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A

PROJECT REPORT

ON

“STUDY OF MARKETING STRATEGIESOF

MARUTI UDYOG LIMITED”

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISRATION

OF

Submitt ! B"

SHIKHAR TYAGI

BBA #I TH SEM

ROLL NO$%&'(()*(

Submitt ! T+

M,$S+m -. Kum/,

of 101



IIMT COLLEGE OF MANAGEMENT

GREATER NOIDA

PREFACE

I am student of IIMT College Of Management, pursuing BBA course. And towards

the partial fulfillment of it, I have undergone a project for the period of two months.

I have put my endeavor to ma e the o!jective accomplished in the stipulated time."espite all the limitations, o!stacles, hurdles and hindrances I have toiled my hand

to achieve the goal desired. Being a neophyte in the highly competitive world of

!usiness and in cooperate world, I have come across difficulties to ma e the

o!jective a reality. Anyhow with the ind help and genuine interest formally

supported !y e#treme support of my guide and college authorities, I am presenting

this hand carved efforts. The purpose of this project is to test the level of

competency of an employee !ased on the a!ove aspects. Competencies comprise the

nowledge, s ills, values, and attri!utes demonstrated through !ehavior that results

in competent and superior performance. Competency descri!es what superior

performances actually do on a jo! that produces superior results.

If anywhere something is found unaccepta!le or unnecessary to the theme you arewelcomed with your valua!le suggestions.

2



3



ACKNOWLEDGEMENTS

I owe my sincere than s and gratitude to MA$%TI &%'%(I who inspired me !y

her a!le guidance and was a constant guiding light during the course of

project study.

The support and nowledge provided !y her has !een a great value addition

for me and will go a long way in !uilding a promising career.

)ast !ut not least, I am also than ful to all the respondents of my survey without

whom the project would not have !een completed successfully.

*&+I(+A$ T A-I

4



DECLARATION

I here!y declare that this project report entitled // STUDY OF MARKETING

STRATEGIES OF MARUTI UDYOG LIMTED” is written and su!mitted !y me under

the ind guidance of Industry -uide M-$ Mi,!u0/ Di1it *Mar eting Manager .The

findings and interpretations in the report are !ased on !oth primary and secondary

data collection. This project is not copied from any source or other project su!mitted

for similar purpose.

&+I(+A$ T A-I BBA*0Ith &1M

5



CERTIFICATE

This is to certify that SHIKHAR TYAGI a student of Bachelor of Business

Administration of, IIMT COLLEGE OF MANAGEMENT , GR$NOIDA has

wor ed under my guidance for the dissertat ion Tit le “MARKETING

STRATEGIES OF MARUTI SU2UKI”$

This dissertation report is prepared in complete fulfillment of Bachelor of

Business Administration *BBA ,

To the !est of my nowledge, this piece of wor is original and no part of this

report has !een su!mitted !y the student to any other Institute 2%niversity

earlier.

M-$ Mi,!u0/ Di1it

6



CONTENT

INTRODUCTION OF THE COMPANY 34'5

INDUSTRY PROFILE ')456

COMPANY PROFILE 5'4&(

OBJECTI#E OF THE STUDY &5

RESEARCH METHODOLOGY &)4&&

DATA ANALYSIS 7 INTERPRETATION &34*6

FINDINGS *'

LIMITATIONS *8

CONCLUSION *(4*3

QUESTIONNAIRE *94**

7



BIBLIOGRAPHY '66

INTRODUCTION OF THE COMAPANY

MARUTI UDYOG LIMITED

Maruti is India/s largest automo!ile company. The company, a joint venture with

&u3u i of 4apan, has !een a success story li e no other in the annals of the Indian

automo!ile industry.

Today, Maruti is India/s largest automo!ile company. This feat was achieved !y the

missionary 3eal of our employees across the line and the far5sighted vision of our

management.

T. C+m:/;" Mi--i+;%

To provide a wide range of modern, high 6uality fuel efficient vehicles in order to

meet the need of different customers, !oth in domestic and e#port mar ets.

T. C+m:/;" #i-i+;%

7e must !e an internationally competitive company in terms of our products and

services. 7e must retain our leadership in India and should also aspire to !e among

the glo!al players.

T. i, <+=u- i- +;%

• Building a continuously improving organisation adapta!le to 6uic changes

• 8roviding value and satisfaction to the customer

• Aligning and fully involving all our employees, suppliers and dealers to face

competition

• Ma#imising &hareholder/s value

• Being a responsi!le corporate citi3en

8



At Maruti, they have a clear perspective on manpower. They see it as a uni6ue

resource, in the sense that optimal productivity of other resources depends largely on

the way human resources are utilised. The !asic philosophy of management thatunderlies the Maruti culture is that all employees of the company should !e moulded

into a team which then strives as one, to achieve commonly shared company goals

and o!jectives. To ma e this philosophy tena!le, the Company ta es several

initiatives. Inputs are sought from employees at all levels. They !elieve that

everyone should contri!ute to the formulation of company policies, goals and

o!jectives. &econdly, at Maruti, they encourage leadership in the !est sense of the

word. According to us, a leader is one who must !e impartial, must have the a!ilityto rise a!ove his own su!jectivity, and, most importantly, must practice what he

preaches.

They understand that the process of creating a sense of !elonging that all employees

can identify with is a lengthy one. To ensure that this translates into concrete reality,

they have ta en several simple !ut specific and well thought out measures. The first

step in this direction has !een the introduction of a common uniform for all

employees. Another measure is the creation of a common canteen where allemployees have lunch, stand in common 6ueues, and sit on the same ta!le. Common

toilets, common transport and similar facilities for all levels of employees are other

measures that reinforce their emphasis on genuine e6uality in the wor place.

At Maruti They do not !elieve in the notion of organisational hierarchies. As a

matter of fact, the management structure and systems in Maruti have !een designed

to promote decentralisation of authority. Maruti has a hori3ontal management

structure with only four functional levels of responsi!ility to facilitate 6uic erdecision ma ing.

Another focus area of the Maruti culture is the maintenance of a smoothly

functioning communication networ . Maruti !elieves that communication channels

!etween la!our and management cannot simply consist of having a la!our

representative on the Board of the Company. They have faith in the a!ility of la!our

to effectively participate in management and ma e constructive suggestions. To

encourage this, they ensure that there is a thorough dissemination of information at

9



all levels, through newsletters or via a letter from the Chief 1#ecutive to all

employees. Meetings with the %nion are held regularly, and programmes !eing

contemplated !y the Company are discussed with the %nion. The &ahyog &amiti, acollection of representatives of non5unionised employees, training programmes in

4apan, 9uality Circles, productivity5lin ed incentive schemes, and an ethos of

discipline and teamwor , all contri!ute to the Maruti culture.

&everal measures of performance have made amply clear that Maruti has esta!lished

a truly healthy wor culture. They have met all project and performance targets

since inception. Their productivity levels are constantly improving. The Company

has had good la!our relations with employees from the very !eginning, and they

have !een successful in the e#port mar et. et, the Maruti culture is one that does

not !elieve in resting on its laurels. They adhere to the spirit of (ai3en, which states

that constant improvement is always possi!le. The most !asic tenet of productivity

that they hold dear is that : Today should !e !etter than esterday and Tomorrow

should !e !etter than Today:.

Maruti %dyog )imited *M%) was esta!lished in ;e! <=>< through an Act of

8arliament, to meet the growing demand of a personal mode of transport caused !y

the lac of an efficient pu!lic transport system.

&u3u i Motor Company was chosen from seven prospective partners worldwide.

This was due not only to their undisputed leadership in small cars !ut also to their

commitment to actively !ring to M%) contemporary technology and 4apanese

management practices *which had catapulted 4apan over %&A to the status of the top

auto manufacturing country in the world .

A licence and a 4oint 0enture agreement was signed !etween -overnment of India

and &u3u i Motor Company *now &u3u i Motor Corporation of 4apan in Oct <=>?.

The o!jectives of M%) then were@

• Moderni3ation of the Indian Automo!ile Industry.

• 8roduction of fuel5efficient vehicles to conserve scarce resources.

•

8roduction of large num!er of motor vehicles, which was necessary foreconomic growth.

10



C+, #/0u

• Customer O!session

• ;ast, ;le#i!le and ;irst Mover

• Innovation and Creativity

• etwor ing and 8artnership

• Openness and )earning

#i-i+;

The leader in the India Automo!ile Industry, Creating Customer "elight and

&hareholder s 7ealth A pride of IndiaD

T =.;+0+>i=/0 A!?/;t/>

7e have introduced the superior <E F G +ypertech engines across the entire Maruti

&u3u i range. This new technology harnesses the power of a !rainy <E5!it computer

to a fuel5efficient G5valve engine to create optimum engine delivery. This means

every Maruti &u3u i owner gets the ideal com!ination of power and performance

from his car.

Our other innovation has !een the introduction of 1lectronic 8ower &teering *18&

in select models. This results in !etter and greater maneuvera!ility. In other words,

our cars have !ecome even more pleasura!le to drive.

P,+!u=ti+;@R7D

&pread over a sprawling ?=H acres with fully5integrated production facilities, the

Maruti %dyog 8lant has already rolled out over G. million vehicles. In fact, on an

average, two vehicles roll out of the factory every minute. And it ta es on an

average, just <G hours to ma e a car. More importantly, with an incredi!le range of

<< models availa!le in JK variants, there/s a Maruti &u3u i made here to fit every

car5!uyer/s !udget. And dream.

P,+!u=ti+; Mi0 -t+; -

11



<st vehicle produced, "ecem!er <=>

<,KK,KKK vehicles produced !y August, <=>E

J,KK,KKK vehicles produced !y 4une, <==K

<K,KK,KKK vehicles produced !y March, <==G

<J,KK,KKK vehicles produced !y April, <==E

?K,KK,KKK vehicles produced !y Octo!er, <==H

?J,KK,KKK vehicles produced !y March, <===

K,KK,KKK vehicles produced !y 4une, ?KKK

J,KK,KKK vehicles produced !y "ecem!er ?KK<

GK,KK,KKK vehicles produced !y April, ?KK

GJ,KK,KKK vehicles produced !y April, ?KKG

AWARDS

866) um!er one in 4" 8ower &&I for the second consecutive year

um!er one in 4" 8ower C&I for the si#th time in a row 5 the only

car to win it so many times

M>KK, 7agon$ and &wift topped their segments in the T & TotalCustomer &atisfaction &tudy

)eadership in the 4" 8ower Initial 9uality &tudy 5 Alto num!er

one in its

segment for the ?nd time in a row, 1steem num!er one in its

segment forthe rd year in a row, &wift num!er one in the premium compact

segment

7agon$ and 1steem top their segments in the 4" 8ower A81A)

study

T & ran s Maruti Gth in the Corporate $eputation &trength *C&$

study *L< in Auto sector 5;e! KJ Maruti !agged the :Manufacturer of the year: award from Autocar5

12



C BC * ?nd time in a row 5;e! KJ

;irst Indian car manufacturer to reach J million vehicles sales

Business 7orld ran s Maruti among top five most respectedcompanies inIndia5Oct KG

Maruti ran ed among top ten *$an H greenest companies in India

!yBusiness Today 5 &ep /KG

8665

Maruti &u3u i was o. < in Customer atisfaction, o. < in &ales

&atisfaction o.< in 8roduct 9uality *1steem and Alto and o. <in 8roduct Appeal *1steem and 7agon $

o. < in Total Customer &atisfaction *Maruti >KK, 'en and Alto

Business 7orld ran ed us among the country/s five most respected

companies

Business 7orld ran ed us the country/s most respected automo!ile

company 0oted Manufacturer of the year !y C BC

0oted one of India/s -reenest Companies !y Business Today5AC

ielson O$-5MA$-

866(

Maruti >KK, Maruti 'en and Maruti 1steem ma e it to the top <K

automotive !rands in :Most Trusted Brand survey ?KK :4 " 8ower ran ed models of Maruti on top@ 7agonr, 'en and

1steem

Maruti >KK and 7agonr top in ;O Total Customer &atisfaction

&tudy ?KK .

