CHAPTER-1

INTRODUCTION

OF

THE TOPIC

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 CONSUMER SATISFACTION LEVEL

Customer Satisfaction:

Customer satisfaction measures how well a firm is able to meet the expectations of
customers. Customer satisfaction is a key concept in marketing, as a firm cannot retain its
customers unless it has highly satisfied customers.

The following are some of the factors that are necessary of customer satisfaction:
 Quality Product at right price
 Proper after Sales Service
 Delivering the promised benefits

The customer satisfaction is measured through feedbacks and surveys. Surveys are specially
designed for past customers to measure their satisfaction level on various parameters.
Customer satisfaction becomes more important in highly competitive industries like FMCG
products, where the customer can change its loyalty quickly.

Definition:-
”Customer satisfaction is a marketing term that measures how products or services supplied by
a company meet or surpass a customer's expectation .Customer satisfaction is important
because it provides marketers and business owners with a metric that they can use to manage
and improve their businesses.”

Here are the top six reasons why customer satisfaction is so important:

 It’s a leading indicator of consumer repurchase intentions and loyalty

 It’s a point of differentiation

 It reduces customer churn
 It increases customer lifetime value
 It reduces negative word of mouth
 It’s cheaper to retain customers than acquire new one

1). It’s A Leading Indicator of Consumer Repurchase Intentions and Loyalty

Customer satisfaction is the best indicator of how likely a customer will make a purchase in
the future. Asking customers to rate their satisfaction on a scale of 1-10 is a good way to see
if they will become repeat customers or even advocates.
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Any customers that give you a rating of 7 and above, can be considered satisfied, and you can
safely expect them to come back and make repeat purchases. Customers who give you a
rating of 9 or 10 are your potential customer advocates who you can leverage to become
evangelists for your company.

Scores of 6 and below are warning signs that a customer is unhappy and at risk of leaving.
These customers need to be put on a customer watch list and followed up so you can
determine why their satisfaction is low.

See how satisfaction provides so much insight into your customers?

That’s why it’s one of the leading metrics businesses use to measure consumer repurchase
and customer loyalty.

2. IT’S A POINT OF DIFFERENTIATION

In a competitive marketplace where businesses compete for customers; customer satisfaction

is seen as a key differentiator. Businesses who succeed in these cut-throat environments are
the ones that make customer satisfaction a key element of their business strategy.

Picture two businesses that offer the exact same product. What will make you choose one
over the other?

If you had a recommendation for one business would that sway your opinion? Probably. So
how does that recommendation originally start? More than likely it’s on the back of a good
customer experience. Companies who offer amazing customer experiences create
environments where satisfaction is high and customer advocates are plenty.

This is an example of where customer satisfaction goes full circle. Not only can customer
satisfaction help you keep a finger on the pulse of your existing customers, it can also act as a
point of differentiation for new customers.

3. It reduces customer churn

An Accenture global customer satisfaction report (2008) found that price is not the main
reason for customer churn; it is actually due to the overall poor quality of customer service.

Customer satisfaction is the metric you can use to reduce customer churn. By measuring and
tracking customer satisfaction you can put new processes in place to increase the overall
quality of your customer service.

I recommend you put an emphasis on exceeding customer expectations and ‘wowing’

customers at every opportunity. Do that for six months, than measure customer satisfaction

again. See whether your new initiatives have had a positive or negative impact on
satisfaction.

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4. IT INCREASES CUSTOMER LIFETIME VALUE

A study by Info Quest found that a ‘totally satisfied customer’ contributes 2.6 times more
revenue than a ‘somewhat satisfied customer’. Furthermore, a ‘totally satisfied customer’
contributes 14 times more revenue than a ‘somewhat dissatisfied customer’.

Satisfaction plays a significant role in how much revenue a customer generates for your
business.

Successful businesses understand the importance of customer lifetime value (CLV). If you
increase CLV, you increase the returns on your marketing dollar.

For example, you might have a cost per acquisition of $500 dollars and a CLV of $750.
That’s a 50% ROI from the marketing efforts. Now imagine if CLV was $1,000. That’s a
100% ROI!

Customer lifetime value is a beneficiary of high customer satisfaction and good customer
retention. What are you doing to keep customers coming back and spending more?

5. It reduces negative word of mouth

McKinsey found that an unhappy customer tells between 9-15 people about their experience.
In fact, 13% of unhappy customers tell over 20 people about their experience.

That’s a lot of negative word of mouth.

Customer satisfaction is tightly linked to revenue and repeat purchases. What often gets
forgotten is how customer satisfaction negatively impacts your business. It’s one thing to lose
a customer because they were unhappy. It’s another thing completely to lose 20 customers
because of some bad word of mouth.

To eliminate bad word of mouth you need to measure customer satisfaction on an ongoing
basis. Tracking changes in satisfaction will help you identify if customers are actually happy
with your product or service.

6. It’s cheaper to retain customers than acquire new ones

This is probably the most publicized customer satisfaction statistic out there. It costs six to
seven times more to acquire new customers than it does to retain existing customers.

If that stat does not strike accord with you then there’s not much else I can do to demonstrate
why customer satisfaction is important.

Customers cost a lot of money to acquire. You and your marketing team spend thousands of
rupee getting the attention of prospects, nurturing them into leads and closing them into sales.
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Here are some customer retention strategies to get you thinking:

 Use blogs to educate customers

 Use email to send special promotions
 Use customer satisfaction surveys to listen

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CHAPTER-2
COMPANY

PROFILE

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 COMPANY PROFILE

An Overview
MARUTI SUZUKI India Ltd, is a wholly owned subsidiary of the MARUTI SUZUKI
Company (MSC), Korea, a part of the MARUTI SUZUKI Group comprising MARUTI
SUZUKI Company, MARUTI SUZUKI and other affiliated companies, with a combined
turnover of over US$ 50 Billion. The MARUTI SUZUKI Group with a presence in over 185
countries and combined annual sales of over 3 million units is one of the fastest growing auto
manufacturers in the world.

MSIL has emerged as the second largest and the fastest growing car manufacturer in India.
MSIL presently markets over 26 variants of passenger cars in six segments. The Alto 800 in
the B segment, Vitara Brezza in the B+ segment, the Baleno in the C segment, the Ertiga in
the D segment, the Sedan Kizashi in the E segment.

The company recorded combined sales of 215,630 during calendar year 2006 with a growth
of 43% over year 2007. MSIL is India's fastest growing car company having rolled-out over
700,000 cars in just over 70 months since its inception and is the largest exporter of passenger
cars with exports of over Rs. 1,700 crores. MSIL has recorded a staggering growth of 149%
in exports over the year 2007.

MSIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the
most advanced production, quality and testing capabilities in the country. In continuation of
its investment in providing the Indian customer global technology, MSIL has announced
plans for its second plant, which will produce 150,000 units per annum, raising MSIL’s total
production capacity to 400,000 per annum by 2007. The plant will be built on a 2.1 million
square meter site adjacent to the existing facility with an investment of $450-$500 million on
its new integrated facility. MSIL is investing to expand capacity in line with its positioning as
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MSC’s global export hub for compact cars. Apart from expansion of production capacity,
MSIL plans to expand its dealer network, which will be increased from 146 to 180 this year.
And with the company’s greater focus on the quality of its after-sales service, MSIL’s service
network will be expanded to over 1,000 in 2007.

