.
1.6 MARKETING STRATEGIES OF MARUTI SUZUKI
Advertisements
Good promotional strategy is adopted by Maruti Suzuki to transform its thoughts
to the people about its products by marketing through advertisements in
television, radio, newspaper, etc. Through radios they try to promote their product
by organizing quiz contests and the person who wins are offered special
discounts, gift vouchers, coupons, etc. Through television they promote their
vehicle by showing the utility value, its comfort level. These promotional
strategies aim to influence the target market emotionally by focusing on factors
like family, lifestyle, leisure, etc.
Display
When we visited any of the Maruti Dealers showroom, we noticed one very
similar trait, that was the display. They display only 2-3 cars in the showroom.
Well this is the strategy to make people concentrate on only a few choices or
otherwise they might get distracted and get confused. Here Maruti wins one
customer.
Prior to the start of this service Maruti had started two joint ventures:
-Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide
respectively to assist its client in securing loans.
Today Maruti has tie ups with ABN Amro Bank, HDFC Bank, ICICI Ltd, Kotak
Mahindra Bank, Standard Chartered Bank etc.
Exchange offers
Maruti has also placed its step towards progress by marketing through exchange
offers. It makes possible for the customers to get their old car replaced for a new
one with barely some amount. This is one of the greatest ways to attract more and
more customers and also helps to enhance the sales.
Advertisements
Tata Motors contracted many celebrities over the years like Lionel Messi, Hrithik
Roshan, Akshay Kumar, etc. To promote their product they organized quiz
contests on radio and the person who won was offered special discounts, gift
vouchers, coupons, etc. They also advertise in Newspapers. In this companies
advertise about the car in various newspapers and they give detailed explanations
about the features of the cars, keeping customer’s requirement. They also provide
various dealers addresses and contact numbers for reference.
Free Checkup
Tata Motors arranges free check ups from time to time in which they check for
any problem and advice to visit the nearest service center for servicing. This helps
in maintaining good relationships with customers and also helps to build and
maintain a good image in the market.
Exchange offers
Tata Motors offers exchange offers to customers. And by paying an adjusted
amount, customers can get brand new cars in exchange for old ones. Exchange
offers prove to be very affordable for customers who don’t have adequate finance
to buy a new car but surely want to change their old car. By paying the balance
amount, customers can easily exchange their old car with a new one.
Cold callings
Cold calling is the sales process of approaching prospective customers or clients -
typically via telephone, by email or through making a connection on a social
network - who were not expecting such an interaction. The word “cold” is used
because the person receiving the call is not expecting a call or has not specifically
asked to be contacted by a salesperson. A cold call is usually the start of a sales
process generally known as telemarketing. In this type of strategy old customers
are given a relationship call just to know some other references. This gives a boost
to sales and customers also feel a sense of involvement.
Events at Corporate Offices and Banks
Tata Motors tries to attract customers by conducting camps, events at corporate
offices and banks as most of the customers are of middle- age group and corporate
offices are a good source for companies to attract such customers.
Display
Tata Motors keeps an attractive display so that maximum number of people notice
their cars. And they even keep their own accessories related to cars at special
accessories counters. For an attractive display they decorate their showroom as
well as all the cars which are displayed.
MEANING
Providing outstanding customer service after the sale may not only win you a
customer for life, but you’ll be more likely to receive customer referrals that can
lead to more business.
If you fail to provide personal customer service to your client, the next time he
needs a product or service your company sells, he’ll be more inclined to look
elsewhere.
It’s easier to keep a client you have than to find a new one.
Disappearing after the sale is a huge mistake. It is frustrating for the customer
when the salesperson they’ve built up a trust with no longer decides they’re
important enough to spend time with once the sale is closed.
“After sales service refers to various processes which make sure customers are
satisfied with the products and services of the organization.”
The needs and demands of customers must be fulfilled for them to spread a
positive word of mouth. In the current scenario, positive word of mouth plays an
important role in promoting brands and products.
After sales service makes sure products and services meet or surpass the
expectations of the customers.
After sales service includes various activities to find out whether the customer is
happy with the products or not ? After sales service is a crucial aspect of sales
management and must not be ignored.
After sales service plays an important role in customer satisfaction and customer
retention. It generates loyal customers.
Customers start believing in the brand and get associated with the organization for
a longer duration. They speak good about the organization and its products.
A satisfied and happy customer brings more individuals and eventually more
revenues for the organization.
After sales service plays a pivotal role in strengthening the bond between the
organization and customers.
Sales professionals need to stay in touch with the customers even after the
deal. Never ignore their calls.
Call them once in a while to exchange pleasantries.
