JS(PG) COLLEGE SIKANDRABAD

“Marketing Strategies of Maruti

Suzuki India Ltd”

SUBJECT-Project
t Report 2022-23
Bachelor of Business Administration
5 Sem.

UNDER THE SUPERVISION OF SUBMITTED BY

Mr. MAYANK SAXENA NAME- FARMAN
(DEPT. OF BBA) ENROLL NO.- 20009424
ROLL NO. - 200626105008
 CERTIFICATE

This is to certify that the project titled “INFORMATION TECHNOLOGY” is

an academic work done by “YASIR SAIFI” submitted in the partial fulfillment of
the requirement for the award of the 9TH “D” from “BABU BODHRAJ
CONVENT SCHOOL” under my guidance and direction.

To the best of my knowledge and belief the data and information presented by her
in the project has not been submitted earlier elsewhere.

-----------------------------------
Mr. Ajay Kumar
2
 ACKNOWLEDGEMENT

It is a matter of great explanation and ecstasy for me to present my research

project report the topic ““Marketing Strategies of Maruti Suzuki India Ltd”. I
offer my sincere gratitude to every one involves directly and indirectly for his
help and guidelines throughout the project I am especially thankful to my project
guide Mr. Mayank Saxena, JS (PG) College Sikandrabad, who had given me
opportunity to complete project.

My project has been influenced by number of standards and popular text books.
I express my gratitude to the respective author.

NAME- FARMAN
ENROLL NO.- 20009424
ROLL NO. - 200626105008
3
 DECLARATION

I hereby declare that I have carried out the Research report on the topic
“Marketing Strategies of Maruti Suzuki India Ltd”.

I also declare that this report is my original work and no part of this has been
published or submitted to anybody or any university by any one for the award of
any other degree/ diploma

NAME- FARMAN
ENROLL NO.- 20009424
ROLL NO. - 200626105008
4
 TABLE OF CONTENTS

CHAPTER TOPIC PAGE NO.

1. Introduction / Company profile

6
2. Objective of study
46
3. Research methodology
48
4. Data analysis
57
5. Findings
67
6. Conclusion and Recommendation
69
7. Limitation
72
8. Questionnaire
74
9. Bibliography
79
5
 CHAPTER -1
INTRODUCTION
6
 INTRODUCTION

Maruti Suzuki India Limited 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 not only due to their undisputed leadership
in small cars but also to their commitment to actively bring to MSIL 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 license and a Joint
Venture agreement were signed between Govt of India and Suzuki Motor Company
(now Suzuki Motor Corporation of Japan) in Oct 1982. The objectives of MSIL then
were Modernization of the Indian Automobile Industry, Production of fuel-efficient
vehicles to conserve scarce resources, Production of large number of motor vehicles,
which was necessary for economic growth.
7
 COMPANY PROFILE

In many ways, the year 2014-15 was a watershed year for Maruti Suzuki India Limited
(MSIL). The company has consolidated and initiated a new growth momentum. There
have been several developments, of which it is useful to begin with three.

First, driven by renewed vigor and aggression in the market, Maruti recorded its highest
ever sales of over 4.72 lack vehicles in the domestic & export markets which resulted in gross
sales revenue of Rs.112,840 million — a growth of 25.8 per cent over 2014-15. It is the
highest top-line growth in the last seven years.

Second, this high sales growth, coupled with significant improvements in operational
efficiencies, has translated into much higher returns on investment. Earnings per share (EPS)
more than trebled from Rs.9.14 in 2015-16 to Rs.21.77 in 2013-14.

Third, the Government of India divested a majority of its shares through an initial public
offer(IPO) and made way for greater participation from you — the shareholders – in the
fortunes of India‘s leading passenger car manufacturer.

Briefly, therefore, 2013-14 marks the beginning of a new journey for your company,

as it restructured itself in the face of stiff competition and entered a new high growth
phase.

The sharp revival in the Indian economy — from 6 per cent GDP growth in 2014-15 to 8.8
per cent in 2015-16 — has definitely assisted your company in increasing revenue.

This is the highest GDP increase recorded by India since the advent of economic
liberalization, and the country has become one of the fastest growing economies of the
world .This has considerably increased per capita disposable income which, coupled
with much easier availability of significantly cheaper consumer finance, has driven
automobile sales.

8
Historically, the fortunes of automobile industries across the globe are strongly
correlated with macro-economic parameters and the performance of the industrial
sector. Chart a plots growth in GDP, industry, passenger vehicle (PV) sales volumes and
total automobile sales volumes – and emphasizes this correlation. In 2015-16, the
Indian passenger car and multi-utility vehicles market finally reached efficient scales
of nearly a million. Although the improved economic environment helped growing
automobile sales, it was not a very smooth drive for the Indian automobile industry.
An increase in the number of players and models has resulted in fierce competition —
driving down prices across all segments. The industry also witnessed significant rise in
prices of key raw materials like steel, rubber and plastics. Thus, profit margins were
under pressure.

Maruti has always believed in size and spread. When the Indian automobile industry was
reconciled to around 40,000 cars in early 1980‘s, MSIL was the first company that
aspired to sell 100,000 cars a year. The aspiration of being the market leader with high
sales volume continues to be intrinsic to your company‘s philosophy. This belief has
held the company in good stead during 2015-16 — where the strategy of pushing
volume growth resulted in higher margins due to the positive effects of better capacity
utilization. Improved operational efficiencies, which are largely due to the transfer
of technology, systems and work culture from (MSIL) majority shareholder.

Suzuki Motor Corporation (SMC) — has also contributed to the improved returns on
investments. In 2014-15, the company has had record growth in bottom-line and
return on investments. Here are some numbers.

Net profit margin (PAT/total income) increased from 2 per cent in 2015-16 to 5.6 per
cent in 2014-15.

Return on average capital employed (ROCE) increased from 9.9 per cent in 2012-13 to 22.3
per cent in 2013-14.

Return on average net worth (RONW) increased from 5.2 per cent in 2013-14 to 16.5 per
cent in 2013-14.

Earnings per share (EPS) increased from Rs.5.14 in 2013-14 to Rs.18.77 in 2013-14, while
cash EPS increased from Rs.17.79 in
2013-14 to
in 2015-16.
Rs.38.39

9
MSIL also witnessed a key structural change during 2013-14. The company was
originally set up as a joint venture between the Government of India (GOI) and SMC to
provide the average Indian with a reliable and affordable car. Today, 20 years hence,
MSIL has come a long way from charting the initial growth of the Indian automobile
industry to becoming one of India‘s leading business organizations -which has also
promoted overall industrial growth through its linkages with vendors. GOI played a
key role in supporting Maruti‘s growth. In 2013-14, GOI divested a bulk of its shares
in the company to the public.

GOI offered 72,243,300 equity shares, which is 25 per cent of the company‘s share
capital, for sale to the public through the book-building route. Even in a somewhat
bearish stock market, the issue was fully subscribed within three hours of its opening.
In fact, it was over subscribed nearly 10 times at the floor price. Encouraged by the
overwhelming response, GOI exercised the green-shoe option, and offloaded an
additional 10 per cent of the issue size (equivalent to 7,224,300 equity shares).

Thus, MSIL is now a listed company in Indian stock exchanges (Bombay Stock Exchange
& National Stock Exchange) with Suzuki Motor Corporation having 54.2 per cent share
ownership. Today, GOI owns 18.3 per cent of MSIL‘s ordinary shares, while 27.5 per cent
is in public hands.