MSIL has many awards in its bouquet. It was declared “The Star Company” amongst unlisted
companies by Business Standard this year. Getz got the coveted “Car of the Year
2007” award twice over. It was declared a winner by both Business Standard Motoring and
CNBC-TV18 Auto car Auto awards.

MSIL was also the “Manufacturer of the Year” two years in a row in 2006 and 2007. ICICI
Overdrive Awards declared MARUTI SUZUKI as the “Car Maker of the Year” in 2007.
MARUTI SUZUKI products with state of the art technology have also been winning many
accolades over the years. SWIFT bagged top honors in JD Power Asia Pacific for three years.
MARUTI SUZUKI’XL6 was ranked No. 1 in J D Power Asia Pacific APEAL for two years
and also got Business Standard Motoring Jury award for its CRD model.
MSIL has also been awarded the benchmark ISO 14001 certification for its sustainable
environment management practices.
The following table shows the MSIL’s cars and the various segments they belong to as in the
Indian market.

Segment Classification HMIL’s Car Price

(Ex Showroom in Delhi)
B Sub – Compact Alto 800 Rs. 278999
B+ Compact Vitara Brezza Rs. 421000
C Mid-Size Baleno Rs. 529000
D Premium Ertiga Rs. 853793
E Luxury Sedan Kizashi Rs. 1399000
SUV Sports Utility Vehicle S-Cross Rs. 1462999

NEW MILESTONES

The Indian passenger car market is a highly competitive market. Although its growth has
been hi in past several years, profitability has been impacted because of rising costs, change
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in excise policies and intense price competition. With the developed countries like USA and
UK having

350 as an average no of cars per thousand persons it is very low in India (5). So in future, the
arena of competition is most likely to be shifted to developing countries like India and that
too in a highly competitive segment like B-Segment.

With the opening of economy and relaxing norms by government, With the consumer
attaching higher value to the features and economy in case of car buying, he players are
likely to focus more on product development (to incorporate advanced features in their
designs) and advertisements (to set up their own positions in a consumer mind).

MSIL is emerging as a major player in Indian passenger car market. Its products are Baleno
and Alto 800 are success stories in themselves. But the buck does not stop here only. Its
parent company MSC is focusing upon MSIL as a base to integrate its production and R & D
facilities across Asia Pacific. For that MSIL is planning to increase its present production
capacity of 2.5 lakh cars per year to 4 lakh cars per year by 2007.

Exports are also another front which is giving MSIL an intense opportunity to expand. For the
first six months of this fiscal MSIL has exported cars worth Rs. 1,325 crores and targeting an
overall export of over Rs. 2,700 crores in this fiscal up from Rs. 1,700 crores in 2006-07.

AWARDS & RECOGNITIONS

As one of the fastest growing automobile companies in India, MARUTI SUZUKI has many
accomplishments to its credit.

Business Standard - “Star Company” Award to MARUTI SUZUKI India

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JD Power Asia Pacific
• MARUTI SUZUKI ALTO 800 has topped the JD Power Asia Pacific Initial Quality
Study

(IQS) that measures product quality for three years in a row (Years 2007, 2006 and
2007)

• MARUTI SUZUKI Alto 800 has topped the JD Power Asia Pacific APEAL study
that measures customer satisfaction for three years in a row (Years 2006, 2007 and
2008)

• MARUTI SUZUKI Baleno has topped the JD Power Asia Pacific IQS for 2007 and
the APEAL study for 2006 and 2007.

Business Standard Motoring

• Maruti Suzuki Getz is BS Motoring's 'Car of the Year' 2007

• BS Motoring – BS 1000 – Company of the year 2007– MARUTI SUZUKI India

Limited

• MARUTI SUZUKI Alto 800 is BS Motoring's 'Car of the Year' for 1999

CNBC
• MARUTI SUZUKI Getz is the CNBC Auto car of the Year 2007

• MARUTI SUZUKI Swift – Best Value for Money Car of the Year 2007

• Company – Awards – CNBC Auto car India – MARUTI SUZUKI has been the
manufacturer of the year for two years in row.

PRODUCT MARUTI SUZUKI BALERO

The BALERO was launched on 24 October 2015 in the Indian market and the company sold
around 21000 units in first five months. The ‘Tall Boy’ concept was well taken by the Indian
Customer. Since its inception Balero’s sales has been achieving an annual growth rate of
about 20% on an average. An advertising campaign starring Ranveer singh was unleashed to
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 further boost the sales and this has certainly proven to be effective. As a result of which
Balero has now become a market leader in its own Segment (C-Segment) leaving earlier
market leader HUNDAI Sentro. Repositioned from being a family car to an individual’s first
car, within a short span of time the Balero has been able to capture the hearts and minds of
the consumers.

P’s of MARUTI SUZUKI.

First ‘P’ - The Product

CHIC AND CLEAN

MARUTI SUZUKI calls the Euro-styled, premium hatchback. If simple straight lines and a
practical, consistent design theme are indicative of pronounced European-styling, then
belongs to that class. European or not, is a good-looking car that is also upfront about its
focus on practicality, with marginal excesses in design, a trait that could not be associated
with HYUNDAI's first car for the Indian market.

Its exterior styling gives it a sort of dual personality. The large format, clear lens-type
headlamp cluster dominate the car's frontal view. The short, sloping bonnet and the single slat
grille seem to visually add some more measure already class-leading width. These features as
well as the broad front bumper and the sharply raked windscreen make it look very sedan-
like, when viewed from the front. The muscular shoulder flanks and the prominent, flaring
wheel arches give well-planted, aggressive profile.

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However, viewed from the back, it seems to acquire a new, squat and wider appearance. The
short-hatch door, the raised position of the thickset bumper and the relatively smaller

combination lamps make it rear seem more compact. The wrap-around style taillamps are
positioned mid-way, instead of lower and closer to the bumpers as in older hatches or high up
on the C-pillar as in the case of the newer small cars such as the Tata Indica and the Suzuki
Wagon-R. The overall design of the tail-lamps and the circular reverse indicator integrated
into it may remind the casual observer of the Daewoo Matiz. The rear spoiler with the
integrated high-mounted stop lamp and the chunky, profiled external rear-view mirrors add a
touch of exclusivity to the Baleno.

SIMPLE INTERIORS

The interiors of the Baleno wear a fresh and simple look. The finish quality is good and
dimensional accuracy of dashboard and door panels rival those of a few C-segment cars. The
soft feel plastic used for the dashboard panels adds a touch of class, but the dimpled finish
may be a bit difficult to clean and maintain in Indian conditions.

