marketing strategies in maruti suzuki

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PROJECT REPORT

ON

MARKETING STRATEGIES

OF

AA RREEPPOORRTT SSUUBBMMIITTTTEEDD TTOO MMAAHHAAMMAAYYAA TTEECCHHNNIICCAALL

UUNNIIVVEESSIITTYY,,NNOOIIDDAA

IN PARTIAL FULFILLMENT FOR THE AWARD 0F DEGREE

OFMASTER OF BUSINESS ADMINISTRATION

SESSION: (2012-2013)

SUBMITTED TO: SUBMITTED BY:

MR.SATYANARAYAN MOHD.ARMAN

FACULTY GUIDE MBA- III SEM

SIMT GR. NOIDA Roll.No.-1169270031

SKYLINE INSTITUTE OF MANAGEMENT &TECHNOLOGY (692)

PLOT NO_3 , KNOELEDGE PARK_II,GREATER NOIDA


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GAUTAM BUDDHA NAGAR -201306 (UP)

Skyline Institute of Management &

TechnologyAffiliated to Mahamaya Technical University, Noida

Approved by AICTE, Ministry of HRD, Govt. of India.Plot No 3, Knowledge Park II, Greater Noida, Gautam Buddha Nagar 201306 (NCR UP). Ph: 0120 2320206;

Fax: 2320207

Department of Management Studies

TO Whomsoever IT MAY CONCERN

T h i s i s t o c e r t i f y t h a t t h e S u m m e r T r a i n i n gR e s e a r c h P r o j e c t R e p o r t e n t i t l e d M Y M A R K E T I N G

S T R A T E G Y O F M A R U T I S U Z U K I h a s b e e n

p r e p a r e d b y M r . M O H D . A R M A N b e a r i n g U n i v .

R o l l N o : < 1 1 6 9 2 7 0 0 3 1 > a n d e n r o l l e d a s M B A I I I

S e m e s t e r s t u d e n t a t S k y l i n e I n s t i t u t e o f

M a n a g e m e n t a n d T e c h n o l o g y , G r e a t e r N o i d a .

T h i s r e p o r t e m b o d i e s t h e o r i g i n a l w o r k d o n e

b y t h e s t u d e n t a n d p a r t i a l l y f u l f i l l s t h e

r e q u i r e m e n t o f t h e M a h a m a y a T e c h n i c a l

U n i v e r s i t y t o a w a r d t h e d e g r e e o f M a s t e r o f

B u s i n e s s A d m i n i s t r a t i o n

H e a d o f t h e

I n s t i t u t i o n


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Skyline Institute of Management & TechnologyAffiliated to Mahamaya Technical University, Noida

Approved by AICTE, Ministry of HRD, Govt. of India.Plot No 3, Knowledge Park II, Greater Noida, Gautam Buddha Nagar 201306 (NCR UP). Ph: 0120 2320206;

Fax: 2320207

Department of Management Studies

Student Declaration

I, MOHD.ARMAN bearing Univ. Roll No: of

Mahamaya Technical University, Noida and enrolled as MBA III

Semester student at Skyline Institute of Management and

Technology, Greater Noida, solemnly declare that I have

completed my Summer Training in KARLO AUTOMOBILES

PATNA (BIHAR) where I received the training for Eight Week. I

am submitting the Summer Training Project Report of the

training entitled MY MARKETING STRATEGY OF MARUTI

SUZUKI.

This report embodies the original work done by me and

partially fulfills the requirement of the Mahamaya Technical

University to award the degree of Master of Business

Administration

SIGNATURE

MOHD.ARMAN

MBA-III SEM.

ROLL NO.1169270031

SESSION (2012-2013)


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Acknowledgement to the company

The opportunity to get practical training in a reputed organization fulfills

the felt gap between the theory and practical. In the case of a student of

MARKETING this aspect assumes an additional dimension.

I hereby acknowledge KARLO AUTOMOBILES (P) LTD. for

providing the constant guidance for encouragement which helped me a

lot to be successful in my efforts. This formal acknowledgement will

hardly be sufficient to express my deep sense of gratitude to all of them.

It was a memorable experience while doing my project MARUTI SUZUKI,

Patna.

I am highly indebted and thankful to Mr.VIVEKMISHRA(MARKRTING-EXECUTIVE) for her guidance andencouragement, without which the satisfactory completion of this

project would not had been possible. He is a constant source ofinspiration to me, showing all the patience and abundantencouragement throughout the project duration.

