Professional Documents
Culture Documents
INTRODUCTION
The word ‘Brand’ has its Origin in the Norwegian word “Brand”, which means to burn.
In ancient times, farmers used to put burn marks as identification on lively stock to
distinguish their possessions.
A brand is defined as “a name, term, sign, symbol (or) special design of these elements
that is intended to identify the good (or) service of one seller (or) a group of sellers.
Additionally, it also means an inherent assurance to the customers of quality. Many
Consumer Products, besides their basic features, need attractive packaging and a ‘brand
name’. A brand is a symbol or a mark that helps a customer in instant recall,
differentiating it there by from the competing products of a similar nature. According to
the American Marketing Association (AMA), “A brand name is a part of a brand
consisting of a word, letter, group of words, or letters to identify the goods or services of
a seller or group of sellers and to differentiate them from those of the competitors.” David
Ogilvy defined a brand as “The Consumer’s idea of a product.
Brand
A brand is the identity of a specific product, service, or business. A brand can take many
forms, including a name, sign, symbol, color or slogan. The word brand began simply as
a way to tell one person's cattle from another by means of a hot iron stamp. A legally
protected brand name is called a trademark. The word brand has continued to evolve to
encompass identity - it affects the personality of a product, company or service.
Concepts
A brand is the personality of a product, service or company and how it relates to key
constituencies: Customers, Staff, Partners, and Investors etc. Some people distinguish the
psychological aspect of a brand from the experiential aspect. The experiential aspect
consists of the sum of all points of contact with the brand and is known as the brand
experience. The psychological aspect, sometimes referred to as the brand image, is a
symbolic construct created within the minds of people and consists of all the information
and expectations associated with a product or service.
People engaged in branding seek to develop or align the expectations behind the brand
experience, creating the impression that a brand associated with a product or service has
certain qualities or characteristics that make it special or unique. A brand is therefore one
of the most valuable elements in an advertising theme, as it demonstrates what the brand
owner is able to offer in the marketplace. The art of creating and maintaining a brand is
called brand management. Orientation of the whole organization towards its brand is
called brand orientation.
The extent of the faithfulness of consumers to a particular brand, expressed through their
repeat purchases, irrespective of the marketing pressure generated by the
competing brands. Brand loyalty is more than simple repurchasing, however. Customers
may repurchase a brand due to situational constraints (such as vendor lock-in), a lack of
viable alternatives, or out of convenience. Such loyalty is referred to as "spurious
loyalty". True brand loyalty exists when customers have a high relative attitude toward
the brand which is then exhibited through repurchase behavior. This type of loyalty can
be a great asset to the firm: customers are willing to pay higher prices, they may cost less
to serve, and can bring new customers to the firm.
To firms, brands thus represent enormously valuable pieces of legal property that
can influence consumer behavior, be sought and sold, provide the security of sustained
future revenues to their owner. Large earning multiple have been paid for brands in
mergers or acquisitions, starting with the boom years of the mid-1980s. The price
premium is often justified on the basis of assumptions of the extra profits that could be
extracted and sustained from the brands, as well as the tremendous difficulty and expense
of creating similar brands from scratch. Wall Street believes that strong brands result in
better earnings and profit performance for firms, which, in turn, creates greater value for
shareholders. Much of the recent interest in brands by senior management has been result
of these bottom-line financial considerations. “Marketing Memo: The brand Report card”
lists 10 key characteristics based on a review of the world’s strongest brands.
Global Brand
A global brand is one which is perceived to reflect the same set of values around
the world. Global brands transcend their origins and create strong, enduring relationships
with consumers across countries and cultures.
Global brands are brands sold to international markets. Examples of global brands
include Coca-Cola, McDonald's, Marlboro, Levi's etc. These brands are used to sell the
same product across multiple markets, and could be considered successful to the extent
that the associated products are easily recognizable by the diverse set of consumers.
Benefits of Global Branding
In addition to taking advantage of the outstanding growth opportunities, the
following drives the increasing interest in taking brands global:
Economies of scale (production and distribution)
Lower marketing costs
Laying the groundwork for future extensions worldwide
Maintaining consistent brand imagery
Quicker identification and integration of innovations (discovered worldwide)
Preempting international competitors from entering domestic markets or locking
you out of other geographic markets
Increasing international media reach (especially with the explosion of the
Internet) is an enabler
Increases in international business and tourism are also enablers
TYPES OF BRANDS
Product
The most common brand is that associated with a tangible product, such as a car or
drink. This can be very specific or may indicate a range of products. In any case, there is
always a unifying element that is the 'brand' being referred to in the given case.
Individual product
Product brands can be very specific, indicating a single product, such as classic Coca-
Cola. It can also include particular physical forms, such as Coca-cola in a traditional
bottle or a can.
Product range
Product brands can also be associated with a range, such as the Mercedes S-class cars or
all varieties of Colgate toothpaste.