There are ample storage options, including the deep glove box, the removable ashtray cup,
bottle and cup holders at the front and rear, seat side pockets, coin storage on the door
handles, bag hook at the rear of the front passenger seat and the 60:40 split, folding rear seats
that go on to more than treble the boot storage space. The instrument cluster is housed in a
simple semicircular dashboard panel and features two rounds, chrome-lipped gauges for the
rpm meter and speedometer. The cluster also features a digital clock and trip meter. Power
and tilt-adjustable steering is standard. The centre console features a brushed aluminum
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slapon panel and houses rotary type controls of the HVAC (air-conditioning) system and
positive type controls for the rear defogger, hazard lights and fog lamps. The dual adjusting
air conditioner louvers look sophisticated and add to it up market image. The dashboard
extends more than a foot into the cabin. While this gives the driver even more open storage
space on the flat faced top, at the bottom, after the dashboard tapers off, the driver and co-
passenger get loads of recessed leg space.

THE SECOND ‘P’ – THE PRICE

Using money as a magnet to attract customers kills loyalty, mangles margins and encourages
defections. But Unique Selling Price is undoubtedly one of the roads to success in the
intensely competitive automobile business. Ceteris Paribus, the purchase decision of the
firsttime buyer is influenced by four factors---Price, Price, Price and Price. The first is the
price of acquisition. The second is the price of finance or the rate of interest on the loan. The
third is the price of maintenance, which includes the cost of fuel, service and spare parts. And
the fourth is the price of disposal or the resale value of the car.

High indigenization stood MARUTI SUZUKI in good stead when it came to its entry pricing.
MARUTI SUZUKI surprised its competitors with a under Rs.3 lakh (ex-factory) price,
slightly below the Maruti Zen (Rs.3.2 lakh). Competitors and analysts criticized MARUTI
SUZUKI for predatory pricing, but MARUTI SUZUKI maintained that the low price is a
result of high indigenization level and effective ancillarisation. This gave MARUTI SUZUKI
a strong foot-hold as its production costs were lower. MARUTI SUZUKI ensured cost
competitiveness through tie-up between Lumax (well known supplier of lighting systems)
with MARUTI SUZUKI’s Korean vendor Samlip, to form Lumax-Samlip Industries. This
was because they were operating on much better overhead absorption, being suppliers to
other manufacturers in India. Also, they already had a grasp of technology because they had
partnerships with Japanese, European or American companies.

70% of the cost of a car over its lifetime goes in maintenance. Accordingly, in MARUTI
SUZUKI, pre-delivery inspection takes place at three stages---one, after the car rolls off the
assembly line, the next when it is loaded into the auto compound and finally, at the dealer’s
premises before it is handed over to the customers. This increases the time between services

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for BALENO. For instance, Maruti recommends services after every 5,000 kilometers;
whereas MARUTI SUZUKI recommends it after every 10,000 kilometers. Similarly, the
engine oil, filter assembly for the Baleno is priced lower than that for the Maruti Zen. This
low-cost proposition for spares offers an added advantage when a buyer compares running
costs.

MARUTI SUZUKI realized the difficulty to compete in the car markets and decided to go for
a sharp differentiation strategy. In order to avoid the price game, it decided to reinforce the
individualistic positioning of the brand and tried to match the customer’s perception that the
car is a commodity using other differentiators. MARUTI SUZUKI opted against the drop in
prices, one reason being the fact that, buyers are shopping for brand associations and
customers are unlikely to let their decisions be swayed by savings of a few thousands

THE THIRD ‘P’ – THE PLACE

MARUTI SUZUKI has spent time studying dealer networks. It found that dealers were
inconveniently located, their behavior towards customers left much to be desired, and there
was a lack of transparency in dealer operations. So the MARUTI outlook towards dealership
is compact dealership instead of a mammoth network. The emphasis is on a dealer-customer
relationship where each customer is given time. The company insists on a one-to-one

relationship to build a long lasting association. To this end, the company insists on ownership
and operation of dealerships resting on one person, thus reducing absenteeism and promoting
immediate decisions.

MSIL has established a start-up network of 70 dealer workshops (now close to 150),
equipped with the latest technology machines and international quality press, body and paint
shops, across the country. These dealer workshops include company owned outlets called
‘MARUTI SUZUKI’, that provide a MARUTI SUZUKI customer a one-stop shop for
meeting all needs.

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In place of large showrooms and workshops, HYUNDAI decided that the workshop should
be ideally 10,000 sq. Feet, which could be worked in three shifts and the showrooms it
preferred were 1,600-1,800 sq. Feet. Dealers who already had land would have to invest
Rs.1.5 crores for the rest. With this infrastructure dealers can handle 200-250 cars a month,
which gives them adequate time to establish rapport with customers.
.

THE FOURTH ‘P’ – THE PROMOTION

If you're trying to persuade people to do something, or buy something, it seems to me you

should use their language, the language in which they think. - David Ogilvy

Strapped with the tagline ‘BE BOLD’ MARUTI SUZUKI Baleno hit the Indian roads nearly
a decade back. MARUTI SUZUKI Baleno being a much admired lifestyle brand was
launched in nine colors with a colorful and jazzy advertising campaign developed by its
advertising agency Saatchi and Saatchi. MARUTI SUZUKI set aside as high as Rs 5 crore for
advertising and promotions each month. Effective advertising can add immense value to
brands, even in the small car segment, where the typical customer is far more informed and
aware of the product behind the brand.

MARUTI SUZUKI India Ltd (MSIL) realized Indian consumers' penchant for unique designs
soon after their entry into India. With the run-away success of the Baleno, MSIL was right

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with its promotion strategy and came up with a winning campaign. MARUTI SUZUKI has
come a long way from its original.

CELEBRITY ENDORSEMENTS

MARUTI SUZUKI Baleno has greatly benefited from its TV ad campaigns. Thanks to their
brand ambassador RANVEER SUNGH Santroad’s have the distinction of having the highest
recall value adding more “Xing” to the campaign the run-away success speaks for itself.
More than the ad’s it is the positioning strategy of the Baleno that needs to be complemented.
They have positioned the car as the consumer’s first choice while buying a car for the first
time in his life as al the first things in his life are special. The initial ad aired featured Ranveer
Singh with a certain Mr. Kim, who also became an instant hit with the masses.
Of interest is the fact that by the time came around and ‘agreed' to an endorsement contract,
Mr. Kim had told Indian consumers a few things about Maruti Suzuki (the company) and the
Baleno (the car). It might even be argued that it was the fictitious Mr. Kim - and not brand
ambassador-who first appealed to the left-brain of Indian consumers by selling brand
MARUTI SUZUKI, which went some way in later establishing the Baleno as a standard in
the ‘B' segment of the Indian passenger car market. That, of course, was five years ago. Since
then, Ranveer has been regularly endorsing the Baleno and its many variants, while Mr. Kim
dignifiedly withdrew into anonymity, his job done.

Well, after a five-year interregnum, gentleman Kim is back in the Baleno’s communication -
though, at first glance, he doesn't come across as being particularly gentlemanly any longer.
Quite the opposite, he is rather curt - even boorish - in the way he stops the cheerful Ranveer
(driving a Baleno) in the middle of nowhere and tells him to hand over the car's keys,
explaining

that his contract for the Baleno Zip Plus is ‘over'. He virtually dumps Ranveer by driving
away with the car, leaving the nonplussed endorser stranded on the highway.