Acknowledgement couldnt end without expressing my gratitude

towards Mr. VIVEK MISHRA who was instrumental in timely completion

of the project.

Words fall short in expressing my sincere regards towards the

members of (MARKRTING-EXECUTIVE) Mr. VIVEK MISHRA for their

expert advice and invaluable suggestions.

Lastly thanks to teacher and colleagues who directly or indirectly

helped me in procurement of my goal.

In all MARUTI SUZUKI provided a wonderful simulating

environment for this very educative and instructive training.

(MOHD.ARMAN)


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Acknowledgement to the Faculty

Of MBA , Skyline Institute of Management&

Technology

It is high privilege for me to express my deep sense of gratitude to all

those faculty members who helped me in the completion of the project,

especially my MBA Director Dr. SHAKTI PRAKASH who was always

there at hour of need.

My special thanks to Ms. SATYANARAYAN(FACULTY OF MARKETING)

for helping me in the completion of project work and its report

submission.

Last but not the least my special thanks to the faculty ofSkylineInstitute

of Management& Technology for their kind cooperation and providing

me with all the necessary documents needed and guidance during the

time period of project completion.

(MOHD.ARMAN)


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PREFACE

In the field of marketing it was an excellent experience that what we use to

study during our MBA life, get chance to use it in market.In practicle life it was little

bit hard task during the implementation of the fundas of marketing.As my focus was

on the marketing strategy of the company which it uses, meanwhile I also learn the

behavior of consumer and their perception that how they react in market.People reacts

differently at different situations thats I noticed here in reality in the terms of

marketing aspects.

4Ps of marketing is being used by the organization,the different strategy

formulation according to change of the market situation,different human resources

utilization techniques,updation of the account,using relevant data or updated data in

research methodology,the challengive task of good production in less time while

controlling the quality and delivering the product all these fundamental approaches

are being utilized in well and planned manner.

Beside these all things the different science and art tools used in the

formulation of the report.The challenge 50 programme organized by Shinichi

Takeuchi,former head of Suzukis Kosai facility in Japan,sent to one of the Suzukis

most profitable subsidiaries,Maruti Udyog,as Director(production) in oct 2001.In may

2002,plan has been made to aim at increasing the productivity at Gurgaon plant by

50% and reducing cost by 30%.It was a milestone achieved to much extend by

breaking all previous plan and prove to be much competitive at that year for the rivals.

The Padagogy use to implement by the organization helps in different ways

for the company to capture a heavy market share in the Indian automobile industries.


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CONTENT

S. no. TOPIC PAGE

1 Introduction

2 Theoretical Framework

3 Objective of case study

4 Research Methodology

5 Company Profile

6 Observation and Analysis

7 Findings

8 Limitation

9 Conclusion

10 Suggestion and Recommendation

11 Appendix

12 Questionnaire

13 Bibliography

14 References


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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.


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THEORETICAL FRAMEWORK

The Revolution

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 till 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.


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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

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. It is this underlying philosophy that

has molded our workforce into a team with common goals and objectives. Our

Employee-Management relationship is therefore characterized by: Participative

Management, Team work, 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 or quality systems or even R&D, the flavor is


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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

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.


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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 world wide 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


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competitors', who gained from this. Two, investments that should have been done

over five years were done in 24 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's 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'd

bounce back. Our market share went down to 61%, but we've now stabilized around

58-59%. We took off a bit late, had lot of catching up to do, which we've 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're 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'm saying is that there's 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's required. It should also have good

performance, no compromise on quality, fuel-efficient and low on maintenance. The

800 fits the bill.


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The Alto can't replace the 800 today because the volume and price at which 800 is

selling, we can't sell Alto at that. Yes, once we get costs under control, we'll position

the Alto between segments A and B. We'd 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's skepticism, then some people buy and share their experience.

About 60-70% of our sales take place by referral. I'm not saying marketing is

unimportant, but there's nothing more effective than a present owner giving a good

chit to prospective buyer. We're 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've 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


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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's not manufactured here. We'll 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.


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ORGANISATION STRUCTURE AT KARLO AOTUM. (P) LTD.