MSIL is a company, which is constantly reinventing itself in a sector that is on the move.
In the course of the following sections, we shall discuss markets, operations and
financials of Maruti during 2013-14, and analyze the rapid external and internal
transformations in its business. All data pertaining to markets is based on figures
released by Society of Indian Automobile manufactures.
10
THEORETICAL FRAMEWORK

The Revolution
FOR THE FAMILY

This car position itself in the mind of consumer as a family car. The punch line of the
car is ―total solution of the entire family‖

Features are: Maruti created history by record production in 13 months. On 14

December 1983, the then Prime Minister of India, Mrs. Indira Gandhi, handed over the
keys of the first car to Mr. Harpal Singh of Delhi. Volume targets were routinely
exceeded, and in March 1994, it became the first Indian company to produce over one
million vehicles, a landmark yet to be achieved by any other car company in India.
Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having
produced over 3.5 million vehicles by December 2001. Maruti is one of the most
successful automobile joint ventures, and has made profits every year since inception
until 2000-01. In 2000-01, although we generated operating profits on an income of Rs
92.5 billion, high depreciation on new model launches resulted in a book loss. We are
again on track for profits in 2001-02, with a profit of Rs 300 million in the first half. In
this period, sales were increased by 5.3%, against an industry decline of 6.1 %. We
revolutionized the wav Indians looked at cars. "No other car company so completely
dominates its home market" - (The Economist). Despite there being 11 companies now in
the passenger car market, Maruti holds about 60 % of the total market share. MSIL is
also the first and only car company in the world to lead its home market in terms of both
market share and in the JD Power Customer Satisfaction study (JD Power Asia Pacific
2000 India Customer Satisfaction studies)

Transfer of Technology

Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative that the
transfer of contemporary technology from our partner Suzuki is a smooth process. Great
stress is laid on training and motivating the people who maintain the equipment,
since the best equipment alone cannot guarantee high quality and productivity. From

11
the beginning, it was a conscious decision to send people to Suzuki Motor Corporation
for on-the-job training for line technicians, supervisors and engineers. This helps them to
imbibe the culture in a way that merely transferring technology through documents can
never replicate. At present 20 % of our workforce is trained under this program.
Our Ethos

Our employees are our greatest strength and asset. This underlying philosophy has
molded our workforce into a team with common goals and objectives. Our Employee-
Management relationship is therefore characterized by Participative Management,
Teamwork, Kaizen, Communication, Information sharing, and an open office culture for
easy accessibility to implement this philosophy. We have taken several measures like a
flat organizational structure i.e. 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 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.
Maruti eyes Global Pie, to be R&D Hub for Suzuki

New Delhi: With the enhanced backing of Suzuki, Maruti Udyog is gearing up to
become a global scale player and will be a R&D Centre for Suzuki cars outside Japan.
Becoming a global player is the resurgent theme of Maruti's future strategy in the post-
privatization phase as listed in the IPO offer document filed with SEBI.

In terms of manufacturing processes, quality systems, or even R&D, the flavor is global.
Clearly, the company wants to build on its leadership in the domestic market and make a
place for itself in the global arena.

After sharp gains in productivity and quality in the past two years, the company wants
to further improve its operating efficiencies by cutting costs by 30% and enhancing
productivity by 50% and align itself with Suzuki's Kosai plant in Japan by year '09-10.
On the quality front, while Maruti was amongst the first automobile manufacturers in
the world to receive the ISO 9001:2000 certification, it wants to go further and adopt
Suzuki's global customer audit index.
But, the biggest shift is in the area of R&D. Although Maruti has gained from its
expertise in localization of components, it now wants to take R&D to another plane

12
where it can become Suzuki's Centre for cars in Asia, outside Japan.
In fact, it has recently acquired the capability to conduct minor and major face-lifts to

its products and upgrade products in terms of technology or features. To reduce initial
investment on models, Maruti may outsource dye from other than Japan, such as
Taiwan, which are often less expensive.
Maruti's initiatives are based also on its recent success in the export market. It sold
nearly 24,000 units of the Alto in Europe last fiscal and its overall exports were up by
a whopping 163% over the previous year

Its global ambitions are also now nurtured by the backing of Suzuki Motor
Corporation. The prospectus makes this point by Sayin2 that as a subsidiary of Suzuki,
Maruti has "access to globally respected technology in the small car segment.‖

Even while maintaining the overall global theme, Maruti wants to leverage its local
advantage. Its promise of providing customers a "wide range of Maruti branded services at
different stages of ownership" is at par with other global manufacturers. It lays great
emphasis on these Maruti branded services like insurance, finance and pre-owned cars, and
believes that this "360 degree customer experience" will secure repeat purchase and increase
revenue of the sales network. In supply chain initiatives as well, Maruti's reference is to the
worldwide purchase system fostered by General Motors. Through this, it could make a
select few of its vendors the sole suppliers for Suzuki products in several countries.
Our focus will continue to be the small car: Jagdish Khattar

From a loss of Rs 269 crore in 2000-01, after being written off by many analysts, Maruti has
bounced back: its 800 model is as popular as ever, new launches are picking up. Jagdish
Khattar, managing director Maruti, spoke to Vinay Pandey on Maruti's transformation.
Excerpts: Maruti's turn around: To understand Maruti today, you need to go back to 1993
when liberalization took place and foreign manufacturers were allowed to come.

Maruti should have taken proactive measures then. But between 1995 and 1998, our
shareholders (the government and Suzuki) had differences.

Decisions that should have been taken in the mid-90s to prepare for competition got
delayed.
In June 1998, we decided to increase our capacity by one-lakh vehicles and to introduce four
or five new models, which arrived a year and a half after our competitors', who gained
from this. Two, investments that should have been done over five years were done in 24

13
months in a hurry to launch new models. So, localization was low, the yen was strong,
prices were market-determined, depreciation increased, and we ran into losses. That is
when you got the feeling Maruti was in trouble.

But internally, it was a very good wake up call, which did a lot of good to us. We
brought out models, localized faster, cut costs massively. So even when everyone thought
we were in trouble, we were confident that we would bounce back. Our market share went
down to 61%, but we have now stabilized around 58-59%. We took off a bit late, had lot of
catching up to do, which we have done.

Role of M800: People say 800 is old and so on. But go on the road and see someone on a
two-wheeler, wife and two children, in rain, in winter, in summer. Is he going to be
bothered about power windows and steering, or does he wish to be in a car and be
comfortable?

Today we are selling air-conditioned 800s at Rs 2.2 lakh. Many people buying AC 800s may
not have an AC at home. So, look at the tremendous role it is
Playing.

India's car penetration is six per 1,000; Pakistan and Sri Lanka are at 12. Thailand is at 200,
Japan and America are over 500-600. What I am saying is that there is still a huge gap. If
our motorization has to increase, we can't do that by selling expensive cars. We need to
make cars more affordable. Therefore, a narrower gap between two-wheelers and entry-
level cars is what is required. It should also have good performance, no compromise on
quality, fuel-efficient and low on maintenance. The 800 fits the bill.

The Alto cannot replace the 800 today because the volume and price at which 800 is
selling, we cannot sell Alto at that. Yes, once we get costs under control, we'll position the
Alto between segments A and B. We would like to have a car from the entry level to Rs 3-
3.5 lakh at every Rs 20,000- Rs 25,000 difference.

Success of new models: Historically, Maruti's new models never start with a bang. I joined
Maruti in 1993 when Zen was introduced and we found it hard to sell initially. We had to
reduce our production plan drastically, but then after a year or two it caught on. And look
what it is today.
So, initially there is skepticism, and then some people buy and share their experience.
About 60-70% of our sales take place by referral. I am not saying marketing is
14
unimportant, but there is nothing more effective than a present owner giving a good chit to
prospective buyer is. We are seeing the same effect with Wagon R, which is doing really
well now.

Versa is slightly different. When we decided on Versa, in 1998, the government had
announced that in April 2002 the administered price mechanism (APM) for oil would be
abolished. The gap between petrol and diesel prices would have then been negligible. Versa
came, but APM remained.

Now there is no hell of a chance of anyone buying a petrol version when a diesel
alternative is available for the same purpose. For the Versa we have carried out a lot of
localization, the pricing has been reworked and things are looking up. But some amount of
disadvantage between petrol and diesel will remain.

Those who bought the Baleno are very happy. Also, view it from our perspective. We
launched five models in a space of 12 months. We had to prioritize. Because of low
localization, we were losing money on Baleno.

So it made no sense to just gain numbers. Now some localization has taken place and the
product is getting its due.

The Vitara is different, it is not manufactured here. We will import what is required.
Anyway, our core competence and focus would be the small car because that is what the
county needs and that is where the volumes are. Let us look at it in another way. There are
only four major players in the small car segment - Telco, Fiat, Hyundai and

Maruti and 80 % of the market is the small car segment. In the remaining market, there are
a dozen players. It is a very lopsided market structure today.
15
 PRODUCTS & SERVICES

MARUTI 800

ECONOMY

Great technology enables the Maruti 800 to deliver great fuel efficiency. The Maruti
800 has topped every fuel efficiency survey that has been conducted in the past. The
Maruti 800 has the lowest fuel cost per kilometer of any petrol car in the country with
a cost of Rs1.94 per kilometer. This confirms the position of the Maruti 800 as the most
fuel-efficient petrol car in the country and Maruti launched their LPG model, which is
more economic than others.
16
MARUTI OMNI

MPFI Engine

The multi-point fuel injected engine helps to lower emissions and achieve greater fuel
efficiency.

