A project report

on
“study of customer satisfaction
towards Maruti Suzuki’s car”
submitted to

Kanpur Institute of Management studies

(AKTU university)
As a
Part of 3rd semester curriculum of
Masters in business administration
By
RAHYMEEN
1907140700040
Under the guidance of
Mr Karvendra Sir
MBA DEPARTMENT , KIMs COLLEGE ,
UNNAO
 Table of
Content
• Executive summary i. Testing of
• Review of literature hypothesis
• Introduction of • Facts & findings
industry • Suggestion
• Introduction of • Data analysis &
company interpretation
• Research • Conclusions
methodology • Bibliography
i. objectives • Annexure
ii. Scope of study i. Questionnaire
iii.Research design
iv.Sample design
v. Sample size
vi.Sources of data
vii.Limitation
 ACKNOWLEDG
MENT
I have great pleasure in presenting my project
entitled “study of consumer preferences
towards Maruti Suzuki car “ . I take this as an
opportunity to express my deepest gratitude
to all those who contributed indirectly their
valuable time & assisted me in my project
This project aims at the consumer preferences
while purchase the cars and to study the
behavioral responses towards different offers
and to know about new marketing aspects of
the organization
I would like to express my sincere and
gratitude regards to my guide
For his constant supervision and invaluable
guidance during the making of project
I would extend heartfelt regards to all the
faculty members of the department of self
finance courses , KIMs COLLEGE , for their
valuable suggestions
Executive
summary
 Executive
summary
The automobile sector is booming with the great speed . Maruti Suzuki India
Limited (MSIL) , the front runner in this sector in India . Maruti Suzuki is a one of
India”s Largest fast growing organization . Still Maruti Suzuki have the immense
scope for growth in the future .SO , the main objective of my study is to show the
company profile , the complete analysis of the Mission and Vision statements ,
and complete company analysis . In this project we are trying to find the
segmentation of cars done by Maruti Suzuki and its effect on customer we are
also trying to study the sales trend followed by Maruti Suzuki . In our study we
had followed different methods to find and analyze the data we are using
primary data as well secondary data . Before our study lots of study is being
done but no one had tried to research on Maruti Suzuki segmentation and its
effect on sales trend . We had used the questionnaires method to study the
Maruti sales trends we had asked question to people. We are also using
secondary data to analyze the sales trend of Maruti Suzuki . In which we had
studied the maruti shares condition the market . Its profit and loss its market
share and many more . We had analyzed where maruti having an edge over
competitor and where it is lacking behind . How it would improve its sales trend .
What are analyzing the future prospects of Maruti in Indian cars market
 Review
of
literature
 Review of
literature

Review of literature is a body of text that aims to review the

theoretical and methodological contributions of related authorities
and offices to a particular research topic. Its’ ultimate goal is to
make the researcher up to date with current literature on a topic
and forms the basis for another goal, such as future research that
may be needed in the area. It must be remembered that reviews of
literature are based on secondary sources, and as such, do not
report any new or original experimental work. In general, review of
literature surveys scholarly books, articles, dissertations, conference
proceedings etc. relevant to a particular area of research. The
purpose is to offer an overview of significant literature published on
the topic.

Since the 80s, the Indian car Industry has seen a major resurgence
with the opening up of Indian shores to foreign manufacturers and
collaborators. The 90s have become the melting point for the car
industry in India. The consumer is king. He is being constantly
wooed by both the Indian and foreign manufacturers
 Though sales had taken a dip in the first few months of

1999, it is back to boom time. New models like Maruti’s

Classic, Alto, Station Wagon, Ford’s Ikon, the new look

Mitsubishi Lancer are all being launched with an eye on the

emerging market. In these last years of the millennium,

suffice it is to say that Indian cars will only grow from

strength to strength.” , the automotive industry witnessed

tremendous growth after the entry of Maruti Udyog in the

1980s. In 1983, the government permitted Suzuki, the only

FDI player, to enter the market in a joint venture with Maruti

- a state operated enterprise at the time. Today, almost all of

the major global players are present in India. The

automotive industry is today a key sector of the Indian

economy and a major foreign exchange earner for the

country.”
Introduction
 Introduction of
industry
The indian automobile market is expected to grow at a CAGR of 9.5 percent
amounting to Rs. 13,008 million by 2010 . The commercial vehicle segment
has been contributing to the automobile market to a great extent.