Give them the necessary support. Help them install, maintain or operate a
particular product. Sales professionals selling laptops must ensure
windows are configured in the system and customers are able to use net
without any difficulty. Similarly organizations selling mobile sim cards
must ensure the number is activated immediately once the customer
submits his necessary documents.
Any product found broken or in a damaged condition must be exchanged
immediately by the sales professional. Don’t harass the customers. Listen
to their grievances and make them feel comfortable.
Create a section in your organization’s website where the customers can
register their complaints. Every organization should have a toll free
number where the customers can call and discuss their queries.
The customer service officers should take a prompt action on the
customer’s queries. The problems must be resolved immediately.
Take feedback of the products and services from the customers. Feedback
helps the organization to know the customers better and incorporate the
necessary changes for better customer satisfaction.
Ask the customers to sign an Annual Maintenance Contract (AMC) with
your organization. AMC is an agreement signed between the organization
and the customer where the organization promises to provide after sales
services to the second party for a certain duration at nominal costs.
The exchange policies must be transparent and in favor of the customer.
The customer who comes for an exchange should be given the same
treatment as was given to him when he came for the first time. Speak to
him properly and suggest him the best alternative.
Safety drive
The company used technology to meet customer needs and even delight them.
Following feedback that the company vehicle were more prone to theft owing to
their resale value the company worked on an anti theft immobilizer.
Complete needs
The company effort of providing all vehicle related needs from learning to drive a
four wheeler at Maruti driving schools four wheeler insurance extended warranty
and eventually exchanging the exisiting vehicle for new one under one roof at
dealerships also enhances customer satisfaction.
Time delivery
MDS offers courses ranging from 2 hrs to 30 hrs. Based on training requirements
and availability of time, customers may choose any course.
Vehicle choices
MDS has almost all the models in its stable to offer for practical training.
Service centers
To reach customers, Maruti Suzuki has built a strong sales network of 933 outlets
spread over 668 towns and cities. They provide maintenance support to customers
through 2946 workshops spread over 1200 towns and cities.
Servicing customers 365 days
The company takes great pride in sharing that customers have related Maruti
Suzuki first once again in customer satisfaction surveys conducted by
independent body,
J. D. Power Asia Pacific. It is the 8th time in a row.
E-service appointments
Through an online service appointment facility, customers can select a time slot,
date and a leader of their choice for servicing their vehicles. Customers can also
list down on-line job orders based on their repairs required. Post the on-line
registration, the respective dealership customer officer responds instantly and
confirms the appointments.
2.1 OBJECTIVES
To know the various marketing strategies used by Maruti Suzuki and Tata
Motors to attract maximum number of customers.
To know which company offers better after sales services.
To know the demand of automobiles.
To know the competition from other car manufacturers.
To know the trend in the market.
Research work was carried out in Raigad District only. The findings may not be
applicable to the other parts of the country because of social and cultural
differences.
The study is based on secondary data taken from published sources and websites.
Therefore, the quality of the research depends on the quality and reliability of the
data collected.
Time factor has been a very big limitation in research like this. The respondents
have limited time so they sometimes refuse to answer the questionnaire, also
researcher has less time to conduct the survey. So the size of the sample was
restricted to Raigad District. The view of the people is biased therefore it doesn’t
reflect the true picture.
The sample was collected using convenience sampling techniques. As such the
result may not give an exact representation of the population.
Due to the pandemic situation, researcher isn't able to meet respondents face to
face. So I can’t see the actual expressions of the respondents.
2.4 SIGNIFICANCE OF THE STUDY
After sales service should be an integral part of any company’s sales strategy. A
good after sales service can with its excellence help you gain market share, reduce
after sales related overheads on products and services sold and most important of
all key to customer retention. Most customers will not make a repeat purchase or
continue with a company’s services in case of a bad experience. Many companies
underestimate the potential after sales has for giving you a competitive advantage.
Customers expect a high quality customer service, especially as they focus on
getting good value for their money and are willing to spend more with those that
deliver the best. This study evaluates the various marketing strategies used by
Maruti Suzuki and Tata Motors to attract maximum number of customers and
which company offers better after sales service.
2.6 SAMPLE SIZE
Analytical tools
Graphs and percentage analysis are the main tools used for the purpose of
interpretation.
This study is based on collecting data by using well-connected
questionnaires for consumers from various demographic segments and
also data is collected using secondary sources.
After collecting data, it is arranged in the form of tables from analysis and
interpretation.
1. Primary data
Primary data are those which are collected for the first time, and this happens to
be original in character. It is the data collected for the first time and for the sole
purpose of the research under study is known as primary data.
Following method is used to collect primary data:
Questionnaire method
This method of data collection is quite popular, particularly in case of big
enquiries. It is being adopted by private individuals, research workers, private and
public organizations and even by governments. In this method a questionnaire is
sent to the persons concerned with a request to answer the questions and return
the questionnaire.