M%) tops in 4 " 8ower C&I *?KK< for Gth time in a row 866'

M%) tops in 4 " 8ower C&I *?KK< for ?nd time in a row@ another

international first

8666

Maruti !ags 4" 8ower C&I 5 <st ran uni6ue achievement !y

mar et leader anywhere in the world

'***M&M launched as model wor shop in India achieves highest C&I

13



rating.

Central Board of 1#cise Customs awards Maruti with :&amman

8atra:, for contri!ution to e#che6uer and !eing an ideal ta# assesse '**9

CII/s Business 1#cellence Award

'**&Maruti wins I &&A award for :1#cellence in &uggestion

&cheme: Awarded the &tar Trading +ouse status !y Ministry of Commerce

'**54*)

1ngineering 1#ports 8romotion Council/s award for e#port

performance

'**5

Best Canteen award among +aryana Industries as part of employee

welfare

'**84*(


performance

'**'4*8


performance

14



INDUSTRY PROFILE

Their employees are their greatest strength and asset. It is this underlying philosophy

that has moulded their wor force into a team with common goals and o!jectives.

Their 1mployee5Management relationship is therefore characteri3ed !y@

• 8articipative Management.

• Team wor (ai3en.

• Communication and information sharing.

• Open office culture for easy accessi!ility

To implement this philosophy, they have ta en several measures li e a flat

organi3ational structure. There are only three levels of responsi!ilities ranging from

the Board Of "irectors, "ivision +eads to "epartment +eads. Other visi!le features

of this philosophy are an open office, common uniforms *at all levels , and a

common canteen for all.

15



This structure ensures !etter communication and speedy decision ma ing processes.

It also creates an environment that !uilds trust, transparency and a sense of

!elonging amongst employees.

F+, I;? -t+,-%

Maruti %dyog )imited, a su!sidiary of &u3u i Motor Corporation of 4apan, has !een

the leader of the Indian car mar et for a!out two decades. Its manufacturing plant,

located some ?J m south of ew "elhi in -urgaon, has an installed capacity of

,JK,KKK units per annum, with a capa!ility to produce a!out half a million vehicles.

The company has a portfolio of << !rands, including Maruti >KK, Omni, premiumsmall car 'en, international !rands Alto and 7agon$, off5roader -ypsy, mid si3e

1steem, lu#ury car Baleno, the M80, 0ersa, &wift and )u#ury &%0 -rand 0itara

N)H.

In recent years, Maruti has made major strides towards its goal of !ecoming &u3u i

Motor Corporation/s $ and " hu! for Asia. It has introduced upgraded versions of

7agon$ 'en and 1steem, completely designed and styled in5house.

Maruti/s contri!ution as the engine of growth of the Indian auto industry, indeed its

impact on the lifestyle and psyche of an entire generation of Indian middle class, is

widely ac nowledged. Its emotional connect with the customer continues.

Maruti tops customer satisfaction again for si#th year in a row according to the 4.".

8ower Asia 8acific ?KKJ India Customer &atisfaction Inde# *C&I &tudy.

The company has also ran ed highest in India &ales &atisfaction &tudy.

The company/s 6uality systems and practices have !een rated as a :!enchmar forthe automotive industry world5wide: !y A 0 Belgium, glo!al auditors for

International Organisation for &tandardisation.

In eeping with its leadership position, Maruti supports safe driving and traffic

management through mass media messages and a state5of5the art driving training

and research institute that it manages for the "elhi -overnment.

The company/s service !usinesses including sale and purchase of pre owned cars

*True0alue , lease and fleet management service for corporates * ? , Maruti

16



Insurance and Maruti ;inance are now fully operational.. These initiatives, !esides

providing total mo!ility solutions to customers in a convenient and transparent

manner, have helped improve economic via!ility of The company/s dealerships.

The company is listed on Bom!ay &toc 1#change and ational &toc 1#change.

M%) is a Board5managed company. Currently the directors on the Board are@

• Mr &hin3o a anishi, Chairman

• Mr 4agdish (hattar, Managing "irector

• Mr +irofumi agao, 4oint Managing "irector

• Mr &hinichi Ta euchi, 4oint Managing "irector

• Mr (inji &aito, "irector *Mar eting and &ales

• Mr Osamu &u3u i, "irector

• Mr $ C Bhargava, "irector

• Mr & 0 Bhave, "irector

• Mr (umar Mangalam Birla, "irector

• Mr Amal -anguli, "irector

• Ms 8allavi &hroff, "irector

• Mr Manvinder &ingh Banga, "irector

17



BUSINESS STRATEGY

They intend to continue to focus on the small car segment, while offering products in most segments of the Indian passenger car mar et. They aim to

achieve their principal o!jectives !y pursuing the following !usiness

strategies@

M/i;t/i; /;! ;./;= t. i, :,+!u=t ,/;> % They intend to utili3e &u3u i s

e#pertise in small car technology to produce new variants of their e#isting

models and to upgrade their products with contemporary technology and

features.

I;=, /- , /=. /;! : ; t,/ti+;% They plan to continue to utili3e their

e#tensive sales and service networ to increase the reach, in terms of

geographical spread, and penetration, in terms of sales volumes, of their

products across India.

I;=, /- ! /?/i0/bi0it" +< /ut+m+bi0 <i;/;= % They continue to see

opportunities to e#pand the si3e of the Indian passenger car mar et, especially

in the small car segment, through facilitating easy availa!ility of automo!ile

finance. To that end, they have recently entered into an agreement with the

&tate Ban of India.

S =u, , : /t :u,=./- - b" +<< ,i;> / “(&6 ! >, =u-t+m , 1: ,i ;= ” @

On the !asis of their !elief that securing repeat purchases from an e#isting

customer re6uires less e#penditure than ac6uiring a new customer, they aim to

provide customers with a one5stop shopD for automo!iles and automo!ile5

related products and services.

C+;ti;u t+ b ;=.m/, t. i, m/;u</=tu,i;> =/:/bi0iti -% They plan to

continue to !enchmar our manufacturing capa!ilities with the most efficient

car manufacturing facilities of &u3u i and its su!sidiaries.

C+;ti;u t+ , !u= =+-t- t+ +<< , m+, =+m: titi? :,+!u=t-%

Cost competitiveness has !een, and continues to !e, central to their strategy as

the leading manufacturer in the small car segment to e#pand the si3e of the

18



mar et !y offering competitively priced, high 6uality products. The

components of this strategy are@

• +igher levels of locali3ation

• 0endor participation in cost reduction

• Cost reduction on warranties

• $eduction in initial investment cost

• $eduction in num!er of vehicle platforms

• Achieve further cost reduction through higher productivity

L+ , =+-t +< + ; ,-.i:%

Through their !usiness strategies, they see to reduce the consumer s cost of

ownership of their cars, which comprises the cost of purchase, the cost of fuel

and maintenance, including spare parts and repairs, during the life of the

vehicle, insurance, and resale value.

19



SALES NETWORK

"ealers@ They offer their products to the customer through a networ of <H>

authori3ed dealers with ?G sales outlets across <E< cities. They !elieve that

this is the largest networ of dealers amongst car manufacturers in India.

Their dealers employed more than ,JKK sales e#ecutives. They are lin ed to

their sales networ through their secure e#tranet5!ased information networ .

The sales of their spares, accessories and automo!ile5related services such as

insurance and finance serve as additional sources of revenue for our dealers.

They !elieve that the availa!ility of these related products and services at

sales outlets also helps to attract customers to the outlets and promotes sales

of their cars.

Agreements with dealers@ They generally appoint a limited num!er of dealers

for a certain geographical territory. Their dealers provide services to

customers such as pre5delivery inspection of vehicles, sales of cars, after sales

service, supply of spare parts and other services that promote sales of cars

within the territory for which they are appointed. They have the right to sell

their products and services through other dealers or intermediaries in any

territory, whether or not one of their dealers is already esta!lished in that

territory. Their dealers are re6uired to maintain their outlets in accordance

with their specifications and employ well5trained sales staff.

Their agreements with their dealers usually have terms of five years. These

agreements are generally renewa!le for successive terms of three years, !y

mutual agreement. The agreements typically permit termination !y either the

dealer or them with si# months prior notice.

1nhancing dealer performance@ Their central office in "elhi, their regional

offices and their area offices monitor and assist their dealer networ . They

have nine regional offices, five area offices and <>H sales and mar eting

personnel. They follow the performance of their dealers and fre6uently

suggest improvements. In order to assist their dealers in enhancing their

performance and capa!ilit ies, they have introduced a concept of Balanced

20



&corecardD. %sing this tool, they see to measure the performance of a

dealership in several areas of operations, including sales, service, spares and

accessories, financial management and management systems. They rewarddealers who perform well on the Balanced &corecardD with a cash payment at

the end of the fiscal year. They !elieve that the Balanced &corecardD serves

as an effective incentive for dealers to enhance their performance.

"ealer training@ They have esta!lished standard operating procedures,

showroom am!ience and service 6uality standards for dealerships. They

provide periodic training through their training centres located at their

manufacturing facility and at Chennai, (ol ata, -uwahati and 8une. They

have trained more than ?,EKK and ,GKK dealer sales personnel. Their

su!sidiary, True 0alue &olutions )td., provides value5added services, such as

manpower recruitment and training, to their dealers.

AFTER4SALES SER#ICE

etwor

As on date there are G? Maruti dealer wor shops and <,JGJ Maruti

Authorised &ervice &tations, or MA&&s, covering >=> cities in India. In

addition, ?G5hour mo!ile service is offered in > cities under the !rand

Maruti On5road &erviceD. They intend to e#tend this service to an additional

?J cities over the ne#t three years. As a !enchmar for dealers with respect to

service 6uality and infrastructure facilities, they have launched service

stations under the !rand Maruti &ervice Masters, or M&Ms, in three locations

in India. They have service stations on K highways in India under the !rand1#press &ervice &tationsD.