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(Incidentally, this ‘teaser' interlude is part one of a two-part communication.) If Mr. Kim's
behavior is at odds with his earlier warm, gracious persona, everything is soon explained - in
the second part of the communication. To keep the excitement alive, they have aired the ads
with a storyline which has been broken up into four parts.

BALENO’S EMOTIONAL BONDING

MARUTI SUZUKI Baleno also started a series of TV advertisements depicting the emotional
bonding between the Baleno and its owners. One of the storyboards of such Advertisement
goes on like this.

Next, a couple fight playfully on their bed. Cut to a father trying to change nappy of
Super: First fight. his baby. Super: First born.

MARUTI SUZUKI ROAD SHOW "WORLD OF WHEELS"

MARUTI SUZUKI has by hosting and participating in auto car shows believes in increasing
its visibility all across. HYUNDAI Motor India's second road show, the "World of Wheels"
(WOW), began its four-month long journey across the country on December 2, 2006, with a
grand display of nine cars from the Maruti Suzuki stable.
The "World of Wheels" will drive into 34 non-metro cities, beginning with Ludhiana in
Punjab and then move to other cities in the Northern region. In each of the cities, covering all
the four

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regions, the road show would be a three-day event, with a special press preview on the
inaugural day. All the seven MARUTI SUZUKI brands currently sold in India will be on
display at the exhibitions. As a special attraction, MARUTI SUZUKI has shipped from Korea
two premium MARUTI SUZUKI cars which are yet to be launched in India - the super-
luxury sedan Azera and the sports coupe Tuscani. This is for the first time that the two cars
would be displayed all over India.

KEY DEVELOPMENTS IN THE INDUSTRY

MARKET
DOMESTIC SALES SHARE
APRAUG APRAUG APRAUG APRAUG
2006 2007 GROWT 2006 2007
COMPANY NAME H
Daimler Chrysler India Pvt
Ltd 633 662 4.6 0.2 0.2
Fiat India Automobiles Pvt
Ltd 2907 635 -78.2 0.9 0.2
Ford India Ltd 8852 6944 -21.6 2.8 2.1
General Motors India Ltd 7179 4981 -30.6 2.3 1.5
Hindustan Motors Ltd 5610 5626 0.3 1.8 1.7
Honda Siel Cars India Ltd 13813 17560 27.1 4.4 5.3
HYUNDAI Motor India
Ltd 48299 63140 30.7 15.3 19
Maruti Udyog Ltd 162007 169606 4.7 51.4 51.1
Skoda Auto India Ltd 3003 3439 14.5 1 1
Tata Motors Ltd 58548 55536 -5.1 18.6 16.7
Toyota Kirloskar Motor
Ltd 4519 4030 -10.8 1.4 1.2

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 Total Passenger Car
Sales 315370 332159 5.3 100 100

During April – August 2007, the passenger car sales in India at 332159 units, marked a
growth of 5.3%over the previous year. The growth in the domestic sales of passenger cars
was led by strong growth in volumes reported by compact and mid – size segments. While
the share of mini and executive segments declined in the period under study, the share of
other segments increased. For instance, the share of compact segment in the domestic car
sales increased from 59.7% in April – August 2007 to 64.9% in April – August 2007, mid –
size segment from 20.5% to 22%, and the share of Premium segment was stagnant at 0.7% in
the same period

Key Demand Drivers

Traditionally, disposable income was perceived as the key factor driving passenger car
demand. But over time, other factors that are known to have an impact on demand have
emerged. These include the need for greater mobility, non- availability of public transport
services, availability of cheap finance, development of the used-car market, introduction of
new technologically superior models, increasing levels of urbanization and changing
consumer profiles.

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 High degree of correlation between
PER CAPITA INCOME and demand for
cars, increase in the number of people
crossing the income threshold, and
CHANGING
There is a high The Central
degree of Government’s AUTO
correlation POLICY on excise and
between the customs is an important
demand for aspect affecting the
demand and supply of
cars .
Availability of NEW
CAR
MODELS is likely to
increase and DEMAND A mature USED CAR
change the MARKET would, on
structure of one hand, encourage
demand . consumers to trade in
their cars faster, and
on the other, eat well
into the share of new
Competitive cars.
PRICING is
crucial for
gaining market Competitive PRICING
share, especially is crucial for gaining
in the small car market share,
segment. especially in the small
car segment .

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CHAPTER-3

REVIEW

OF

LITERATURE

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 REVIEW OF LITERATURE

MARKETING SEGMENTATION

Segmentation and timing are the Himalayas of marketing. Everything else is the Catskills. Al
Ries

MSIL has been successful in capturing the car market because of the excellent product it has
produced. The market research conducted by MARUTI SUZUKI showed that Indian cars
were overcrowded, with turbans and series to be accommodated. The idea was to create a
voluminous compact car. The “tall boy’ model was taken from the Atos and it was redesigned
to meet Indian conditions. Thus, the Baleno was born. The Baleno is available in a number of
versions and has a number of new built-in mechanisms---power windows, power steering,
central locking, side impact beams, frontal crumple zone, child safety locks, seat belts,
multipoint fuel injection systems and CFC-free air-conditioners. The Baleno is available in
nine new colors. The car also gives high mileage. The engine delivers adequate torque i.e. the
ability to pull loads even at very low speeds---this proves to be very essential for slow and
traffic-heavy Indian conditions. The most important is the seating, which is, high and gives
“Road command”.

MARUTI SUZUKI was competing with Hyundai in the small car segment and it offered
technology that other car makers thought was too advanced for the slow growing Indian
market. MARUTI SUZUKI has now built up a reputation such that it is the first preference of
anybody who has driven or ridden in it.

The marketing segment employed by MARUTI SUZUKI for the Baleno can be studied with
insights into their STP analysis and Marketing Mix.

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PEST ANALYSIS
In order to understand the conditions under which the Baleno was launched in the Indian
market, it’s necessary to analyze the factors that influenced its effectiveness.

Political Conditions

• MARUTI SUZUKI entered India when liberalization was at its peak. As a result,
everyone was very open to the idea of foreign companies setting up base in India.
• The government insisted on the Companies using 70% local content in the
manufacture of the cars as they would have generated tremendous revenue for India.
MARUTI SUZUKI achieved this in a very short time.
• Change in government policies in recent times like opening of FDI in various
segments has given a thrust to MARUTISUZUKI initiatives in India like opening of
its R & D center in Chennai.
• A positive EXIM policy also has helped MSIL to boost its topline with Exports of
Baleno to other countries.

Economic Conditions

• The economic conditions during the launch of MARUTI SUZUKI were very relaxed
and liberal. MARUTI SUZUKI was launched when the country had just opened its
doors to liberalization. So there were no strict norms or bylaws that the company had
to adhere by.
• The resources available in India were utilized by the multinationals, which generated
considerable revenue for the government.
• A booming banking sector and a phenomenal growth in Auto Loans market has made
Baleno more affordable.

Social Conditions

- 26 -
 • A rise in Middle class and concept of small nuclear families has propelled a demand
of B-Segment cars. MARUTI SUZUKI Baleno provides an exact choice for this
demand leading to its high growth.
• An average Indian was bored with the same Maruti 800 as his first car and Baleno’s
positioning as one’s first car has led to MARUTI SUZUKI’s success.