Many foreign companies have been investing in the indian automobile market
in various way such as technology transfers , joint ventures , strategic alliances
, export and financial collaboration . The auto market in india can boast of
attractive finance scheme, increasing purchasing power and launch of the
latest products .

Total sales of major car manufactures in india registered a figure of 0.674

million units at the end of march, 2007. there has an increase in the purchase
of motorcycles and cars both , in the rural as well as urban areas. The number
of car exports in india was 39,295 units. General motors, Maruti and Honda
accounted for 60 percent of the market sales at the end of april, 2007

Maruti is india’s No.1 customer satisfaction car company . Its sales is more
than 50% of care of india car market . But now it is getting a good competition
with other new car company and foreign companies and its sales is going
down because other companies are trying to present different types of new
cars in different segment . Through our study we are trying to analyze the
customer demand in different segments and advancement required in Maruti
Suzuki’s segmentation. We are also analyzing Maruti’s sales trend. Maruti
Suzuki and based on that we are trying to present the sales trend analysis of
Maruti Suzuki
 COMPANY PROFILE
Maruti Suzuki India Limited
• Traded as BSE: 532500 NSE:
MARUTIBSE SENSEX Constituent
• Industry Automotive
• Predecessor Maruti Udyog
Limited
• Founded 1981
• Headquarters   New Delhi, India
• Key people R. C. Bhargava
(Chairman)Kenichi Ayukawa (Managing
Director & CEO)
• Products Automobiles
• Production output 1,429,248 units
(2016)
• Revenue 58,612 crore
(US$8.7 billion) (2016)
• Net income 4,630.90 crore
(US$690 million) (2016)
• Number of employees 12,900 (2015)
• Parent Suzuki Motor
Corporation
• Website
www.marutisuzuki.com
 Introduction of
company

Maruti Suzuki india limited is a publicly listed automaker in india. It is a

leading four-wheeler automobile manufacturer in south Asia. Suzuki motor
corporation of japan holds a majority stake in the company. It was the first
company in india to mass produce and sell more than a million cars. It is
largely credited for having brought in an automobile revolution in india. On
September 17 , 2007 , Maruti Udyog was renamed to Maruti Suzuki India
limited . The company’s headquarters remain in Gurgaon , near Delhi .

Maruti Suzuki is one of india’s leading automobile manufacturers and the

market leader in the car segment , both in terms of volume of vehicles sold
and revenue earned . Until recently , 18.28% of the company was owned by
the indian government , and 54.2% by Suzuki of japan .

The indian government held an initial public offering of 25% of the company
in June 2003. As of may 10,2007, government of india sold its complete
share to indian financial institution. With this , government of india has no
longer stake in Maruti Udyog

Maruti udyog Limited (MUL) was established in February 1981, though the
actual production commenced in 1983. Through 2004, Maruti has produced
over 5 million vehicles. Marutis are sold in india and various several other
countries, depending upon export orders.
The company actually exports more than 30,000 cars and has an
extremely large domestic market in india selling over 500,000 cars
annually . Maruti 800 , till 2004 , was the india’s largest selling
compact car ever since it was launched in 1983 . More than a
million units of this car have been sold worldwide so far .
Currently , Maruti Alto tops the sales charts
Due to the large number of Maruti 800s sold in the Indian
market , the term “Maruti” is commonly used to refer to this
compact car model . Till recently the term “Maruti” , in popular
Indian culture , was associated to the Maruti 800 model
Maruti Suzuki india limited , a subsidiary of Suzuki Motor
Corporation of Japan has been the leader of the Indian car market
for over two decades.
Its manufacturing facilities are located at two facilities , Gurgaon
and Manesar south of new Delhi . Maruti’s Gurgaon facility has an
installed capacity of 350,000 units per annum . The Manesar
facilities , launched in February 2007 comprise a vehicle assembly
plant with a capacity of 100,000 units per year and a diesel engine
plant with an annual capacity of 100,000 engines and
transmissions
During 2007-08, Maruti Suzuki sold 764,842 cars , of which 53,024
were exported . In all , over six million Maruti cars are on Indian
roads since the first car was rolled out on December 14 ,
1983.Maruti Suzuki offers 10 models , ranging from the people’s
car , Maruti 800 , for less then Rs 200,000 ex-showroom to the
premium Sedan SX 4 and luxury SUV , Grand Vitara.
Maruti Alto 800 Maruti Grand Vitara
Manesar and Gurgaon facilities have a combined capacity to produce over
700,000 units annually . More than half the cars sold in india are Maruti
cars . The company is subsidiary of Suzuki motors corporation, japan , which
owns 54.2 percent of Maruti . The rest is owned by the public and financial
institution . It is listed on the Bombay stock exchange and national stock
exchange in India .