To promote sales of their spare parts and the availa!ility of high 6uality,

relia!le spare parts for their products, they sell spares under the !rand name

Maruti -enuine 8artsD, or M-8. These are distri!uted through their dealer

networ and through authorised sellers of their spare parts, to whom they refer

as stoc ists.

21



Many of their MA&&s are at remote locations where they do not have dealers.

In order to increase the penetration, in terms of sales volumes, of their

products in these remote areas, they are e#ploring opportunities to integratesome of the MA&&s into the sales process in order to increase sales of their

cars and related products and services such as spares and accessories,

insurance and financing.

-enuine Accessories

They have also entered the !usiness of mar eting car accessories under the

!rand name Maruti -enuine AccessoriesD, or M-A, through their dealership

networ . They see to provide customers with the opportunity to customi3e

their vehicles with accessories such as music systems, security systems, car5

care products and utility products.

7arranty and 1#tended 7arranty 8rogram

They offer a two5year warranty on all their vehicles at the time of sale. Their

dealers are re6uired to address any claim made !y a customer, in accordance

with practices and procedures prescri!ed !y them, under the provisions of thewarranty in force at that time. The dealers su!se6uently claim the warranty

cost from them. They analyse warranty claims from dealers and either claim

the cost from vendors, in the case of defective components, or !ear the cost

ourselves, in the case of manufacturing defects.

They offer an e#tended paid5warranty program mar eted under the !rand,

;orever oursD for the third and fourth year after purchase. They have

entered into arrangements with insurance companies to cover the costs ofwarranties offered under this program. The e#tended warranty program is

intended to maintain the dealer s contact with the customer and increase the

revenue generated from sale of spares, accessories and automo!ile5related

services. An effort is made during the period of the e#tended warranty to

encourage the customer to e#change his e#isting Maruti car for a new Maruti

car, or upgrade to a new Maruti car.

22



NEW BUSINESS INITIATI#ES

As the largest manufacturer and leader in the small car segment, they continually

see new ways to utili3e their vast car parc, range of products and e#tensive sales

and service networ to e#pand the si3e of the passenger car mar et in India. They

have recently launched new initiatives to develop the mar et for automo!ile

insurance, automo!ile finance, leasing and fleet management, and pre5owned cars.

They aim to provide customers with a one5stop shopD for automo!iles and

automo!ile5related products and services, and !uild on their wide customer !ase and

e#tensive sales and service networ to ma e availa!le to their customers a widerange of Maruti5!randed services at different stages of ownership, which they refer

to as the EK degree customer e#perienceD.

Atit.i D ?+ B./?/% One5stop shop

Inspired !y the spirit of India. Atithi "evo Bhava, in &ans irit, means a guest is

li e -odD. It captures the Indian tradition of honouring guests. It/s also the

inspiration for the welcome you ll receive at a Maruti &u3u i dealership, and the

caring relationship they share with those who drive their cars. At Maruti &u3u i, you

will find all your car related needs met under one roof. 7hether it is easy finance,

insurance, fleet management. services, e#change Maruti &u3u i is set to provide a

single window solution for all your car related needs.

That/s why they have Maruti True 0alue, the !est place to !uy and sell

relia!le used cars. Maruti ;inance an agglomeration of the !iggest finance

companies in India !rought together !y Maruti &u3u i to ensure that the

dream car is within everyone/s reach. &imilarly, Maruti Insurance !rings

together some of the !iggest names in the car insurance industry to provide

insurance solutions to every type of car consumer. Then, finally, there is ? ,

which offers fleet related solutions.

23



THE PLAYERS IN THE INDIAN AUTOMOBILE INDUSTRY

H"u;!/i M+t+, I;!i/ Lt!

+yundai Motor India )imited *+MI) is a wholly owned su!sidiary of +yundai

Motor Company, &outh (orea and is the second largest and the fastest growing car

manufacturer in India. +MI) presently mar ets < variants of passenger cars in si#

segments. The &antro in the B segment, -et3 in the BP segment, the Accent in the C

segment, the 1lantra in the " segment, the &onata 1m!era in the 1 segment and the

Tucson and Terracan in the &%0 segment.

The company recorded com!ined sales of ?J?,>J< during calendar year ?KKJ with a

growth of <H.?EQ over year ?KKG. +MI) is India/s fastest growing car company

having rolled5out over =HK,KKK cars in just over >K months since its inception and is

the largest e#porter of passenger cars with e#ports of over $s. <,>KK crores. +MI)

has recorded a growth of ?H.?Q in e#ports over the year ?KKG.

+MI) s fully integrated state5of5the5art manufacturing plant near Chennai !oasts

some of the most advanced production, 6uality and testing capa!ilities in the

country. In continuation of its investment in providing the Indian customer glo!al

technology, +MI) has announced plans for its second plant, which will produce

KK,KKK units per annum, raising +MI) s total production capacity to EKK,KKK per

annum !y ?KKH. The plant will !e !uilt on a ?.< million s6uare meter site adjacent to

the e#isting facility .+MI) is investing to e#pand capacity in line with its

positioning as +MC s glo!al e#port hu! for compact cars. Apart from e#pansion of

production capacity, +MI) plans to e#pand its dealer networ , which will !e

increased from <JH to ?KK this year. And with the company s greater focus on the

6uality of its after5sales service, +MI) s service networ will !e e#panded to over

<,KKK in ?KKE.

The year ?KKJ has !een a significant year for +yundai Motor India. It achieved a

significant milestone !y rolling out the fastest ?KK,KKKthD e#port car. +MI)

24



e#ports to around EK countries glo!ally and recently made a foray into the highly

competitive %( mar et !y e#porting its first shipment of >?K cars.

8ropelled !y the strong performance in year ?KKJ, +yundai Motor India is on the

threshold of yet another grand milestone of rolling out its ROne millionth car which

is e#pected soon.

Tata Motors

Tata Motors is one of the largest companies in the Tata -roup with a total

income of %&S ?. J !illion. More than million Tata vehicles ply on Indian

roads ma ing Tata a dominant force in the Indian automo!ile industry.

Tata Motors is India/s only fully integrated automo!ile manufacturer with a

portfolio that covers truc s, !uses, utility vehicles and passenger cars. It

would !e no e#aggeration to say that Tata Motors provides the wheels for

India/s growth.

Tata Motors has the uni6ue distinction of giving India its first and only indigenously

!uilt passenger car 5 The Tata Indica and the premium feature sedan 5 The Tata

Indigo. The Indica, launched in <==>, reached the ?,JK,KKK sales mar within J?

months of launch.

Tata Motors owes its leading position in the Indian automo!ile industry to its strong

focus on indigenisation. This focus has driven the Company to set up world5classmanufacturing units with state5of5the5art technology. 1very stage of product

evolution5design, development, manufacturing, assem!ly and 6uality control, is

carried out meticulously. Their manufacturing plants are situated at 4amshedpur in

the 1ast, 8une in the 7est and )uc now in the orth.

25



F+,! I;!i/ Limit !

The ;ord Motor Company has a rich legacy of translating !etter motoring ideas tothe roads. It has manufactured nota!le !rands such as the ;ord, )incoln, Mercury

and the 4aguar. It is among the top five industrial corporations in the world and is

availa!le in more than ?KK countries around the world.

;ord has entered the Indian mar et through a tie 5 up with Mahindra Motors to

manufacture the ;ord 1scort. A project that has !een set up with a investment of

$s.<HKK crore. ;ord India )imited is a su!sidiary of ;ord Motor Company, currently

;ord has a H>Q sta e, which is going up to =?Q soon. The Maraimalai agar 8lant

of ;ord India )imited, located roughly GJ .m.from Chennai, provides employment

to over ?KKKK people.The plant has the capacity to manufacture <,KK,KKK vehicles

per annum, e6uipped with state5of5the5art vehicle manufacturing technology from

;ord.

8resently offering seven different models, ;ord India )imited *;I) is catching up

fast with the Indian consumer. This is secured through a 6uality chec program

!ased on the principles of O0A 5 C * ew Overall 0ehicle Audit 5 Customer

wherein daily random chec s are conducted from a customer/s point of view. To !e

dou!ly sure, routine calls are made to dealerships to chec the 6uality of cars

delivered to them.

At Mahindra/s dealerships are present trained professionals who provide the

!est levels of service in India. Its intensive manpower training, advanced

service e6uipment and dedicated consumer satisfaction are the are its plus points which is !eing followed !y the entire industry.

Ac nowledgement has come in the form of the 4 " power <==H India Initial 9uality

and Customer &atisfaction Awards. These internationally acclaimed and recogni3ed

awards voted the ;ord 1scort as the Best 9uality car and the Mahindra ;ord and its

dealerships were rated the highest in Customer &atisfaction. This is an honour as it

its only the second time in automotive history that the same !rand2manufacturer has

received !oth the awards in the same year.

26



G ; ,/0 M+t+,- I;!i/

-eneral Motors India, incorporated in <==G as a JK5JK joint venture company withthe C.(. Birla -roup of Companies, !ecame a fully owned su!sidiary of -M in

<=== when -MOC !ought the remaining shares. The company was restructured in

<=== and was converted from a 8u!lic )imited company to a 8rivate )imited

company. -M A8+ ))C currently holds >E percent of voting shares, and +olden

*Australia holds <G percent. The &8O !usiness was integrated with the main

!usiness in the same company in ?KKK.

In India, -M strengthened its presence with new product launches Chevrolet Optra

in ?KK and Chevrolet Tavera *Multi %tility 0ehicle in ?KKG. &imilarly in ?KKG,

-M India is e#pected to register a growth of =KQ over ?KK . 7ith sales volume

going up, the mar et share of -M India has gone to nearly ?Q. The sales volume in

?KK was <J,<JJ units while ?KKG figure is e#pected to !e around ?H,KKK units. In

?KKG, the company sold a total of ?E,<EE cars as against <J,<JJ cars in ?KK

registering a growth of H Q while overall passenger car growth during the year was

only around ? 5?GQ. These included =<=< Chevy Optras in 1ntry /"/ )u#ury sedan

segment, > E= Opel Corsas and >G<H units of the new generation premium multi5

utility vehicle *M%0 Chevrolet Tavera.

The e#isting -M India plant was originally !uilt !y +industan Motors. In <==G, -M

India entered into a JKQ 4oint 0enture partnership with +industan Motors and

moderni3ed the GJ,KKK5s6uare5meter plant near +alol, GJ ilometers northwest of

0adodara, in the western state of -ujarat. In ;e!ruary, <===, -M !ought theholdings of +indutan Motors and -M India !ecame a <KKQ su!sidiary of -eneral

Motors Corporation of %&A. The plant produces the Opel Corsa, Corsa &ail,

Chevrolet Optra, and Chevrolet Tavera. The Chevrolet ;orester and Opel 0ectra are

sold as CB%s *Completely Built in %nits and as imported from 4apan and -ermany

respectively.