With 37 bhp @ 5000 rpm, you have greater pulling power. A torque of 6.32 kgm @
3000 rpm ensures better climbing power and lesser gear changes. In other words, less
fatigue.
The MPFI engine also meets all the stringent Euro II emission norms

SPACE

Stretch out. Open up. Enjoy the luxury of space inside the Omni. The ample headroom
and legroom make long rides comfortable and enjoyable. Reclining front seats with
adjustable head restraints let you relax completely. With its ample luggage space, the
Omni is equipped for anything. Pack in your family, your group of friends, your
luggage, your golfing gear; your picnic hamper…all can fit in snugly.
17
MARUTI ALTO

Features are:

MPFI ENGINE

Plenty of power, great mileage and low emission make the Alto the perfect choice for
Indian roads. The fuel efficiency of the Alto is better than any other vehicles in its
class.

The 16x4-hypertech MPFI engine delivers unadulterated power, begging for fun. The
4-valves per cylinder MPFI engine mated with a 5-speed gearshift and a 16-bit on-
board computer allows the Alto to effectively combine power with optimal fuel
efficiency
18
RELIABILITY

Here is another first by ALTO, which has been setting records since its introduction in
India. Alto becomes the first Indian car to undergo a 24 hours endurance test and sets
13 national records in the process.

Wagon R

COMFORT

The smarter race knows exactly how to take the stress out of driving and push driving
comfort to the max. Full flat folding front seats and reclining rear seats allow you to
stretch yourself during long drives. This ensures that you travel in maximum comfort

as compared to cramped seating arrangements in other cars.

The McPherson strut suspension in the front and coil springs at the rear ensures a
smooth comfortable drive. It is not just comfort; Wagon R also has a 1061cc MPFI low
friction engine.

19
SPACE

Nothing cramps the style of the smarter race. That is why it prefers the Wagon R. Tall
body, high seats and wide opening doors make it easy to get in and get out. Seven cm
taller than the Santro, the Wagon R offers more headroom, amazing spaciousness and
a commanding driving position. The split rear seating arrangement along with fully
reclining front and the reclining rear seats gives a first class airline seating comfort.
The Wagon R comes with an extra-large boot space, which is possible because of its
unique design that maximizes space on a compact platform. Caution, safety and
protection are integral to a smarter mindset, And the Wagon R is designed to satisfy
every concern. Just check out the battery of safety features: Dual side-impact beams in
the front and rear doors protect you from lateral collisions. A long crumple zone shields
you in the unlikely event of a frontal collision. A Roll Control device in the front
suspension imparts greater stability and helps the Wagon R to negotiate sharp curves at
high speeds. The 8-inch booster-assisted brakes equip you well to handle any
emergency High seating position gives you a bigger field of view, allowing you to better
anticipate traffic problems before they occur.
20
MARUTI VERSA

ONE GREAT DRIVE. TWICE THE SAFETY

The Versa is one of the safest cars on the road. It has safety features to guard your loved
ones from road disasters. Side impact absorbing beams in all four doors protect the
passengers from side crashes. Front impact beams between the front pillars and the
collapsible steering column shield you from head on collisions.

A steel pipe frame in the rear seat safeguards your family from rear impacts.ELR seat
belts allow free movement, but hold you securely during sudden stoppages. Height
adjustable head restraints, brake boosters and a collapsible steering column further
ensure your safety. When you step out of the house and into your Versa, rest assured

Sink in. Stretch out. Lie back. Indulge

Versa's the ideal car for long journeys. Now stretch your legs on those long rides. All
seats* have recliners. In SDX, the second row bucket seats can be slid forward &
backward independently to suit the convenience.
The high seat position makes it easy to get in and out and gives superior road visibility.
The front row seats have thick insulation between seat and the engine. Two layers of
21
PUF and aluminum sheets act as a buffer, protecting the driver from engine heat. The
rear seat also has a steel pipe frame for protection in the event of a rear impact.* Except
for the folding seat in second row (DX, DX2) and last row seats.

MARUTI GYPSY

Gypsy Advantage

HILLS
 Higher ground clearance of 210 mm to ensure better off-road handling.
 Diaphragm Spring Clutch designed to with stand higher rotational speeds requiring

less release load ,thereby reducing the wear of parts

SNOW
 The Engine that‘s high on thermal conductivity, and heats up quickly even under

extremely cold conditions. Thus, there are no starting problems even in the midst
of snow.


1 e, resulting in a higher power to weight ratio. This ensures better control, more
3 power and greater responsiveness.
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DESERT

 The Engine avoids overheating because its high thermal conductivity enables it to
give off heat much faster

STREAMS

 Maximum power of 80 bhp @ 6000 rpm makes for easier crossings.

 4-Wheel drive for better control and more power at the wheel.

 A higher power to weight ratio of 0.0812 ensures faster acceleration through

streams and muddy terrain.

DIRT TRACKS

 Steering Damper ensures that shocks encountered from bumps and potholes are not
passed on to the steering wheel. Thus, any loss of control owing to unexpected
obstacles is avoided.

The Gypsy is a lighter vehicle weighing in at 1020 kg (hardtop) and 985 kg (soft-

top). This is a major advantage on sandy or muddy tracts — a heavier vehicle will
be stuck but the Gypsy keeps moving.
23
 SWIFT

The time has come for a new kind of compact car, one that is based on a fresh approach
to design and development, delivers the kind of driver and passenger experience that
places it in a class of its own and has true worldwide appeal.

The time has come for the Maruti Suzuki Swift. The Swift is more eye-catching, more
spacious, more refined, more user-friendly, and a whole lot more enjoyable to drive
than anything else in the compact-car category.
24
SWIFT DZIRE

Maruti Swift DZire

The new Swift DZire joined the Swift and SX4 in Suzuki's Indian lineup and is intended
to "redefine the market and stir excitement in the entry level sedan segment". It's a good
news for the consumers because Swift DZire, which comes both in diesel and petrol
engines, offers luxury feature options including integrated stereo, steering mounted
audio controls, automatic climate control and power windows as well. Not only this
but, it is also equipped with latest safety features like Dual Airbags, ABS with EDB,
collapsible steering column and an I-CATS anti-theft facility. It is true to say that many
of these features are being offered for the first time in this segment in contemporary car
market in India.
25
Variant – Petrol Diesel

LXI LDI

VXI VDI

ZXI ZDI

RANGE OF COLOURS

There is a wide range of colors for the customers. The newly Swift DZire is offered in
seven-colour s:
Arctic White
Silky Silver
Clear Beige
Midnight Black
Bright Red
Azure Gray
Sovereign Blue
26
Features

Launched as a replacement of the earlier mid-size sedan Maruti Esteem, the Swift DZire
is sophisticated in look and features. There is a long list of features of Swift DZire,
which includes:
INTERIORS

Steering Mounted Audio Controls:

Swift DZire is equipped with a classy dashboard integrated audio system with remote
control along with powerful speaker.
Automatic Climate Control (ACC):

Whenever you need to choose you temperature, just choose the temperature you desire
and the on-board computers is there to auto-adjust to the weather outside, maintaining
precise cabin temperature.
EXTERIORS

Makes Heads Turn with its desirable exteriors:

There is a chiseled shoulder line to complement muscular flared wheel arches and sills.
Rich chrome styling for an imposing grille and an impressive rear is also there now.
Stylish wraparound tail lamps fitted.

Powerful clear lens headlamps for superior night visibility is and additional benefit for
you.
Headlight leveling allows you perfect light beam adjustment while driving.
27
A high mounted stop lamp and a rear bumper-integrated fog lamp give clear signals to
following traffic, thus avoiding accidents.
Comfort & Convenience

Indulge your desire of complete comfort:

All around power windows for improved convenience to the drivers is there now.
Sounds absorbing materials and vibration dampers for a smooth and pleasurable drive.
Now, there is height adjustable driver‘s seat for personalized driving position.