Service
Service brands are about what is done, when it is done, who does it, etc. It is much more
variable than products brands, where variation can be eliminated on the production line.
Even in companies such as McDonald's where the service has been standardized down
to the eye contact and smile, variation still occurs.
Consistency can be a problem in service: we expect some variation, and the same smile
every time can turn into an annoyance as we feel we are being manipulated. Service
brands need a lot more understanding than product brands.
Organization
Organizations are brands, whether it is a company that delivers products and services or
some other group. Thus Greenpeace, Mercedes and the US Senate are all defined
organizations and each has qualities associated with them that constitute the brand.
In once sense, the brand of the organization is created as the sum of its products and
services. After all, this is all we can see and experience of the organization. Looking at it
another way, the flow also goes the other way: the intent of the managers of the
organization permeates downwards into the products and the services which project a
common element of that intent.
Person
The person brand is focused on one or a few individuals, where the branding is
associated with personality.
INDIVIDUAL
A pure individual brand is based on one person, such as celebrity actor or singer. The
brand can be their natural person or a carefully crafted projection.
Politicians work had to project a brand that is attractive to their electorate (and also work
hard to keep their skeletons firmly in the cupboard). In a similar way, rock stars who
want to appear cool also are playing to a stereotype.
Group
Not much higher in detail than an individual is the brand of a group. In particular when
this is a small group and the individuals are known, the group brand and the individual
brand overlap, for example in the way that the brand of a pop group and the brand of its
known members are strongly connected.
Organizations can also be linked closely with the brand of an individual, for example
Virgin is closely linked with Richard Branson.
Event
Events have brands too, whether they are rock concerts, the Olympics, a space-rocket
launch or a town-hall dance.
Event brands are strongly connected with the experience of the people attending, for
example with musical pleasure or amazement at human feats.
Product, service and other brands realize the power of event brands and seek to have
their brands associated with the event brands. Thus, sponsorship of events is now big
business as one brand tries to get leverage from the essence of the event, such as
excitement and danger of car racing.
Geography
Areas of the world also have essential qualities that are seen as characterizations, and
hence also have brand. These areas can range from countries to state to cities to streets
and buildings. Those who govern or represent these geographies will work hard to
develop the brand. Cities, for example, may have de-facto brands of being dangerous or
safe, cultural or bland, which will be used by potential tourists in their decisions to visit
and by companies in their decisions on where to set up places of employment
MARUTI SUZUKI holds a good name and fame in the market in its long run. With lots
of changes and adoptions the company has established a brand image in the market.
OBJECTIVES OF THE STUDY
The motive of any company generally is to acquire larger market share, high % of
sales in the industry; this could be only achieved by building a higher % of brand
loyal customers.
Any company can survive if there is computational activity in the market and
brand loyal customers. Today many major companies in the market try to
maintain and improve their branded equity without creating proper brand
awareness they can not build brand image.
The 4 – Wheeler industry has been expanding rapidly these days have gone to feel
possessing a four-wheeler is a luxury and also viewed as necessary. This industry
has customers, ranging from all demographic segments. It has been common
signals that even college going students are using 4 – wheelers.
The motive of the company generally is to acquire longer market system and high
% of sales by industry this could be only achieved by building higher brand loyal
customer
Any company can survive if there is computerize zonal activity in the market and the
brand loyalty customers.
SCOPE OF THE STUDY
Brand loyalty of beliefs held a specific brand. In short, it is nothing but the
customer’s perception about the product. It is the manner in which a specific
brand is positioned in the market.
Brand loyalties emotional value and not just a mental loyalty is nothing but an
organization’s character. It is an accumulation of contact and observation by
people external to an organization.
The main elements of positive brand loyalty que logo reflecting organization’s
image, slogan describing organization’s business in brief and brand identifier
supporting the key value.
RESEARCH METHODOLOGY
RESEARCH PROBLEM
Since Maruti is one for the most popular brands in India, there is a high need to
understand whether the customers are loyal to the brand and have any kind of influence
from its awareness. Retaining customers is the main objectives of any company, so a
study to understand the influence of brand awareness seems to be not going vain.
DATE SOURCE:
The data for the study will be collected both from primary and secondary sources. A
well-defined questionnaire will be distributed to the customers, together required
information. Data will be also be collected through books, journals and will be conducted
websites.
SAMPLE SIZE: -
A survey among 100 customers who will be selected based on convenience sampling.
TOOLS OF ANALYSIS:
Chi-squire test will be used for testing the hypothesis.
BRAND AWARENESS:
Brand Awareness of the ability of a potential buyer to recognize /recall that a
brand is part of a product category
BRAND VALUE: -
Brand value is functions of the customer perception, his / her attitude towards it,
and the economic value (or) price that that the customer attaches to the brand.
PERCEIVED QUALITY:
Perceived quality is the bench mark by which the customer evaluates different brand
on quality.