Toyota Motor Corporation is the third largest automa er in the world. They

have G dealers in India and in "elhi they have ? dealers, first one is R&outh

27



"elhi Toyota and second one is in Moti agar in which I have visited during

my survey. "ealer in Moti agar which is -ala#y ToyotaD have

predetermined mission that5Customer comes first and everything they do is tomeet their customer needs, !asically they wor for creating a lifetime

customer.

They wor !y dividing their wor li e in one showroom they have separate

teams for every product li e relating to Corolla it comprises of H or >

e#ecutives who handle all the wor weather it is of sale or any en6uiry or

telemar eting call that team must have some specific target to achieve. They

reach to the customers either !y distri!uting )eaflets, Brochures to the

customers. They collect customer data!ase from "irectory * ellow 8ages or

through customer references even they solve customers 6uery online and give

information through e5mails. $ecently they organi3ed one drawing

competition !etween the ids of their e#isting customers just to interact with

the customer and !uild loyalty of their company products. They judge their

customer satisfaction !y analy3ing that repeat !uyers are more or not

moreover they have customer feed!ac form in which they can analy3e

customers !ac ground and can forecast customer future demands. They target

only high profile customers.

They !uild customer loyalty !y giving happy calls to the customer after sale

of every <, ,H month. They provide 8eriodic maintenance schedule, which

will ensure that vehicle, is ept in !est a!le5!odied at all times. The

maintenance schedule may include periodic inspection, adjustment andlu!rication that will eep vehicle in the safest and most efficient condition,

they provide one !oo let in which they give simple and useful tips for

maintenance of the car. They offer good schemes li e providing free Test

"rive worth $s ?JK petrol at the time of sale of any car. They do road shows

to attract customers. To promote their product they organi3e e#change mela,

events, various cash discounts li e currently they are running one discount

scheme on purchase of any of their car *Innova, Toyota they are giving free

28



accessories worth $s<JKKK. They provide G free services after sale and with

full clean diesel.

All employees of -ala#y Toyota shall consider how they should act and how

they might change their ways to !enefit the company. They launch one Co

Branded Credit CardD to provide additional !enefits and services to the

Toyota customers. This Credit Card will give Toyota customers a !etter

payment fle#i!ili ty and convenience, li e Customer gets free service voucher

with the card, &pecial Invite to co5sponsored events, 8ersonal accident

insurance coverage@ %p to ?K la hs etc. They have one -uest Boo in which

they store valua!le comments of customers, which they thin are very

important for them, which will help them to improve their service.

HONDA

+onda is one of the leading manufacturers of automo!iles and power products and

the largest manufacture of motorcycles in the world. They have ?K dealers in G?

different cities around India. In ew "elhi they have E dealers, I have visited one ofthem, which is in ajafgarh $oad.

They do surveys to now customers need. They target either e#isting or their

perspective customers !y giving advertisement in the newspaper or through there

satisfied customers which give references. They don t !elieve on targeting

competitor s customers !ecause !y not doing so they have such a !rand reputation

with good 6uality products, only through this they are a!le to ma e good sales.

They display their models in >th Auto 1#po, which held in ew "elhi. They

are now focusing on their new model RCivic . +onda/s Civic perhaps drew the

ma#imum attention. The reason is simple@ Civic is a new car from the house

of +onda. "uring my survey I get to now that +onda City Model is the

second largest selling car in the RC segment. They have a good superiority

with superior !rand name in the country.

29



They prefer to have mode of communication with the customer through mail,

telephone and sometimes !y letter. Customers who don t have time even to

see the model or to call the dealer to ma e in6uiries a!out their reservationthey desire to solve their 6uery online itself.

To judge customer satisfaction they some times invite their customers to have a get

together, to have interaction with customer in a minute to now that are they

satisfied with their services and what they are e#pecting from them in the near

future. They ma e ma#imum of their sales from the fresh customers rather than their

repeat purchasers. To increase their sales they try to e#tort surreptitious information

from the customers and on their end they aim to ensure that the product 6uality and

product 6uantity should !e availa!le in re6uired 6uantity in their dealership.

They have ;eed!ac form in which they ta e feed!ac of the customer as well as

their salesperson !ecause through this they are a!le to get the information of !oth

the customer their salesperson that are they giving the full information to the

customer. This "ealership even provide technical s ills and techni6ues to their

employees that how to deal with the customer thoughtfully every after E months.

30



NEED FOR CRM IN AUTOMOBILE INDUSTRY

The glo!al automotive industry e#hi!its most of the characteristics of mature

industries and closely follows their !usiness cycles. 7hile vehicle industry sales

have !een strong for the past several years, they have started to slow recently due to

the current glo!al economic slowdown. "eteriorating economic conditions result in

a drop in consumer confidence, which 6uic ly impacts automotive sales due to their

!ig5tic et status and the relative low cost of e#tending the life of an e#isting vehicle

through maintenance and repair.

The advent of the Internet as a research tool *HJ to >K percent of auto consumers

research using the Internet has shifted power to consumers, further increasing

pressure on prices. At the same time, government regulation and consumer demands

for sophisticated features have increased development, production, and mar eting

costs. $egional economic fluctuations favor consolidation among car companies,

suppliers, and retailers 5resulting in fewer, larger companies that have more

complete product lines targeted at e#isting and new mar ets. Consolidation hasheightened competition in all vehicle segments. )ow5cost manufacturers are

e#panding !eyond their home mar ets with entry level vehicles, traditional

passenger car manufacturers are e#panding into the light truc mar ets, and lu#ury

manufacturers are moving down mar et with passenger cars and &%0s. As a result

of these product and mar et e#tensions, consumers find it difficult to e#hi!it !rand

loyalty !ecause vehicles have unclear !rand identities, similar features, and

compara!le prices. In addition, an overpopulation of dealers has resulted in local and

regional competition among same ma e dealers. This further reduces margins and

damages the !rand images the car companies spend large amounts of money to

!uild.

$elations !etween the car companies and their suppliers traditionally have !een

difficult. In response to competitive pressure, suppliers have !een forced !y the car

companies to provide higher56uality components at constantly lower costs. The

resulting decrease in margins and the reduction in volume due to slowing sales have

31



increased the pressure to consolidate and forced some suppliers to the !rin of

!an ruptcy. "ealers too have a long history of adversarial relationships with the car

companies. Independent entrepreneurs who view some of the car companies withs epticism or serious mistrust, dealers !elieve that many manufacturer5sponsored

customer satisfaction programs are actually designed to force smaller dealers out of

!usiness or to gain control of customer relationships that the retailers !elieve they

:own.:

These difficult relationships have prevented car companies and dealers from

ma#imi3ing the lifetime value of their com!ined customers. There are few

incentives or efficient methods for dealers and car companies to share critical data,

resulting in ineffective management of product, service, and household information.

In addition, consumers receive conflicting mar eting communications from the two

groups, which results in reduced !rand value.

KEY INDUSTRY PAIN POINTS

• D =, /-i;> -/0 - /;! m/, t -./, 5 The long5term !attle for mar et

share continues to intensify. In the mature automotive industry, where

!usiness cycles drive sales fluctuations, mar et share is critical to

survival. Consumers are less !rand5loyal than in the past, and every

mar et segment has an increasing num!er of vehicle choices. To

increase sales and gain ground in the mar et share !attle, companies

must improve their a!ility !oth to ac6uire first5time customers and to

develop customer loyalty to their current !rands. To achieve theserelated o!jectives, companies must set an aggressive goal 5deliver the

!est cus tomer e#perience in the automotive industry.

• Di<<i=u0t ! /0 , , 0/ti+;-.i:- /;! / 0/= +< ! /0 , =+00/b+,/ti+; 5

As the consumer /s primary touch point ,the dealer networ is a critical

component of customer5facing operations. Therefore, the integration of

the dealer networ is a!solutely essential to improving the 6uality of

the customer e#perience. Only with an infrastructure that ena!les theeffective flow of information to and from dealers can companies create

32



a complete view of their customers. Car companies must ta e the

initiative in understanding the customer /s perspective throughout the

!uying cycle.

• L/= +< mu0ti=./;; 0 =/:/bi0iti - 5 7ith the advent of the Internet as

a research tool, the majority of customers are accessing the automotive

enterprises through several different channels. Many times, the switch

!etween channels happens very rapidly as a prospect or customer can

view a 7e! site, ma e a phone in6uiry, and visit a retail store within

days or even hours of an initial contact. To improve customer

satisfaction and secure customer lifetime value, companies must !e

a!le to capture these multiple interactions, provide seamless

management !etween channels, and leverage shared customer

information to create rewarding e#periences and to develop and

e#ecute highly targeted mar eting campaigns.

• I; <<i=i ;t ! m/;! =./i; :0/;;i;> /;! .i>. /--+=i/t ! IT =+-t 5Cost reduction is an ongoing competitive re6uirement. 4ust as supply

chain management must !e supported !y a sophisticated information

infrastructure, effective demand chain management also re6uires the

right supporting infrastructure, ena!ling car companies to fully

leverage each customer relationship through e#ceptional customer

service, efficient lead generation and management, and effective

promotions and campaigns. In addition, glo!al automotive enterprisesoperate a wide variety of IT systems in their various !usiness units and

functional groups. $ationali3ing these systems offers significant cost

savings.

• L/= +< << =ti? i;<+,m/ti+; -./,i;> 5 Car companies must integrate

glo!al operations in order to achieve the !enefits of consolidation 5cost

reduction, effective communication, and true integration of core

competencies. In addition, internal alignment !etween !usiness units

and functional groups is re6uired to create a unified view of

33



consumers, products, and services. Currently, each !usiness unit,

functional group, and !rand operates through independent systems,

programs, and touch points. As a result, there is limited synergy acrossthe ecosystem, leading to significant inefficiencies, lac of

coordination, and most important, an ina!ility to ma#imi3e :share of

wallet :from every customer through well5targeted mar eting and

cross5selling. &ynergy !etween traditionally independent !usiness units

such as captive finance companies and !etween functional groups such

as sales, service, and mar eting is more critical now than ever !efore.

Only !y sharing customer information can customer lifetime value !ema#imi3ed among different groups.

• C+m:0 1 !/t/ >+? ,;/;= , ui, m ;t- 5 -lo!al automotive

enterprises have large, comple# information technology ecosystems.

7hile customer information must !e shared within this ecosystem in

order to fully ma#imi3e glo!al operations, it must also !e protected.

8roper management of customer information re6uires a sophisticated

capa!ility to manage a variety of access rules and to accommodatelegal restrictions that can change very 6uic ly. The trust re6uired for

successful colla!oration !etween groups in the automotive enterprise

must !e !uilt !y demonstrating that customer information can !e

shared while o!serving these comple# re6uirements.