Managing Director

Mr. SANJEEV KUMAR

CEO

Mr. SHIVESH NARAYAN

Human Resourse Manager

Mr. RAM KRISHNA SHANKAR

Manager

salesSpares

Customer

Care

Manager

Workshop

Accounting

Manager

True

Value


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Team Leader-1

Mr. GAURAV RANJAN

Team Leader-2

Mr. AJAY PRASHAD

WORKSHOP MANAGER

Mr.HIMANSHU & Mr.PRAKASH KR. JHA

Sales executive (se)

[5 sales executive under 1 team leader]


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Mechanic

Jr.Mechanic

Electrician

Denter/Painter

Service

Advisor/

Supervisor

Pre-delivery

Inspection

(PDI)

Accidental

Unit

Customer

Manager

Mr.K.C.

GUPTA

Back Office


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Evaluaters

Executive

Sales

Executive

Back Office

Staff

Sr.Manager A/c

Mr. SHUSHIL KUMAR

TRUE VALUE MANAGER

Mr. SURAJ KANT KUMAR

A/C Department


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A/C Manager

Executive A/C Manager

Duties and Responsibilities of the Staff in KA(P)L.

The duties and responsibilities of the staff of the dealer RKBK Automobiles ltd is

To sale maximum vehcles .

To maintain all the a/c with honesty.

To create healthy environment in the organisation.

To co-oporate with each other in the organisation.

To maintain good relation with the customers.

To be in the office at right time.

To provide all the facilities and services to the customers which are given by

Maruti Company to their customer.

To complete the target of selling cars of dealers.


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MARUTI OMNI

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:

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


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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 hamperall can fit in snugly.


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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

RELIABILITY

Here's 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.


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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's not just comfort; Wagon R also has a 1061cc MPFI low

friction engine


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SPACE

Nothing cramps the style of the smarter race. Thats 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 safetyfeatures:

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.


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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 4 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
http://versa.marutiudyog.com/safety/column.asphttp://versa.marutiudyog.com/http://versa.marutiudyog.com/safety/column.asp


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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 2nd 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 PUF and aluminium 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 2nd row (DX, DX2) and last row seats.


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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 thats 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.
http://gypsy.marutiudyog.com/


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1300 cc petrol enginelighter than a diesel engine, resulting in a higher power

to weight ratio. This ensures better control, more power and greater

responsiveness.

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.

CKS

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 (hard top) and 985 kg (soft

top). This is a major advantage on sandy or muddy tracts a heavier vehicle will

get stuck but the Gypsy keeps


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SWIFT

The time has come for a new kind of compact car, one that's 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.


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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 latests safety features like Dual Airbags, ABS

with EDB, collapsible steering column and an i-CATS anti-theft facility. It's true to

say that many of these features are being offered for the first time in this segment in

contemporary car market in India.
http://www.vicky.in/straightfrmtheheart/wp-content/uploads/2007/09/maruti-suzuki-swift-sedan.jpg


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Variants 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 colours:

Arctic White

Silky Silver

Clear Beige

Midnight Black

Bright Red

Azure Gray

Sovereign Blue

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:


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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.

A high mounted stop lamp and a rear bumper-integrated fog lamp give clear signals to

following traffic, thus avoiding accidents.

Comfort & Convenience


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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 drivers 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 don't drive but enjoy the ride.


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MARUTI SX4

Maruti Suzuki SX4

Maruti Suzuki India Ltd.. is out with it's 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 it's 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.


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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


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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.


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MARUTI RITZ

Maruti Ritz is perhaps the most awaited and hyped car from Maruti Suzuki.

The car is positioned in the premium A2 market segment, which includes its

compact offerings such as Alto K10, WagonR, 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 metres, 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


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MARUTI ASTAR

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)


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Within these categories, MSILs presence in order of prominence and in volume term

is in passenger cars, MPVs or the C segment and UVs or the B segment. Chart B gives the

relative share of each segment in Marutis passengervehicles 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

1: Mini up to 3,400mm.

A2: Compac 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: Luxury5,001 mm and above. MUL has presence in three of these categories namely

A1, A2 and A3. Chart C plots MULs sales volumes in these three categories for 2007-08

and 2008-09.


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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 is undertaking many efforts in this direction.

A2 CATEGORY: Maruti has three models in this categoryZen, 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, MSILs sales volume grew by 46 per cent. Consequently, the

companys market share has increased from 40.3 per cent in 2007-08 to 47.7 per cent in

2008-09.