BRAND STRATEGY:
Brand strategy is a set of actions deliberately chosen after a careful evaluation of
alternatives, to help the strategist actualize his vision and achieve brand long-term
objectives.
BRAND ASSOCIATIONS:
Invariably are brands come to acquire a meaning in the mind of the customers. Customer
association different dimensions of the product, including its use and use situations to the
brands.
CO- BRANDING:
Co-branding effort in today’s marketing era is that of Intel and computer manufacturers
around the world, which created strong brand awareness and identify for Intel.
LIMITATIONS OF THE STUDY
2. Master (2005) argues that customers buy products but choose brands. While products
satisfy a customer’s functional needs. Brand provides the emotional benefits that connect
with hearts and minds. A brand is a promise of benefit, it is a combination of perception
in customers minds about whom you are, what you do and what value you to them.
3. Doyle (1997) argues that successful brands create wealth by attracting and retaining
customers and thus brands are at the heart of marketing. He advocates for de-
commoditizing of a company’s offering.
4. Ad cock (2001) points out that brands don’t have a physical presence or any objective
existence but they do provide a mass of values and promises that act as powerful stimuli
for consumer decisions heading them to buy or perhaps not to buy.. He further states that
a brand can be either an asset or liability depending on the attitude of the customers.
Towards it he argues that the strength of a brand is reflect in four ways which are brand
awareness, brand beliefs, brand association and brand loyalty. Ad cock suggests that the
most obvious manifestation of a brand is the name which triggers all the associations
related to the brand.
5. Nilson (1999) argues that a name becomes a brand if it fulfills the criteria of carrying
distinct values, differentiating, appealing and having a clear identity.
6. Randall (1994) suggests that great brands are extremely long lived, (for example
Gillette crazors), brook bond (tea) and Colgate (toothpaste) which reflect the facts that
strong brands are really wanted by consumers. He argues that brands can be friends, can
bring security, confidence and pleasure to people’s lives. On the other hand he argues that
sustainable brand competitive advantages may come from technology, production costs,
consumer franchise, marketing expertise and distribution.
7. Aaker (1996) defines brand equity as a set of asset and liability linked to a brand name
and symbol that adds to the value provided by a product or service to a firm and or that
firm’s customers. These assets are first brand loyalty, which refers to a deeply held
commitment to re-buy or re patronize a preferred product or services in the future.
Secondly we have brand name awareness, which refers to the strength of a brands
presence in the consumers mind. Thirdly we have brand associations which are normally
the associations that consumers make with a brand which might include product
attributes, a celebrity spokesperson, or a particular symbol. Finally we have perceived
quality which refers to a measure of goodness that spreads over all elements of the brand,
and which may differ from actual quality.
11. Shibashish, Chakraborty and Kalyan Sengupta (2008) endeavor to make a detailed
study on important demographic variables of customers affecting brand switching of
customers. This study will highlight pertinent aspects of prediction of switching
proclivity of customers from one service provider to another.
12. One of the most crucial goals for any marketer is to create “customer brand loyalty.”
through which brands can obtain competitive advantage ( kotler, 1984 ). Brand loyalty is
defined as the attachment that a customer has to a brand (aaker, 1991). Wikie (1994)
defines brand loyalty as “a favourable attitude towards, and consistent purchase of, a
particular brand.” Such a characteristics has both a behavioural and an attitudinal
perspective. From a behavioral. perspective, it is defined as the degree to which a buying
unit, such as a household, concentrates its purchases over time on a particular brand
within a product category (schoell and guiltinan, 1990). From an attitudinal perspective,
brand loyalty is defined “as the tendency to be loyal to a focal brand as demonstrated by
the intention to buy it as a primary choice.” (oliver, 1997). In the Indian context, it is
noted that one’s consumers get used to a particular brand of shampoo or toothpaste, they
do not readily accept other brands (majumdar, 2004). They are more loyal to brands that
continually come up with promotion offers at a fair price.
13. Various studies on different product categories have indicated that brand loyalty is an
important factor influencing purchase of a brand. A national study on Korean women’s
apparel brand loyalty ( oh and fiorito, 2002) fond that for brand loyal consumer’s status,
attractiveness and fashion ability were important criteria while purchasing their most
preferred brand. The study showed that since individuals represent self through their
apparel, most consumers prefer to wear apparel brand that reflects their image in a
pleasing manner. All these are attributes of a publicly visible product.
14. Majumdar (2004) argued that in case of privately consumed necessities like
cigarettes and personal care products, promotions may enhance short term but not long
term loyalty.
CHAPTER – III
INDUSTRY PROFILE
&
COMPANY PROFILE
INDUSTRY PROFILE
Automobile Industry
In the year 1769, a French engineer by the name of Nicolas J. Cognit invented the first
automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled,
military tractor that made the use of a steam engine. The range of the automobile,
however, was very brief and at the most, it could only run at a stretch for fifteen minutes.