• Di<<i=u0t" m/;/>i;> m:0+" , 0/ti+;-.i:- 5 In today /s fast5paced

!usiness environment, automotive companies need to ensure that their

most valua!le asset 5their employees 5have immediate access to the

critical information, services, and applications re6uired to !e

productive. Organi3ations must ena!le employees to ma e !etter

decisions, wor colla!oratively, enhance customer relationships, and

ma#imi3e productive time. -lo!al automotive enterprises must !e a!le

to enact and enforce consistent policies across !usiness units, instill a

common corporate culture across a geographically dispersed and

diverse wor force, e6uip employees with effective search tools to

access corporate nowledge !ases, and provide employees with the

34



training necessary to service customers in a volatile and demanding

mar et.

T/,> t M/, ti;> P,+= !u, O< #/,i+u- C+m:/;i -

TARGET SEGMENT

T+ , /=. t+ ,u,/0 /;! 0+ , mi!!0 =0/-- =+;-um ,-$ T. " b >i; it.

-m/00 =+;= ;t,/t ! m/, t- /:: /0i;> t+ 0+=/0 =u0tu, /;! /-:i,/ti+;- +<

t. t/,> t ! /, /

STRATEGY

THEIR STRATEGY IS TO CAPTURE THE RURAL MARKET BY

EMPLOYING WOMEN WHO BELONG TO THEIR LOCAL

COMMUNITY THROUGH WHICH THEIR PRODUCT CAN REACH

TO LOCAL CONSUMERS$ THEIR STRATEGY IS TO PRO#IDE

WORK FOR WOMEN TO CREATE AWARENESS AMONGCONFINED CONSUMERS

P,+= --

They started with 8roject &ha ti in which their !asic aim is to educate a rural person a!out

their products through women who !elongs to their own local community and who can

communicate well in their language with them. In this way many educated women get

wor in rural sector and on the other hand +)) Corporate &ocial $esponsi!ility *C&$

also increases towards society !y introducing educative programs for the !enefit of the

rural sector

M+! +< C+mmu;i=/ti+;

35



They reach to customers !y giving advertisements in the T.0. or through radio,

through wall painting, or through promotional activities li e wea ly haats, mela or

local !a3aars and most importantly, their policies were fle#i!le and they couldadapt to fast changing mar eting situations.

Through Internet, 15mail usage, communication media li e telephone and mail facility

this mode of communication is possi!le to a great e#tent. ITC s e#tensive India5

wide distri!ution networ ena!les its greeting cards reach over '8 666 multi !rand

outlets in over HKK cities across the country. In the last three years '6 666 greeting

card designs have reached these outlets with the help of ITC/s we!5ena!led e5

commerce model Communication Model ITC mar ets

O::+,tu;it"

These days consumers are loo ing for convenience and instant gratification.

Communication media li e the telephone and e5mail facilitate

communication to a great e#tent. But many greeting card sites are moving

from a /free/ to a /pay/ mode. This could !e an emerging revenue earningopportunity for content providers.

T., /t-

/1#pressions/ which is a competitor of ITC in this segment is currently the second

!iggest greeting card !rand in India with a mar et share of ?K per cent. ITC has a

five per cent share in the stationery mar et. The greeting card mar et in India is

estimated to !e around $s. ?JK crore in terms of yearly consumer spent. The

unorgani3ed sector in the greeting card mar et will !e close to GK per cent. The

organi3ed sector, controlling EK per cent of the mar et, is divided !etween ITC,

Archie s and +allmar . 7hile Archie s has licensing agreements with international

greetings !rands

36



COMPETITI#E STRENGTHS OF MUL

M%) !elieves that they are well positioned to maintain and enhance their leadership

position in the small car segment in India, while continuing to offer products in most

segments of the Indian mar et, on account of their competitive strengths, which

include the following@

E1: ,ti- i; -m/00 =/, t =.;+0+>"% As a su!sidiary of &u3u i, they have

access to glo!ally respected technology in the small car segment. They have

the advantage of &u3u i s e#pertise in all aspects of small car technology and

design, with respect to their products, their manufacturing processes and

!usiness practices, the development of their supply chain and the training of

their personnel.

E1t ;-i? :,+!u=t :+,t<+0i+% Their diverse product range includes cars in

segments A, B and C, and utility vehicles. They manufactured five out of the

ten models that were sold in the com!ined A and B segments in India in fiscal

?KK?. They are the only manufacturer of cars in segment A *priced !elow

$s. KK,KKK where they have two models, the Maruti >KK and the Omni. The

Maruti >KK has !een the largest selling car in India for several years, and

continued to have the highest sales volumes of any model, with a mar et share

of ?J. Q. The Omni, a versatile vehicle that can seat more passengers than

the Maruti >KK or !e used as an am!ulance or cargo vehicle, had a mar et

share of <K.JQ in fiscal ?KK?. They are also the only manufacturer to sell

three distinct models, the 'en, the Alto and the 7agon $, in segment B

*priced !etween $s . KK,KKK and $s.JKK,KKK . They !elieve that

theirdominance in segment A and e#tensive product range in segment B

ena!les us to offer the customer a wider choice in the small car segment than

any of their competitors. In addition, the a!sence of other manufacturers in

segments A gives their dealers greater fle#i!ility in promoting models in

segment B.

37



Qu/0it" :,+!u=t-% In ovem!er ?KK<, they were one of the first automo!ile

manufacturers in the world to receive the I&O =KK<@?KKK certification. They

!egan to e#port products in <=>>, primarily in order to !enchmar our products against international 6uality standards. They have e#ported products

to appro#imately HK countries, including countries in 7estern 1urope. Their

products for e#port are manufactured using the same assem!ly line as our

products for the domestic mar et.

E1t ;-i? -/0 - /;! - ,?i= ; t +, % They !elieve that they have the largest

networ of dealers and service centers amongst car manufacturers in India. As

of March <, ?KK , we had <H> authori3ed dealers with ?G sales outlets in

<E< cities. They estimate their car parc to !e in e#cess of .J million vehicles.

To service this car parc, at March <, ?KK , they had G? dealer wor shops

and <,JGJ Maruti Authori3ed &ervice &tations, or MA&&s, which covered >=>

cities in India !ac ed !y 1#press &ervice Centers on K highways across the

country. In addition to the distri!ution of their cars, their dealership networ

is a critical resource in our efforts to provide customers with a one5stop

shopD for automo!iles and automo!ile related products and services such asautomo!ile finance, automo!ile insurance, Maruti5certified pre5owned cars

availa!le for purchase, and leasing and fleet management, in order to promote

customer loyalty.

B,/;! -t, ;>t.% They have !een present in the Indian mar et for almost

twenty years and have !uilt their !rand on the !asis of the values of trust and

relia!ility. Most of their principal competitors have !een present in the Indian

passenger car mar et for a significantly shorter period. Certain manufacturershave ceased to manufacture certain products shortly after introducing them, or

have left the mar et altogether. In contrast, they continue to support the

maintenance of their products. This has contri!uted to the strength of their

!rand. In ?KKK, ?KK< and ?KK?, 4. ". 8ower Asia 8acific, Inc. ran ed us o. <

in the India Customer &atisfaction Inde#, which assesses customer satisfaction

with product 6uality and dealer service. They !elieve that this was the first

time that a volume leader in the automo!ile industry anywhere in the worldwas ran ed first on the 4" 8ower Customer &atisfaction Inde#. ;O

38



Automotives ?KK? Total Customer &atisfaction &urvey ran ed Maruti

products as o. < in the 1conomyD, 8remium CompactD and 1ntry

Midsi3eD segments respectively, for ?KK?.

I;t >,/t ! m/;u</=tu,i;> </=i0it"% Their manufacturing facility comprises

three integrated plants with fle#i!le assem!ly lines located at -urgaon in the

northern state of +aryana. Their facility has advanced engineering capa!ility

and each plant is upgraded on an ongoing !asis to improve productivity and

6uality. As a result, their first plant set up in fiscal <=>G is technologically at

par with their newer plants and is also used in the production of their new

models. They !elieve that they are one of the most efficient among the vehicle

manufacturing facilities of &u3u i s su!sidiaries outside 4apan in terms of

productivity measured as the ratio of num!er of vehicles produced to num!er

of employees. They have an installed capacity of JK,KKK vehicles per year,

which is the highest among passenger car manufacturers in India and among

the passenger car manufacturing facilities of &u3u i s su!sidiaries outside

4apan. They have consistently produced in e#cess of their installed capacity in

the five fiscal years ended March <, KK?.

They !elieve that they would !e a!le to e#pand their production to JKK,KKK

cars per year with minimal additional capital e#penditure. This would ena!le

them to !enefit from significant economies of scale.

St,+;> ? ;!+, b/- /;! .i>. , ,/t - +< 0+=/0i /ti+;% They wor closely

with their vendor !ase for the supply of raw materials, components and spare

parts of their products. In order to improve 6uality and generate economies of

scale, they have reduced the num!er of their vendors of components in India

from HK as of March <, ?KKK to ?== as of March <, ?KK , and intend to

continue to reduce the num!er of our vendors. << of their vendors at March

<, ?KK were in technical colla!oration with foreign entities. As of the same

date, we had strategic e6uity interests through joint venture agreements in <

of their vendors, who together supply a su!stantial portion of their purchases

of components. A num!er of their vendors are their dedicated suppliers in that

they account for a majority of their turnover. 0endors located within a radius

39



of <KK ilometers from their facility supply the majority of their components.

The production systems of their vendors are generally aligned to their need

for a relia!le and timely supply of components that meet their 6ualityre6uirements. This has ena!led them to increase the proportion of locally

sourced, lower cost components in their models, a concept they refer to as

localisation. They have !een a!le, in colla!oration with their vendors, to

increase the rate at which they are a!le to localise production of their new

models over time. This has helped them reduce the cost of their components.

& illed la!our and e#perienced management@ Thei highly s illed la!our force

has !ecome increasingly productive in terms of vehicles produced per

employee and receives training on an ongoing !asis, including training !y

&u3u i. As of March <, ?KK , <,=KK of their employees had !een trained at

&u3u i s facilities in 4apan. They have !een present in the Indian passenger

car mar et for a significantly longer period than most of their principal

competitors. As a result, they have !een a!le to !uild a highly e#perienced

management team that is familiar with conditions in the Indian passenger car

mar et. ;or instance, their managing director has almost ten years ofe#perience with them, and most of the heads of their divisions have more than

<J years of e#perience with them.

Capital resources@ They have cash and !an !alances and current investments

amounting to $s.=,==? million. As of the same date, they had relatively low

levels of outstanding inde!tedness, in the amount of $s.G,JJJ million. As a

result, they have relatively low interest e#pense and fle#i!ility to raise funds,

if necessary, for their wor ing capital and capital e#penditure in the future.

