Maruti - Study of Marketing Strategies - MBA Project Report
Maruti - Study of Marketing Strategies - MBA Project Report
Maruti - Study of Marketing Strategies - MBA Project Report
ON
ACKNOWLEDGEMENTS
Student Name
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INDEX
RESEARCH METHODOLOGY
LIMITATIONS
CONCLUSION
BIBILIOGRAPHY
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Maruti is India's largest automobile company. The company, a joint venture with
Suzuki of Japan, has been a success story like no other in the annals of the Indian
automobile industry.
Today, Maruti is India's largest automobile company. This feat was achieved by the
missionary zeal of our employees across the line and the far-sighted vision of our
management.
To provide a wide range of modern, high quality fuel efficient vehicles in order to
meet the need of different customers, both in domestic and export markets.
Aligning and fully involving all our employees, suppliers and dealers to face
competition
underlies the Maruti culture is that all employees of the company should be moulded
into a team which then strives as one, to achieve commonly shared company goals
and objectives. To make this philosophy tenable, the Company takes several
initiatives. Inputs are sought from employees at all levels. They believe that
everyone should contribute to the formulation of company policies, goals and
objectives. Secondly, at Maruti, they encourage leadership in the best sense of the
word. According to us, a leader is one who must be impartial, must have the ability
to rise above his own subjectivity, and, most importantly, must practice what he
preaches.
They understand that the process of creating a sense of belonging that all employees
can identify with is a lengthy one. To ensure that this translates into concrete reality,
they have taken several simple but specific and well thought out measures. The first
step in this direction has been the introduction of a common uniform for all
employees. Another measure is the creation of a common canteen where all
employees have lunch, stand in common queues, and sit on the same table. Common
toilets, common transport and similar facilities for all levels of employees are other
measures that reinforce their emphasis on genuine equality in the workplace.
Several measures of performance have made amply clear that Maruti has established
a truly healthy work culture. They have met all project and performance targets since
inception. Their productivity levels are constantly improving. The Company has had
good labour relations with employees from the very beginning, and they have been
successful in the export market. Yet, the Maruti culture is one that does not believe
in resting on its laurels. They adhere to the spirit of Kaizen, which states that
constant improvement is always possible. The most basic tenet of productivity that
they hold dear is that " Today should be better than Yesterday and Tomorrow should
be better than Today".
Maruti Udyog Limited (MUL) was established in Feb 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.
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).
A licence and a Joint Venture agreement was signed between Government of India
and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.
Core Value
Customer Obsession
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Vision
The leader in the India Automobile Industry, Creating Customer Delight and
Shareholder’s Wealth; A pride of India”
Technological Advantage
We have introduced the superior 16 * 4 Hypertech engines across the entire Maruti
Suzuki range. This new technology harnesses the power of a brainy 16-bit computer
to a fuel-efficient 4-valve engine to create optimum engine delivery. This means
every Maruti Suzuki owner gets the ideal combination of power and performance
from his car.
Our other innovation has been the introduction of Electronic Power Steering (EPS)
in select models. This results in better and greater maneuverability. In other words,
our cars have become even more pleasurable to drive.
Production/R&D
Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the
Maruti Udyog Plant has already rolled out over 4.3 million vehicles. In fact, on an
average, two vehicles roll out of the factory every minute. And it takes on an
average, just 14 hours to make a car. More importantly, with an incredible range of
11 models available in 50 variants, there's a Maruti Suzuki made here to fit every
car-buyer's budget. And dream.
Production Milestones
AWARDS
2005
Number one in JD Power SSI for the second consecutive year
Number one in JD Power CSI for the sixth time in a row - the only
car to win
it so many times
M800, WagonR and Swift topped their segments in the TNS Total
Customer Satisfaction Study
Leadership in the JD Power Initial Quality Study - Alto number one
in its
segment for the 2nd time in a row, Esteem number one in its
segment for
the 3rd year in a row, Swift number one in the premium compact
segment
WagonR and Esteem top their segments in the JD Power APEAL
study
TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR)
study
(#1 in Auto sector)-Feb 05
Maruti bagged the "Manufacturer of the year" award from Autocar-
CNBC
( 2nd time in a row)-Feb 05
First Indian car manufacturer to reach 5 million vehicles sales
Business World ranks Maruti among top five most respected
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companies in
India-Oct 04
Maruti ranked among top ten (Rank7) greenest companies in India
by
Business Today - Sep '04
2004
Maruti Suzuki was No. 1 in Customer atisfaction, No. 1 in Sales
Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1
in Product Appeal (Esteem and Wagon R)
No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)
Business World ranked us among the country's five most respected
companies
Business World ranked us the country's most respected automobile
company
Voted Manufacturer of the year by CNBC
Voted one of India's Greenest Companies by Business Today-AC
Nielson ORG-MARG
2003
Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10
automotive brands in "Most Trusted Brand survey 2003"
J D Power ranked 3 models of Maruti on top: Wagonr, Zen and
Esteem
Maruti 800 and Wagonr top in NFO Total Customer Satisfaction
Study 2003.
MUL tops in J D Power CSI (2001) for 4th time in a row
2001
MUL tops in J D Power CSI (2001) for 2nd time in a row: another
international first
2000
Maruti bags JD Power CSI - 1st rank; unique achievement by
market leader anywhere in the world
1999
MSM launched as model workshop in India; achieves highest CSI
rating.
Central Board of Excise & Customs awards Maruti with "Samman
Patra", for contribution to exchequer and being an ideal tax
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assessee
1998
CII's Business Excellence Award
1996
Maruti wins INSSAN award for "Excellence in Suggestion
Scheme"
Awarded the Star Trading House status by Ministry of Commerce
1994-95
Engineering Exports Promotion Council's award for export
performance
1994
Best Canteen award among Haryana Industries as part of employee
welfare
1992-93
Engineering Exports Promotion Council's award for export
performance
1991-92
Engineering Exports Promotion Council's award for export
performance
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Maruti Suzuki owners experience fewer problems with their vehicles than any other
can manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1
in the premium compact car segment and the Esteem in the entry level mid-size car
segment across 9 parameters.
The J.D. Power APEAL Study 2004 proclaimed the Wagon R. No. 1 in the
premium compact car segment and the Esteem No.1 in the entry level mid-
size car segment. This study measures owner delight in terms of design,
content, layout and performance of vehicles across 8 parameters.
To be really happy with the car you own, it should have a reliable service
network at hand and within easy reach. Their 1036 city strong service
network is equipped to service 20,000 vehicles a day. No wonder Maruti
Suzuki has been awarded the No.1 nameplate in customer satisfaction in India
for the fifth year in a row, a feat unprecedented for any automobile market
leader in the world.
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In the J.D. Power CSI study 2004, Maruti Suzuki scored the highest across all
7 parameters: least problems experienced with vehicle serviced, highest
service quality, best in-service experience, best service delivery, best in-
service experience, most user-friendly service and best service initiation
experience.