In addition, these automobiles were not fit for the roads as the steam engines made them
very heavy and large, and required ample starting time. Oliver Evans was the first to
design a steam engine driven automobile in the U.S.A Scotsman, Robert Anderson, was
the first to invent an electric carriage between 1832 and 1839. However, Thomas
Davenport of the U.S.A. and Scotsman Robert Davidson were amongst the first to invent
more applicable automobiles, making use of non-rechargeable electric batteries in 1842.
Development of roads made travelling comfortable and as a result, the short ranged,
electric battery driven automobiles were no more the best option for travelling over
longer distances.
The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk
production of cars. This lead to the development of the industry and it first begun in the
assembly lines of his car factory. The several methods adopted by Ford, made the new
invention (that is, the car) popular amongst the rich as well as the masses.
According the History of Automobile Industry US, dominated the automobile markets
around the globe with no notable competitors. However, after the end of the Second
World War in 1945, the Automobile Industry of other technologically advanced nations
such as Japan and certain European nations gained momentum and within a very short
period, beginning in the early 1980s, the U.S Automobile Industry was flooded with
foreign automobile companies, especially those of Japan and Germany.
The current trends of the Global Automobile Industry reveal that in the developed
countries the Automobile Industries are stagnating as a result of the drooping car markets,
whereas the Automobile Industry in the developing nations, such as, India and Brazil,
have been consistently registering higher growth rates every passing year for their
flourishing domestic automobile markets.
The automotive industry designs, develops, manufactures, markets, and sells the world's
motor vehicles. In 2008, more than 70 million motor vehicles, including cars and
commercial vehicles were produced worldwide.
In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million in
Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in
Latin America, 2.4 million in the Middle East and 1.4 million in Africa. The markets in
North America and Japan were stagnant, while those in South America and other parts of
Asia grew strongly. Of the major markets, Russia, Brazil, India and China saw the most
rapid growth.
About 250 million vehicles are in use in the United States. Around the world, there were
about 806 million cars and light trucks on the road in 2007; they burn over 260 billion
gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially
in China and India. In the opinion of some, urban transport systems based around the car
have proved unsustainable, consuming excessive energy, affected the health of
populations, and delivered a declining level of service despite increasing investments.
Many of these negative impacts fall disproportionately on those social groups who are
also least likely to own and drive cars. The sustainable transport movement focuses on
solutions to these problems.
In 2008, with rapidly rising oil prices, industries such as the automotive industry, are
experiencing a combination of pricing pressures from raw material costs and changes in
consumer buying habits. The industry is also facing increasing external competition from
the public transport sector, as consumers re-evaluate their private vehicle usage. Roughly
half of the US's fifty-one light vehicle plants are projected to permanently close in the
coming years, with the loss of another 200,000 jobs in the sector, on top of the 560,000
jobs lost this decade. Combined with robust growth in China, in 2009, this resulted in
China becoming the largest automobile market in the world.
INDIAN AUTOMOBILE HISTORY
The origin of automobile is not certain. In this section of automobile history, we will
only discuss about the phases of automobile in the development and modernization
process since the first car was shipped to India. We will start automotive history from this
point of time.
The automobile industry has changed the way people live and work. The earliest of
modern cars was manufactured in the year 1895. Shortly the first appearance of the car
followed in India. As the century turned, three cars were imported in Mumbai (India).
Within decade there were total of 1025 cars in the city.
The dawn of automobile actually goes back to 4000 years when the first wheel was used
for transportation in India. In the beginning of 15th century Portuguese arrived in China
and the interaction of the two cultures led to a variety of new technologies, including the
creation of a wheel that turned under its own power. By 1600s small steam-powered
engine models was developed, but it took another century before a full-sized engine-
powered vehicle was created.
The actual horseless carriage was introduced in the year 1893 by brothers Charles and
Frank Duryea. It was the first internal-combustion motor car of America, and it was
followed by Henry Ford's first experimental car that same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost
that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood,
and an aluminum body. It was usually driven by chauffeurs and emphasis was on comfort
and style rather than speed.
During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-
steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-
cylinder engine and an aluminum body.
The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that
suited more to the needs of families. In 1930s, vehicles were less boxy and more
streamlined than their predecessors. The 1940s saw features like automatic transmission,
sealed-beam headlights, and tubeless tires. The year 1957 brought powerful high-
performance cars such as Mercedes-Benz 300SL. It was built on compact and stylized
lines, and was capable of 230 kmh (144 mph).
This was the Indian automobile history, and today modern cars are generally light,
aerodynamically shaped, and compact.
Emerging India Auto market
India auto market is a promising industrial sector that is growing immensely every
passing year. Passenger cars are referred to, through use of word "automobile."
Whooping growth experienced by Indian auto market in last financial year itself that is
financial year end in February, 2007 was very close to a 18 percent over previous fiscal.
This statistical fact is a glittering example of potential of growing auto industry in India.