A tilt adjustable steering column lets you to set it just right for your height, so you enjoy
a comfortable drive and enjoy the ride even for long distance. Improved comfort in the
back row for those who do not drive but enjoy the ride.
28
MARUTI SX4

Maruti Suzuki SX4

Maruti Suzuki India Ltd. is out with its cutting edge new model, Maruti Suzuki SX4, a
joint venture made by two of automobile czars, Suzuki and Maruti. The model closely
follows the Swift platform; therefore, it is easily available with exclusive features,
which makes it all the more desirable among car connoisseurs. A mini SUV (sport
utility vehicles) style, SX4 is almost like a car in its construction & comfort context.
The model is found in two- and four- wheel drive. With two variants, the model is all
set to conquer the Indian auto biz market. These are commonly referred as the "Urban
Line" & the "Outdoor Line", where the latter is more like an SUV in appearance
compared to the first one. The car is expected to have 1590cc petrol engine making it
capable enough to deliver a power of 94bhp and a torque of 13.4kgm.
29
OTHER FEATURES

Maruti Suzuki SX4 is assorted with elegant features, which makes the model worth
possessing. These are:
ABS
EBD
Dual SRS airbags

Front and rear side doors having impact beams

Seat belt pre-tensioners
Force limiters
Car immobilizer
Anti-theft device
Switchable three-mode 4x4 system for:
2WD
4WD Auto mode
4WD Lock mode
30
GRAND VITARA

Grand vitara is anew segment entered by maruti. Initially they are just in traditional cars
business Grand vitara is a SUV (sports utility vehicle) with a powerful engine of 2600
cc. It is fitted with a MPFI diesel engine. It delivers 4x4 drive; Price charged for grand
vitara is between 13.5 lakh to 16 lakh, it is of premium segment.
31
MARUTI RITZ

Maruti Ritz is perhaps the most awaited and exaggerated car from Maruti Suzuki. The
car is positioned in the premium A2 market segment, which includes its compact
offerings such as Alto K10, Wagon R, Swift, Zen Estilo and the newly launched A-
Star.
Maruti Ritz Description

The new and ultra-low emissions K12M engine will make the Ritz
India's first BS-IV ready passenger car. The engine has E10
Compatibility .With an overall width of 1.68 meters, the Maruti Ritz
Is 8cm wider than the Wagon R+. Smartly shaped headlights give
It a friendly appearance and they combine with a trapezoidal grille
To form a ―face‖ that reflects the new Suzuki family identity.
PRICE- The price of RITZ is between 395000-570000

32
MARUTI A –STAR

MARKETS

DOMESTIC

Maruti primarily operates in the passenger vehicles market with an emphasis on

passenger cars. During 2004-05, the Indian passenger vehicles market finally attained
critical mass with sales volume of 900,752 units — a 27.4 per cent increase from
707,198 units sold in 2008-09.
The passenger vehicle market is divided broadly into the following three categories:

1. Passenger cars

2. Multi-purpose vehicles (MPVs) and

3. Utility vehicles (UVs)

Within these categories, MSIL‘s presence in order of prominence and in volume term is

33
in passenger cars, MPVs or the C segment and UVs or the B segment. Chart B gives the
relative share of each segment in Maruti‘s passenger vehicles sales, where passenger car
sales have been broken up according to the SIAM based classification (A1-A6).

PASSENGERS CAR

In volume terms, passenger car sales accounted for over 77 per cent of the Indian
passenger vehicles market and grew by 28.6 per cent from 541,491 units in 2007-08 to
696,207 units in 2008-09. Maruti continues to be the market leader. During 2008-09,
not only did Maruti grow due to the overall market growth, but also managed to
overcome intense competition and gain market share — which increased from 50.8
per cent in 2007-08 to 51.4 per cent in 2008-09.

The Indian car market is classified into six categories based on the vehicle length

A1: Mini — up to 3,400 mm.

A2: Compact — from 3,401 mm to 4, 000 mm.

A3: Mid-size — from 4,001 mm to 4,500 mm.

A4: Executive — 4,501 mm to 4,700 mm.

A5: Premium — from 4,701 to 5,000 mm.

A6: Luxury — 5,001 mm and above. MUL has presence in three of these categories namely
A1, A2 and A3. Chart C plots MUL‘s sales volumes in these three categories for 2007-08
and 2008-09.
A1 CATEGORY: With its Maruti 800, your company is the only player in this
category. Sales volumes increased by 16.9 per cent during 2007-08. Growth in this
economy segment comes mainly from first-time buyers, and consumers buying their
second car. Penetrating this market requires greater reach in distribution, and MSIL

34
is undertaking many efforts in this direction.
A2 CATEGORY : Maruti has three models in this category — Zen, Alto and Wagon

R. This is the segment where the company faced stiff competition in the last few years,
and had lost some ground due to delays in launching new models. Things have
fundamentally changed in 2008-09. Through a well-crafted strategy, Maruti
consolidated its leadership position in the A2 category. While the category grew by 23.4
per cent in 2004-05, MSIL‘s sales volume grew by 46 per cent. Consequently, the
company‘s market share has increased from 40.3 per cent in 2007-08 to 47.7 per cent in
2008-09.

We believe that given India‘s income distribution and low levels of car penetration, the
A1 and A2 segments will continue to register strong growth as the population increases
its levels of motorization. Today, India is the second largest two-wheeler market in
world with sales of around 5 million two wheelers during 2008-09. The existing stock
of two wheelers on India‘s roads is over 50 million. With cheaper credit facilities, many
users of two-wheelers, especially in the higher end segment, should shift to cars in the
A1 category. MSIL is the dominant company in India, which has the models to tap this
huge growth opportunity. To penetrate deeper into the Indian market, MSIL has tied up
with the State Bank of India (SBI) to finance cars. SBI has the widest branch network in
India, and we expect to reach parts of the rural markets hitherto uncovered by retail
finance availability.

Apart from strengthening the distribution network, key initiatives that drove this
growth during 2008-09 include:

Strengthening the brand image of the three models through advertisements and sales
promotional initiatives.

Repositioning Alto in a niche space between A1 and A2 cars. Aggressive pricing of

the Alto was supplemented by a strong ad campaign that targeted the younger
generation. These factors played a role in boosting the volume of Alto sales by over
125 per cent.

New variant of the Zen was launched in the latter half of 2003, which
rejuvenated the brand in the market. There were also significant changes
in the Wagon R, which contributed to a volume growth of
 per cent.
59

35
A3 CATEGORY: This is a highly fragmented category with several models, and no
single player has major leadership position. MSIL‘s two models —Swift Desire&
SX4— have a combined market share of a little over 10 per cent. Maruti lost some market
share as its volume sales grew by around 30 per cent, against the overall category‘s
growth of 50.8 per cent. In the last quarter of 2008-09, to increase market penetration,
MSIL revised the prices of SX4 downwards and launched a new version — the SX4Lxi.
We have already started witnessing results from this initiative.

MULTI-PURPOSE VEHICLES (MPVs)

In this segment, Maruti‘s models include the Omni and the Versa. Here, Maruti is the
dominant player with nearly 100% market share. In 2011-12, the company‘s sales
volumes grew by 18.7 per cent.

During the latter half of the year, Maruti launched an economy model of the Versa.
A new Omni variant, which runs on LPG, was launched to tap newer cargo markets.
Passenger Cars + MPV Market

Passenger cars and MPVs are generally analyzed as a comprehensive segment.

Maruti marginally increased its share in this segment with about 55.2 per cent in
volume terms during 2004-05. Segment with a market share of only 2.5 per cent. The
primary model in this segment is the Gypsy. During April 2003, the company
Launched its state-of-the-art sports utility vehicle (SUV) — the Grand Vitara.

CUSTOMER ORIENTATION

The growth in sales volumes is a consequence of Maruti‘s continuous stress on

customer focus. Regular interface and feedback from customers is integral to the
company‘s planning process. A tribute to its efforts at improving customer
satisfaction is the top ranking given to the Wagon R in the premium compact
segment, and Esteem in the entry midsize segment, by JD Power‘s survey on IQS.
Table 1 gives a snapshot of five top reasons why people buy Maruti cars as per the JD
Power survey.

It is important to note that the rating, which was between 10 and 20 per cent in 2008,
has increased to above 50 per cent in 2009. Another interesting point is that while
Maruti‘s
36
UTILITY VEHICLES ( UVS )

Diesel vehicles dominate this segment with a share of around 95 per cent. This is
mainly because vehicles in this segment are by nature heavy and diesel has a
policy determined price advantage over petrol. Since Maruti does not have a diesel
vehicle today, it remains a small player in the MUV economy factor was the most
important reason for purchase in 2009, the company‘s reputation has become the
leading factor determining the customer‘s purchase decision in 2010. Thus, Maruti
has managed to build a strong brand image in the last four years. MSIL‘s technological
capabilities are getting greater recognition as in 2011: ―good technology‖ became
one of the five leading reasons cited by customers for buying a Maruti car.
Dealership and Service Network

This high level of customer satisfaction and award of number 1 position in customer
satisfaction by world renowned J D Power survey for four times in a row can be translated
into sales only through a strong dealer network, which actively reaches out to potential
customers. The company has extended its dealership network to 280 sales outlets,
spread over 182 cities, and has a service network of more than 1900 workshops spread
across 1000 cities. The confidence of the dealer community in Maruti is spelled out by
the fact that 28 existing dealers made large investments and opened new showrooms.
On the same lines, 59 new workshops were opened by 51 existing dealers.