2. Secondary data
Secondary data means data that are already available, that is, they refer to the data
which have already been collected and analysed by someone else. When the
researcher utilizes secondary data he has to look into various sources from where
he can obtain them. In this case he is certainly not confronted with the problems
that are usually associated with the collection of original data.
Secondary data is what the researcher collects from different sources. It also helps
me to get elaborate information to do my research. Secondary data can be
collected through:
Books Internet
Newspapers Magazines
CHAPTER III
LITERATURE REVIEW
In today's competitive era the word 'Strategy' is very crucial for all business
organizations. Presently organizations started realizing that customer centric and
aggressive marketing strategies play a vital role to become successful leaders.
Though globalization has opened the doors of opportunities for all, the market is
still crowded with some unknown risks and a lot of competition. Because of this
competition, a marketing strategy must aim at being unique, differential-creating
and advantage-creating. To obtain a unique and differential advantage, an
organization has to be creative in its marketing strategy. In the automobile
industry, after-sales service plays an important role whether it is before buying a
product or after buying the product. One of the necessary evaluation criteria for
customer satisfaction is availability of after-sales service. In today's situation,
after-sales service quality can be measured by administering a customer
satisfaction survey. Many studies have been conducted to review various aspects.
Some of the relevant studies are reviewed in this chapter.
Sumit Jain & Dr.R.K.Garg, in their research paper described the current
scenario of the automobile industry and challenges facing by Industry. They
pointed that, the companies have to shorten product life cycles in order to react to
the expectations of individualize and fast changing consumer demands with
innovative products, and the integration of strategic partners with more
responsibility into the value chain should be intensified.
Rajkumar Gautam & Sahil Raj, in their research paper depicted the scenario of
automobile sector of the world and India. In their paper they have investigated
that the globalization process has affected the sector in all the areas of
manufacturing, sales, personal research & development and financing. They also
concluded that, in order to meet the challenges posed by globalization the Indian
automobile manufacturers need to ensure the technological advancement,
appropriate marketing strategies and adequate customer care feedback system in
their organizations.
P Krishnaveni in her article focuses on the current details and some future plans
of Maruti Suzuki India Ltd. The article also highlighted the various innovation of
company like introduction of Electronic power Steering (EPS), introduction of
superior quality of 16*4 hypertech engines.
Frolova (2014) in his thesis has analysed the striking stimulus of advertising on
the consumer buying actions. The author also highlights the effect of advertising
strategy on the life cycle of a product and recommends application of few
methods at every stage of the product’s life. The author is of the opinion that
positioning the product in the minds of the consumers is also vital along with the
requirement of producing quality products.
Lokhande & Rana (2013) discussed the various Brand positioning, Advertising,
Distribution strategies adopted by Maruti Suzuki to capture the market. They also
highlighted the unique promotional strategies executed by the brand which
included Teacher Plus Scheme, 2599 scheme, Change your life campaign etc.
Fatma & Kumari (2013) discussed the promotion strategies applied by the
Company which includes road shows to display vehicles in the pavilions during
various college festivals and exhibitions, radio advertisements to convey about the
product features, price, qualities, etc. and print advertisements in leading
newspapers. They also discussed other print promotion tactics such as brochures,
leaflets, banners and posters at public places to reach the customers. Workshops
and seminars are also used to display various models of Maruti Suzuki at the same
time offering test drives.
Malhotra and Sinharay (2013) focused on various innovative strategies of
Maruti Suzuki in the wake of the LPG era in India, to maintain market leadership.
Such strategies include indigenization of cars to reduce cost, providing allied
services in- house such as insurance, car finance, which proved to be a major
decision driver for salaried employees in particular. This was a rather impactful
venture, given that Maruti True Value which aims to capture loyalty of existing
Maruti and non-Maruti customers by giving them fair value on their used-cars in
addition to benefits on buying a new Maruti car. Maruti’s customer centric
approach is also highlighted along with its emphasis on maintenance services and
having a dedicated CRM department to handle customer feedback.
Exim bank’s occasional paper highlighted that the global financial meltdown of
the year 2008 has created a precarious condition across various sectors, which has
forced countries and industries to take a fresh look at their future strategies.
The paper also pointed out that the Indian automotive industry holds significant
scope for expansion, both in the domestic market, where the vehicle penetration
level is on the lower side as compared to world average and in the international
market, where India could position itself as a manufacturing hub.
Satya Sundaram (2008) analyzed how the competition makes the automobile
manufacturer to launch at least one new model or a variant of the model every
year. This survey also pointed out that diesel cars are becoming popular in India
and the announcement of reductions in excise duties by the government has
helped to some extent to boost the demand.