TECHNOLOGICAL CONDITIONS

• MARUTI SUZUKI is a fairly new company in India. As a result when it started out in
India it started out with the best of machinery. So, the quality of products was several
times better than what was available at that time. This resulted in the acceptance of
MARUTI SUZUKI as a technologically superior company in the minds of the people.
• Since MARUTI SUZUKI manufacturers everything from the smallest of screws to the
biggest of machines in its factory it is able to maintain the efficiency of the machines.
MARUTI SUZUKI therefore manufactures cars under best of conditions with the best
of machinery. As a result, the cars manufactured are of top quality.

STP – SEGMENTATION, TARGETING, POSITIONING

Marketing is not an event, but a process . . . It has a beginning, a middle, but never an end, for
it is a process. You improve it, perfect it, change it, even pause it. But you never stop it
completely.
- Jay Conrad Levinson

Segmentation
Segmentation is based upon considerable evidence that a single marketing approach or
formula will not work for all members of the community to be served.

Geographic
The region of interest of HMIL for Baleno is whole India with special focus on Type A and
fast growing Type B cities across India.

Demographic
Age – Anybody of age between 20 – 40 yrs.

- 27 -
Income – Anybody with an income of over 4 lakh p.a.
Occupation – Millennial employed as professionals, managers and those want to buy their
first car.
Social Class – Middle class, Upper middle, Lower Upper and Upper uppers.

Psychographic
Personality – Dreamers, those who want to achieve big, ambitious, price conscious, took their
first step towards success and value driven.

Behavioral
Benefits – Quality, Style, Price (economical)
User status – Potential users and first time users
Buyer – Readiness Stage – Those who are aware, informed, interested and intend to buy

Targeting
In evaluating the market segments MARUTI SUZUKI has looked at two factors - The
segments overall attractiveness and the companies resources. As is very clearly seen
MARUTI SUZUKI has opted for a selective specialization kind of targeting. MARUTI
SUZUKI has selected a number of segments each objectively attractive and appropriate.
There is minimal synergy among the segments but each is a cash cow. This multi segment
strategy has had the effect of diversifying the firm’s risk.

Having Ranveer to endorse the Baleno paid off for HYUNDAI. Ranveer as a brand
ambassador targets two sections of the society. Firstly, his glamorous and sophisticated image
appealed to the elite effecting their purchase decisions. Secondly, his adorable persona
appealed to the middle class buyers who wanted a good car for the ‘big’ investment they were
making and for people who were graduating from the Maruti and the second hand car.

HYUNDAI o was first launched in September 1998. At that time the cars which were
prevailing in B-Segment was lead by Maruti Zen. With a price tag of only Rs. 2.99 lakh
Baleno was targeted as the best available alternative for Zen and was described as “The
complete Family Car”.
The low price tag of Baleno initiated a price war among all companies and forced Tata Indica
to pre-pone its launch. The initial low price tag and strengthened by a solid marketing
initiatives in form of print advertisements provided a solid foundation for Baleno in India
- 28 -
which showed in its sales of 17000 units in just 5 months. With that started a journey of
Baleno whose sales grew at an average of 30% every year to emerge as the No. 2 car in B-
Segment giving the established leader Zen sleepless nights.

HYUNDAI has identified its target market based on its pricing strategy. Baleno aims to be
the price leader in B-Segment cars. It has always priced its base model lower than Zen or
Indica giving all the features which they give in their higher models. With a constant change
in its positioning strategy, MARUTI SUZUKI Baleno has succeeded in identifying its target
market every time and emerging as the fastest selling car in its own segment. With the invent
of Baleno Xing, MARUTI SUZUKI is looking towards entire new segment of consumers and
all set to target it to emerge as the market leader in B- Segment cars.

POSITIONING

Since its inception, Baleno has undergone a lot of changes in terms of its positioning. First it
was Baleno, then Baleno Zip drive, then came Baleno Zip Plus and finally Baleno Xing as the
latest model.

When Baleno was initially launched it was positioned as “The Complete Family Car”. Since
B Baleno was launched in B-Segment, it had Maruti Zen and Tata Indica as its biggest
competitors in that segment. The stylish ‘Tall Boy’ Design of Baleno together with its slogan
helped it to position itself as one of the cars to look upon.
With a constant change in its positioning, MARUTI SUZUKI always tried to keep alive the
buzz associated with Baleno. The Zip drive and Zip plus positioning of Baleno helped to
portray its position as the car which changes with time and giving its owners something extra.

- 29 -
- 30 -
With the invent of Baleno Xing in 2007, which came with some design changes too,
MARUTI SUZUKI repositioned Baleno as “Sunshine Car (smart car for young people)” from
earlier “complete family car”. This was done because the competitors were coming out with
similar products and then MARUTI SUZUKI started what they call as ‘Emotional
Positioning’. This repositioning of Baleno also helped it to target the segment of first time
car buyers. Even the print ads at this time were designed in a way to project Baleno as the
first car for the fastest growing consumer segment of India at that time, The Young
Professionals, of the service industry that combined with various loan facilities were too
eager to buy their first car. This led to a phenomenal growth in its sales and further
strengthening its position as a brand in

- 31 -
consumer mind. Thus the repositioning of Baleno gave it an edge over its competitors and
also to emerge as a tough rival to Maruti 800 as ‘The First Car’.
MARUTI SUZUKI has identified its target market based on its pricing strategy. Baleno aims
to be the price leader in B-Segment cars. It has always priced its base model lower than Zen
or Indica giving all the features which they give in their higher models. With a constant
change in its positioning strategy, MARUTI SUZUKI Baleno has succeeded in identifying its
target market every time and emerging as the fastest selling car in its own segment. With the
invent in Baleno is looking towards entire new segment of consumers and all set to target it to
emerge as the market leader in B- Segment cars.

PORTERS FIVE FORCES MODEL

Barriers to Entry
Strong distribution
network of existing

Rivalry Bargaining
Bargaining
power of
among power of
Buyers
Suppliers existing Availability of
No substitute for
critical Inputs firms many brands
Price sensitivity
Exit

Threat of
Substitutes
Switching Cost to
substitute is very
low
Price –

- 32 -
 SWOT ANALYSIS

• Lack of in house
• Brand Name R&D
• Large • New model
Distribution introduction
Network limited to only
cosmetic
• Wide product
offering

Weakness
Strengths

Opportunity Threats

•Rise of Indian
middle class •Many players
and small fighting for
the same

Strengths

- 33 -
1. Brand Name: ‘Baleno’ has emerged as a strong brand name in recent times. Backed with
the parent company MARUTI SUZUKI this is recognized as a strong player in worldwide
automotive market, Baleno has definitely a value associated with it any individual will
like associated with.
2. Large Distribution Network: With a strong dealer network of around 300 dealers al
around the country, MARUTI SUZUKI has made its presence felt in each and every
corner of
India.
3. Wide Product offerings at different price points: MARUTI SUZUKI has launched various
models in various segments and hence has a very good product mix of offerings as
different price points. Starting from Rs. 2, 78,999/- for Xing XK Non AC to Rs. 4,
28,298/- for Xing AT (M).
4. Cheapest cars in respective segments: MARUTI SUZUKI has always followed an
aggressive pricing policy. As a result it has its cars priced at lowest possible rates in
respective segments.
5. Encouraging Exports: Backed by a strong production and a global setup at Chennai plant,
MARUTI SUZUKI is exporting a lot. An export of worth Rs. 1,325 crores has been
achieved in last six months.