The automobile industry has two levels of customers — the dealer and the buyer. It is
imperative to have a robust dealer network to push sales to the final customer.
Therefore, MSIL treats its dealers as its first level of customers. In the last three years,
Maruti has worked hard to revitalize and strengthen its dealership network.

Apart from having a good product, the key factor in developing a good dealer network
is to assure profits for the dealers. Maruti believes that selling a car is only the beginning
of a long-term relationship with the car buyer. During the course of a car‘s life, there
are many services and products, which can be offered to the customer like finance,
accessories, insurance, service, spare parts and finally trade-in resale opportunities.
MSIL offers its customers a suite of products through its authorized dealers, which meets
all the requirements during the life cycle of a car. This not only meets a much larger

37
basket of customer needs but also provides dealers with the opportunity to generate
greater profits. Other services that have been launched under new business initiatives
of Maruti include Maruti Finance (a consortium of finance companies), Maruti
Insurance and the pre-owned cars business under the True Value brand name. In all these
businesses, Maruti plays the role of an aggregator and brand manager. None of the risks
related to these businesses are booked in the books of MSIL.

Most dealers have understood the importance and profitability of this new business
model and their strong motivation has resulted in record top-line growth for 2008-09.
A key initiative to promote best practices on the dealer front has been the practice of
the balanced scorecard to evaluate dealers. Those dealers who achieve or exceed a certain
score are financially rewarded for their efforts.

The company acknowledges that superior customers experience is only possible if the
dealers‘ employees are adequately trained. To achieve this, training is undertaken in all
areas of dealership operations.

We are proud to state that Maruti‘s dealer‘s technicians were ranked the best among
Suzuki distributors in South-East Asia; and now, an Indian team will participate in the
International Technical Skill Competition in Japan.

EXPORTS

2009-10 was also a landmark year for Maruti in terms of exports. The FOB value of
exports grew by 51.7 per cent from Rs.6.204 million in 2007-08 to Rs.9,410 million in
2010-11 — which is the highest ever in Maruti‘s 17 years‘ export history. It is also the
first year in which the company exported over 50,000 vehicles. It exported 51,175 units.
Maruti‘s export growth has been driven primarily by 56.8 per cent increase in exports of
Maruti 800, and 60.5 per cent growth in exports of A2 category cars. Within the A2 category
the YG4 (Alto) was a huge success in the European market, where 34,399 Suzuki Altos were
sold during 2008-09. The M-800 and the Zen were very well accepted in Algeria. We also
achieved substantial growth in our exports to Algeria, Belgium, Bhutan, Chile, Denmark,
Germany, Hungary, Nepal, Sri Lanka and UK. Maruti entered the Gulf market (Saudi
Arabia, Kuwait and Qatar) for the first time with the new Alto GCC specifications,
specially designed for this region.

38
OPERATIONS

Your company remains steadfast in its quest for achieving higher operational
efficiencies. This includes efforts at reducing costs, increasing productivity and
maintaining delivery schedules.

An example of Maruti‘s strength in operations is its capability to roll out two vehicles
every minute from its shop floor. It is on the foundation of such strong operations that
MSIL offers its customers a suite of 10 models in over 50 variants.

In times of unfavorable market conditions, our operational efficiencies have helped us

remain competitive. Today, as markets have turned upbeat, we have leveraged this
strength to seize opportunities and ensure that profits outpace top-line growth.

PRODUCTION
Spread over 297 acres, Maruti has three fully integrated production facilities with a
combined capability of 500,000 units per annum. Chart D shows the category-wise
production of vehicles in 2009-10 and 2010-11. Production increased across all
categories of passenger cars — the A1 category grew by 20.4 per cent, A2 grew by 47.7
per cent and A3 grew by 33.8 per cent. Total vehicle production increased by 31.4 per
cent from 359,960 units in 2010-11 to 472,908 units in 2011-2012.Two years ago, in
the backdrop of fierce competition, your company had initiated a program called
‗Challenge 50 — go fast, high quality‘ across its production facilities.

The principal philosophy behind this program is to raise our productivity levels by 50
per cent in three years through Kaizen and continuous performance benchmarking.
2010-11 is the last year of this program. As shown in Chart E, this program has already
yielded impressive operational gains for the company. A critical parameter that
measures efficiency of production systems in the automobile industry is person-hours
spent in producing one vehicle. This has improved by around 54 per cent in the last three
years. In addition, there has been a considerable reduction in inventory holding period,
which dropped from 30 days in 2009-10 to 19 days in 2011-2012.

SUPPLIER MANAGEMENT
In an industry like automobiles, where large part of its components are outsourced,
vendor management becomes a critical operation. This has always been a key focus area
39
for your company. When MSIL started its operations in India, auto-component suppliers
were almost non-existent. Thus, one of the immediate goals was to develop and
establish a competent vendor base. This involved providing capital, transplanting
technology, and developing production processes for suppliers.

Today, this situation has changed. The Indian auto-component industry is increasingly
finding global recognition for its production capabilities and low costs. This has
considerably eased pressure on the vendor development front. Nevertheless, given the
severe competitive pressures over the last few years, vendor management has become
critical to the business. Some of the operational issues in this regard are discussed below.
220 at the end of 2009-10 this has helped us enhance supply chain efficiencies by lowering
the time and costs involved in dealing with more vendors. It has also provided our vendors with
the requisite volumes to realize economies of scale. Going forward, we plan to have technically
and financially capable set of vendors, whose standards match up to those of Maruti.

Improving quality and productivity of the vendors is a priority area for Maruti. While the
average standards have improved significantly over the years, there is still high variability.
Hence, improvement in this area is of considerable importance to MSIL.

Our company has been encouraging vendors to develop their own technology and R&D
capability. In the long run, Maruti expects its vendors to initiate and develop specialized
components on their own, while it focuses energies on its core competency of making better
cars.

R&D AND TECHNOLOGY

R&D activities of Maruti have the twin objectives of reducing product costs by
developing capabilities of local vendors and becoming a regional R&D hub for all
Suzuki operations. The company has adopted a ‗focused model cost reduction‘ technique.
Maruti has been continuously engaging in Value Analysis/Value Engineering (VA/VE)
activities across its operations. This initiative has gathered greater momentum this year
with the introduction of ‗Junkai‘ (or ‗Focus‘) visits by our engineers to our vendors‘
production facilities. Junkai visits facilitate development of fresh VA/VE ideas for cost
reduction and reduce the cycle time for idea evaluation.
In addition, Maruti has started conducting cost workshops with vendors supplying high
40
cost parts. In these workshops, current cost structures of vendors are analyzed in detail
and specific cost reduction targets suggested. To help vendors achieve these targets, a
team of engineers from Maruti and Suzuki visit their production facilities and develop
an action plan to meet these targets. The assistance of vendors‘ collaborators, wherever
applicable, is taken to accelerate implementation.

The action plan often includes VA ideas, localization of inner parts, and reduction in
cost of bought-out parts, yield improvement and process cost reductions. In the year
under review, 33 such visits were made.

In its early days, the Maruti R&D Centre was primarily involved in providing technical
assistance to local component manufacturers. Over the years, this Centre has developed
capabilities for face-lifts and body changes of current models. These include styling,
clay modeling, computer-aided design, prototype making and it is in house, resulting
in significant reduction in the investment required for these modifications.
Evaluation, and stamps / dies designing. All modifications done on the new Zen model
introduced by the company in 2010-11 were carried out in-house by the R&D team. The
dies for the new body panels were developed in- house die-shop for the first time. All
the changes required in the existing production facilities were also developed

QUALITY
Maruti has raised the bar for quality checks by adopting the ‗Global Customer Audit
(GCA)‘ mechanism. The GCA methodology places a great deal of emphasis on
delivering products, which meet the quality requirements of our customers. In this
process, a select number of cars are picked at random every day and taken through
rigorous tests.

This includes examining the vehicle in ‗static condition‘ and then in ‗dynamic
condition‘ by test driving it under varied road conditions to check all functional parts.
The total cycle time for GCA is 95 minutes per vehicle. Based on the GCA feedback,
requisite remedial measures are undertaken to ensure that defects are not carried in
vehicles, which are under production.