As per survey conducted by Society of Indian Auto Manufacturers, total number of
automobiles manufactured by auto industry in India, throughout financial year 2006-07,
was very close to 15.5 lakh (1.5 million) margin. Huge of number of automobiles
manufactured by auto industry in India was an enormous growth upon number of autos
manufactured during previous fiscal, that ended in 2006.
Total number of cars that were exported from India were very close to 2.0 lakh (2.0
hundred thousand) margin, an encouraging sign for auto industry in India. Export of cars
manufactured in India comprised nearly 13 percent of total number of cars manufactured
domestically by auto industry in India.
India auto market looks set to prosper, largely due to growing market for automobiles
that is developing in India. In financial year that ended in February, 2004, Indian auto
markets were fastest growing in world, with registered growth rate touching nearly 20
percent.
Auto industry in India mainly comprises of small car section, which enjoys nearly a 2/3rd
market share of entire market for autos in India. In this respect, Indian markets are largest
in world for small cars, behind Japan.
The 4 – wheelers industry is passing through is passing through a critical but interesting
phase. For many years, it was growing continuously but the turning point came in 1996
Feb., when it started slowing down. The impact was rally felt in the next year when the
overall growth was hardly 10%. This was also possible only because, the cars segment
showed a healthy growth of 50%. The net result is that is that Maruti cars now account
for 62% of the 4 – wheelers market in April, May & June 2015.The Varun Motors Ltd.
mainly is the only dealers of the mature Branded cars.
NEW SEGMENTS
A step through segment like Maruti alto, ZEN, VERSA and WAGONR, A-star and SX-4.
DRAMATIC CHANGES
The new products have contributed to 35% of the growth and helped the producers
improve their bottom line. The coming years will see increasing competition due to the
priority in products in products and prices. The only differentiate will be technology,
quality, product range and service.
Imaginative market will emphasize relationship building and customer satisfaction. New
techniques such as direct marketing and institutional sales are being explorer by all. Some
of them are taking the vehicle actually to the customers door step. Now the customer is
king. Luxury cars, Passenger cars & Multipurpose/Commercial cars. Product range from
MUL had offers different cars of all these classifications, i.e., Bale no & Esteem Cares in
luxury days, M-800, ALTO, ZEN, WAGON-R falls in passenger cars, while OMNI,
VERSA & GYPSY for multipurpose / commercial cars. According to MUL managing
director Jagdish Khattar, Swift has been positioned on the“aspirational”plank for young
Indians.
COMPANY PROFILE
HISTORY:
Maruti Udyog Limited (MUL) was established as a private limited company in India on
February 1981, through an Act of Parliament to meet the growing demand of a personal
mode of transport caused by the lack of an efficient public transport system. MUL is
wholly owned by the Govt. of India at the time of its birth.
Suzuki Motor Company was chosen from seven prospective partners worldwide. This
was due not only to their undisputed leadership in small cars but also to their
commitment to actively bring to MUL contemporary technology and Japanese
management practices (which had catapulted Japan over USA to the status of the top auto
manufacturing country in the world)
MUL was classified in the Public Sector as long as the equity of Government of India
remained over 51%. A license and a Joint Venture agreement were signed between Govt.
of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct
1982, with Suzuki Motor Corporation (SMC) acquiring 26% of the equity. This newly
formed organization was given the primary objectives of:
Modernizing the Indian Automobile Industry by bringing in the latest technology
Production of fuel- efficient vehicles to conserve scarce resources. Production of a large
number of motor vehicles which is necessary for economic growth. Maruti created
history by going into production in a record 13 months. On 14 December 1983, the then
Prime Minister of India. Mrs. Indira Gandhi released the first Vehicle for sale by handing
over the keys of a Maruti 800 to Mr. Harpal Singh of Delhi.
Maruti exceeded the volume targets, and in March 1994, it became the first Indian
Company to produce over one million vehicles, a landmark yet to be achieved by any
other car company in India. Maruti is the highest volume cat manufacture in Asia, outside
Japan and Korea, having produced over 4 million vehicles by April 2003. Maruti
revolutionized the way Indians looked at cars.
VISION, VALUES & ETHOS OF MUL:
MUL Vision is to be a leader in the Indian Automobile Industry, Creating Customer
Delight and Shareholder’s Wealth, transforming Maruti to be a pride of India.
The Core values of MUL are customer Obsession, Fast, Flexible and First Mover,
Innovation and Creativity, Networking and Partnership Openness and Learning, Quality
Systems and Consumer Satisfaction through Continuous Improvement of our Products
and Services by following PDCA (PLAN-DO-CHECK-ACT) in all functions of our
organization.
At Maruti, the approach to quality is in keeping wit the Japanese practice – “build it into
the product”. Technicians themselves inspect the quality of work. Supervisors educate
and instruct technicians to continually improve productivity and quality. The movement
of quality indicators is reviewed in weekly meetings by the top management
MUL believes that its employees are its greatest strength and asset. It is this underlying
philosophy that has molded the workforce at Maruti into a team with common goals and
objectives. The Employee- Management relationship is therefore characterized by
Participative Management, Team work & Kaizen communication and information
sharing.