Weaknesses

1. Lack of in house R & D: MSIL do not have a comprehensive R & D department in India
and all the major design changes are sent by its parent company MSC.
2. New model introduction to only cosmetic changes: There is no major design changes
incorporated in Baleno since its inception. Only some cosmetic changes have been made.
3. Dominance mainly at lower level: MSIL dominance in Indian market is only at its lower
level segments like Baleno in B-Segment and Accent n C-Segment. It has to focus on its
upper segment models to strengthen its position in Indian car industry.

- 34 -
Opportunities

1. Rise of Indian middle class and small cities: As a phenomenal growth is seen in recent
times in Indian middle class and the purchasing power of working class individuals.
Also a rise in small cities across the country has given a great opportunity to
MARUTI SUZUKI for achieving a higher growth rate in coming times.
2. A Booming Economy: Indian economy is growing at a rate of on an average of 7%
every year thereby giving an opportunity of larger sales in each and every segment.
3. Rising exports: With a export of Rs. 1,325 crores in last six months, MSIL has a great
opportunity of achieving a export target of Rs. 2,700 crores in this fiscal year.

Threats

1. Many players fighting for the same cake: There a many major players in the B
Segment and since the size of market is not expanding rapidly, HMIL has a major
threat in form of tough competition.
2. Entry of new players: with coming of FialPalio and other players planning to come
out with much more models in B-Segment, the competition is just getting hotter.
Cannibalism: to some extent the Getz is affecting Baleno because of its price.
3. Thus HMIL has to focus more on its positioning strategy of Getz and Baleno. Large
Distribution Network: With a strong dealer network of around 300 dealers al around
the country,
4. MARUTI SUZUKI has made its presence felt in each and every corner of India. Wide
Product offerings at different price points: MARUTI SUZUKI has launched various
models in various segments and hence has a very good product mix of offerings as
different price points.

- 35 -
 CHAPTER-4

RESEARCH

METHODOLOGY

- 36 -
 INTRODUCTION OF RESEARCH

Research methodology is a way to solve the research problem in a systematic manner.

It may understand as a science of studying how the research is done significantly. The
methodology may differ from problem to problem, yet the basic approach towards the
research remains the same. The sequence or steps followed have been explained as under:

DEFINATIONOF RESEARCH

ACCORDING TO Michael T. Smith

“Research is an ORGANIZED and SYSTEMATIC way of FINDING
ANSWERS to QUESTIONS.

SYSTEMATIC because there is a definite set of procedures and steps which you
will follow. There are certain things in the research process which are always done
in order to get the most accurate results.

ORGANIZED in that there is a structure or method in going about doing research. It

is a planned procedure, not a spontaneous one. It is focused and limited to a
specific scope.

FINDING ANSWERS is the end of all research. Whether it is the answer to a

hypothesis or even a simple question, research is successful when we find answers.
Sometimes the answer is no, but it is still an answer

QUESTIONS are central to research. If there is no question, then the answer is of

no use. Research is focused on relevant, useful, and important questions. Without a
question, research has no focus, drive, or purpose.”

- 37 -
 Methods of Research

Every Research needs lots of dedication from the researcher’s part-the amount of dedication
mainly depends on the subject matter of the research. Before undertaking any research in any
subject areas one must be sure about the intended purpose of the research-this purpose
determines what type of research one is going to undertake. Any scientific research may fall
into the following three broadly categories:

Exploratory research-This type of research may generate any novel idea in the domain
of knowledge. It is primarily done for the purpose of finding anything new in any subject
arena and always tries to shed some light in the unknown domain of knowledge. This kind
of research also

Help us to generate new discipline in sciences and help us to identify problems of those
particular research areas.

Constructive research- This is mainly done by many technological corporates in order

to find new/alternative solutions to any particular crisis or problems. For example-renewable
energy research or development of the capacity of optical fiber may fall into this category of
research.

Empirical research-This is very impressive observational type of research, where one

observes or test on real-life data or analysis the pattern of some specific events in order to
identify the nature or the class of trend that specific phenomenon maintains. Based on the test
result, researchers try to draw lines in order to predict the result of that type of incidents with
certain level of confidence.

- 38 -
 OBJECTIVESOF THE STUDY
Some of the Objectives which are focused upon in this report are:

 To study the Customer Satisfaction Strategies MARUTI SUZUKI Baleno.

 To study how much customers are satisfied with MARUTI SUZUKI Baleno.
 A comprehensive analysis of Indian Automobile Industry
 To also study how much customers are not satisfied and why they not satisfied.
 To also study customers are satisfied from Services Center or Services (After Sale
Service)
 To study how much comfort A Customer feel when they drive or ride.

SCOPE OF STUDY

There are various conclusions that can be arrived at regarding the Indian four wheeler
industry after the execution of this research. Still the research cannot be considered as totally
exhaustive. There are various areas that are beyond the scope of this research. This arises the
need and scope of further research in this area. Some of the possible arenas can be as follows:
• Through Understanding customer’s satisfaction help making new Strategy
and plan and also help make advertisement.
• Forecasting the market for four wheeler industry in coming 5 years.

• Study of consumer behavior of Indian four wheeler industries.

• Developing a model for success of a particular brand on the basis of arrived
conclusions.
• Developing a model of Car on the basis of responses of the customers to
stabilize in the market; determining the optimum combination of mileage and
price.

- 39 -
RESEARCH DESIGN

Proper structuring of a research is yet another important aspect of a research. The

following research design was chosen for the research:-

1. Type of Research Design

The research design used for this research is Exploratory research Design.

2. Scope of Research
The research was conducted in the Faridabad region
.

3. Information Needed
The information needed can be classified into the following heads: -

a) Primary: - Dealer’s expectations from the company about service, margin,

promotional activities, scheme, pricing; Availability of the brand; Reasons affecting
dealer’s recommendations; Customer preferences.

Customer’s perception about brand, Percentage of respondents already having company’s

products, brand recall, attraction for cars, buying decision maker.

b) Secondary: - details about the car market, the details of the competitors’ activities,
researches relating car market in India.

4. Sources of primary data

The primary data was collected through a survey of the dealers and consumers of
Faridabad market.

5. Sources of secondary data

The secondary data was collected from research journals, research and informative websites
and visits to competitors’ POP’s

- 40 -
 6. Questionnaire design
Close ended structured questionnaire has been used for collecting the primary data.

Data Collection
Data collection is the process through data is collected, it is basically done through 2 main
sources i.e. primary source and secondary source. From these sources data s compiled i.e.
primary data and secondary data. In this project both primary data and secondary data are
used.

Primary Data
Primary data is the data which is collected through surveys and questionnaires. I have used
personal interviewing where primary data can be directly collected from respondents in
consumer markets. I have chosen it because of its flexibility and capability of yielding a wide
range of valuable new data. The desired information was secured using a data collection
instrument called Questionnaire.