In the year under review, MSIL introduced the concept of ‗Quality Gates‘ across its
manufacturing processes. These ‗Quality Gates‘ have been positioned at 110 key
locations throughout the manufacturing process, and provide real-time feedback for
continuous process improvement by following the concept of ―plan-do-check-act‖.
MSIL‘s press shop and related functions received the TS 16949 quality certification in
41
2008-09. While we are proud of this achievement, we believe it is imperative that our
vendors share these high quality standards too. To this end, MSIL is actively involved
in assisting its suppliers to improve their quality practices to TS 16949.

We are pleased to report that our initiatives on the quality front have yielded gains:
MSIL was ranked No. 1 in the prestigious JD Power Customer Satisfaction Survey,

2008. This No.1 rank is for fourth time in a row — which is a world record for any
automobile leader in a country.

In 2008, Maruti models topped ‗Initial Quality Study‘ conduct ed in India by JD
Power Asia Pacific. In the highly competitive A2 segment, Wagon R was rated best in
overall quality rating, followed by the Zen; while in A3 segment, Esteem achieved top
ranking in 2012.

In 2011-12, NFO, an international survey agency, ranked Maruti Wagon R as no.1 in the
‗Total Customer Satisfaction‘ for Premium Compact segment.

HUMAN RESOURCES
Maruti‘s most valuable asset has always been, and will continue to be, its people.The
successes and accomplishments of the company over the years have been entirely due to
the motivation, dedication and commitment of its employees.

It has been a constant endeavor of the management to share with its workforce the
opportunities and challenges faced in its business operations. This initiative was
given a major thrust with organizing a training program for the union working
committee members so that the message reached the workers. Through this training
program, management shared its perception of the company‘s future and familiarized
the union members with the competitive pressures faced by the company.
Subsequently, a one-day training program, ‗Sankalp ‘, was launched to cover 100%
of our workers on the global business trends and the ever-increasing competition. The
objective was to highlight the need for a change in mindset and approach to business.
The Sankalp series will continue through the year to cover the entire workers
population.
42
Encompasses a flexible perquisite basket based compensation package. Going forward,
we believe that this agreement would provide us the confidence and strength to keep
our costs competitive and bring in greater operational resilience.

Developing human resource capabilities across all levels and functional areas is integral
to the company‘s human resource philosophy. As a part of this, (MSIL) sends its workers,
supervisors and engineers to Suzuki factories in Japan for on-the-job training programs.
Varying from one month to two years, these programs are not only aimed at enhancing
technical skills but also inculcating the Japanese way of working and facilitating cross-
cultural exchange. The Company for all departmental heads organized management-
training programs focusing on leadership and change management.

Apart from this the Company also has a well-structured, one yearlong training-cum-
orientation program for new campus recruits.

In light of mounting competitive pressures, a priority area for Maruti is to rationalize

and redesign its labor needs to transform itself into a lean and competitive organization.
To this end, Maruti offered a Voluntary Retirement Scheme (VRS) to its employees in
the year under review. This offer was accepted by 1,251 employees, and followed an
earlier VRS offer made in 2005-06, which was accepted by 1,050 employees.

As on 31 March 2011, MSIL has 3,334 employees. Industrial relations remained

cordial throughout the year and not a single day‘s work was lost due to strikes or
disputes. During 2011-12, a five-year wage settlement agreement was signed by
MSIL with its workers‘ union. Apart from bringing in the concept of cost to company
in the remuneration scheme for workers, this agreement.
43
INFORMATION TECHNOLOGY
Since its inception 20 years ago, Maruti Udyog has made concerted efforts to leverage
innovative and cutting-edge Information Technology (IT) tools to enhance operational
efficiencies. The IT initiative of the company started in 1983 with the implementation of a
booking system for its vehicles. With growing business complexities, IT tools have now
found use across all areas of operation including marketing and sales, finance, plant and
production management, raw material and spare parts management.

As mentioned earlier Maruti has, the widest network of dealer comprises dealership
showrooms, workshops and authorized service stations spread across the country.
Currently transactions with these dealers are through a centralized ‗extranet‘, which allows
dealers to log in and transact business in an online mode. While this system has proved to
be effective, to further enhance operational efficiencies, the company is in the process of
launching a first-of-its-kind Dealer Management System (DMS).

This system — implemented in Application Service Providing (ASP) mode — will

provide real-time information on all transactions between dealers and the company. It
would bring in ‗downstream-visibility‘ into the distribution network, and standardize
service delivery at customer touch points.

The system is presently undergoing pilot testing, and is expected to be operational by

November 2011.

Maruti has also introduced a Vehicle Tracking System (VTS) at two of its plants. This acts
as an interface between business and shop-floor systems. It enhances shop-floor
efficiencies by providing accurate and timely instructions to the shop floor, along with a
feedback to the business systems. Going forward, this infrastructure should provide
additional strategic capability of introducing more products and variants on the same
production facilities. VTS along with existing Quality Gate System has considerably
enhanced our quality control systems and has given us an important competitive advantage
in today‘s scenario.

One of the key initiatives on the operations front has been the introduction of E-Nagare—
a system for material scheduling and ordering. This is one of the best practices inherited
from Suzuki, and has significantly smoothened our Just-In-Time (JIT) operations on the
shop-floor.

(MSIL) has also taken up e sourcing as one of the key focus areas for cost reduction and
improved procurement. The company has successfully used this to significantly reduce
costs of procurement, while bringing in greater transparency into the system.
44
Going forward, MSIL intends to increase procurement through e sourcing, and is in the
process of deploying a software solution, which is integrated with MUL‘s internal
applications.

Knowledge management is another area of focus for MSIL. To this end, an intranet portal
using Microsoft Share point software — one of the first six free sites of this product
developed by Microsoft before its launch worldwide — has been established, and is
finding increasing popularity among employees across all levels and functional areas
45
 CHAPTER -2

OBJECTIVES OF STUDY
46
 OBJECTIVES OF STUDY

The study has been under taken to analyze the marketing strategy of MARUTI SUZUKI
India ltd.
To gather information about the different marketing strategies used by MARUTI SUZUKI

in the different geographic region in India.

To know the different techniques used by MARUTI SUZUKI for maximum sale in
different cities in India.
To know the customers satisfaction about the safety and comfort provided by MARUTI

SUZUKI.

To provide suggestions, in improving the customer satisfaction and the company sales
and profitability
To know the customer satisfaction towards the after sales service offers by
MARUTI

SUZUKI so that more attraction of customers can occur.

47
 CHAPTER -3

RESEARCH

METHODOLOGY
48
 RESEARCH METHODOLOGY

A research process consists of stages or steps that guide the project from its conception through
the final analysis, recommendations and ultimate actions. The research process provides a
systematic, planned approach to the research project and ensures that all aspects of the research
project are consistent with each other. Research studies evolve through a series of steps, each
representing the answer to a key question.

RESEARCH DESIGN

I propose to first conduct an intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which
certain issues shall be selected, which I feel remain unanswered or liable to change, this shall
be further taken up in the next stage of exploratory research. This stage shall help me to restrict
and select only the important question and issue, which inhabit growth and segmentation in the
industry.
The various tasks that I have undertaken in the research design process are:

q Defining the information need

q Design the exploratory, descriptive and causal research.

49
RESEARCH PROCESS

The research process has four distinct yet interrelated steps for research analysis it has a logical
and hierarchical ordering:
ü Determination of information research problem.

ü Development of appropriate research design.

ü Execution of research design.

ü Communication of results.

Each step is viewed as a separate process that includes a combination of task, step and specific
procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal
and ongoing.

EXPLORATORY RESEARCH

The method I used for exploratory research was

q Primary Data

q Secondary data

PRIMARY DATA
New data gathered to help solve the problem at hand. As compared to secondary data which is
previously gathered data. An example is information gathered by a questionnaire. Qualitative
or quantitative data that are newly collected in the course of research, Consists of original
information that comes from people and includes information gathered from surveys, focus
groups, independent observations and test results. Data gathered by the researcher in the act of
conducting research. This is contrasted to secondary data, which entails the use of data gathered

50
by someone other than the researcher information that is obtained directly from first-hand
sources by means of surveys, observation or experimentation.
Primary data is collected by getting questionnaire filled by the respondents.

SECONDARY DATA

Information that already exists somewhere, having been collected for another purpose. Sources
include census reports, trade publications, and subscription services. There are two types of
secondary data: internal and external secondary data. Information compiled inside or outside
the organization for some purpose other than the current investigation Researching
information, which has already been published? Market information compiled for purposes
other than the current research effort; it can be internal data, such as existing sales-tracking
information, or it can be research conducted by someone else, such as a market research
company or the U.S. government.