Industry Automotive
Founded 1981 (as Maruti Udyog Limited)
Headquarters New Delhi, India
Mr. Shinzo Nakanishi, Managing
Key people
Director and CEO
Products Automobiles
Revenue US$4.8 billion (2015)
Parent Suzuki Motor Corporation
ORGANISATIONAL STRUCTURE
Chairman- _ Mr. R. C. Bhargava
Managing Director and CEO – Mr. Shinzo Nakanishi
Director _ Mr. Manvinder Singh Banga
Director _ Mr. Amal Ganguli
Director _ Mr. D. S. Brar
Director _ Mr. Keiichi Asai
Director _ Ms. Pallavi Shroff
Director _ Mr. Osamu Suzuki
Director _ Mr. Shuji Oishi
Director _ Mr. Kenichi Ayukawa
Director and Managing Executive Officer (Production) - Mr. Tsuneo Ohash
CAR MODEL MODEL-SHOW ROOM PRICE
Manufactured locally
800 (Launched 1983)
Omni (Launched 1984)
Gypsy (Launched 1985)
WagonR (Launched 2002)
Alto (Launched 2000)
Swift (Launched 2005)
Estilo (Launched 2009)
SX4 (Launched 2007)
Swift DZire (Launched 2008)
A-star (Launched 2008)
Ritz (Launched 2009)
Eeco (Launched 2010)
Alto K10(Launched 2010)
Suzuki Grand Vitara (Launched 2007
Kizashi (Launched 2015)
Discontinued car models
1000 (1990–1994)
Zen (1993–2006)
Esteem (1994–2008)
Baleno (1999–2007)
Zen Estilo (2006–2009)
Versa (2001–2010)
Grand Vitara XL7 (2003–2007)
Manufacturing facilities
Maruti Suzuki has two state-of-the-art manufacturing facilities in India.[14] Both
manufacturing facilities have a combined production capacity of 1,250,000 vehicles
annually.
Gurgaon Manufacturing Facility
The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and
is spread over 300 acres (1.2 km2). All three plants have an installed capacity of 350,000
vehicles annually but productivity improvements have enabled it to manufacture 700,000
vehicles annually. The Gurgaon facilities also manufacture 240,000 K-Series engines
annually. The entire facility is equipped with more than 150 robots, out of which 71 have
been developed in-house. The Gurgaon Facilities manufactures, the 800, Alto, WagonR,
Estilo, Omni Gypsy and Enesco.
Manesar Manufacturing Facility
The Manresa Manufacturing Plant was inaugurated in February 2007 and is spread over
600 acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually
but this was increased to 300,000 vehicles annually in October 2008. The production
capacity was further increased by 250,000 vehicles taking total production capacity to
550,000 vehicles annually. The Manesar Plant produces the A-star, Swift, Swift DZire
and SX4.
Sales and service network
As of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities in
all states and union territories of India. It has 2,946 service stations (inclusive of dealer
workshops and Maruti Authorized Service Stations) in 1,395 towns and cities throughout
India. It has 30 Express Service Stations on 30 National Highways across 1,314 cities in
India.
Service is a major revenue generator of the company. Most of the service stations are
managed on franchise basis, where Maruti Suzuki trains the local staff. Other automobile
companies have not been able to match this benchmark set by Maruti Suzuki. The
Express Service stations help many stranded vehicles on the highways by sending across
their repair man to the vehicle.
Maruti Insurance
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the
help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal
Sundaram. The service was set up the company with the inception of two subsidiaries
Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt.
Limited.
This service started as a benefit or value addition to customers and was able to ramp up
easily. By December 2005 they were able to sell more than two million insurance policies
since its inception.
Maruti Finance
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January
2002. Prior to the start of this service Maruti Suzuki had started two joint ventures
Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide
respectively to assist its client in securing loan. Maruti Suzuki tied up with ABN Amro
Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and
Sundaram to start this venture including its strategic partners in car finance. Again the
company entered into a strategic partnership with SBI in March 2003. Since March 2003,
Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is
currently available in 166 cities across India.
"Maruti Finance marks the coming together of the biggest players in the car finance
business. They are the benchmarks in quality and efficiency. Combined with Maruti
volumes and networked dealerships, this will enable Maruti Finance to offer superior
service and competitive rates in the marketplace".Jagdish Khattar, Managing director of
Maruti Udyog Limited in a press conference announcing the launch of Marot Finance on
7 January 2002 Citicorp Maruti Finance Limited is a joint venture between Citicorp
Finance India and Maruti Udyog Limited its primary business stated by the company is
"hire-purchase financing of Maruti Suzuki vehicles". Citi Finance India Limited is a
wholly owned subsidiary of Citibank Overseas Investment Corporation, Delaware, which
in turn is a 100% wholly owned subsidiary of Citibank N.A. Citi Finance India Limited
holds 74% of the stake and Maruti Suzuki holds the remaining 26%. GE Capital, HDFC
and Maruti Suzuki came together in 1995 to form Maruti Countrywide. Maruti claims
that its finance program offers most competitive interest rates to its customers, which are
lower by 0.25% to 0.5% from the market rates.