40



COMPANY PROFILE

T. Qu/0it" A!?/;t/>

A car is an engineering product, only as good as the technology used to ma e

it. Actual users of our technology are saying something very clearly Maruti

&u3u i is o.< in 6uality@

Maruti &u3u i owners e#perience fewer pro!lems with their vehicles than any other

can manufacturer in India *4.". 8ower I9& &tudy ?KKG . The Alto was chosen o.<

in the premium compact car segment and the 1steem in the entry level mid5si3e car

segment across = parameters.

The 4.". 8ower A81A) &tudy ?KKG proclaimed the 7agon $. o. < in the

premium compact car segment and the 1steem o.< in the entry level mid5

si3e car segment. This study measures owner delight in terms of design,

content, layout and performance of vehicles across > parameters.

Maruti &u3u i has a sales networ of KH state5of5the5art showrooms across

<>= citiesF, with a wor force of over EKKK trained sales personnel to guideour customers in finding the right car. Our high sales and customer care

standards led us to achieve the o.< nameplate in the 4.". 8ower &&I study

?KKG. The &&I study measures sales satisfaction across E parameters@ deal

received, paperwor , dealer facility, salesperson, delivery timing and delivery

process. Maruti &u3u i has not only got the o.< nameplate in the 4." . 8ower

&&I study ?KKG, !ut also ran ed way a!ove the industry average *Maruti

&u3u i was at H>G while industry average was at HEK . 7hat is significant isthat it was ran ed a!ove & oda, ;ord, Chevrolet, Mitsu!ishi and +yundai.

To !e really happy with the car you own, it should have a relia!le service

networ at hand and within easy reach. Their <K E city strong service

networ is e6uipped to service ?K,KKK vehicles a day. o wonder Maruti

&u3u i has !een awarded the o.< nameplate in customer satisfaction in India

for the fifth year in a row, a feat unprecedented for any automo!ile mar et

leader in the world.

41



In the 4.". 8ower C&I study ?KKG, Maruti &u3u i scored the highest across all

H parameters@ least pro!lems e#perienced with vehicle serviced, highest

service 6uality, !est in5service e#perience, !est service delivery, !est in5service e#perience, most user5friendly service and !est service initiation

e#perience.

In fact, =?Q of Maruti &u3u i owners feel that wor gets done right the first time

during service. The 4.". 8ower C&I study ?KKG also reveals that =HQ of Maruti

&u3u i owners would pro!a!le recommend the same ma e of vehicle, while =KQ

owners would pro!a!le repurchase the same ma e of vehicle.

A Bu"i;> E1: ,i ;= Li N+ Ot. ,

Maruti &u3u i has a sales networ of KH state5of 5the5art showrooms across <>=

cities, with a wor force of over EKKK trained sales personnel to guide our customers

in finding the right car. Our high sales and customer care standards led us to achieve

the o.< nameplate in the 4.". 8ower &&I &tudy ?KKG.

Qu/0it" S ,?i= A=,+-- '6(& Citi -

In the 4.". 8ower C&I &tudy ?KKG, Maruti &u3u i scored the highest across all H

parameters@ least pro!lems e#perienced with vehicle serviced, highest service

6uality, !est in5service e#perience, !est service delivery, !est service advisor

e#perience, most user5friendly service and !est service initiation e#perience.

=?Q of Maruti &u3u i owners feel that wor gets done right the first time during

service. The 4.". 8ower C&I study ?KKG also reveals that =HQ of Maruti &u3u i

owners would pro!a!ly recommend the same ma e of vehicle, while =KQ ownerswould pro!a!ly repurchase the same ma e of vehicle.

O; St+: S.+:

At Maruti &u3u i, you will find all your car related needs met under one roof.

7hether it is easy finance, insurance, fleet management services, e#change5 Maruti

&u3u i is set to provide a single5window solution for all your car related needs.

42



T. L+ C+-t M/i;t ;/;= A!?/;t/>

The ac6uisition cost is unfortunately not the only cost you face when !uying a

car. Although a car may !e afforda!le to !uy, it may not necessarily !e

afforda!le to maintain, as some of its regularly used spare parts may !e priced

6uite steeply. ot so in the case of a Maruti &u3u i. It is in the economy

segment that the afforda!ility of spares is most competitive, and it is here

where Maruti &u3u i shines. The recent Auto car &urvey conducted in August

?KKG !ears testimony to this fact. In the Maruti &u3u i sta!le, the Omni has

the lowest aggregate cost of spares followed !y the Maruti5>KK. The Maruti5

>KK has the cheapest spares of any Indian car with a !as et of just $s. ? ,G??.

In the )ower Mid5si3e segment as well, price5consciousness is very high,

where the cars have to !e not only afforda!le on purchase price !ut also need

to com!ine 6uality, driva!ility and have comforta!le interiors. In this

segment, the Maruti &u3u i 0ersa has scored particularly well with the lowest

cost of spares in the segment. In the %pper Mid5si3e segment, the Maruti

&u3u i Baleno has the segment/s lowest prices on a majority of the spares.

L+ -t C+-t +< O ; ,-.i:

To !e really happy with the car one owns, it should !e easy on the poc et to

!uy and to run5which is why the cost of ownership is so important. And here

again, a Maruti &u3u i is a clear winner, as shown !y the recent 4.".8ower

C&I study ?KKG. It is clear that a Maruti &u3u i delights you even when you

run it for years. The E highest satisfaction ratings with regard to cost of

ownership among all models are all Maruti &u3u i vehicles@ 'en, 7agon $,1steem, Maruti >KK, Alto and Omni. They are proud to have the lowest cost of

operation 2 m *among petrol vehicles 5 the top J models are all Maruti

&u3u i models@ Maruti >KK, Alto, 'en, Omni and 7agon $.

Em:0+" Qu/0it" M /-u, -

(ai3en is !ased on the concept of ma ing incremental improvements in our

products. It incorporates a series of continuous small and simple improvements,which aim at involving employees at all levels.

43



The &uggestion &cheme is !ased on the same principle. %nder this scheme,

employees are encouraged to ma e suggestions for improvement in any area of our

operation. Over JK,KKK suggestions are received from employees every year.

Maruti has won the ;irst place in E1= 00 ;= i; Su>> -ti+; S=. m C+;t -t

866( , which is the Eth consecutive award won in as many years. This contest is

organi3ed !y Indian National Suggestion Schemes Association *I &&A . &ince

<==> Maruti has won this award <K times.

:9uality Circles: are groups of five to eight mem!ers from a particular wor area

who wor as a team to identify priorities and solve wor related pro!lems in the

area.

7e !elieve that it is this unwavering commitment to 6uality that will lead to the

further growth of the organi3ation as competition increases.

ISO *66'%8666

At Maruti, our approach to 6uality is in eeping with the 4apanese practice55:!uild it

into the product:. Technicians themselves inspect the 6uality of wor . &upervisors

educate and instruct technicians to continually improve productivity and 6uality.

The movement of 6uality indicators is reviewed in wee ly meetings !y the top

management.

I; 866' M/,uti U!"+> Lt! b =/m +; +< t. <i,-t /ut+m+bi0 =+m:/;i -

/;" . , i; t. +,0! t+ > t /; ISO *666%8666 = ,ti<i=/ti+;$ A0 Belgium,

glo!al auditors for International Organi3ation for &tandardisation*I&O , certified

Maruti after a four day long audit, covering varied parameters li e Customer

;ocussed organisation, )eadership, Involvement of people, 8rocess approach,

&ystem approach to Management, Continual improvement, etc.

44



I; M/" '**) M/,uti >+t ISO *668 = ,ti<i=/ti+;$ The audit for this covered

6uality assurance in production, installation, mar eting and sales as well as after

sales services. 7e were also one of the first companies in the world to pioneer I&O

=KKK certification for our dealers.

I; O=t+b , '**( MUL :/-- ! t. C+;<+,mit" O< P,+!u=ti+; COP Au!it

.i=. i- b/- ! +; / Eu,+: /; U;i+; Di, =ti? $ This authenticated our 6uality

systems and testing facilities for e#port to 1urope.

Their emphasis on total 6uality has meant that today they are in a position to guide

vendors and dealers in esta!lishing and consolidating their individual 6uality

systems. This commitment to 6uality has ensured a consistently satisfying product

and world5class sales and after5sales services.

45



TS'&*5*%8668 4 A new feather was added recently in Maruti s cap in the field of

6uality when the 9uality Management &ystem of its 8ress &hop associated

functions *collectively termed as 8ress ;unction got certification for conformanceto the re6uirements of T&<E=G=@?KK? standard.

The need for T& certification of 8ress ;unction had its genesis in the prestigious

project that Maruti earned for the supply of stamped panels to -eneral Motors India

for one of its forthcoming models.

As a part of 9uality system re6uirements, -M re6uires all its suppliers to !e

certified to either I&O T& <E=G= or 9& =KKK.

These standards address 9uality &ystem re6uirements, which are particularly

specific to the automotive industry and re6uires an organi3ation to !e in compliance

with I&O =KKK systems as a !asic re6uirement. +owever, whereas 9& =KKK would

!ecome defunct and cease to e#ist after "ec ?KKE, T& <E=G= is going to !e the

standard of the future.

The T& <E=G= standard, !rought out !y I&O in the year <===, is an e#tension of the

I&O =KK<@?KKK standard that prescri!es 9uality management system re6uirementsthat are specifically applica!le to the automotive industry.

T& <E=G= has gained high popularity and almost all major automo!ile players across

the glo!e including -M, ;ord, "aimler Chrysler, issan, +onda are em!racing

promoting it.

46



ISO *66'%8666

THEORITICAL PERSPECTI#E

C+;-um , i- strictly, the ultimate consumer of a product, the ultimate user of a

product the person who derives the satisfaction or the !enefit offered. The

/consumer/ is not necessarily the customer, since there are often /customers/ in the

!uying2 distri!ution chain moreover, the consumer is fre6uently not the person who

ma es the !uying decision for instance, in the case of many household products,

where the housewife may ma e the purchase !ut consumption or use is !y the wholefamily. /Consumer/ is not normally applied to the purchase of industrial goods and

services where the customer is usually a corporate !ody. evertheless, consuma!le

goods are sold to industry for corporate purposes and the consumers of these goods

can !e identified for mar eting practice.

C+;-um , b ./?i+, i- the study of !uying ha!its or patterns of !ehaviour of

consuming pu!lic either in general or in specific groups.

47

http://www.marutiudyog.com/ab/qualitysys.asp?ch=1&ct=2&sc=1

http://www.marutiudyog.com/ab/qualitysys.asp?ch=1&ct=2&sc=1



THE BUYING PROCESS

The comple#ity inherent in understanding consumer !ehaviour has led to the

construction of models of the !uying process which indicate the stages

through which the consumer passes from the time he or she first !ecomes

aware of a need for a product or service to the time when a product is

purchased, a !rand selected, and the consumer evaluates the success of his

purchase decides whether to !uy that particular product and 2 or !rand again.