In fact, 92% of Maruti Suzuki owners feel that work gets done right the first time
during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti
Suzuki owners would probable recommend the same make of vehicle, while 90%
owners would probable repurchase the same make of vehicle.
Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189
cities, with a workforce of over 6000 trained sales personnel to guide our customers
in finding the right car. Our high sales and customer care standards led us to achieve
the No.1 nameplate in the J.D. Power SSI Study 2004.
In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7
parameters: least problems experienced with vehicle serviced, highest service
quality, best in-service experience, best service delivery, best service advisor
experience, most user-friendly service and best service initiation experience.
92% of Maruti Suzuki owners feel that work gets done right the first time during
service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki
owners would probably recommend the same make of vehicle, while 90% owners
would probably repurchase the same make of vehicle.
At Maruti Suzuki, you will find all your car related needs met under one roof.
Whether it is easy finance, insurance, fleet management services, exchange- Maruti
Suzuki is set to provide a single-window solution for all your car related needs.
The acquisition cost is unfortunately not the only cost you face when buying a
car. Although a car may be affordable to buy, it may not necessarily be
affordable to maintain, as some of its regularly used spare parts may be priced
quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy
segment that the affordability of spares is most competitive, and it is here
where Maruti Suzuki shines. The recent Auto car Survey conducted in August
2004 bears testimony to this fact. In the Maruti Suzuki stable, the Omni has
the lowest aggregate cost of spares followed by the Maruti-800. The Maruti-
800 has the cheapest spares of any Indian car with a basket of just Rs. 23,422.
In the Lower Mid-size segment as well, price-consciousness is very high,
where the cars have to be not only affordable on purchase price but also need
to combine quality, drivability and have comfortable interiors. In this
segment, the Maruti Suzuki Versa has scored particularly well with the lowest
cost of spares in the segment. In the Upper Mid-size segment, the Maruti
Suzuki Baleno has the segment's lowest prices on a majority of the spares.
To be really happy with the car one owns, it should be easy on the pocket to
buy and to run-which is why the cost of ownership is so important. And here
again, a Maruti Suzuki is a clear winner, as shown by the recent J.D.Power
CSI study 2004. It is clear that a Maruti Suzuki delights you even when you
run it for years. The 6 highest satisfaction ratings with regard to cost of
ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R,
Esteem, Maruti 800, Alto and Omni. They are proud to have the lowest cost of
operation / km (among petrol vehicles) - the top 5 models are all Maruti
Suzuki models: Maruti 800, Alto, Zen, Omni and Wagon R.
The Suggestion Scheme is based on the same principle. Under this scheme,
employees are encouraged to make suggestions for improvement in any area of our
operation. Over 50,000 suggestions are received from employees every year.
Maruti has won the First place in "Excellence in Suggestion Scheme Contest
2003", which is the 6th consecutive award won in as many years. This contest is
organized by Indian National Suggestion Schemes Association (INSSAN). Since
1998 Maruti has won this award 10 times.
"Quality Circles" are groups of five to eight members from a particular work area
who work as a team to identify priorities and solve work related problems in the
area.
We believe that it is this unwavering commitment to quality that will lead to the
further growth of the organization as competition increases.
ISO 9001:2000
In 2001, Maruti Udyog Ltd became one of the first automobile companies
anywhere in the world to get an ISO 9000:2000 certification. AV Belgium, global
auditors for International Organization for Standardisation(ISO), certified Maruti
after a four day long audit, covering varied parameters like Customer Focussed
organisation, Leadership, Involvement of people, Process approach, System
approach to Management, Continual improvement, etc.
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In May 1995, Maruti got ISO 9002 certification. The audit for this covered quality
assurance in production, installation, marketing and sales as well as after sales
services. We were also one of the first companies in the world to pioneer ISO 9000
certification for our dealers.
Their emphasis on total quality has meant that today they are in a position to guide
vendors and dealers in establishing and consolidating their individual quality
systems. This commitment to quality has ensured a consistently satisfying product
and world-class sales and after-sales services.
The need for TS certification of Press Function had its genesis in the prestigious
project that Maruti earned for the supply of stamped panels to General Motors India
for one of its forthcoming models.
The TS 16949 standard, brought out by ISO in the year 1999, is an extension of the
ISO 9001:2000 standard that prescribes Quality management system requirements
that are specifically applicable to the automotive industry.
TS 16949 has gained high popularity and almost all major automobile players across
the globe including GM, Ford, Daimler Chrysler, Nissan, Honda are embracing &
promoting it.
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ISO 9001:2000
THEORITICAL PERSPECTIVE
This model implies that consumers pass through all five stages in buying a
product. But this is not the case, especially in low-involvement purchase.
Consumers may skip or rreverse some stages. Thus a woman buying her
regular brand of toothpaste goes directly from the need for toothpaste to the
purchase decision, skipping information search and evaluation. However, we
have already used the model in above, because it captures the full range of
consideration that arise when a consumer facer a highly involving new
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purchase. We will allude again to Linda Brown and try to understand how she
became interested in buying a laptop computer and the try to understand how
she became interested in buying a laptop computer and stages she went
through to make her final choice.
Cultural
Social
The innovation adoption curve of Rogers is a model that classifies adopters of innovations into
various categories, based on the idea that certain individuals are inevitably more open to adaptation than
others. Is is also referred to as Multi-Step Flow Theory or Diffusion of Innovations Theory.
Innovators
Brave people, puling the change. Innovators are very important communication.
Early Adopters
Respectable people, opinion leaders, try out new ideas, but in a careful way.
Early Majority
Thoughtful people, careful but accepting change more quickly than the average.
Late Majority
Skeptic people, will use new ideas or products only when the majority is using it.
Laggards
Traditional people, caring for the "old ways", are critical towards new ideas and will only accept it if the
new idea has become mainstream or even tradition.
The diffusion of innovations curve (innovation adoption curve) of Rogers is useful to remember that
trying to quickly and massively convince the mass of a new controversial idea is useless. It makes more
sense in these circumstances to start with convincing innovators and early adopters first. Also the
categories and percentages can be used as a first draft to estimate target groups for communication
purposes.
TARGET MARKETING
Target Marketing involves breaking a market into segments and then concentrating
your marketing efforts on one or a few key segments.
The beauty of target marketing is that it makes the promotion, pricing and
distribution of your products and/or services easier and more cost-effective. Target
marketing is the selection of customers you wish to service. The decisions involved
in it are
Market segmentation
Target choice
Product positioning
One of the first things you need to do is to refine your product or service so that you
are NOT trying to be 'all things to all people’.
Next, you need to understand that people purchase products or services for three
basic reasons:
The next step in creating an effective marketing strategy is to zero in on your target
market.
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1. Geographic: The location, size of the area, density, and climate zone
of your customers.
2. Demographics: The age, gender, income, family composition and size,
occupation, and education of your customers.