We believe that given Indias 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 oftwo wheelers on Indias 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.


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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 wa s laun ched 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 59per

cent.

A3 CATEGORY: This is a highly fragmented category with several models, and no

single player has major leadership position. MSILs 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

categorys growth of 50.8per 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.


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MULTI-PURPOSE VEHICLES (MPVs)

In this segment, Marutis models include the Omni and the Versa. Here, Maruti is

the dominant player with nearly 100% market share. In 2011-12, the companys

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 Orientat ion

The growth in sales volumes is a consequence of Marutis continuous stress on

customer focus. Regular interface and feedback from customers is integral to the

companys 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 Powers survey on IQS.

Table 1 gives a snapshot of five top reasons why people buy Maruti cars as per the

JD Power survey.


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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

Marutis


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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 companys reputation has

become the leading factor determining the customers purchase decision in 2010.

Thus, Maruti has managed to build a strong brand image in the last four years.

MSILs technological capabilities are getting greater recognition as in 2011: good

technologybecame 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.


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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 cars

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 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.


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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 Marutis dealers 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 2010-11which is the highest ever in Marutis 17 years export history. It is also

the first year in which the company exported over 50,000 vehicles. It exported 51,175

units. Marutis 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.


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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 Marutis 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 carsthe 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.


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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 man-

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 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.


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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 realise 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 specialised

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


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fresh VA/VE ideas for cost reduction and also reduce the cycle time for idea

evaluation.

In addition, Maruti has started conducting cost workshops with vendors supplying

high 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 its 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


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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 everyday 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.

MSILs press shop and related functions received the TS 16949 quality certification in

2008-09. While we are proud of this achievement, we believe it is imperative that

these high quality standards be shared by our vendors 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:


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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 conducted 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 WagonR as no.1 in the

Total Customer Satisfaction for Premium Compact segment.

HUMAN RESOURCES

Marutis 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 workmen.

Through this training program, management shared its perception of the companys

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 workmen on the global business trends and the ever-increasing


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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 workmen population.

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 companys human resource philosophy. As apart 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. Management training programs focusing on

leadership and change management were organized by the Company for all

departmental heads.

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 manpower 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.


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

cordial throughout the year and not a single days 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.

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


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wouldbring 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 todays scenario.

One of the key initiatives on the operations front has been the introduction of E-

Nagarea 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.

Going forward, MSIL intends to increase procurement through e-sourcing, and is in the

process of deploying a software solution which is integrated with MULs internal

applications.


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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


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OBJECTIVES OF THE CASE

The study has been under taken to analyze the marketing stratetgy ofMARUTI SUZUKI in

PATNA(BIHAR) with a special reference to theKARLOAUTOMOBILES(P)LTD., the

other objectives are:

To gather information about marketing strategy ofMARUTI SUZUKI in the geographic

region of PATNA (BIHAR).

To know the different techniques used by MARUTI SUZUKI for maximum sale in the

city.

To know the customer 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.


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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 a 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 :


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Defining the information need

Design the exploratory, descriptive and causal research.

RESEARCH PROCESS

The research process has four distinct yet interrelated steps for research analysis It has a

logical and hierarchical ordering:

Determination of information research problem.

Development of appropriate research design.

Execution of research design.

Communication of results.


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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

Primary Data

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 by someone other than the researcher information that is obtained directly from

first-hand sources by means of surveys, observation or experimentation.


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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 a 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.


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DESCRIPTIVE RESEARCH

STEPS in the descriptive research:

Statement of the problem

Identification of information needed to solve the problem

Selection or development of instruments for gathering the information

Identification of target population and determination of sampling Plan.

Design of procedure for information collection

Collection of information

Analysis of information

Generalizations and/or predictions

APPLIED STATISTICAL TOOLS

Graph and Pie-chart are used as statistical tools for hypothesis ,for interpretation and

for recommendation.


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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 first hand 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 housewives, students, businessmen, professionals etc. the required information

was collected by directly interacting with these respondents.


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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. 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 trough Simple random Sampling

SAMPLE SIZE:

This involves figuring out how many samples one need.


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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 100people 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

PATNA 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.

ERRORS IN THE STUDY

Interviewer error

There is interviewer bias in the questionnaire method. Open-ended questions can be biased by

the interviewers 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


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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.