The study conducted by Wei Zhang and Liwen Liu dated in 2007 concluded that
the customer waiting time is an effective indicator in order to maximize customer
satisfaction. Satisfaction in after-sales service impacts directly brand loyalty of the
customer.
Tata Motors has ruled Indian roads for four decades, at the beginning of the
competition, which got stronger after the decontrol of the automotive industry in
1993 (Sharma, 2007). In the contemporary times, it becomes inevitable for CV
manufacturers to craft a competitive marketing strategy - one which considers and
adjusts to the scoring rivalry, dynamic surroundings and the pecuniary
uncertainty. “Today's marketing people must execute more than simply set long-
term strategies and hope for the best” (Begley & Boyd, 2003)
Hennig-Thurau et al. (2006) addresses that producing and launching a high-
quality product simply is not enough for success, but firms must also engage in
marketing activities to inform consumers about their high quality. One of the
theoretical frameworks explaining the difference between actual and perceived
quality of a product is information asymmetry.
Nysveen and Breivit (2005) in their study compared the effectuality of internet
advertisement of pop-ups, print advertisements and radio advertisements for
airline tickets and weekend stay at a hotel. Conclusion was derived that the
internet and posters were more efficacious than radio. The study indicated that
both advertising media and corresponding quality aspects have significant impact
on effectiveness of the advertisement.
Thus, to a pact with the prevailing trials, “the businesses must have more
distinctive and purposeful marketing strategies and they should be effectively
implemented” (Cravens, Merrilees, & Walker, 2000). An effective stratagem,
therefore, would consider the various aspects driving this industry, enabling a
firm to give a strong competition to offshore players.
If a firm spends a large amount of money on advertising, then consumers are more
likely to believe its claims about unobservable product quality. Otherwise, once
consum- ers realize the true product quality, they will not repeat their purchase
and firms will not be able to recover costs of advertising (Kihlstrom and
Riordan, 1984; Milgrom and Roberts, 1986). Moreover, investment in
advertising signals a firm’s confidence in and commitment to its product’s
superior quality (Kopalle and Lehmann, 2006; Moorthy and Zhao, 2000).
CHAPTER IV
DATA ANALYSIS, INTERPRETATION AND
PRESENTATION
INTERPRETATION
According to a survey, out of 100 respondents, 94% are male and 6% are female.
Q3. Which type of Maruti Suzuki car is owned by you?
INTERPRETATION
According to a survey, out of 50 respondents, 64% owned hatchback, 8% owned
sedan, 12% owned compact SUV, 8% owned crossover and 8% owned mini
MPV.
Q4. Which type of Tata Motors car is owned by you?
INTERPRETATION
According to study, out of 50 respondents, 30% owned hatchback, 42% owned
sedan, 12% owned compact SUV and 16% of respondents owned SUV.
Q5. Which version is owned by you?
INTERPRETATION
According to a survey, out of 100 respondents, 60% owned petrol version, 30%
owned diesel version and 10% of respondents owned CNG version of car.
Q6. What is your family income level?
INTERPRETATION
According to survey, out of 100 respondents, 33% have 300000-400000 family
income level, 15% have 400000-500000 family income level, 17% have 500000-
600000 family income level and 35% of respondents have above 600000 family
income level.
Q7. What do you make use of this vehicle?
INTERPRETATION
According to a survey, out of 100 respondents, 9% use their vehicle for
commercial purpose, 78% use their vehicle for personal purpose and 13% of
respondents use it for both i.e., commercial purpose and personal purpose.
Q8. For how long do you own a car?
INTERPRETATION
According to a survey, out of 100 respondents, 11% own a car for 0-1 year, 19%
own a car for 1-2 year, 16% own a car for 2-3 year and 54% of respondents own a
car for above 3 year.
Q9. Which factors of Maruti Suzuki would affect your choice? (Multiple
options for selection were provided to respondents)
INTERPRETATION
According to a survey, out of 110 responses, 19.1% feels brand affects their
choice, 22.7% feels price affects their choice, 20.0% feels average affects their
choice, 20.0% feels quality affects their choice, 14.5% feels resale value affects
their choice and 3.6% feels range of cars affect their choice.
Q10. Which factors of Tata Motors would affect your choice? (Multiple
options for selection were provided to respondents)
INTERPRETATION
According to a survey, out of 106 responses, 21.7% feels brand affects their
choice, 26.4% feels price affects their choice, 17.0% feels average affects their
choice, 19.8% feels quality affects their choice, 8.5% feels resale value affects
their choice and 6.6% feels range of cars affect their choice.