3. Psychographics: The general personality, behavior, life-style, rate of
use, repetition of need, benefits sought, and loyalty characteristics of
your customers.
4. Behaviors: The needs they seek to fulfill, the level of knowledge,
information sources, attitude, use or response to a product of your
customers.
One of the best ways to identify your target market is to look at your existing
customer base. Who are your ideal clients? What do they have in common? If you
do not have an existing customer base, or if you are targeting a completely new
audience, speculate on who they might be, based on their needs and the benefits they
will receive. Investigate competitors or similar businesses in other markets to gain
insight.
TARGET MARKETING
Who are your best customers? Where should you direct your marketing
activities?
Where and how should you allocate your advertising and promotional
efforts?
Customer Attitudes
For a long time, people have believed that advertising can be used to change
people's minds about what they want. This is an incredibly difficult process
at best, and an extremely expensive one. Because of these two factors, it is a
process that smaller firms simply cannot afford to pursue. Instead, it is much
more productive for any size firm to tune in to target customer attitudes as
they currently exist. Once they have identified the actual prevailing attitudes,
they can begin to organize company resources needed to constructively
address and satisfy these attitudes the key question is,
Target Marketing
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Co->Distributor-
5 Supply-Chain Co->Dealer->Customer >Dealer >Customer
Customer have to go
Customer get 3free at manufactured
8 ASS service level
Customer can
Brand Customer first choice is change his or her
9 Association more pertinent choice
More focus on
Finance &
10 Payment Instantaneous Payment Installment
Post-Sales
11 Follow UP More Very Less
Brand
14 Transition Single-Tier Multi-Tier
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Loyality
16 Programs Yes No
Customer
Satisfaction Well- Defined &
17 Index Organized None
Customer
19 Retention More Very Less
MARUTI CULTURE
Their employees are their greatest strength and asset. It is this underlying philosophy
that has moulded their workforce into a team with common goals and objectives.
Their Employee-Management relationship is therefore characterized by:
Participative Management.
To implement this philosophy, they have taken several measures like a flat
organizational structure. There are only three levels of responsibilities ranging from
the Board Of Directors, Division Heads to Department Heads. Other visible features
of this philosophy are an open office, common uniforms (at all levels), and a
common canteen for all.
This structure ensures better communication and speedy decision making processes.
It also creates an environment that builds trust, transparency and a sense of
belonging amongst employees.
For Investors:
Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been
the leader of the Indian car market for about two decades. Its manufacturing plant,
located some 25 km south of New Delhi in Gurgaon, has an installed capacity of
3,50,000 units per annum, with a capability to produce about half a million vehicles.
The company has a portfolio of 11 brands, including Maruti 800, Omni, premium
small car Zen, international brands Alto and WagonR, off-roader Gypsy, mid size
Esteem, luxury car Baleno, the MPV, Versa, Swift and Luxury SUV Grand Vitara
XL7.
In recent years, Maruti has made major strides towards its goal of becoming Suzuki
Motor Corporation's R and D hub for Asia. It has introduced upgraded versions of
WagonR Zen and Esteem, completely designed and styled in-house.
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Maruti's contribution as the engine of growth of the Indian auto industry, indeed its
impact on the lifestyle and psyche of an entire generation of Indian middle class, is
widely acknowledged. Its emotional connect with the customer continues.
Maruti tops customer satisfaction again for sixth year in a row according to the J.D.
Power Asia Pacific 2005 India Customer Satisfaction Index (CSI) Study.
The company has also ranked highest in India Sales Satisfaction Study.
The company's quality systems and practices have been rated as a "benchmark for
the automotive industry world-wide" by A V Belgium, global auditors for
International Organisation for Standardisation.
In keeping with its leadership position, Maruti supports safe driving and traffic
management through mass media messages and a state-of-the art driving training
and research institute that it manages for the Delhi Government.
The company's service businesses including sale and purchase of pre owned cars
(TrueValue), lease and fleet management service for corporates (N2N), Maruti
Insurance and Maruti Finance are now fully operational.. These initiatives, besides
providing total mobility solutions to customers in a convenient and transparent
manner, have helped improve economic viability of The company's dealerships.
The company is listed on Bombay Stock Exchange and National Stock Exchange.
Mr R C Bhargava, Director
Mr S V Bhave, Director
They sell ten models with more than 50 variants in segments A, B, C, and
utility vehicle segment of the Indian passenger car market. Of these, they
manufacture nine models and import the Grand Vitara as a completely built
unit from Suzuki in Japan. Their models and variants are designed to address
the changing demands of the market and are periodically upgraded in
technology, styling and features. To take advantage of the brand recognition
associated with their products, they retain the brand name of the product
through various stages of product upgrades over time. For example, the
version of the Maruti 800 brand currently sold in the market is a significantly
upgraded version, in terms of technology, design and styling, of the Maruti
800 launched in 1983.
A Maruti 800
A OMNI
B Zen
B Wagon R
B Alto
C Esteem
C Baleno
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C Versa
C SWIFT
BALENO
WAGON R
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ESTEEM
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MARUTI 800
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NEW ALTO
OMNI
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SWIFT
VERSA
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ZEN
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RESEARCH METHODOLOGY
Primary sources
Secondary sources
Information was collected from secondary sources such as public libraries,
newspapers, business magazines.
Beside these the use of Internet was also made in collecting relevant
information. The data collected from the above mentioned sources has been
adequately structured and used at appropriate places in the report. This
particular way of data collection was used because of its low cost (except
data collected through surfing the internet) and less time consumption.
The information gathered included:
Their annual reports (Procter & Gamble and Johnson and Johnson).
Pamphlets.
Posters.
Press clippings.
News releases.
Newsletters.
Pictures.
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Car market leader Maruti Udyog Limited has announced a marginal increase in price
of certain models. The increase, which comes into effect from today, varies from
0.17 percent to 1.47 percent.
The price increase is due to rise in input costs and freight costs, which increased
following the rise in oil prices. In this phase, the company has decided to pass
on only a part of the increase in costs to the customers. There is no change in
the prices of Swift, Zen, Baleno (Vxi) and WagonR (Petrol).
Change
Model New Old Increase %
Maruti Udyog ltd. Has a flat organisation structure with a maximum of three levels.
Head office
MD
J.E. (TRAINEES)
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STEEL COILS
BLANKING
PRESSING
WELDING
PAINTING
FROM FROM
ASSEMBLY VENDOR
VENDOR
S S
VEHICLE FROM
INSPECTION VENDOR
S
TEST RUN
SUPPLY &
DISPATCH
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INTERNATIONAL BUSINESS
In August, 2003 Maruti crossed a milestone of exporting 300,000 vehicles since its
first export in 1986. Europe is the largest destination of Maruti’s exports and
coincidentally after the first commercial shipment of 480 units to Hungary in 1987,
the 300,00 mark was crossed by the shipment of 571 units to the same country. The
top ten destinations of the cumulative exports have been Netherlands, Italy,
Germany, Chile, U.K., Hungary, Nepal, Greece, France and Poland in that order.