Suzuki motor corporation , the parent company , is a global leader in mini

compact cars for three decades . Suzuki’s technical superiority lies in its
ability to pack power and performance into a compact , lightweight engine
that is clean and fuel efficient.

Maruti is clearly an “employee of choice” for automotive engineers and

young managers from across the country . Nearly 75,000 people are
employed directly by maruti and its partners.

The company vouches for customers satisfaction fir its sincere efforts it has
been rated by customers first in customer satisfaction among all car makers
in india for seven years in a row in annual survey by J D Power Asia Pacific.

Maruti Suzuki was born as a government company with Suzuki as a major

partner , to make a people’s car for middle class India. Over the years , the
product range has widened , ownership has changed hands and the
customer has evolved . What remains unchanged then and now is Maruti’s
mission to motorized india
Research
Research
Methodolo
Methodolo
gy
gy
 Research
methodolo
gy

Research methodology is a careful investigation for inquiring

in a systematic method and finding solution of a problem . It

comprises the defining and redefining of problem formulating

hypothesis , collection and evaluating data , making detection

and reaching conclusion . This research consists of following

element

•OBJECTIVE OF STUDY

•SOURCE OF DATA

•RESEARCH DESIGN

•SAMPLING DESIGN
 OBJECTIVE
S OF THE
STUDY
• To narrate the profile of the company

i. Overview of maruti and Suzuki

ii. Building understanding of the car market in
india and various segments
iii. Understanding the basics in the automobile
industry
iv. Ensuring personal effectiveness

• To identify customer success factors

• To create a customer based culture

• To modernization of the indian automobile

industry
 Scope
of
study
The scope of the study is to get the first hand knowledge about
the buying behavior of consumers towards cars in automobile
sector. The scope is restricted to study the factors affecting the
preference of consumers. This is done to avoid perceptual bias
and for providing objectivity to the study.

Regarding their purchasing pattern it has mainly observed that

customer , consumption and purchasing pattern during the
research. The various factors that can affect the purchasing
decisions like quality of the product , brand image in the market
and regulatory in the supply etc. has analyzed . This will give
opportunity to researcher to get brief idea of the supply and the
limitation in the research and they can try to cope up with them .
The organization can utilize information to formulate their market
strategy according to consumer’s expectation.
 Research design
The study was conducted as an exploratory sampling
survey method to collect primary and secondary data

Sampling design

A sample size is a representative part of the population . In

sampling technique , information is collected only from a
representative part of the universe and the conclusions are
drawn on that basis for the entire universe . A random
sampling is a sample selected from a population in such a
way that every member of the population has an equal
chance of being selected and the selection of an individual
does not influence the selection of any other . The
selection is purely depends on chance . So while
conducting the survey , 30 respondents were selected as
random
 • Source
s 0f
data
Primary source of
data
Primary data are those collected by the investigator
himself for the first time and thus they are original in
character , they are collected for a particular purpose .
A well structured questionnaire was personally
administrated to the selected sample to collect the
primary data

Secondary source
of data
Secondary data are those , which have already been
collected by some other persons for their purpose and
published . Secondary data are usually in the shape of
finished products . External data was generated from
 • Sample size
Sample size denotes the number of elements
selected for the study . For the present study , 30
respondents were selected at random . All the 30
respondents were the customers of one or another
automobile company.

Testing of hypothesis
The test of hypothesis begins with an assumptions
about the population from which the sample is
drawn . According to Prof.Morris Ham bury , “A
hypothesis is simply a quantitative statement about
a population “. Hypothesis testing deals with a
procedure , which accepts or rejects the hypothesis.