Exports
Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports
and it does not operate in the domestic Indian market. The first commercial consignment
of 480 cars was sent to Hungary. By sending a consignment of 571 cars to the same
country Maruti Suzuki crossed the benchmark of 300,000 cars. Since its inception export
was one of the aspects government was keen to encourage. Every political party expected
Maruti Suzuki to earn foreign currency.
Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka, Uganda,
Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti
Exports.
MITHRA AGENCIES
The Mithras Agencies is one of the best car showrooms in Hyderabad located at Himayat
Nagar. The Mithra Agencies provide a wide variety of services for your car. People here
speak very good English and they are very kind at receiving customers. The Mithra
Agencies provide services at reasonable prices. Also, one can see a wide variety of cars
kept for display in the showroom. All company cars are available here. Also, the
showroom charge for cars you buy is very less when compared with other car show room.
The Mithra Agencies is a very good place to have a luxurious car. You will get full
satisfaction for the money you pay. It invites Sales experts for Himayath Nagar,
Mehdipatnam, L.B. Nagar, Ghatakeshar, Bhuvanagiri, Kampala, Ibrahim Putnam,
Chevella, Paige, Tan door, Vikarabad locations.
SELLING CAPACITY: The Company has sold, since its inception more than 1, 00,000
cars. Its turnover is more than 100 crores per annum. It is the senior most dealer-ship in
Andhra Pradesh.
STANDARDNESS: The Company boasts of being the first ISO-9001 certified
automobile dealer in A.P. The company has also to its credit a number of honors and
accolades from its principal Maruti Udyog Limited.
ACHIEVEMENTS&STRENGTHS
It has been awarded the All-India Dealer Award for excellence in 1995 for highest
growth and lifting of Maruti Esteem and 1000cc cars.
Another award in 1997 was given to The Mithra Agencies “All India Dealer Award”
in category A for the highest counter sale of Maruti Spares in 1997.
This company has been awarded with a special citation for maximum growth in
Maruti Finance Penetration at the All-India Dealers’ Conference at Bangkok in 2003.
It has been ranked All India 16th in the Balanced Score Card for 2004-05among 230
odd dealers in the entire country by registering growth in ancillary businesses like
Maruti Insurance, MGA, Maruti Finance.
It has the privilege of having more than 50000 loyal customers who are repeat buyers
the obvious reason for being the most tried, tested and trusted since yester years.
The Mithra Agencies has counter business with HDFC,ICICI ,SFL CMFL,and KMPL
disbursing 4 crores of car loans every month .
WORKSHOPS
The Mithra agencies have four state- of- the- art workshops situated in the prime
localities of the city. The following below are the workshops offered by Mithra agencies.
1. Madhapur
2. RTC X roads
3. Moosapet
4. LB-Nagar.
BRANCHES
The Mithra agencies have three branches situated in the prime localities of the city. The
following below are the branches of Mithra agencies
Mithra Agencies Himayathnagar
Mithra Agencies Mehdipatnam.
Mithra Agencies L.B. Nagar.
TRUE VALUE:
Mithra agencies offering a true value service for a pre-owned
Cars.
Here cars are sold by the customers after evaluations.
It brings a huge profit for the organization in second sales also.
SELLING UNITS
Mithra agencies usually sell 300 cars in all 3 branches per month.
The total turnover yields approximately 15 crores.
ORGANIZATIONAL STRUCTURE
MD
CEO & GM
DGM
Accounts Manager
HR Manager
Customer Care
Sales Manager Manager
The MITHRA AGENCIES is involved in both inbound sales and out bound Sales
(marketing) providing both permanent and non-permanent jobs. Good in retaining the
experienced and talented employees by providing Promotions, good incentives, good
salaries, provident funds, bonus and other allowances.
It provides good quality of work life to feel interest in doing the job. The employers and
employees are very friendly and their motto is “25 YEARS DEDICATED CUSTOMER
SERVICE’’. The team members (employees) will play games and also celebrates parties
that are they are very sportive in nature.
Recruiting employees directly by walk in interviews and through references also as they
are not tied up with any recruitment consultancy. The various job positions are H.R.
Executives, Managers, Assistant Managers, Marketing Executives, Team leaders, drivers,
servicing employees, software employees, customer care executives, and other posts.
They are kindly helping MBA Final year students in giving the opportunity for doing the
project work successfully and also providing the jobs for efficient project work students.
They sell more cars on festival occasions and on year endings. Customer satisfaction
activities is their important objective, they take the feedback of the customers after selling
the cars and customer retaining measures are taken by satisfying the customers. They are
having their own servicing centers. They are providing all the models of Maruti Suzuki.