Q11. Which marketing strategy has attracted you to buy a car? (Multiple
options for selection were provided to respondents)
INTERPRETATION
According to survey, out of 159 responses, 23.3% feels TV ads attracted them to
buy a car, 8.8% feels launch of car attracted them, 7.5% feels newspapers
attracted them, 21.4% feels social media attracted them, 9.4% feels magazine
attracts them,
17.0% feels word of mouth publicity attracted them and 12.6% feels that other
marketing strategy attracted them to buy a car.
Q12. Do you have full knowledge about cars before buying?
INTERPRETATION
According to a survey, out of 100 respondents, 67% have full knowledge about
cars before buying and 33% have no knowledge about cars before buying.
Q13. Does advertising influence your decision in choosing a car?
INTERPRETATION
According to a survey, out of 100 respondents, 76% feels that advertising
influences their decision in choosing a car and 24% feels that advertising does not
influence their decision in choosing a car.
Q14. How did you find the Maruti Suzuki car’s performance?
INTERPRETATION
According to a survey, out of 50 respondents, 34% find excellent performance of
a Maruti Suzuki car, 48% find good performance and 18% of respondents find
average performance.
Q15. How did you find the Tata Motors car’s performance?
INTERPRETATION
According to a survey, out of 50 respondents, 52% find excellent performance of
a Tata Motors car, 46% find good performance and 2% of respondents find
average performance.
Q16. Has Maruti Suzuki car’s performance met your expectations?
INTERPRETATION
According to a survey, out of 50 respondents, 80% respondents feel that Maruti
Suzuki car’s performance met their expectations and 20% feels that the
performance does not meet their expectations.
Q17. Has Tata Motors car’s performance met your expectations?
INTERPRETATION
According to a survey, out of 50 respondents, 100% respondents felt that Tata
Motors car’s performance met their expectations.
Q18. If you have used a Maruti Suzuki car before also, what reasons have
forced you to buy Maruti Suzuki again?
INTERPRETATION
According to survey, out of 50 respondents, 6% feels that brand forced them to
buy Maruti Suzuki again, 16% feels quality forced them, 12% feels price forced
them,
8% feels range of cars forced them, 24% feels that all reasons forced them to buy
again and 34% of respondents are first time Maruti Suzuki buyers.
Q19. If you have used a Tata Motors car before also, what reasons have
forced you to buy Tata Motors again?
INTERPRETATION
According to survey, out of 50 respondents, 6% feels that brand forced them to
buy Tata Motors again, 20% feels quality forced them, 24% feels price forced
them, 2%
feels range of cars forced them, 28% feels that all reasons forced them to buy
again and 20% of respondents are first time Tata Motors buyers.
Q20. Do you think prices of Maruti Suzuki cars are reasonable?
INTERPRETATION
According to a survey, out of 50 respondents, 82% thinks that prices of Maruti
Suzuki cars are reasonable and 18% thinks that prices of Maruti Suzuki cars are
not reasonable.
Q21. Do you think the prices of Tata Motors cars are reasonable?
INTERPRETATION
According to a survey, out of 50 respondents, 98% thinks that prices of Tata
Motors cars are reasonable and 2% thinks that prices of Tata Motors cars are not
reasonable.
Q22. How did you find Maruti Suzuki dealer’s services while buying a car?
INTERPRETATION
According to a survey, out of 50 respondents, 28% find excellent dealer’s services
of Maruti Suzuki while buying a car, 50% find good and 22% of respondents find
average dealer’s services.
Q23. How did you find Tata Motors dealer’s services while buying a car?
INTERPRETATION
According to a survey, out of 50 respondents, 30% find excellent dealer’s services
of Tata Motors while buying a car, 54% find good, 10% find average and 6% of
respondents find poor dealer’s services.
Q24. Do Maruti Suzuki dealers offer any extra benefits other than
company offers?
INTERPRETATION
According to a survey, out of 50 respondents, 44% feels that Maruti Suzuki
dealers offer extra benefits other than company offers and 56% feels that Maruti
Suzuki dealers do not offer any extra benefits.
Q25. Do Tata Motors dealers offer any extra benefits other than company
offers?
INTERPRETATION
According to a survey, out of 50 respondents, 68% feels that Tata Motors dealers
offer extra benefits other than company offers and 32% feels that Tata Motors
dealers do not offer any extra benefits.
Q26. What are your expectations from the dealer’s side?
INTERPRETATION
According to survey, out of 100 respondents, 6% expect on time delivery
from dealer's side, 41% expect good service, 9% expect giving detailed
information
about car before purchase, 10% expect solving complaints/queries immediately
and 34% of respondents expect all of above from, dealer’s side
Q27. How often do you get your vehicle serviced?
INTERPRETATION
According to a survey, out of 100 respondents, 23% service their vehicle in 3
months, 33% in 6 months and 44% of respondents service their vehicle in 1 year.