The Alto, which meets the Euro-3 norms, has been very popular in Europe where a
landmark 200,000 vehicle were exported till March 2003. Even in the highly
developed and competitive markets of Netherlands, UK, Germany, France and Italy
Maruti vehicles have made a mark. Though the main market for the Maruti vehicles
is Europe, where it is selling over 70% of its exported quantity, it is exporting in
over 70 countries.
Maruti has entered some unconventional markets like Angola, Benin, Djibouti,
Ethiopia, Morocco, Uganda, Chile, Costa Rica and El Salvador. The Middle-East
region has also opened up and is showing good potential for growth. Some markets
in this region where Maruti is, are Saudi Arabia, Kuwait, Bahrain, Qatar and UAE.
The markets outside of Europe that have large quantities, in the current year, are
Algeria, Saudi Arabia, Srilanka and Bangladesh. Maruti exported more than 51,000
vehicles in 2003-04 which was 59% higher than last year. In the financial year 2003-
04 Maruti exports contributed to more than 10% of total Maruti sales.
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MARKET SHARE
MARUTI HYUNDAI
59% 21%
TOYOTA
1%
OTHERS
MARUTI 3%
55%
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COMPETITION MODELS
Maruti Competition
SEGMENT
A1 (Mini - Hatchback) M800
A2 (Compact - Zen, WagonR, Hyundai - Santro & Getz; Tata -
Hatchback) Alto, Swift Indica & Palio; GM - Corsa Sail
A3 (Mid Size) Esteem, Hyundai - Accent; Tata - Indigo &
Baleno Petra; Honda - City; GM - Corsa,
Optra, & Aveo; Ford - Ikon,
Fusion, & Fiesta
A4/A5/A6 Hyundai - Elantra & Sonata;
(Exec./Prem./Luxury) Honda - Accord; GM - Vectra; Ford
- Mondeo; Skoda - Octavia &
Superb; Toyota - Corolla & Camry;
Daimler Chrysler - C,E, & S Class;
C (Van Type) Omni, Versa
MUV (Utility Gypsy, Grand Mitsubishi - Pajero; Hyundai -
Vehicles) Vitara Terracan & Tucson; Ford -
Endeavor; Toyota - Prado &
Innova; Nissan - X Trail; Honda -
CRV; GM - Forrester & Tavera;
Tata - Sumo & Safari; Mahindra -
Jeeps, Scorpio, & Bolero
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COMPETITIVE STRENGTHS
MUL believes that they are well positioned to maintain and enhance their leadership
position in the small car segment in India, while continuing to offer products in most
segments of the Indian market, on account of their competitive strengths, which
include the following:
Quality products: In November 2001, they were one of the first automobile
manufacturers in the world to receive the ISO 9001:2000 certification. They
began to export products in 1988, primarily in order to benchmark our
products against international quality standards. They have exported products
to approximately 70 countries, including countries in Western Europe. Their
products for export are manufactured using the same assembly line as our
products for the domestic market.
Extensive sales and service network: They believe that they have the largest
network of dealers and service centers amongst car manufacturers in India. As
of March 31, 2003, we had 178 authorized dealers with 243 sales outlets in
161 cities. They estimate their car parc to be in excess of 3.5 million vehicles.
To service this car parc, at March 31, 2003, they had 342 dealer workshops
and 1,545 Maruti Authorized Service Stations, or MASSs, which covered 898
cities in India backed by Express Service Centers on 30 highways across the
country. In addition to the distribution of their cars, their dealership network
is a critical resource in our efforts to provide customers with a “one-stop
shop” for automobiles and automobile related products and services such as
automobile finance, automobile insurance, Maruti-certified pre-owned cars
available for purchase, and leasing and fleet management, in order to promote
customer loyalty.
Brand strength: They have been present in the Indian market for almost
twenty years and have built their brand on the basis of the values of trust and
reliability. Most of their principal competitors have been present in the Indian
passenger car market for a significantly shorter period. Certain manufacturers
have ceased to manufacture certain products shortly after introducing them, or
have left the market altogether. In contrast, they continue to support the
maintenance of their products. This has contributed to the strength of their
brand. In 2000, 2001 and 2002, J. D. Power Asia Pacific, Inc. ranked us No. 1
in the India Customer Satisfaction Index, which assesses customer satisfaction
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with product quality and dealer service. They believe that this was the first
time that a volume leader in the automobile industry anywhere in the world
was ranked first on the JD Power Customer Satisfaction Index. NFO
Automotives 2002 Total Customer Satisfaction Survey ranked Maruti products
as No. 1 in the “Economy”, “Premium Compact” and “Entry Midsize”
segments respectively, for 2002.
They believe that they would be able to expand their production to 500,000
cars per year with minimal additional capital expenditure. This would enable
them to benefit from significant economies of scale.
Strong vendor base and higher rates of localization : They work closely
with their vendor base for the supply of raw materials, components and spare
parts of their products. In order to improve quality and generate economies of
scale, they have reduced the number of their vendors of components in India
from 370 as of March 31, 2000 to 299 as of March 31, 2003, and intend to
continue to reduce the number of our vendors. 113 of their vendors at March
31, 2003 were in technical collaboration with foreign entities. As of the same
date, we had strategic equity interests through joint venture agreements in 13
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Skilled labour and experienced management: Thei highly skilled labour force
has become increasingly productive in terms of vehicles produced per
employee and receives training on an ongoing basis, including training by
Suzuki. As of March 31, 2003, 1,900 of their employees had been trained at
Suzuki’s facilities in Japan. They have been present in the Indian passenger
car market for a significantly longer period than most of their principal
competitors. As a result, they have been able to build a highly experienced
management team that is familiar with conditions in the Indian passenger car
market. For instance, their managing director has almost ten years of
experience with them, and most of the heads of their divisions have more than
15 years of experience with them.
Capital resources: They have cash and bank balances and current investments
amounting to Rs.9,992 million. As of the same date, they had relatively low
levels of outstanding indebtedness, in the amount of Rs.4,555 million. As a
result, they have relatively low interest expense and flexibility to raise funds,
if necessary, for their working capital and capital expenditure in the future.
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BUSINESS STRATEGY
They intend to continue to focus on the small car segment, while offering
products in most segments of the Indian passenger car market. They aim to
achieve their principal objectives by pursuing the following business
strategies:
Maintain and enhance their product range: They intend to utilize Suzuki’s
expertise in small car technology to produce new variants of their existing
models and to upgrade their products with contemporary technology and
features.
Cost competitiveness has been, and continues to be, central to their strategy as
the leading manufacturer in the small car segment to expand the size of the
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Through their business strategies, they seek to reduce the consumer’s cost of
ownership of their cars, which comprises the cost of purchase, the cost of fuel
and maintenance, including spare parts and repairs, during the life of the
vehicle, insurance, and resale value.