At times I also asked questions as to why the respondent has chosen TV of a particular
company or what made him feel about that choice. I was keen to ensure that the respondent
was taking interest while filling the questionnaire. This ensured collection of unbiased and
accurate data, which helped me cause a lot.

To know the brand awareness, consumer perception about Blue Star and their satisfaction
level, the consumer personal survey was undertaken which was based on non- disguised
structure questionnaire of 100 consumers. The consumers were surveyed randomly from
different areas of Delhi.

Secondary Data
I have used the secondary data relating to Hyundai and have collected following information
about various range the company has, the technology being used by company, their marketing
strategies & information about the competitors.
All this information has been collected from the site
“www.hyundai.com”, “www.yahoo.com”, search engine of Google, magazines such as
Business India, Advertising & Marketing, and Annual report of Blue Star Ltd. etc.

- 41 -
SAMPLE SIZE
In this project questionnaire was prepared and multiple choices and the pattern of questions
was given to 50 respondents. With every question, multiple choices were given.

Type of approach: The type of approach followed is descriptive approach. In descriptive

approach cross sectional design is used. Cross sectional design is used because it is concerned
with a sample of population of interest.

DATA ANALYSIS

To make the study meaningful the data collected needs to be edited, encoded and tabulated.
This is necessary to arrive at a concrete conclusion. The raw data has no use in research until
an appropriate analytical tool is used. This is essential for the study for ensuring that we have
all relevant data for making contemplated comparisons and analysis. The various data
obtained through the methods specified in the preceding sections have been carefully sections
have been carefully edited and classified for further use in presenting the data in an easily
understandable manner. Among the tools available for better analysis data tools such as pie
charts, bar graphs were used.

IDENTIFIED INDEPENDENT & DEPENDANT VARIABLES

The variables are the different quantitative values. The variables taken in the study are age,

sex and knowledge.

DEPENDENT VARIABLE: - Dependent variables are in which one variable depends

Upon and are consequence of the other variable.

The dependent variable in the study is knowledge as dependent upon both age and sex because

with the increase the memory also becomes weak.

- 42 -
INDEPENDENT VARIABLE: - Independent variables are antecedent to the

dependent variables.

The independent variables in my study are age and sex .As age and sex are antecedent to the

dependent variable knowledge.

LIMITATIONS

1. Research was limited to only four wheeler industry.

2. As the time given for the completion of the project was limited.
3. They may be few opinions which might have been missed out.
4. Research was restricted to Noida and Delhi only.

5. Since it is limited only to four-wheeler car industry so the entire customer satisfaction
level while and after purchasing a product cannot be projected on this research.

- 43 -
 CHAPTER 5

DATA ANALYSIS
AND
INTERPRETATIO
N

- 44 -
 DATA AND INTERPRETATION

Question.1) what is the total income of consumer of the MARUTI SUZUKI?

Below 1 lakh 5

1 lakh – 1.5 lakhs 10

1.5 lakhs – 3 lakhs 22

Above 3 lakhs 13

- 45 -
This doughnut graph represents the income level of the respondents. Under this category as
we can see that a lion share of respondents i.e. 44% belongs to middle group that is with
income between 1.5 lakhs to 3 lakhs.

Question.2) for how many years you are using MARUTI SUZUKI Baleno?

1 year 5

2 year 15

3 year 20

More than 3 year 10

This pie graphs shows the experience of number of respondents who are using
MARUTI SUZUKI Baleno. As we can see that 40% respondents are using MARUTI
SUZUKI Baleno from last 3 years. MARUTI SUZUKI Baleno was the top Car brand
on Print in 2007 accounting for nearly 10% of the advertising spends. MARUTI
SUZUKI India unveiled a hard-hitting print campaign to announce the emergence of
Baleno as the country’s No. 1 Small Car. Ingredients of the campaign are comparative
ratings, which points to Baleno’s certain superiority over other B class rivals. Ranveer
being the brand ambassador was mainly featured in the print ad’s fizzed out
MARUTI SUZUKI roped in actress Ranveer giving birth to the ‘sunshine’.

- 46 -
Question.3) Do you like MARUTI SUZUKI Baleno?

Yes 42

No 8

This bar graphs represents responds of respondents about their likings for MARUTI SUZUKI
Baleno. And as we can see that 84% of respondents like MARUTI SUZUKI Baleno, which is a
very good sign of consumer satisfaction.
It’s said that Ranveer ad has been the ad with the highest recall value with as high as se MARUTI
SUZUKI Baleno has greatly benefited from its TV ad campaigns. Thanks to their brand
ambassador Ranveer Santroad’s have the distinction of having the highest recall value. With

- 47 -
Ranveer adding more “Xing” to the campaign the run-away success speaks for itself. More than
the ad’s it is the positioning strategy of the Baleno that needs to be complemented. Ven people
out of ten being able to remember him and connecting him with.

Question.4) what were the factors which influence you to buy MARUTI
SUZUKI Baleno?

Brand name 13

Style 2

Fuel efficiency 15

Comfort 10

Performance 5

Any other 5

- 48 -
This doughnut graphs represents the factors that influenced the respondents to buy MARUTI
SUZUKI Baleno. As we can see that 30 % of respondents buy their MARUTI SUZUKI Baleno
for fuel efficiency and 26% of respondents for brand name.

Question.5) Are you satisfied with your MARUTI SUZUKI Baleno?

Yes 38

No 12

- 49 -
This bar graph represents the consumer satisfaction for MARUTI SUZUKI Baleno. As we
see that 76% of respondents are satisfied with their MARUTI SUZUKI Baleno.
MARUTI SUZUKI was very generous in promoting its new Xing model, promoting it as the
“sunshine car” and roping in Bollywood actress as the brand ambassador. Intense competition
in the B-category from Fiat Palio, the Maruti trio of Zen, Wagoner and Alto, and Tata Indica
forced HYUNDAI to keep the excitement about santro alive encouraging the fresh new
positioning and attitude with Santro Xing, promoting it as a “new age car” targeted at stylish
individuals.

Question.6) How to classify the consumers of MARUTI SUZUKI according to their age?

Age group No. of Respondents

18 - 25 years 12

26 - 35 years 16

36 - 49 years 12

50 - 60 years 10

- 50 -
 18 No. of customers
16
14
12
10
8
6 No. of customers

4
2
0
18 - 25 years 26 - 35 years 36 - 49 years 50 - 60 years

Analysis: From the chart above we find that 24% of the respondents fall in the age group of

18 – 25 years, 32% fall in the age group of 26 – 35 years and 24% fall in the age group of 36

– 49 years. Therefore most of the respondents are relatively young (below 26 years of age).

Question.7) what is the total number of male and female consumers of MARUTI
SUZUKI?

Particulars No. of Respondents

Male 30

Female 20

- 51 -
 No. of respondents
35

30

25

20
No. of respondents
15

10

0
Male Female Category 3

Analysis: In the survey it was found that 60% were male respondent and 40% females using

MARUTI SUZUKI.

Question.8) how do consumers get preferences for HYUNDAI?