Q28. Which place of servicing do you prefer?
INTERPRETATION
According to a survey, out of 100 respondents, 74% prefer company car
showroom and 26% prefer private garage for servicing their vehicle.
Q29. Are you satisfied with the number of Maruti Suzuki service stations in
Raigad District?
INTERPRETATION
According to a survey, out of 50 respondents, 70% satisfied and 30% not satisfied
with the number of Maruti Suzuki service stations in Raigad District.
Q30. Are you satisfied with the number of Tata Motors service stations in
Raigad District?
INTERPRETATION
According to a survey, out of 50 respondents, 60% satisfied and 40% not satisfied
with the number of Tata Motors service stations in Raigad District.
Q31. Have you ever felt that the services assured to your vehicle during
purchase time are not fulfilled after you bought?
INTERPRETATION
According to a survey, out of 100 respondents, 70% felt that the services assured
to their vehicle during purchase time are not fulfilled after they bought and 30%
of respondents felt that the services assured to their vehicle during purchase time
are fulfilled after they bought the vehicle.
Q32. How do you feel about the Maruti Suzuki after-sales services offered?
INTERPRETATION
According to a survey, out of 50 respondents, 10% feel highly satisfied, 76% feel
satisfied and 14% of respondents feel not satisfied about the Maruti Suzuki after
sales services offered.
Q33. How do you feel about Tata Motors after-sales services offered?
INTERPRETATION
According to a survey, out of 50 respondents, 16% feel highly satisfied, 80% feel
satisfied and 4% of respondents feel not satisfied about the Tata Motors after sales
services offered.
Q34. How is the availability of spare parts for Maruti Suzuki cars?
INTERPRETATION
According to a survey, out of 50 respondents, 32% feel excellent, 56% feel good,
8% feel average and 4% of respondents feel poor availability of spare parts for
Maruti Suzuki cars.
Q35. How is the availability of spare parts for Tata Motors cars?
INTERPRETATION
According to a survey, out of 50 respondents, 26% feel excellent, 64% feel good,
6% feel average and 4% of respondents feel poor availability of spare parts for
Tata Motors cars.
Q36. Is the customer service centre executive trying to cross sell other car
accessories for Maruti Suzuki?
INTERPRETATION
According to a survey, out of 50 respondents, 56% feel that the customer
service centre executive tries to cross sale other car accessories and 44% feel that
the customer service executive does not try to cross sale other car accessories for
Maruti Suzuki.
Q37. Is the customer service centre executive trying to cross sale other car
accessories for Tata Motors?
INTERPRETATION
According to a survey, out of 50 respondents, 64% feel that the customer
service centre executive tries to cross sale other car accessories and 36% feel that
the customer service executive does not try to cross sale other car accessories for
Tata Motors.
Q38. Would you recommend your friends, relatives to buy a Maruti Suzuki
car?
INTERPRETATION
According to a survey, out of 50 respondents, 90% like to recommend and 10%
do not like to recommend their friends, relatives to buy a Maruti Suzuki car.
Q39. Would you recommend your friends, relatives to buy a Tata Motors car?
INTERPRETATION
According to a survey, out of 50 respondents, 100% of respondents like to
recommend their friends, relatives to buy a Tata Motors car.
CHAPTER V
CONCLUSIONS AND SUGGESTIONS
5.1 FINDINGS
According to survey, out of 100 respondents, 31% are of 18-25 age group,
11% are of 26-30 age group, 14% are of 31-35 age group, 9% are of 36-40
age group and 35% are of above 40 age group.
According to a survey, out of 100 respondents, 94% are male and 6% are
female.
According to a survey, out of 50 respondents, 64% owned hatchback, 8%
owned sedan, 12% owned compact SUV, 8% owned crossover and 8%
owned mini MPV.
According to study, out of 50 respondents, 30% owned hatchback, 42%
owned sedan, 12% owned compact SUV and 16% of respondents owned
SUV.
According to a survey, out of 100 respondents, 60% owned petrol version,
30% owned diesel version and 10% of respondents owned CNG version of
car.
According to survey, out of 100 respondents, 33% have 300000-400000
family income level, 15% have 400000-500000 family income level, 17%
have 500000-600000 family income level and 35% of respondents have
above 600000 family income level.
According to a survey, out of 100 respondents, 9% use their vehicle for
commercial purpose, 78% use their vehicle for personal purpose and 13%
of respondents use it for both i.e., commercial purpose and personal
purpose.
According to a survey, out of 100 respondents, 11% own a car for 0-1
year, 19% own a car for 1-2 year, 16% own a car for 2-3 year and 54% of
respondents own a car for above 3 year.