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SALES NETWORK
Dealers: They offer their products to the customer through a network of 178
authorized dealers with 243 sales outlets across 161 cities. They believe that
this is the largest network of dealers amongst car manufacturers in India.
Their dealers employed more than 3,500 sales executives. They are linked to
their sales network through their secure extranet-based information network.
The sales of their spares, accessories and automobile-related services such as
insurance and finance serve as additional sources of revenue for our dealers.
They believe that the availability of these related products and services at
sales outlets also helps to attract customers to the outlets and promotes sales
of their cars.
Their agreements with their dealers usually have terms of five years. These
agreements are generally renewable for successive terms of three years, by
mutual agreement. The agreements typically permit termination by either the
dealer or them with six months’ prior notice.
AFTER-SALES SERVICE
Network
As on date there are 342 Maruti dealer workshops and 1,545 Maruti
Authorised Service Stations, or MASSs, covering 898 cities in India. In
addition, 24-hour mobile service is offered in 38 cities under the brand
“Maruti On-road Service”. They intend to extend this service to an additional
25 cities over the next three years. As a benchmark for dealers with respect to
service quality and infrastructure facilities, they have launched service
stations under the brand “Maruti Service Masters, or MSMs, in three locations
in India. They have service stations on 30 highways in India under the brand
“Express Service Stations”.
To promote sales of their spare parts and the availability of high quality,
reliable spare parts for their products, they sell spares under the brand name
“Maruti Genuine Parts”, or MGP. These are distributed through their dealer
network and through authorised sellers of their spare parts, to whom they refer
as stockists.
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Many of their MASSs are at remote locations where they do not have dealers.
In order to increase the penetration, in terms of sales volumes, of their
products in these remote areas, they are exploring opportunities to integrate
some of the MASSs into the sales process in order to increase sales of their
cars and related products and services such as spares and accessories,
insurance and financing.
Genuine Accessories
They have also entered the business of marketing car accessories under the
brand name “Maruti Genuine Accessories”, or MGA, through their dealership
network. They seek to provide customers with the opportunity to customize
their vehicles with accessories such as music systems, security systems, car-
care products and utility products.
They offer a two-year warranty on all their vehicles at the time of sale. Their
dealers are required to address any claim made by a customer, in accordance
with practices and procedures prescribed by them, under the provisions of the
warranty in force at that time. The dealers subsequently claim the warranty
cost from them. They analyse warranty claims from dealers and either claim
the cost from vendors, in the case of defective components, or bear the cost
ourselves, in the case of manufacturing defects.
As the largest manufacturer and leader in the small car segment, they continually
seek new ways to utilize their vast car parc, range of products and extensive sales
and service network to expand the size of the passenger car market in India. They
have recently launched new initiatives to develop the market for automobile
insurance, automobile finance, leasing and fleet management, and pre-owned cars.
They aim to provide customers with a “one-stop shop” for automobiles and
automobile-related products and services, and build on their wide customer base and
extensive sales and service network to make available to their customers a wide
range of Maruti-branded services at different stages of ownership, which they refer
to as the “360 degree customer experience”.
Inspired by the spirit of India. Atithi Devo Bhava, in Sanskirit, means “a guest is like
God”. It captures the Indian tradition of honouring guests. It's also the inspiration for
the welcome you’ll receive at a Maruti Suzuki dealership, and the caring
relationship they share with those who drive their cars. At Maruti Suzuki, you will
find all your car related needs met under one roof. Whether it is easy finance,
insurance, fleet management. services, exchange Maruti Suzuki is set to provide a
single window solution for all your car related needs.
That's why they have Maruti True Value, the best place to buy and sell reliable
used cars. Maruti Finance an agglomeration of the biggest finance companies
in India brought together by Maruti Suzuki to ensure that the dream car is
within everyone's reach. Similarly, Maruti Insurance brings together some of
the biggest names in the car insurance industry to provide insurance solutions
to every type of car consumer. Then, finally, there is N2N, which offers fleet
related solutions.
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The company recorded combined sales of 252,851 during calendar year 2005 with a
growth of 17.26% over year 2004. HMIL is India's fastest growing car company
having rolled-out over 970,000 cars in just over 80 months since its inception and is
the largest exporter of passenger cars with exports of over Rs. 1,800 crores. HMIL
has recorded a growth of 27.2% in exports over the year 2004.
The year 2005 has been a significant year for Hyundai Motor India. It achieved a
significant milestone by rolling out the fastest “200,000th” export car. HMIL exports
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to around 60 countries globally and recently made a foray into the highly
competitive UK market by exporting its first shipment of 820 cars.
Propelled by the strong performance in year 2005, Hyundai Motor India is on the
threshold of yet another grand milestone of rolling out its ‘One millionth’ car which
is expected soon.
Tata Motors
Tata Motors is one of the largest companies in the Tata Group with a total
income of US$ 2.35 billion. More than 3 million Tata vehicles ply on Indian
roads making Tata a dominant force in the Indian automobile industry.
Tata Motors is India's only fully integrated automobile manufacturer with a
portfolio that covers trucks, buses, utility vehicles and passenger cars. It
would be no exaggeration to say that Tata Motors provides the wheels for
India's growth.
Tata Motors has the unique distinction of giving India its first and only indigenously
built passenger car - The Tata Indica and the premium feature sedan - The Tata
Indigo. The Indica, launched in 1998, reached the 2,50,000 sales mark within 52
months of launch.
Tata Motors owes its leading position in the Indian automobile industry to its strong
focus on indigenisation. This focus has driven the Company to set up world-class
manufacturing units with state-of-the-art technology. Every stage of product
evolution-design, development, manufacturing, assembly and quality control, is
carried out meticulously. Their manufacturing plants are situated at Jamshedpur in
the East, Pune in the West and Lucknow in the North.
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The Ford Motor Company has a rich legacy of translating better motoring ideas to
the roads. It has manufactured notable brands such as the Ford, Lincoln, Mercury
and the Jaguar. It is among the top five industrial corporations in the world and is
available in more than 200 countries around the world.
Ford has entered the Indian market through a tie - up with Mahindra Motors to
manufacture the Ford Escort. A project that has been set up with a investment of
Rs.1700 crore. Ford India Limited is a subsidiary of Ford Motor Company, currently
Ford has a 78% stake, which is going up to 92% soon. The Maraimalai Nagar Plant
of Ford India Limited, located roughly 45k.m.from Chennai, provides employment
to over 20000 people.The plant has the capacity to manufacture 1,00,000 vehicles
per annum, equipped with state-of-the-art vehicle manufacturing technology from
Ford.
Presently offering seven different models, Ford India Limited (FIL) is catching up
fast with the Indian consumer. This is secured through a quality check program
based on the principles of NOVA - C (New Overall Vehicle Audit - Customer)
wherein daily random checks are conducted from a customer's point of view. To be
doubly sure, routine calls are made to dealerships to check the quality of cars
delivered to them.