Parameter No. of Respondents

Advertisements 25

Advice from friends 10

Family responsibilities 8

Others 7

- 52 -
 No. of respondents

Advertisements
Advice from friends
Family resposibilities
Others

From the chart we found 50% consumers get preference from advertisement and 20%
consumers get prefences from advice from friends and 16% consumers from 14%.

Observations & Recognitions

• Today, in India there are only 5 cars among 1000 people so there is a huge market to
exploit.

• According to Recent Sales Satisfaction survey MARUTI SUZUKI lies at the second
last position.

- 53 -
 Indian Sales
114 Satisfaction
114 Index (SSI)
HM/Mitsubishi
114 Honda Siel
110 Ford India
112
109 M&M
110 Dawood Motors
Hyundai
108 MUL
105
106
SSI Scores 104 102
102
102

100

98

96
Companies

Thus MARUTI SUZUKI should train their technical staff to deal with customer who is in the
workshop to get their cars serviced/repaired. No doubt it is hard to manage and handle such a
big network but the company has to handle it properly to satisfy its customers. We should
always remember that loyal and satisfied customer gives a chain of new customers.

• MARUTI SUZUKI should emphasis on after sales services.

• MARUTI SUZUKI should launch the CNG variant of its models used for public
transport.
• MARUTI SUZUKI dealer network is still small as compared to segment it is
targeting. So it has to expand its dealer network to keep up with its rising sales.
• The comprehensive promotional campaign of MARUTI SUZUKI should continue
giving it more brand visibility.
• MARUTI SUZUKI should take this fact into consideration that the demand for
passenger cars in the long run will be robust due to high income.

- 54 -
CHAPTER-6

CONCLUSIONS
AND
SUGGESTIONS

- 55 -
 CONCLUSION
From the research following facts about Indian four wheeler industry has been inferred:

• Age group – 21-30 years

• Profession – Mostly salaried

- 56 -
 • Customers are generally satisfied with attitude of dealers at the time of sales.

• Every brand of cars have a poor response in terms of sales follow up.

• Hero Honda is the most famous brand.

In a nutshell, it is important for international firms that entering to a foreign market or

international market, taking into account the sub-cultural groups and focusing on their needs
as many large international companies finding it increasingly difficult to operate in global
stage and retain customers’ loyalty.
To be effective, after suitably researching the market, probably the most important this is to
carry out the process of market segmentation in logical and systematic manner. If the process
of market segmentation is carried out thoroughly, then the firm should benefit in terms of
better competitive position for its products or services, resulting in greater sales and
profitability. After all, the whole rationale of the marketing concept is increased business
effectiveness through the provision of customer satisfaction.

SUGGESTIONS
1. Introduction of new brands – Yamaha should introduce new cars in the market. It
will definitely make the market oligopolistic, but will improve the condition of
Yamaha.

- 57 -
2. Car in 150 cc segment – Yamaha does not have any successful car in these
segments. Yamaha needs to introduce a car in this segment which can compete
with the other brands on price, power, pick-up, mileage and style.

3. Integration of marketing and R & D department - Yamaha has got best R&D
facilities and international design of sports cars. It needs to integrate its efforts
together with other department more specifically marketing wing and try to give
customers what they want.

4. It has been found from the research that Yamaha has got the most loyal
customers but when it comes to Yamaha, people still talk about RX- 100.
Yamaha should develop a car like RX-100, and this time mileage and style
should also be considered.

5. 360 degree marketing approach and need to follow aggressive promotional

campaigns to grab a larger piece of pie in the car segment.

- 58 -
CHAPTER-7
ANNEXURE

- 59 -
 BIBLIOGRAPHY

• Marketing Management by Phillip Kotler

• Brand positioning by Subrotosengupta
• Positioning: The Battle for your mind by Al Ries& Jack Trout

Newspapers, Journals & Magazines

• Business World
• The Economist
• Economic Times
• Auto car India
Websites

• www.hyundai.co.in
• www.hyundai.com
• www.google.com
• www.agencyfaqs.com
• www.brandchannel.com

• www.superbrands.org
• www.marketingprofs.com
• www.netmba.com
• www.economictimes.com
• www.blonnet.com
• www.ecnomist.com
• www.bsmotoring.com
- 60 -
 QUESTIONNAIRE

COMPETITOR DEALER SURVEY

CUSTOMER NAME -- …………........................... Town…………………..

Phone number …………………………….. State…………………
Email id ……………………………
Address of the customer…………………………………………………………............
……………………………………………………………………………………..……….

A. Are you – (please tick)

Male -- Female Married -- Unmarried Salaried -- Business

B. Age -- ……………………
C. Education……………….

1. Which Car do you have?

(Please tick)
a).Maruti Suzuki b). Honda City c).Duster d).Nissan e).Audi. f). BMW
g). others please specify…………………………….

2. How did you first learn about the Car you purchased?
(Please tick)
a). Dealership visit b). Friend c). Product show
d). Family e) Magazine articles f). ETC

- 61 -
 DURING SALES EVALUATION ----

1. When you bought your new car, how satisfied were you with the performance of the
dealership sales personnel on each of the items below:
a. Attitude (Friendliness) 1 2 3 4 5
b. Explanations of product features. 1 2 3 4 5
c. Explanation of sales terms and conditions. 1 2 3 4 5

2. How satisfied are you with the dealer shop.

a. Product display 1 2 3 4 5
b. Cleanliness 1 2 3 4 5
c. Atmosphere 1 2 3 4 5

DURING VEHICLE DELIVERY EVAL ION UAT

1. How satisfied were you with the car delivery.

a. Cleanliness of your purchased car at delivery 1 2 3 4
5
b. Timely delivery of the car 1 2 3 4
5
c. Explanation of car functions at delivery 1 2 3 4
5
d. Proper PDI and checks made. 1 2 3 4
5

A. Income of the consumer of the MARUTI SUZUKI?

a. below 1 lakh
b. 1lakh – 1.5 lakh
c. 1.5 lakh – 3 lakh
d. more than 3 lakh

B. For how many years you are using MARUTI SUZUKI?

a. 1 year
b. 2 year
c. 3 year

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d. more than 3 year

C. Do you like MARUTI SUZUKI?

a. YES
b. NO

D. What were the factors which influence you to buy MARUTI SUZUKI CAR?
a. Brand name
b. Style
c. Fuel efficiency
d. Comfort
e. Performance
f. Any other

E. Are you satisfied with your MARUTI SUZUKI CAR?

a. YES
b. NO

F. Which age group use MARUTI SUZUKI services in majority?

a) 18-25 years
b) 26-35 years
c) 36-49 years
d) 50-60 years

G. Amongst male or female who uses MARUTI SUZUKI the most?

a) Male
b) Female

H. What makes people prefer MARUTI SUZUKI the most?

a) Advertisements
b) Family responsibilities
c) Advice from friends

I. HOW TO MAKE A CUSTOMER ORIENTED COMPANY ---

SUGGESTIONS IF ANY ---

………………………………………………………………………………………………

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………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

(PARAMETERES) --
1 = VERY BAD
2 = POOR
3 = AVERAGE
4 = GOOD 5
5 VERY GOOD

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