Secondary source of data used consists of books and websites

My proposal is to first conduct an intensive secondary research to understand the full impact
and implication of the industry, to review and critique the industry norms and reports, on which
certain issues shall be selected, which I feel remain unanswered or liable to change, this shall
be further taken up in the next stage of exploratory research.
51
DESCRIPTIVE RESEARCH

STEPS in the descriptive research:

Statement of the problem

ü Identification of information needed to solve the problem

ü Selection or development of instruments for gathering the information
ü Identification of target population and determination of sampling Plan.
ü Design of procedure for information collection
ü Collection of information
ü Analysis of information
ü Generalizations and/or predictions

APPLIED STATISTICAL TOOLS

Graph and Pie chart are used as statistical tools for hypothesis, for interpretation and for
recommendation.
52
 DATA COLLECTION

Data collection took place with the help of filling of questionnaires. The questionnaire method
has come to the more widely used and economical means of data collection. The common
factor in all varieties of the questionnaire method is this reliance on verbal responses to
questions, written or oral. I found it essential to make sure the questionnaire was easy to read
and understand to all spectrums of people in the sample. It was also important as researcher to
respect the samples time and energy hence the questionnaire was designed in such a way, that
its administration would not exceed 4-5 mins. These questionnaires were personally
administered.

The firsthand information was collected by making the people fill the questionnaires. The
primary data collected by directly interacting with the people. The respondents were contacted
at shopping malls, markets, places that were near to showrooms of the consumer durable
products etc. The data was collected by interacting with 100 respondents who filled the
questionnaires and gave me the required necessary information. The respondents consisted of
homemakers, students, businesspersons, professionals etc. the required information was
collected by directly interacting with these respondents.

DETERMINATION THE SAMPLE PLAN AND SAMPLE SIZE

TARGET POPULATION

It is a description of the characteristics of that group of people from whom a course is intended.
It attempts to describe them as they are rather than as the describer would like them to be. Also
called the audience the audience to be served by our project includes key demographic
information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program.
53
This will be either all or a subset of potential users, such as adolescents, women, rural residents,
or the residents of a particular geographic area. Topic areas: Governance, Accountability and
Evaluation, Operations Management and Leadership. A population to be reached through some
action or intervention; may refer to groups with specific demographic or geographic
characteristics. The group of people you are trying to reach with a particular strategy or activity.
The target population is the population I want to make conclude an ideal situation; the sampling
frames to matches the target population. A specific resource set that is the object or target of
investigation. The audience defined in age, background, ability, and preferences, among other
things, for which a given course of instruction is intended.
I have selected the sample through Simple random Sampling technique.

SAMPLE SIZE:

This involves figuring out how many samples one need.

The numbers of samples you need are affected by the following factors:

 Project goals
 How you plan to analyze your data
 How variable your data are or are likely to be
 How precisely you want to measure change or trend The
 number of years over which you want to detect a trend
 How many times a year you will sample each point How
 much money and manpower you have

I have targeted 100 people in the age group above 21 years for the purpose of the research. The
target population influences the sample size. The target population represents the regions. The
people were from different professional backgrounds.

The details of our sample are explained in chapter named primary research where the divisions
are explained in demographics section.
54
ERRORS IN THE STUDY

Interviewer error

There is interviewer bias in the questionnaire method. Open-ended questions can be biased by
the interviewer‘s views or probing, as interviewers are guiding the respondent while the
questionnaire is being filled out. The attitudes the interviewer revels to the respondent during
the interview can greatly affect their level of interest and willingness to answer openly. As
interviewers, probing and clarifications maximize respondent understanding and yield
complete answers, these advantages are offset by the problems of prestige seeking, social
desirability and courtesy biases.

uestionnaire error

The questionnaire designing has to careful so that only required data is concisely reveled and
there is no redundant data generated. The questions have to be worded carefully so that the
questions are not loaded and does not lead to a bias in the respondents mind

Respondent error

The respondents selected to be interviewed were not always available and willing to cooperate
also in most cases the respondents were found to not have the knowledge, opinion, attitudes or
facts required additionally uninformed response errors and response styles also led to survey
error.

Sampling error

We have taken the sample size of 100, which cannot determine the buying behavior of the total
population. The sample has been drawn from only local Capital Region.
55
REASEARCH DESIGN
Research design is a conceptual structure within which research was conducted. A research
design is the detailed blueprint used to guide a research study towards its objective. It is a series
of advanced decision taken together comprising a master plan or a model for conducting the
research in consonance with the research objectives. Research design is needed because it
facilitates the smooth sailing of the various research operations, thereby making research as
efficient as possible yielding maximum information with the minimum effort, time and money.

HYPOTHESIS
In statistics, a null hypothesis
) is a concept, which arises in the context of statistical
(H0
hypothesis testing. A common convention is to use the symbol H0
to denote the null hypothesis.

The null hypothesis describes in a formal way some aspect of the statistical behavior of a set
of data and this description is treated as valid unless the actual behavior of the data contradicts
this assumption. Statistical hypothesis testing is used to make a decision about whether the data
does contradict the null hypothesis: this is also called significance testing. A null hypothesis is
never proven by such methods, as the absence of evidence against the null hypothesis does not
establish the truth of the null hypothesis. Failing to reject H0
says that there is no strong reason

to change any decisions or procedures predicated on its truth, but it also allows for the
possibility of obtaining further data and then re-examining the same hypothesis. The
alternative hypothesis (or maintained hypothesis or research hypothesis ) and the null
hypothesis are the two rival hypotheses whose likelihoods are compared by a statistical
hypothesis test Usually the alternative hypothesis is the possibility that an observed effect is
genuine and the null hypothesis is the rival possibility that it has resulted from chance.

The classical approach is to calculate the probability that the observed effect (or one more
extreme) will occur if the null hypothesis is true. If this value (sometimes called the "p-value")
is small then the result is called statistically significant and the null hypothesis is rejected in
favor of the alternative hypothesis. If not, then the null hypothesis is not rejected. Incorrectly
rejecting the null hypothesis is a Type I error; incorrectly failing to reject it is a Type II error.
56
 CHAPTER -4

DATA ANALYSIS
57
 DATA ANALYSIS

SURVEY OF POPULATION AND SAMPLE SIZE AND LIMITATIONS

1- The survey of population is limited to the respondents are selected from in and around
DELHI NCR
2- The sample unit was also 100 respondents.

Table No. 1
Satisfaction towards maruti Suzuki

Satisfied Dissatisfied

78% 22%

Figure:1

Satisfied Toward Maruti Suzuki(%)

0

22%

78% Satisfied

Interpretation 1:
The sample drawn on probability basis shows that 78% of the customers were satisfied with
maruti Suzuki (ALTO&SWIFT) variant and only 22% were not satisfied with maruti Suzuki
(ALTO&SWIFT).

Observation:
Most of the respondents approached were satisfied with Maruti Suzuki (ALTO&SWIFT).

58
Table No: 2 Factors affecting customer satisfaction towards Maruti Suzuki.
Factor No. of Respondent Percentage
Features 18 12%
Low Maintenance 51 34%
Comfort 27 18%
Style 24 16%
After Sales Service 30 20%
Source: Questionnaire
Figure: 2

Factor Affecting Customer Satisfaction

0 12%

Features
34%
16% Style
Comfort
After sales service
18% Low maintenance cost
20%

Interpretation 2:
The sample drawn on the probability basis clearly shows that 34% (51respondents) are the
opinion that low maintenance is the satisfaction factor maruti 800 and 20 %( 30 respondents)
of them who view After Sales Service as a vital factor for customer satisfaction. Followed by
Comfort which corresponds to 18 %(27 respondents), Style with 16 %(24respondents) and only
12 %(18 respondents) of them view that feature of maruti 800 as satisfaction factor.

Observation:
Majority of the respondent are of the idea that low maintenance of the top most feature
contributing to customer satisfaction followed by after sales services comfort style and features.
As such, Maruti Suzuki should focus on the aspects, which will enhance the customer
satisfaction and thus the market share.
59
Table No: 3 Customer opinions towards fuel consumption.

Factor Percentage
Extremely Satisfied 27%
Satisfied 49%
Neutral 17%
Dissatisfied 7%
Total 100%

Source: Questionnaire
Figure: 3

Consumer Opinions toward

Fuel
Consumption

17 % 27 More Satisfied

% % Satisfied
Not Satisfied &
DissatisfiedDissatisfied
49
%

Interpretation 3:
100% of the respondents 49% of the respondents approached were satisfied with the fuel
consumption of the maruti alto. Followed by 27% was extremely satisfied, 17% are neutral and
rest of the 7% is more dissatisfied with fuel consumption of maruti 800.
Observation:
As majority of the respondents are satisfied with the fuel consumption of maruti alto, the
company should maintain the same standard and it is suggested to come up with suitable
measure to reduce the negative opinion among the consumer who are of the opinion that the
fuel consumption is a dissatisfying factor.
60
Table No: 4 Customer opinions toward Safety and Comfort.