Hypothesis are of two types

1. Null hypothesis
2. Alternate hypothesis
Null hypothesis
The null hypothesis is a very useful tool in testing
the significance of differences . It states that there is
no real difference in the sample value and
population value in the particular value under
consideration . This means that the observed
differences is due to the random fluctuations.
 Alternate hypothesis
As against the null hypothesis the alternative hypothesis
specify those values that the researchers believe to hold
true , and he hopes that the sample data lead to
acceptance of this hypothesis are true .
TYPES OF ERRORS
When a statistical hypothesis is tested there are four
responsibilities:
1. The hypothesis is true but the test rejects (type 1 error)
2. The hypothesis is false but the test accepts it (type 11
error)
LEVEL OF SIGNIFICANCE
Confidence with which the null hypothesis is accepted or
rejected depends on what is called significant level. The
probability, with which we may reject a null hypothesis
when it is true , is called the level of significance .
Therefore the level of significance is the risk , statistician
running in his decision . The level of significance is
denoted by ‘a’ . It is better to keep level of significance at
a low percentage. It means that we should not reject a
true hypothesis.
Acceptance region
This represents the region with which the calculated value
of the statistics must lie to accept the null hypothesis . If
calculated values lies in this region then the null
hypothesis will be rejected.
 Limitation of
study
 
• The study suffered from time constraints as it is completed
within the short period of one month. 
• Sample size is small.
• Area of the study limited.
• Lack of response.
• The data collected and all the ground work that was felt
necessary had to be done by author itself. Thus huge work
force was another constraint in the study.
• There was dearth of free time in hands of the employees.
As such carrying survey and getting the questionnaire filled
correctly on time was challenging.
• Lack of professional approach since researcher is a student
• I will have to rely upon the information get from secondary
sources and given by respondents, which may not be fully
true.
 Findings
&
suggestions
 FINDIN
GS
 

•The prospective segment is from the business and self employed class.
•The company should concentrate on the age group 26-34.
•Maruti should continue to maintain the standard of the service.
•It is observed that, 42% of the respondent are of opinion that vehicles
are as per expectation, and 20% are saying its below expectation.
•Company should improve its post sales service.
•The customer highest priority is for the mileage.
•Maruti Suzuki needs to improve its awareness about Add-on-Services
like any time Maruti, MEW etc.
•Customer are highly satisfied with the service which help in customer
retention.
•It is observed that, 46% of the customers are of opinion that Maruti
should improve in quality, and 16% of the opinion that Maruti should
improve in price.
•Customers are highly satisfied which help in customer retention.
•Company has created goodwill among the customers which will help
them to recommend car to friends and relatives.
•Maruti Suzuki needs to educate the customers about the benefits of M-
Finance. They can motivate the cash customers to offer M-Finance.
•It is observed that, 86% of the customers are ready to prefer M-
Insurance, 14% are not ready to prefer M-Insurance.
 Suggestions
• After conducting the survey and knowing the market, I realized that: 
• The company should keep in mind the need of young generation. 
• Company should improve the promotion strategy of product.
• Company should improve the promotion strategy of Add-on services.
• It will be beneficial for the company to make the warehouse near to the
showroom and there should be roof facility, adequate security facility in
the warehouse. 
• The Company should know its customers satisfaction level throughout
doing periodic surveys. Periodic surveys can treat customer satisfaction
directly. 
• Company should improve/upgrades its employee‘s product knowledge ,
market situation, and its competitor‘s knowledge by giving proper training
to employee.
• Company should upgrade or innovate its new product.
• The Company should not only concentrate on the customer satisfaction
but also the company led to monitor their competitor‘s performance in
their areas of operations.
• The Company should make changes according to the other competitors &
according to the customer‘s expectations.
 Conclusions
It has been observed that most customers are satisfied with pre sales
services similarly most of these customers are dissatisfied with the post
sales service which is the matter of concern for the company. Maruti Suzuki
needs to improve some parts of products specifically the interiors. High
customer satisfaction level helps the company to retain its existing customer
as well as generate new customer through word to mouth publicity .

Customer satisfaction index is a good tool to make improvements in

the products and services of the company. And therefore should utilize caref
ully &kept as confidential as possible .