According to a survey, out of 110 responses, 19.1% feels brand affects
their choice, 22.7% feels price affects their choice, 20.0% feels average
affects their choice, 20.0% feels quality affects their choice, 14.5% feels
resale value affects their choice and 3.6% feels range of cars affect their
choice.
According to a survey, out of 106 responses, 21.7% feels brand affects
their choice, 26.4% feels price affects their choice, 17.0% feels average
affects their choice, 19.8% feels quality affects their choice, 8.5% feels
resale value affects their choice and 6.6% feels range of cars affect their
choice.
According to survey, out of 159 responses, 23.3% feels TV ads attracted
them to buy a car, 8.8% feels launch of car attracted them, 7.5% feels
newspapers attracted them, 21.4% feels social media attracted them, 9.4%
feels magazine attracts them, 17.0% feels word of mouth publicity
attracted them and 12.6% feels that other marketing strategy attracted
them to buy a car.
According to a survey, out of 100 respondents, 67% have full knowledge
about cars before buying and 33% have no knowledge about cars before
buying.
According to a survey, out of 100 respondents, 76% feels that advertising
influences their decision in choosing a car and 24% feels that advertising
does not influence their decision in choosing a car.
According to a survey, out of 50 respondents, 34% find excellent
performance of a Maruti Suzuki car, 48% find good performance and 18%
of respondents find average performance.
According to a survey, out of 50 respondents, 52% find excellent
performance of a Tata Motors car, 46% find good performance and 2% of
respondents find average performance.
According to a survey, out of 50 respondents, 80% respondents feel that
Maruti Suzuki car’s performance met their expectations and 20% feels that
the performance does not meet their expectations.
According to a survey, out of 50 respondents, 100% respondents felt that
Tata Motors car’s performance met their expectations.
According to survey, out of 50 respondents, 6% feels that brand forced
them to buy Maruti Suzuki again, 16% feels quality forced them, 12%
feels price forced them, 8% feels range of cars forced them, 24% feels that
all reasons forced them to buy again and 34% of respondents are first time
Maruti Suzuki buyers.
According to survey, out of 50 respondents, 6% feels that brand forced
them to buy Tata Motors again, 20% feels quality forced them, 24% feels
price forced them, 2% feels range of cars forced them, 28% feels that all
reasons forced them to buy again and 20% of respondents are first time
Tata Motors buyers.
According to a survey, out of 50 respondents, 82% think that prices of
Maruti Suzuki cars are reasonable and 18% think that prices of Maruti
Suzuki cars are not reasonable.
According to a survey, out of 50 respondents, 98% thinks that prices of
Tata Motors cars are reasonable and 2% thinks that prices of Tata Motors
cars are not reasonable.
According to a survey, out of 50 respondents, 28% find excellent dealer’s
services of Maruti Suzuki while buying a car, 50% find good and 22% of
respondents find average dealer’s services.
According to a survey, out of 50 respondents, 30% find excellent dealer’s
services of Tata Motors while buying a car, 54% find good, 10% find
average and 6% of respondents find poor dealer’s services.
According to a survey, out of 50 respondents, 44% feels that Maruti
Suzuki dealers offer extra benefits other than company offers and 56%
feels that Maruti Suzuki dealers do not offer any extra benefits.
According to a survey, out of 50 respondents, 68% feels that Tata Motors
dealers offer extra benefits other than company offers and 32% feels that
Tata Motors dealers do not offer any extra benefits.
According to a survey, out of 100 respondents, 6% expect on time delivery
from the dealer's side, 41% expect good service, 9% expect giving detailed
information about car before purchase, 10% expect solving
complaints/queries immediately and 34% of respondents expect all of the
above from, dealer’s side.
According to a survey, out of 100 respondents, 23% service their vehicle
in 3 months, 33% in 6 months and 44% of respondents service their
vehicle in 1 year.
According to a survey, out of 100 respondents, 74% prefer company car
showroom and 26% prefer private garage for servicing their vehicle.
According to a survey, out of 50 respondents, 70% satisfied and 30% not
satisfied with the number of Maruti Suzuki service stations in Raigad
District.
According to a survey, out of 50 respondents, 60% satisfied and 40% not
satisfied with the number of Tata Motors service stations in Raigad
District.
According to a survey, out of 100 respondents, 70% felt that the services
assured to their vehicle during purchase time are not fulfilled after they
bought and 30% of respondents felt that the services assured to their
vehicle during purchase time are fulfilled after they bought the vehicle.
According to a survey, out of 50 respondents, 10% feel highly satisfied,
76% feel satisfied and 14% of respondents feel not satisfied about the
Maruti Suzuki after sales services offered.