Factor Percentage

Extremely Satisfied 23%

Satisfied 47%

Neither Satisfied & Dissatisfied 20%

Dissatisfied 10%

Total 100%

Source: Questionnaire
Figure: 4

Customer Opinions
toward
Safety and Comfort
10%
23%
20%
Extremely
Satisfied
Satisfie

47%
d

Interpretation 4: 100% of the respondents 47% of the respondents approached were

satisfied with the safety and comfort feature of the maruti swift. Followed by 23% was
extremely satisfied, 20% are neutral and rest of the 10% was dissatisfied with safety and
comfort feature of maruti swift.

Observation:
As majority of the respondents are satisfied with the safety and comfort feature of maruti swift,
the company should maintain the same standard and it is suggested to come up with suitable
measure to reduce the negative opinion among the consumer who are of the opinion that the
fuel consumption is a dissatisfying factor.

61
Table No: 5 Customer opinions toward Design.

Factor Percentage

Extremely Satisfied 20%

Satisfied 40%

Neutral 27%

Dissatisfied 13%

Total 100%

Source: Questionnaire
Figure: 5

Customer Opinions Toward

Design
13%
20%

Extremely
27% Satisfied

Satisfie
40% d

Interpretation 5:
100% of respondents 40% of the respondents approached were satisfied with the Design of
the maruti alto. 20% were more satisfied, 27% of them neutral and 13% are dissatisfied with
the design of the maruti alto.
Observation:
As majority of the respondents are satisfied with the design of maruti alto, the company should
maintain the same standard and it is suggested to come up with suitable measure to reduce the
negative opinion among the consumer who are of the opinion that the fuel consumption is a
dissatisfying factor.
62
Table No: 6 Customer opinions toward space availability in Maruti Alto.

Factor Percentage

More Satisfied 27%

Satisfied 53%

Neither Satisfied & Dissatisfied 17%

Dissatisfied 3%

Total 100%

Figure: 6

Customer Opinions Toward Space

Availability

3
17 %
27
Extremely
%
% Satisfied

Satisfied
Neutral
53
%

Interpretation 6:

The sample drawn on the probability basis shows that out of 100% of respondents 53% of the
respondents approached were satisfied with the space availability of the Alto. 27% were more
satisfied, 17% of neither satisfied and dissatisfied and 3% are dissatisfied with the space
availability of the Alto.
Observation:
As 80% of the respondents are happy with the space availability of the Maruti Alto vehicle, it
can be conducted that the company has under taken proper R&D in this aspect. The 20% of the
respondents who have answered negatively may be comparing with the vehicle in the same
category launched very recently.

63
Table No: 7 Customer satisfactions toward Maintenance of Maruti SWIFT.

Factor Percentage

Extremely Satisfied 23%

Satisfied 51%

Neutral 21%

Dissatisfied 5%

Total 100%

Source: Questionnaire
Figure:7

Customer Opinions Toward Maintenance

5%
23%
21%

Extremely Satisfied
Satisfied
Neutral

51% Dissatisfied

Interpretation 7:
The sample drawn on the probability basis shows that out of 100% of respondents 51% of the
respondents approached were satisfied with the maintenance of the SWIFT. 23% were
extremely satisfied, 21% of neutral and 5% are dissatisfied with the maintenance.
Observation:
Though majority of the customer are satisfied that the maintenance cost of maruti swift is less,
around 20% are not satisfied which may be because of comparison of SWIFT with the newly
launched competing brands coming with even lower maintenance cost.
64
Table No: 8 Customer awareness about power steering.

Option No. Of Respondent No. Of Respondents (%)

Aware 120 80%

Unaware 30 20%

Total 150 100%

Source: Questionnaire
Figure: 8

Customer Awareness About Power

Steering
0 0
20%

80% Aware
Unaware

Interpretation 8:

Out of 100% of respondents, 80% of the respondents approached were aware of the power
steering present in some variant of Alto and 20% were not aware of the power steering present
in some variant of Alto.

Observation:
Most of the respondents approached were aware of power steering system introduced in some
variants of Alto.

65
Table No: 9 Customer perceptions about ALTO

Very Good Good Average Bad Very Bad

20% 47% 21% 12% -

Source: Questionnaire
Figure: 9

Customer Perception About ALTO

12%
20%
21%
Very Good
Good
47%
Average
Bad

Interpretation 9:
The sample drawn on the probability basis shows that out of 100% of respondents 47% of the
respondents gave Good response to Alto. 20% gave Very Good response, 21% gave Average
response and 12% gave bad response to Alto.

Observation:
As 67% of the respondents are satisfied that they are happy with Alto, it satisfies that the
customer satisfaction levels are very high. If the company were to identify the pitfalls in their
product and undertake remedial measure, thus it will lead to more good word of mouth
publicity.

66
CHAPTER-5

FINDING
67
 FINDINGS

Based on the data gathered by administrating schedules to customers the following

observations are made.

1- Maruti Suzuki has excellent percentage of customer satisfaction according to the data shown
in table 1 of the data analysis and Interpretation topic.

2- Most of the people are satisfied with its low maintenance cost and after sales service provided
by Maruti Suzuki.
3- Based on the fuel consumption, most of the people are satisfied with it.

4- Based on Safety and Comfort, Design, Space, Maintenance most of the people are satisfied
with it.
5- Large numbers of Maruti user are aware of its power steering.

6- If we took the satisfaction level of people toward Maruti, it is good.

7-Its features and style satisfy most of the people.
68
 CHAPTER -6

CONCLUSION

AND

RECOMMENDATION
69
 CONCLUSION

1- Maruti Suzuki has a very good market share in different states of India.

2- The Company is offering good services, which is reflected on the satisfaction of the
customer.
3- Majority of the customer are satisfied with the design of the vehicle.
70
 RECOMMENDATION

1- Maruti Suzuki Company has to implement good customer relationship management strategy
that enhances customer satisfaction level.

2- The company can for the undertake R&D to improve the existing feature which field help
increase in the customer satisfaction.
3- The Company should promote about the entire feature offered by it.

4- As majority of the customer give opinion that they are satisfied is the factor, services and
design of the product of the company should take not only maintain the existing standard but
also enhance them.
71
 Chapter -7

LIMITATIONS
72
 LIMITATIONS

1- Measurement of customer satisfaction is complex subjects, which uses non-objectives

method, which is not reliable.

2- However, MARUTI SUZUKI Automobile showrooms are located in other places i.e. locally
and even in the neighboring states.
73
 Chapter -8

QUESTIONNAIRE
74
 QUESTIONNAIRE

Customer profile:

a) Name

b) Occupation

c) Age

d) Income

e) Address:-

1) Are you a satisfied with Maruti Suzuki?

a . Yes

b . No

2) If “Yes” Which factor you consider is satisfies you most?

a . Feature

b . Low Maintenance

c . Looks

d . After Sales Service

75
3) Are you satisfy with the fuel consumption of Maruti products?

a. Extremely Satisfied

b. Satisfied

c . Neutral

d . Dissatisfied

4) Are you satisfied with the Safety and Comfort of Maruti products?

a. Extremely Satisfied

b. Satisfied

c. Neutral

d. Dissatisfied

5) Are you satisfied with the Design?

a. Extremely Satisfied

b. Satisfied

c. Neutral

d. Dissatisfied

76
6) Are you satisfied with space available in Maruti products?

a. Extremely Satisfied

b. Satisfied

c. Nor Satisfied & Dissatisfied

d. Dissatisfied

7) Are you satisfied with Maintenance cost?

a. Extremely Satisfied

b. Satisfied

c. Neutral

d. Dissatisfied

8) Are you aware about power steering present in Maruti products?

a- Yes
b- No

77
9) Your general perception about MARUTI.

a. Very Good

b. Good

c. Average

d. Bad

10) Do you want to give any suggestion about any change in the Maruti ?
78
 Chapter -9

BIBLIOGRAPHY
79
 BIBLIOGRAPHY

th

Philip Kotler 12 ndedition Marketing Management

Kanishka Bedi 2 edition Production and Operation Management

www.marutisuzuki.co.in
www.automobile.com
www.business-india.com
www.maruti.com
80