Acknowledgement has come in the form of the J D power 1997 India Initial Quality
and Customer Satisfaction Awards. These internationally acclaimed and recognized
awards voted the Ford Escort as the Best Quality car and the Mahindra Ford and its
dealerships were rated the highest in Customer Satisfaction. This is an honour as it
its only the second time in automotive history that the same brand/manufacturer has
received both the awards in the same year.
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General Motors India, incorporated in 1994 as a 50-50 joint venture company with
the C.K. Birla Group of Companies, became a fully owned subsidiary of GM in
1999 when GMOC bought the remaining shares. The company was restructured in
1999 and was converted from a Public Limited company to a Private Limited
company. GM APH LLC currently holds 86 percent of voting shares, and Holden
(Australia) holds 14 percent. The SPO business was integrated with the main
business in the same company in 2000.
In India, GM strengthened its presence with new product launches Chevrolet Optra
in 2003 and Chevrolet Tavera (Multi Utility Vehicle) in 2004. Similarly in 2004, GM
India is expected to register a growth of 90% over 2003. With sales volume going
up, the market share of GM India has gone to nearly 2%. The sales volume in 2003
was 15,155 units while 2004 figure is expected to be around 27,000 units. In 2004,
the company sold a total of 26,166 cars as against 15,155 cars in 2003 registering a
growth of 73% while overall passenger car growth during the year was only around
23-24%. These included 9191 Chevy Optras in Entry 'D' Luxury sedan segment,
8369 Opel Corsas and 8417 units of the new generation premium multi-utility
vehicle (MUV) Chevrolet Tavera.
The existing GM India plant was originally built by Hindustan Motors. In 1994, GM
India entered into a 50% Joint Venture partnership with Hindustan Motors and
modernized the 45,000-square-meter plant near Halol, 45 kilometers northwest of
Vadodara, in the western state of Gujarat. In February, 1999, GM bought the
holdings of Hindutan Motors and GM India became a 100% subsidiary of General
Motors Corporation of USA. The plant produces the Opel Corsa, Corsa Sail,
Chevrolet Optra, and Chevrolet Tavera. The Chevrolet Forester and Opel Vectra are
sold as CBUs (Completely Built in Units) and as imported from Japan and Germany
respectively.
Toyota Motor Corporation is the third largest automaker in the world. They
have 34 dealers in India and in Delhi they have 2 dealers, first one is ‘South
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Delhi Toyota’ and second one is in Moti Nagar in which I have visited during
my survey. Dealer in Moti Nagar which is “Galaxy Toyota” have
predetermined mission that-Customer comes first and everything they do is to
meet their customer needs, basically they work for creating a lifetime
customer.
They work by dividing their work like in one showroom they have separate
teams for every product like relating to Corolla it comprises of 7 or 8
executives who handle all the work weather it is of sale or any enquiry or
telemarketing call that team must have some specific target to achieve. They
reach to the customers either by distributing Leaflets, Brochures to the
customers. They collect customer database from Directory (Yellow Pages) or
through customer references even they solve customers query online and give
information through e-mails. Recently they organized one drawing
competition between the kids of their existing customers just to interact with
the customer and build loyalty of their company products. They judge their
customer satisfaction by analyzing that repeat buyers are more or not &
moreover they have customer feedback form in which they can analyze
customers background and can forecast customer future demands. They target
only high profile customers.
They build customer loyalty by giving happy calls to the customer after sale
of every 1,3,7 month. They provide Periodic maintenance schedule, which
will ensure that vehicle, is kept in best able-bodied at all times. The
maintenance schedule may include periodic inspection, adjustment and
lubrication that will keep vehicle in the safest and most efficient condition,
they provide one booklet in which they give simple and useful tips for
maintenance of the car. They offer good schemes like providing free Test
Drive worth Rs 250 petrol at the time of sale of any car. They do road shows
to attract customers. To promote their product they organize exchange mela,
events, various cash discounts like currently they are running one discount
scheme on purchase of any of their car (Innova, Toyota) they are giving free
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accessories worth Rs15000. They provide 4 free services after sale and with
full clean diesel.
All employees of Galaxy Toyota shall consider how they should act and how
they might change their ways to benefit the company. They launch one “Co
Branded Credit Card” to provide additional benefits and services to the Toyota
customers. This Credit Card will give Toyota customers a better payment
flexibility and convenience, like Customer gets free service voucher with the
card, Special Invite to co-sponsored events, Personal accident insurance
coverage: Up to 20 lakhs etc. They have one Guest Book in which they store
valuable comments of customers, which they think are very important for
them, which will help them to improve their service.
HONDA
Honda is one of the leading manufacturers of automobiles and power products and
the largest manufacture of motorcycles in the world. They have 20 dealers in 42
different cities around India. In New Delhi they have 6 dealers, I have visited one of
them, which is in Najafgarh Road.
They do surveys to know customers need. They target either existing or their
perspective customers by giving advertisement in the newspaper or through there
satisfied customers which give references. They don’t believe on targeting
competitor’s customers because by not doing so they have such a brand reputation
with good quality products, only through this they are able to make good sales.
They display their models in 8th Auto Expo, which held in New Delhi. They
are now focusing on their new model ‘Civic’. Honda's Civic perhaps drew the
maximum attention. The reason is simple: Civic is a new car from the house
of Honda. During my survey I get to know that Honda City Model is the
second largest selling car in the ‘C’ segment. They have a good superiority
with superior brand name in the country.
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They prefer to have mode of communication with the customer through mail,
telephone and sometimes by letter. Customers who don’t have time even to
see the model or to call the dealer to make inquiries about their reservation
they desire to solve their query online itself.
To judge customer satisfaction they some times invite their customers to have a get
together, to have interaction with customer in a minute to know that are they
satisfied with their services and what they are expecting from them in the near
future. They make maximum of their sales from the fresh customers rather than their
repeat purchasers. To increase their sales they try to extort surreptitious information
from the customers and on their end they aim to ensure that the product quality and
product quantity should be available in required quantity in their dealership.
They have Feedback form in which they take feedback of the customer as well as
their salesperson because through this they are able to get the information of both
the customer & their salesperson that are they giving the full information to the
customer. This Dealership even provide technical skills and techniques to their
employees that how to deal with the customer thoughtfully every after 6 months.