Customer satisfaction provides a leading indicator of consumer purchase

intentions and loyalty." "Customer satisfaction data are among the
most frequently collected indicators of market perceptions. Their principal
use is two fold:“

“ Within organizations, the collection, analysis and dissemination of these

data send a message about the importance of tending to customers and
ensuring that they have a positive experience with the company‘s goods and
services."
Data analysis

&

interpretation
 1. Table showing
customers opinion about
the Maruti’s vehicles for
the value for money
Respondents remark No of respondents

Above expectation 9

As per expectation 16

Below expectation 5
 Value for money

17%
30%

53%

above expectation as per expectation below expectation

Interpretation-
53%of respondents are of opinion that
vehicles are as per expectation & 17%
are of opinion that the vehicle are below
expectation
 2. Table showing post
sale experience after
purchasing the car

Customer remarks No. of respondents

Excellent 15

Good 9

Average 4

Below average 2
 Post purchase
satisfaction of
customers
below average
average 5%
15%
excellent
50%
good
30%

excellent good average below average

Interpretation:
It is observed that 50% of customers are
highly satisfied with the post sale services
And 5% are dissatisfied with the post sale
purchase
3.Table showing consumers
priority with respect to
characteristics

Aspects No. of respondents

comfort 3

mileage 10

features 3

looks 5

price 8

safety 1
 Customers priority
with respects to
characteristics
Sales

comfort
6% 12%
mileage
features
24%
looks
26% price
safety

20% 12%

Interpretation:
It is observed that 26% of the customers
preferred mileage as first preference and 6%
preferred safety
 4. Table showing
customer remark about
services

Customers No. of
remark respondents
Excellent 9

Good 15

Average 4

Below average 2
 Customer
remark about
services

below average
average 1%
15%

excellent
51%

good
33%

Interpretation :
It is observed that 50% of the
customers are satisfied with the
services and 3% are not satisfied
 5.Table showing
customers repurchase
intention

Customers remark No. of

respondents

yes 22

no 8
 No. of respondents
80

70

60

50

40
74

30

20

26
10

0
yes no

Interpretation:
It is observed that 74% of the customers
are ready to repurchase the Maruti’s car
while 26% are not ready to repurchase
the car
 6. Table showing customer’s
recommendation intention
CUSTOMER REMARK NO. OF RESPONDENTS

YES 22

NO 8

yes no

no
28%

yes
72%

Interpretation:
It is observed that , 72% of the customers are ready to
recommend the car to friends and relatives , 28% are not
ready to recommend the car to the friends and the relatives .
7. Table showing customer
expectation for
improvement in Maruti
Suzuki
Customers No. of
remark respondents

price 5

quality 14

service 7

other 4
 Customer
expectation from
Maruti Suzuki
other
13% price
17%

service
23%

quality
47%

Interpretation:
46% of customers are in opinion that
Maruti should improve in quality.
Annexure
Annexure
 Questionnaire
Name :- Sex:-

Address :- Occupation:-

Contact no.:-

Age of respondent:-
a. <25 b. 25-34
c. 35-44 d. 45 &
above

Annual income
d. 3-5 lack b. 5-8
lack
c. 8-12 lack d. 12 &
above
1. Which model of Maruti are you using?

Car:-……………………………….

2. From how many years are you using this model?

a. 0-2yrs b.2-4yrs

c. 4-6yrs d.6-8yrs

3. Preference for choosing particular car?

a. Comfort b . mileage

c . Feature d . performance

e . Looks f . Price

g . Others please specify:-………….

4. Are you satisfied with your car?

d. Yes

e. no
5. What is your post-sales experience after
purchasing the car?

a. Excellent b. good

c. Average d. below average

6. How will you rate maruti on the basis of value for

money?

d. Above expectation

e. Below expectation

f. As per expectation

7. Do you find easy availability of spare parts?

g. Yes

h. No

8. Would you like to re-purchase the Maruti’s car?

i. Yes

j. no
9. In which sector do you think Maruti should
improve?

a. Price

b. Quality

c. Service

d. Others

10. Would you like to recommend the Maruti

car to your friends/relatives?

e. Yes

f. No
Bibliography
 Bibliography
Books
•Name of the book ; Marketing Research
Author ; Mr. Kothari
•Name of the book; Market Research
Author ; Dr. CB Memorial
•Name of the book; Research Methodology
Author ; Dr. Rahall Vijay
Mohair
Dr. Rajesh Tisane
prof. Anup Kirti Kumar
Suchak
Websites
www.marutisuzuki.com
www.automobileindustry.com
www.marutiudyog.com
www.indianautomobilemarket.com