It the same time, such models usually indicate the social and psychologicalforces which shape the potential !uyer/s action at each stage in the process.

The two principal aims of such model !uilding are the prediction of future

!ehavior !ased on measurement of relevant varia!le and the e#planation of

this !ehavior in terms of theoretically relevant constructs.

48



The starting point for understanding the !uyer is the stimulus5response model

shown !elow

M/, ti;>-timu0i

Ot. , -timu0i Bu" , -C./,/=t ,i-ti=-

Bu" , - ! =i-i+;:,+= --

Bu" , - ! =i-i+;-

8roduct

8rice

8lace

8romotion

1conomic

Technological

8olitical

Cultural

Cultural

&ocial

8ersonal

8sychological

8ro!lemrecognition

Information search

1valuation decision

8ost5purchase !ehavio r

8roduct choice

Brand choice

"ealer choice

8urchase timing

8urchase amount

St/> - i; Bu"i;> D =i-i+; P,+= --

eed

recognitio

n

Informatio

n search

1valuation of

alternatives

8urchase

decision

8ost5

purchase

!ehavior

The consumer passes through five stages @ Problem recognition information

search, evaluation of alternat ives purchase decision and post-purchase

behavior. Clearly the !uying process starts long !efore the actual purchase

and has conse6uences long after the purchase.

This model implies that consumers pass through all five stages in !uying a

product. But this is not the case, especially in low5involvement purchase.

Consumers may s ip or rreverse some stages. Thus a woman !uying her

regular !rand of toothpaste goes directly from the need for toothpaste to the

purchase decision, s ipping information search and evaluation. +owever, we

have already used the model in a!ove, !ecause it captures the full range of

consideration that arise when a consumer facer a highly involving new

purchase. 7e will allude again to )inda Brown and try to understand how she

!ecame interested in !uying a laptop computer and the try to understand how

she !ecame interested in !uying a laptop computer and stages she wentthrough to ma e her final choice.

49



MAJOR FACTORS INFLUENCING BUYING

BEHA#IOR

Cu0tu,/0

S+=i/0

Culture

&u!culture

&ocial Class

$eference group

;amily

$oles andstatuses

P ,-+;/0

Age and life5cycle stage

Occupation

1conomiccircumstances

)ifestyle

8ersonality andself5concept

P-"=.+0+>i=/0

Motivation

8erception

)earning

Beliefs andattitudes

Bu" ,

R+> ,- m+! 0 <+, t. /!+:ti+; /;! !i<<u-i+; +< i;;+?/ti+;- I;;+?/ti+;

A!+:ti+; CUR#E

The i;;+?/ti+; /!+:ti+; =u,? of R+> ,- is a model that classifies adopters of innovations into

various categories, !ased on the idea that certain individuals are inevita!ly more open to adaptation than

others. Is is also referred to as Mu0ti4St : F0+ T. +," or Di<<u-i+; +< I;;+?/ti+;- T. +," .

I;;+?/t+,-

50



Brave people, puling the change. Innovators are very important communication.

E/,0" A!+:t ,-

$especta!le people, opinion leaders, try out new ideas, !ut in a careful way.

E/,0" M/ +,it"

Thoughtful people, careful !ut accepting change more 6uic ly than the average.

L/t M/ +,it"

& eptic people, will use new ideas or products only when the majority is using it.

L/>>/,!-

Traditional people, caring for the :old ways:, are critical towards new ideas and will only accept it if the

new idea has !ecome mainstream or even tradition.

The !i<<u-i+; +< i;;+?/ti+;- =u,? *innovation adoption curve of $ogers is useful to remem!er thattrying to 6uic ly and massively convince the mass of a new controversial idea is useless. It ma es more

sense in these circumstances to start with convincing innovators and early adopters first. Also the

categories and percentages can !e used as a first draft to estimate target groups for communication

purposes.

Di<<u-i+; , - /,=. <+=u- was on five elements@ < the characteristics of an

innovation which may influence its adoption ? the decision5ma ing process that

occurs when individuals consider adopting a new idea, product or practice the

characteristics of individuals that ma e them li ely to adopt an innovation.

51



TARGET MARKETING

T/,> t M/, ti;> involves !rea ing a mar et into segments and then concentrating

your mar eting efforts on one or a few ey segments.

The !eauty of target mar eting is that it ma es the promotion, pricing and

distri!ution of your products and2or services easier and more cost5effective. Target

mar eting is the selection of customers you wish to service. The decisions involved

in it are

• 7hich segments to target

• +ow many products to offer

• 7hich products to offer in which segments

There are three steps to targeting@

• Mar et segmentation

• Target choice

• 8roduct positioning

One of the first things you need to do is to refine your product or service so that youare OT trying to !e /all things to all people .

e#t, you need to understand that people purchase products or services for three

!asic reasons@

• To satisfy !asic needs.

• To solve pro!lems.

• To ma e themselves feel good.

52



The ne#t step in creating an effective mar eting strategy is to 3ero in on your target

mar et.

Target mar eting is one of corporate America/s most effective !usiness strategies.

The idea is to increase sales !y first identifying, and then targeting smaller, yet more

profita!le customer groups within the total mar et.

F+u, W/"- t+ I! ;ti<" T/,> t M/, t-

<. G +>,/:.i=% The location, si3e of the area, density, and climate 3one

of your customers.?. D m+>,/:.i=-% The age, gender, income, family composition and si3e,

occupation, and education of your customers.

. P-"=.+>,/:.i=-% The general personality, !ehavior, life5style, rate of

use, repetition of need, !enefits sought, and loyalty characteristics of

your customers.

G. B ./?i+,-% The needs they see to fulfill, the level of nowledge,

information sources, attitude, use or response to a product of yourcustomers.

One of the !est ways to identify your target mar et is to loo at your e#isting

customer !ase. 7ho are your ideal clientsU 7hat do they have in commonU If you

do not have an e#isting customer !ase, or if you are targeting a completely new

audience, speculate on who they might !e, !ased on their needs and the !enefits they

will receive. Investigate competitors or similar !usinesses in other mar ets to gain

insight.

TARGET MARKETING

• 7ho are your !est customersU 7here should you direct your mar eting

activitiesU

• 7here and how should you allocate your advertising and promotionaleffortsU

53



Target Mar eting, provides Focus for your !usiness. It helps to esta!lish

critical Operational goals and defines what must !e done to achieve them

W./t Cu-t+m ,- W/;t

• Mar eting is more than an activity, it is an attitude

• Instead of trying to get customers to !uy what the firm li es to ma e,

or happens to have on hand, the mar eting oriented firm tries to

produce or sell what its customers want which can be sold at a profit.

• "o not simply throw out everything that you now have and replace goods or

production machinery with completely new items.

• HOWE#ER AS YOU ANALY2E YOUR MARKET AND

CUSTOMER PROFILES AND SO GAIN AN UNDERSTANDING OF

THEIR WANTS DESIRES AND PERCEI#ED NEEDS YOU CAN

BEGIN TO REORIENT YOUR BUSINESS O#ER TIME TO TAKE

BEST AD#ANTAGE OF THESE NEW INSIGHTS$ CONSIDER

BOTH THE SHORT TERM AND LONG4TERM IMPLICATIONS OF

DE#ELOPING AND IMPLEMENTING THE RIGHT TARGET

MARKETING STRATEGY FOR YOUR BUSINESS$

Cu-t+m , Attitu! -

• ;or a long time, people have !elieved that advertising can !e used to change

people/s minds a!out what they want. This is an incredi!ly difficult processat !est, and an e#tremely e#pensive one. Because of these two factors, it is a

process that smaller firms simply cannot afford to pursue. Instead, it is much

more productive for any si3e firm to tune in to target customer attitudes as

they currently e#ist. Once they have identified the actual prevailing attitudes,

they can !egin to organi3e company resources ; ! ! t+ =+;-t,u=ti? 0"

/!!, -- /;! -/ti-<" t. - /ttitu! - t. " u -ti+; i-

"What are the existing customer attitudes?"

54



7ith this as an o!jective, developing an understanding of e#isting customer

attitudes !ecomes essential, and their identification !ecomes an important part

of the mar eting process. Once these customer attitudes, needs or preferencesare identified, the entire firm can then organi3e itself to satisfy these needs as

completely and efficiently as possi!le.

T/,> t M/, ti;>

55



C+m:/,i-+; +< Aut+m+bi0 A;! C+;-um ,Du,/b0 At "ealership )evel

&. o Att,ibut - Aut+m+bi0 C+;-um , Du,/b0 -

< Turnover +igh )ow

? Margin >Q5<?Q ?Q5GQ

8enetration )evel

More in small or large

towns or cities

More in $ural areas or

in cities also

GTraining of &ales1#ecutives

1#ecutives get Trainingafter every specific period As such no training

J &upply5Chain Co5V"ealer5VCustomer Co5V"istri!utor5V"ealer VCustomer

E "iscount Margin Cartel"epends on "ealer To"ealer

H C&$ 8roper well organi3edOnly &ales man is thereto serve the customer

> A&& Customer get free serviceCustomer have to go atmanufactured level

=BrandAssociation

Customer first choice ismore pertinent

Customer can changehis or her choice

<K 8ayment Instantaneous 8aymentMore focus on ;inance

Installment

<<8ost5&ales;ollow %8 More 0ery )ess

<?Buying8rocedure

Customer can wait for newmodel Instant !uying

< "ata!ase )arge ;ew

<G Brand Transition &ingle5Tier Multi5Tier

<J Advertisement 8arent Company dealer !oth give advertisement Only from 8arentCompany

56



<E)oyality8rograms es o

<H

Customer&atisfactionInde#

7ell5 "efined Organi3ed one

<> 8romotion ;ree &ervice Camps one

<=Customer$etention More 0ery )ess

?K Maintenance

Only free service whichcustomer can e#tend upto

G years*first ?yr are free

Annual Maintenance

Contract *AMC

Maruti s mar eting o!jective is to continually offer the customer new

products and services that@

• $educe the customer s cost of ownership of their cars and

• Wantic ipate and address the customer s needs and preferences in all

aspects and stages of car ownership, to provide what they refer to asthe EK degree customer e#perience.D

They sell ten models with more than JK variants in segments A, B, C, and

utility vehicle segment of the Indian passenger car mar et. Of these, they

manufacture nine models and import the -rand 0itara as a completely !uilt

unit from &u3u i in 4apan. Their models and variants are designed to address

the changing demands of the mar et and are periodically upgraded in

technology, styling and features. To ta e advantage of the !rand recognitionassociated with their products, they retain the !rand name of the product

through various stages of product upgrades over time. ;or e#ample, the

version of the Maruti >KK !rand currently sold in the mar et is a significantly

upgraded version, in terms of technology, design and styling, of the Maruti

>KK launched in <=> .