Questionnaire 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 co

operate 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.


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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 (H0) is a concept which arises in the context of statisticalhypothesis 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 testingis 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 (ormaintained hypothesis orresearch hypothesis) and thenull

hypothesisare the two rival hypotheses whoselikelihoodsare 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 calledstatistically significantand the null hypothesis is
http://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Statistical_hypothesis_testinghttp://en.wikipedia.org/wiki/Statistical_hypothesis_testinghttp://en.wikipedia.org/wiki/Statistical_hypothesis_testinghttp://en.wikipedia.org/wiki/Statistical_hypothesis_testinghttp://en.wikipedia.org/wiki/Statistical_hypothesis_testinghttp://en.wikipedia.org/wiki/Statistical_hypothesis_testinghttp://en.wikipedia.org/wiki/Null_hypothesishttp://en.wikipedia.org/wiki/Null_hypothesishttp://en.wikipedia.org/wiki/Null_hypothesishttp://en.wikipedia.org/wiki/Null_hypothesishttp://en.wikipedia.org/wiki/Likelihood_functionhttp://en.wikipedia.org/wiki/Likelihood_functionhttp://en.wikipedia.org/wiki/Likelihood_functionhttp://en.wikipedia.org/wiki/P-valuehttp://en.wikipedia.org/wiki/P-valuehttp://en.wikipedia.org/wiki/P-valuehttp://en.wikipedia.org/wiki/Statistically_significanthttp://en.wikipedia.org/wiki/Statistically_significanthttp://en.wikipedia.org/wiki/Statistically_significanthttp://en.wikipedia.org/wiki/Statistically_significanthttp://en.wikipedia.org/wiki/P-valuehttp://en.wikipedia.org/wiki/P-valuehttp://en.wikipedia.org/wiki/Likelihood_functionhttp://en.wikipedia.org/wiki/Null_hypothesishttp://en.wikipedia.org/wiki/Null_hypothesishttp://en.wikipedia.org/wiki/Statistical_hypothesis_testinghttp://en.wikipedia.org/wiki/Statistical_hypothesis_testinghttp://en.wikipedia.org/wiki/Statistical_hypothesis_testinghttp://en.wikipedia.org/wiki/Statistics


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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.
http://en.wikipedia.org/wiki/Type_I_and_type_II_errorshttp://en.wikipedia.org/wiki/Type_I_and_type_II_errorshttp://en.wikipedia.org/wiki/Type_I_and_type_II_errorshttp://en.wikipedia.org/wiki/Type_I_and_type_II_errors


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COMPANY PROFILE

In more ways than one, the year 2011-12 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 2009-10. 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 2010-11 to Rs.21.77 in 2007-08.

Third, the Government of India divested a majority of its shares through an initial public

offer(IPO) and made way for greater participation from youthe shareholdersin the fortunes

of Indias leading passengercar manufacturer.

In a nutshell, therefore, 2009-10 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 economyfrom 6 per cent GDP growth in 2010-11to 8.8 per

cent in 2011-12 has definitely assisted your company in increasing revenue. This is the


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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.

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

volumesand emphasizes this correlation. In 2011-12, 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 totally

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 1980s, 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 companys philosophy. This belief has held the company in

good stead during 2011-12 where the strategy of pushing volume growth resulted in

higher margins due to the positive effects of better capacity utilization. Improved


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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 2010-11, 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 2011-12 to 5.6 per cent in

2010-11.

Return on average capital employed (ROCE) increased from 9.9 per cent in 2007-08 to 22.3 per

cent in 2008-09.

Return on average net worth (RONW) increased from 5.2 per cent in 2007-08 to 16.5 per cent in

2008-09.

Earnings per share (EPS) increased from Rs.5.14 in 2007-08 to Rs.18.77 in 2008-09, while cash

EPS increased from Rs.17.79 in

2007-08 to Rs.38.39 in 2010-11.

MSIL also witnessed a key structural change during 2008-09. 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 tobecoming one of Indias

leading business organizations


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-which has also promoted overall industrial growth through its linkages with vendors. GOI

played a key role in supporting Marutis growth. In 2010-11, GOI divested a bulk of its shares

in the company to the public.

GOI offered 72,243,300 equity shares, which is 25per cent of the companys 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 MSILs 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 2008-09, 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.


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marketing strategies in maruti suzuki

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