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The advent of the Internet as a research tool (75 to 80 percent of auto consumers
research using the Internet) has shifted power to consumers, further increasing
pressure on prices. At the same time, government regulation and consumer demands
for sophisticated features have increased development, production, and marketing
costs. Regional economic fluctuations favor consolidation among car companies,
suppliers, and retailers -resulting in fewer, larger companies that have more
complete product lines targeted at existing and new markets. Consolidation has
heightened competition in all vehicle segments. Low-cost manufacturers are
expanding beyond their home markets with entry level vehicles, traditional
passenger car manufacturers are expanding into the light truck markets, and luxury
manufacturers are moving down market with passenger cars and SUVs. As a result
of these product and market extensions, consumers find it difficult to exhibit brand
loyalty because vehicles have unclear brand identities, similar features, and
comparable prices. In addition, an overpopulation of dealers has resulted in local and
regional competition among same make dealers. This further reduces margins and
damages the brand images the car companies spend large amounts of money to
build.
Relations between the car companies and their suppliers traditionally have been
difficult. In response to competitive pressure, suppliers have been forced by the car
companies to provide higher-quality components at constantly lower costs. The
resulting decrease in margins and the reduction in volume due to slowing sales have
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increased the pressure to consolidate and forced some suppliers to the brink of
bankruptcy. Dealers too have a long history of adversarial relationships with the car
companies. Independent entrepreneurs who view some of the car companies with
skepticism or serious mistrust, dealers believe that many manufacturer-sponsored
customer satisfaction programs are actually designed to force smaller dealers out of
business or to gain control of customer relationships that the retailers believe they
"own."
These difficult relationships have prevented car companies and dealers from
maximizing the lifetime value of their combined customers. There are few
incentives or efficient methods for dealers and car companies to share critical data,
resulting in ineffective management of product, service, and household information.
In addition, consumers receive conflicting marketing communications from the two
groups, which results in reduced brand value.
Decreasing sales and market share - The long-term battle for market
share continues to intensify. In the mature automotive industry, where
business cycles drive sales fluctuations, market share is critical to
survival. Consumers are less brand-loyal than in the past, and every
market segment has an increasing number of vehicle choices. To
increase sales and gain ground in the market share battle, companies
must improve their ability both to acquire first-time customers and to
develop customer loyalty to their current brands. To achieve these
related objectives, companies must set an aggressive goal -deliver the
best customer experience in the automotive industry.
Difficult dealer relationships and a lack of dealer collaboration - As
the consumer 's primary touch point ,the dealer network is a critical
component of customer-facing operations. Therefore, the integration of
the dealer network is absolutely essential to improving the quality of
the customer experience. Only with an infrastructure that enables the
effective flow of information to and from dealers can companies create
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TARGET SEGMENT
To reach to rural and lower middle class consumers. They begin with
small concentrated markets appealing to local culture and aspirations of
the targeted area
STRATEGY
Process
They started with Project Shakti in which their basic aim is to educate a rural person about
their products through women who belongs to their own local community and who can
communicate well in their language with them. In this way many educated women get
work in rural sector and on the other hand HLL Corporate Social Responsibility (CSR)
also increases towards society by introducing educative programs for the benefit of the
rural sector
Mode of Communication
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Through Internet, E-mail usage, communication media like telephone and mail facility
this mode of communication is possible to a great extent. ITC’s extensive India-wide
distribution network enables its greeting cards reach over 12,000 multi brand outlets
in over 700 cities across the country. In the last three years, 10,000 greeting card
designs have reached these outlets with the help of ITC's web-enabled e-commerce
model –Communication Model ITC markets
Opportunity
These days’ consumers are looking for convenience and instant gratification.
Communication media like the telephone and e-mail facilitate
communication to a great extent. But many greeting card sites are moving
from a 'free' to a 'pay' mode. This could be an emerging revenue earning
opportunity for content providers.
Threats
Number of Respondents
Maruti Udyog Limited 5
Hyundai Motors India Ltd 2
General Motors 2
Tata Motors 5
Ford India Limited 1
Rarely Average
0% 0% Quite
Frequently
33%
Frequently
67%
Findings: According to the responses of the respondents it can be concluded that all
the respondents face problems in maintaining good and effective relationships with
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customers. With changing customer needs its quite obvious that maintaining good
relations with customers need an effort on part of the Dealers and Manufacturers.
No
0%
Yes
100%
Findings: According to the respondents (officials) at all the Five Automobile Majors
their company was able to differentiate its customers based on their value to them
and their needs from the company. This is important for the automobile industry
because the dynamics of selling cars is changing and manufacturers and dealers who
fail to meet the rising needs and expectations of their customers will lose out to
those who can. Buying a new car is an experience customer will remember for a
long time and ensuring that this experience is a satisfactory one is essential in
building brand loyalty and customer advocacy.
Maruti Udyog Limited: According to the officials of MUL, their overall strength
lies in building an organization that is sharply focused on the voice of the
customer. Maruti's consistent performance over the past several years has
resulted in a steady increase in the percentage of its customers who say they
intend to remain loyal to the brand. n order to be closer to the customers, it is
essential that we should have multiple avenues of one-to-one interaction with
our customers. As a major step in this direction they have started Call Center
service with toll-free number for the people of National Capital Region in year
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a promise of servicing your car in just 3 hours, or you get the service free.
With their 24-hour workshops, customers can now conveniently get their
car serviced, when they use it the least. Widespread sales and service
outlets across the country ensure that you have the assurance of great
service wherever you travel in India.
Tata Motors: according to the officials of Tata Motors the company has
strengthened its distribution and customer care network and today has 77
dealers and 230 authorized service outlets spread across 119 locations in
India.
Ford India Limited: According to the officials at Ford solutions aims to
provide quality, peace-of-mind products for the customer and embodies a
brand synonymous with its ability to provide products that can be tailored
to suit one's individual needs. Ford Solutions serve to develop products for
Ford and the Dealer body that enhance customer satisfaction. When your
vehicle needs a repair or a component replaced, you need Quality Care
service. Your Ford Dealership is simply the best place to have your vehicle
serviced. Brakes, shocks, batteries or anything your vehicle may need,
your dealership is the place to get it. Customers can place a online service
request at Ford.
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How well does your company customize its products and services
based on what it knows about its customers?
Ford India 1 - -
Limited
Highly Customer
centric
100%
Findings: All the officials of the Automobile Majors agree that all products and
services are highly customer centric and based on the information they know about
the customers.
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Yes No
Maruti Udyog 5 -
Limited
Hyundai Motors 2 -
India Ltd
General Motors 2 -
Tata Motors 5 -
Ford India Limited 1 -
No
0%
Yes
100%
No
0%
Yes
100%
The typical Indian consumer looks for value and does not mind paying a little
more for it. Fuel efficiency, airconditioning and reliability along with ease of
service and low cost of ownership are major considerations during the
purchase process in India.
Yes No
Maruti Udyog 5 -
Limited
Hyundai Motors 2 -
India Ltd
General Motors 2 -
Tata Motors 5 -
Ford India Limited 1 -
No
0%
Yes
100%
Yes No
Maruti Udyog 5 -
Limited
Hyundai Motors 2 -
India Ltd
General Motors 2 -
Tata Motors 5 -
Ford India Limited 1 -
No
0%
Yes
100%
Findings: According to all the respondents they have proper information about their
most profitable customers. Companies use Informal Meetings, Sales Interaction and
calls to collect relevant information needed to maintain good customer relationship.