The period of free warranty is up to 2 years and extended warranty offer is also available
for next two years.
2. GOOD SERVICING
There is a good word of mouth for this organization in doing service, very effectively
among his competitors. Among its competitors like Varun Motors Pvt. Ltd R.K.S Motors,
Acer, The Mithra is having very good name for servicing of the vehicles and this is also
one of the reasons for customer visits to this show room.
CHAPTER-IV
DATA ANALYSIS & INTERPRETATION
1. ANALYSIS OF GENDER
Male 96 96%
Female 4 4%
Analysis of Gender
INTERPRETATION:
The above table shows that 96%customers are male, and only 4% customers are female
so the company has to increase the level of female users.
2. ANALYSIS OF AGE GROUPS
INTERPRETATION:
The above table shows that 20-25 age group customers are 16%; 26-30 age group
customers are 18%; 31-35 age group customers are 26%; 36-40 age group customers are
30% and 41 and above age customers are 10%.
3. ANALYSIS OF OCCUPATION
Doctors 20 20%
Business 46 46%
employees 34 34%
INTERPRETATION:
The above table shows that 20% of customers are Doctors, 34% customers are employees
and 46% are customers are business. So, company has to look in to increasing using of
students
4. INCOME OF RESPONDENTS
0 – 10000 4 14%
INTERPRETATION:
The above table shows that income of 0-10,000 are 4%, income of 10001 -15,000 are
24%, income of 15001-20000 are 52% and income of 20001 above are 20%.
5. CAR MODEL
Car Model No. of respondents Percentage
Swift 24 24%
Wagon R 12 12%
others 24 24%
INTERPRETATION:
The above table 4.5 shows that 40 % of the customers are using Maruti 800 followed by
24 % using Swift and 12 % using Wagon R where the company should further try to
increase the brand usage.
No 0 0%
INTERPRETATION:
The above table shows that 100% respondents known the brand name of Maruti Suzuki
0-1year 24 24%
1-2years 20 20%
2-4years 44 44%
4years-above 12 12%
INTERPRETATION:
The above table shows that 24% of the customers using below one year, 20% of the
customers cars 1-2 years, 44% customers are using cars 2-4 years, 12% of customers are
using cars 4- years above where the company should increase usage levels
advertisement 44 44%
friends 36 36%
Relations 20 20%
other 0 0%
INTERPRETATION:
The above table shows that 44% customer awareness advertisement, 36% of customers is
awareness with friends, 20% customer’s awareness through papers. So the company
should increase through papers.
business 56 56%
other 0 0%
INTERPRETATION:
The above table shows that 24%customers using for family use, 56% customers using for
business use, 20% customers using for riding users. So the company should increase
family users
safety 20 20%
mileage 40 40%
features 8 8%
INTERPRETATION:
The above table shows that 32% customers using for brand image ,20% customers using
for safety ,40% customers using for mileage, 8% customers using for features. So the
company should increase features
INTERPRETATION:
The above table shows that 44% customers are response is excellent, 36% customers are
response is good, 20% customers are response is good 0% customers are response is poor
so company increase level of satisfaction
CHAPTER-V
FINDINGS, SUGGESTIONS
&
CONCLUSION
FINDINGS
The study reveals that majority of the Customers age was between 25 – 45 years
Majorities of the customers of Mithra Agencies were Males
The target customers were mainly in upper middle class income group and Upper
class.
Alto, Baleno, Maruti 800CC, Zen and all types of Brands are the specialized
brands for Mithra.
Majority of the Customers were self- influenced to purchase the Four Wheelers of
Maruti
The main reason for Customers to choose Mithra for the service orientation
provided
100 % of the Customers were satisfied with the service of Mithra Agencies.
50% of the Customers were recommended for the modification offered by Mithra to the
loyalty customers
SUGGESTIONS
The charges for servicing the four wheelers may be slightly reduced. For the
quality of unpaid service should be kept at par with that of paid service.
As a promotional measure Mithra can increase free services camps which
increases the Customers’ loyalty.
A few more service stations smaller in size may be set up in various areas across
the city where there is more demand which satisfy more customers of all areas.
As per the study after service, cleaning and servicing vehicles should be given
importance and improved upon.
Customers are expecting some complaints during the delivery of Car. Hence, such
items may be given to improve Customer satisfaction.
CONCLUSION
The Brand Loyalty for Maruti Suzuki at Mithra is very positive; the reasons
contributing here is both the Brand Maruti and the services by Mithra Agencies.
Hence the companies should further try to integrate even more and see that they
give a product as per the customer requirements and services to satisfy the
customers and thereby increase the brand loyalty.
BIBLIOGRAPHY
Books:
JOURNAL:
Indian Journal of brand awareness
Journal of marketing
Business World
Business Line
WEB SITES:
www.google.com
http://www.MarutiSuzuki.com
www.Marutitruevalue.com