According to a survey, out of 50 respondents, 16% feel highly satisfied,
80% feel satisfied and 4% of respondents feel not satisfied about the Tata
Motors after sales services offered.
According to a survey, out of 50 respondents, 32% feel excellent, 56%
feel good, 8% feel average and 4% of respondents feel poor availability of
spare parts for Maruti Suzuki cars.
According to a survey, out of 50 respondents, 26% feel excellent, 64%
feel good, 6% feel average and 4% of respondents feel poor availability of
spare parts for Tata Motors cars.
According to a survey, out of 50 respondents, 56% feel that the customer
service centre executive tries to cross sale other car accessories and 44%
feel that the customer service executive does not try to cross sale other car
accessories for Maruti Suzuki.
According to a survey, out of 50 respondents, 64% feel that the customer
service centre executive tries to cross sale other car accessories and 36%
feel that the customer service executive does not try to cross sale other car
accessories for Tata Motors.
According to a survey, out of 50 respondents, 90% like to recommend and
10% do not like to recommend their friends, relatives to buy a Maruti
Suzuki car.
According to a survey, out of 50 respondents, 100% of respondents like to
recommend their friends, relatives to buy a Tata Motors car.
5.2 CONCLUSIONS
Researcher have studied and analyzed the marketing strategy and after sales
service of Maruti Suzuki and Tata Motors in Raigad District. This study
concludes that:
According to a survey, we can conclude that the customers of Tata Motors are
more likely to recommend the brand to their friends and relatives compared to
Maruti Suzuki.
5.3 SUGGESTIONS
https://en.wikipedia.org/wiki/Automotive_industry#:~:text=The%20automotive%20indus
try%20comprises%20a,and%20selling%20of%20motor%20vehicles.
https://en.wikipedia.org/wiki/Automotive_industry_in_India
https://en.wikipedia.org/wiki/Maruti_Suzuki
https://en.wikipedia.org/wiki/Tata_Motors
https://www.marutisuzuki.com
https://www.tatamotors.com
https://www.slideshare.net/GANESHAWATADE/comparative-study-of-maruti-suzuki-
and-tata-motors-with-reference-to-after-sales-service?qid=633ede29-3a47-4db4-8436-
b6bbd8ccee3f&v=&b=&from_search=9
http://www.shanlaxjournals.in/pdf/MGT/V2N4/MGT_V2_N4_009.pdf
https://youtu.be/JgpYjpqruW8
https://www.autocarindia.com/car-news/mg-indias-new-initiative-rewards-customers-
waiting-for-hector-deliveries-413869
Autocar India Magazine
120
APPENDIX
QUESTIONNAIRE
Q16. How did you find the Tata Motors car’s performance?
Excellent
Good
Average
Poor
Q19. If you have used a Maruti Suzuki car before also, what reasons have forced you to buy
Maruti Suzuki again?
Brand
Quality
Price
Range of cars
All of them
First time Maruti Suzuki buyer
Q20. If you have used a Tata Motors car before also, what reasons have forced you to buy Tata
Motors again?
Brand
Quality
Price
Range of cars
All of them
First time Tata Motors buyer
Q22. Do you think the prices of Tata Motors cars are reasonable?
Yes
No
Q23. How did you find Maruti Suzuki dealer’s services while buying a car?
Excellent
Good
Average
Poor
Q24. How did you find Tata Motors dealer’s services while buying a car?
Excellent
Good
Average
Poor
Q25. Do Maruti Suzuki dealers offer any extra benefits other than company offers?
Yes
No
Q26. Do Tata Motors dealers offer any extra benefits other than company offers?
Yes
No
Q30. Are you satisfied with the number of Maruti Suzuki service stations in Raigad District?
Yes
No
Q31. Are you satisfied with the number of Tata Motors service stations in Raigad District?
Yes
No
Q32. Have you ever felt that the services assured to your vehicle during purchase time are not
fulfilled after you bought?
Yes
No
Q33. How do you feel about the Maruti Suzuki after-sales services offered?
Highly satisfied
Satisfied
Not satisfied
Q34. How do you feel about Tata Motors after-sales services offered?
Highly satisfied
Satisfied
Not satisfied
Q35. How is the availability of spare parts for Maruti Suzuki cars?
Excellent
Good
Average
Poor
Q36. How is the availability of spare parts for Tata Motors cars?
Excellent
Good
Average
Poor
Q37. Is the customer service centre executive trying to cross sell other car accessories for Maruti
Suzuki?
Yes
No
Q38. Is the customer service centre executive trying to cross sale other car accessories for Tata
Motors?
Yes
No
Q39. Would you recommend your friends, relatives to buy a Maruti Suzuki car?
Yes
No
Q40. Would you recommend your friends, relatives to buy a Tata Motors car?
Yes
No