The most effective companies like Tata Motors use all the above while most of other
track the data during sales interaction. All the Automobile majors surveyed used
CRM software for tracking Customer Information. According to the officials
Customer and Supplier Feedback are gathered through Call Centers, Mails and
Direct Interviews. There are other methods too but the above three are the most cost
effective.
How effectively does the company combine information on
customers with its experiences to generate knowledge about
its customers?
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Ford India 1 - -
Limited
Not Effective
0%
Somewhat effective
20%
Highly Effective
80%
Findings: All the 80% officials of the Automobile Majors their company
highly effective in combining information on customers with its experiences
to generate knowledge about its customers while 20% said that the company
was somewhat effective.
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What steps has the company taken to improve the total experience
of its customers?
They recognise the need for additional products. They are working towards
introducing products to match our customer’s dynamic lifestyle, products
which have progressive styling and are great to drive.
• Vehicle quality concern • Design and general comments • Negative sales and
service
level activity has ensured that Optra has remained among the top two
players in its segment. They have refreshed the product through
continuous product improvements and have emerged as segment leader in
fuel efficiency. They have recently launched a limited edition of 150 cars,
which has received a very positive response and given us rich dividend in
terms of brand building and imagery. A product refreshment plan ensures
that they remain competitive and are ready to meet future challenges in
this segment. They also have a regular Customer Relation Management
programme whereby existing customers are offered loyalty programmes
and great offers. So far, they have organised six Optra Max Mileage Rally
meets where Optra customers compete to extract the best fuel efficiency
out of their cars and all participants are treated to an overnight stay at an
exotic locale with an evening of entertainment. The winners of these
rallies are given healthy cash rewards. These vents go a long way in
building goodwill and brand loyalty.
Tata Motors 2 1 2
Ford India 1 - --
Limited
Very Low
13%
ANALYSIS
Corporates, don't talk about exceeding customer satisfaction - that's passe - the time
has come to `dazzle the customer'. But to do that, first you must get customer
relationship management (CRM) in place. In the context of India, this is very crucial
as the recent World Economic Forum Report on Global Competitiveness has ranked
India 43 out of 49 nations surveyed, on `customer orientation'.
Managing customer relationships is not only complex but is also multi-faceted and
thus calls for an inter-disciplinary approach. Particularly, as in the New Economy,
the customer has become very demanding and the emphasis needs to be on being
consumer-centric. Technology solutions as applied to various front-end functions
could aid in building a viable link between the organisations and customers
irrespective of geographical separation. This has to be backed with appropriate
systems and processes to mine the right type of data by the right function in an
organisation.
At Maruti Udyog Ltd the first step for a company to enhance value through CRM
was to identify its target base. At Maruti, the categories which emerged were:
* Two-wheeler owners;
* Services sector.
After identifying the target, the next stage was to build on customer relationships.
Maruti, therefore, began evaluating the current database of consumers to identify
those who wanted Maruti service or better still, wanted to upgrade up the value
chain in Maruti products. Third, it began working in tandem with the oil industry to
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get data feedback on two-wheeler consumers-and identify those ready to move into
four-wheeler purchases. Ultimately, CRM is all about value enhancement for the
organisation.
The Siebel CRM solution enables Tata Motors to gather feedback on products to
improve design or manufacturing quality as well as measure the effectiveness of
marketing campaigns and programmes. The automaker selected Siebel Automotive
because of its partner management capabilities to handle its large dealer network, the
solution's zero-footprint web-based architecture and user-friendly interface-critical
to support thousands of salespeople with various skill levels.
Since the road to improvement is never ending, so this study also suffers from
certain limitations. Some of them are as follows:
CONCLUSION
The price of a car is just one-third of what it cost you over its lifetime. Running and
maintaining it make up the other two-thirds. Take into account resale value and its
real cost becomes clear. Maruti Suzuki stands for value as much as it stands for
performance. In spite of rising input costs, we try our best to keep prices down.
Their running costs and resale values are unbeatable too. Nothing matches the
delight their cars deliver. In the JD Power CSI study 2005, 85% of Maruti Suzuki
owners stated that they would definitely recommend the car they drive to someone
else. Infact, you don’t buy a Maruti Suzuki. You invest in it.
After the rash of new cars launches the past two years, the relative lull in the auto
industry is showing up in the customer satisfaction indices. According to the 2005
four-wheeler Total Customer Satisfaction (TCS) study conducted by the specialist
division of TNS Automotive, the automobile ownership experience or customer
ownership experience has declined in all areas compared to 2004. The study is one
of the largest syndicated automotive studies in India, representing the responses of
more than 7,000 new car buyers. The comprehensive study covers over 50 models
with customer evaluations taken in the key areas of sales satisfaction, product
quality, vehicle performance and design, after-sales service, brand image, and cost-
of-ownership. The TCS index score provides a measure of satisfaction and loyalty a
given model enjoys with its customers. According to TNS Automotive, the decline
is predominantly for older, small and entry mid-size car models. The ageing of these
models seems to be posing a stiffer challenge for manufacturers to sustain past
performance levels at a time when customer expectations are rising sharply.
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TNS Automotive's TCS Study has, since its inception in 2002, surveyed over 25,000
car buyers and hasbuilt a sizeable sample base. Some of the key findings, indicators
and inferences from the 2005 study are:
Increasing budget for future purchases: Future intenders with a budget of Rs 6 lakh
plus have increased from 44 per cent in 2002 to 58 per cent in 2005. While first-time
buyers are declining as a composition of total volumes, the figure in absolute terms
is high, fuelled by the up-gradation by two-wheeler owners The study also throws
up the question as to whether it is also possible that the first-time car buyer who is
generally a two-wheeler owner, is getting more fuel efficiency conscious and
tending towards postponing the car purchase decision due to the high cost of fuel. Of
course a shift in composition is also to be expected with the upper premium compact
and mid-size segments projected to grow at a much faster rate than rest of the
industry. The TCS study was conducted from August through October across 21
cities. Small sample models have not been featured in the charts. These include the
Fiat Petra Diesel, Ford Fusion, Ford Mondeo, Hyundai Terracan, Maruti Esteem
Diesel, Maruti Suzuki Grand Vitara, Maruti Zen Diesel, and Opel Corsa Sail. TNS
has a global network spanning 70 countries and is listed on the London Stock
Exchange.
Maruti Udyog Ltd 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.
Good Technology
Uniform Pricing
Good Strength
Brand Image
BIBLOGRAPHY
Books
Kotler Philips, Marketing Management Analysis, Planning Implementation
& Control Edition 1998. Prentice hall of India Ltd. New Delhi
Name of the articles, The times of India . Mumbai: 21st May 2000
www.google.com
www.yahoo.com
www.maruti.com