A M/,uti 966

57



A OMNI

B 2 ;

B W/>+; R

B A0t+

C E-t m

C B/0 ;+

C # ,-/

C SWIFT

Uti0it" # .i=0 GYPSY KING

Uti0it" # .i=0 GRAND #ITARA

BALENO

58



WAGON R

ESTEEM

59



MARUTI 966

60



NEW ALTO

OMNI

61



SWIFT

#ERSA

62



2EN

63



OBJECTIVE OF THE STUDY

My a!" o#$e%&!'e of &(e )&*+y o" &(!) ,-o$e%& !) &o

+e o")&-a&e &(e a-.e&!"g )&-a&eg!e) of Ma-*&! /+yog L&+

A"+ &o a--!'e a& y f!"+!"g) I (a'e +o"e fe a"a y)e)

a OT A"a y)!)

: PE T A"a y)!)

A"+ a )o 5 P;) of Ma-.e&!"g

• P-o+*%&

• P-!%e

• P(y)!%a D!)&-!#*&!o"

• P-o o&!o"

• Po)!&!o"!"g

64



RESEARCH METHODOLOGY

The nature of the project wor has !een e#ploratory as no hypothesis, is

ta en to !e tested. Though the conclusions drawn could !e ta en as the

hypothesis and further tested !y the research wor underta en in the

relevant field. The reason for choosing the e#ploratory research design is

the fact the project report has !een primarily !ased upon the secondary

sources of data and whose authenticity could !e assured of.

The reluctance of the company/s personnel in parting with much of

information led the project repor t to !e !ased su!stantial ly on the

secondary source of data. The sources of data used in data collection are

the following@

P,im/," -+u,= -

In order to gather information a!out the various products, I personally

visited a num!er of retail mar ets and collected data pertaining to the

pr ices of the produc ts of fered. The mar et vi si ts were useful in nowing

the comparative prices and 6uality of the offered !rands vis5X5vis the

competitive !rands. "etail regarding the pac aging of the products were

collected were collected and I also in6uired a!out the various sales promot ion schemes fo llowed !y the th ree compan ies.

By interviewing these retailers valua!le information was collected. I

in6uired from them a!out their mar eting advertising and distri!ution

strategies.

65



S =+;!/," -+u,= -

Information was collected from secondary sources such as pu!lic li!raries,

newspapers, !usiness maga3ines.

Beside these the use of Internet was also made in collecting relevant

information. The data collected from the a!ove mentioned sources has !een

ade6uately structured and used at appropriate places in the report. This

pa rt icular way of da ta co llec tion was used !ecaus e of it s low cost *e#cep t

data collected through surfing the internet and less time consumption.

The information gathered included@

• Their annual reports *8rocter -am!le and 4ohnson and 4ohnson .

• 8amphlets.

• 8osters.

• 8ress clippings.

• ews re leases .

• ews le tters.

• 8ictures.

66



DATA ANALYSIS AND INTERPRETATION

In August, ?KK Maruti crossed a milestone of e#porting KK,KKK vehicles since its

first e#port in <=>E. 1urope is the largest destination of Maruti s e#ports and

coincidentally after the first commercial shipment of G>K units to +ungary in <=>H,

the KK,KK mar was crossed !y the shipment of JH< units to the same country. The

top ten destinations of the cumulative e#ports have !een etherlands, Italy,

-ermany, Chile, %.(., +ungary, epal, -reece, ;rance and 8oland in that order.

The Alto, which meets the 1uro5 norms, has !een very popular in 1urope where a

landmar ?KK,KKK vehicle were e#ported till March ?KK . 1ven in the highly

developed and competitive mar ets of etherlands, %(, -ermany, ;rance and Italy

Maruti vehicles have made a mar . Though the main mar et for the Maruti vehicles

is 1urope, where it is selling over HKQ of its e#ported 6uantity, it is e#porting in

over HK countries.

Maruti has entered some unconventional mar ets li e Angola, Benin, "ji!outi,

1thiopia, Morocco, %ganda, Chile, Costa $ica and 1l &alvador. The Middle51ast

region has also opened up and is showing good potential for growth. &ome mar ets

in this region where Maruti is, are &audi Ara!ia, (uwait, Bahrain, 9atar and %A1.

The mar ets outside of 1urope that have large 6uantities, in the current year, are

Algeria, &audi Ara!ia, &rilan a and Bangladesh. Maruti e#ported more than J<,KKKvehicles in ?KK 5KG which was J=Q higher than last year. In the financial year ?KK 5

KG Maruti e#ports contri!uted to more than <KQ of total Maruti sales.

67



68



MA$%TI A)) I "IA &A)1& $ T$1 "

S >m ;t 866(465 Growth 866546) Growth 866)46& GrowthA' Mi;i 4 H/t=.b/= <EH,JE< 17 <<E,?E? -!1 >=,?? -"!A8 C+m:/=t 4 H/t=.b/= <HE,< ? #7 ?H<,?>K $# J,< E "#A( Mi! Si <G,<H "% ?=,E H 1&' <,= = %A5@A)@A& E1 =$@P, m$@Lu1u," A NA A NA A NAC #/; T": J=,J?E 1$ EJ,K<= ' EE, EE "P/-- ;> , C/,- MUL 5'3 (*8 28% 598 '*9 16% )88 &&5 8%

Passenger Cars Tota! ndustr# 3)9 '8( 26% 99) 68* 1$% *59 &&* $%MU# Uti0it" # .i=0 - ,JJJ 1" J,?KG #( G, HG -1(P/-- ;> , # .i=0 - MUL 586 *53 28% 593 568 '& )83 6(9 9

Passenger eh ic!es Tota! ndustr#

*6' ')6 2&% ' 6)6 85& 1$% ' '8* ('& 8%

69



MARKET SHARE

2005-06 Market Share-Segment A2TATA20%

HYUNDAI21%

MARUTI59%

2005-06 Market Share-Segment A3

TATA20%

F RD1!%

"M6%H NDA

20%

TH#RS$%

MARUTI1$%

HYUNDAI16%

2005-06 Market Share- a&&enger 'ar&

T Y TA1%

TH#RS3%

F RD3%"M1%

H NDA!%

TATA16%

MARUTI55%

HYUNDAI1$%

70



COMPETITION MODELS

SEGMENTM/,uti C+m: titi+;

A' Mi;i 4H/t=.b/=

M>KK

A8 C+m:/=t 4H/t=.b/=

'en, 7agon$,Alto, &wift

+yundai 5 &antro -et3 Tata 5 Indica 8alio -M 5 Corsa &ail

A( Mi! Si 1steem, Baleno +yundai 5 Accent Tata 5 Indigo 8et ra+onda 5 City -M 5 Corsa, Optra, Aveo

;ord 5 I on, ;usion, ;iestaA5@A)@A&

E1 =$@P, m$@Lu1u," +yundai 5 1lantra &onata +onda 5

Accord -M 5 0ectra ;ord 5 Mondeo & oda5 Octavia &uper! Toyota 5 Corolla

Camry "aimler Chrysler 5 C,1, & ClassC #/; T": Omni, 0ersaMU# Uti0it"

# .i=0 --ypsy, -rand

0itaraMitsu!ishi 5 8ajero +yundai 5 Terracan

Tucson ;ord 5 1ndeavor Toyota 5 8rado Innova issan 5 N Trail +onda 5 C$0 -M5 ;orrester Tavera Tata 5 &umo & afari

Mahindra 5 4eeps, &corpio, Bolero

71



ANALYSIS

Corporates, don/t tal a!out e#ceeding customer satisfaction 5 that/s passe 5 the time

has come to Yda33le the customer/. But to do that, first you must get customer

relationship management *C$M in place. In the conte#t of India, this is very crucial

as the recent 7orld 1conomic ;orum $eport on -lo!al Competitiveness has ran ed

India G out of G= nations surveyed, on Ycustomer orientation/.

Managing customer relationships is not only comple# !ut is also multi5faceted and

thus calls for an inter5disciplinary approach. 8articularly, as in the ew 1conomy,the customer has !ecome very demanding and the emphasis needs to !e on !eing

consumer5centric. Technology solutions as applied to various front5end functions

could aid in !uilding a via!le lin !etween the organisations and customers

irrespective of geographical separation. This has to !e !ac ed with appropriate

systems and processes to mine the right type of data !y the right function in an

organisation.

Besides technology, systems and processes, another important lin is human

resource, If C$M is the ey, +$ would !e the nerve centre for any C$M activity.

At Maruti %dyog )td the first step for a company to enhance value through C$M

was to identify its target !ase. At Maruti, the categories which emerged were@

F Two5wheeler owners

F Customers ta en away from the competition

F &ervices sector.

After identifying the target, the ne#t stage was to !uild on customer relationships.

Maruti, therefore, !egan evaluating the current data!ase of consumers to identify

those who wanted Maruti service or !etter still, wanted to upgrade up the value

chain in Maruti products. Third, it !egan wor ing in tandem with the oil industry to

get data feed!ac on two5wheeler consumers5and identify those ready to move into

72



four5wheeler purchases. %ltimately, C$M is all a!out value enhancement for the

organisation.

;aced with increasing competition from a!road, a cyclical !usiness environment,

and the challenge of a widely dispersed dealer networ , Tata Motors implemented

&ie!el Automotive, a comprehensive customer relationship management *C$M

solution designed specifically for companies in the automotive industry. &eamlessly

integrated with Tata Motors dealer management system and &A8 !ac 5office

applications, &ie!el Automotive has delivered significant !enefits across the

e#tended organi3ation, including improved customer satisfaction, increased revenue

and productivity, and reduced costs.

The &ie!el C$M solution ena!les Tata Motors to gather feed!ac on products to

improve design or manufacturing 6uality as well as measure the effectiveness of

mar eting campaigns and programmes. The automa er selected &ie!el Automotive

!ecause of its partner management capa!ilities to handle its large dealer networ ,

the solution/s 3ero5footprint we!5!ased architecture and user5friendly interface5

critical to support thousands of salespeople with various s ill levels.

• Improved demand forecasting, planning, logistics management, and

inventory management

• Overall reduction in 6uality5related costs due to faster product

performance feed!ac

• Improved wor flow and escalation of customer grievances for faster

resolution

• Increased revenue growth from !oth higher vehicle sales and a rise in

the company/s after5sales parts !usiness

FINDINGS FROM SURVEY

Total um!er of $espondents@ <J Officials

um!er of $espondentsMaruti %dyog )imited J+yundai Motors India )td ?

73



-eneral Motors ?Tata Motors J;ord India )imited <

"o you face pro!lems in maintaining good and effective relationshipswith customersU

9uite;re6uently

;re6uently Average $arely

Maruti %dyog)imited

? 5 5

+yundai MotorsIndia )td

5 ? 5 5

-eneral Motors 5 ? 5 5Tata Motors ? 5 5;ord India )imited 5 < 5 5

()*teFre+)ent,

33%

Fre+)ent,6$%

A.erage0%

Rare,0%

;indings@ According to the responses of the respondents it can !e concluded that all

the respondents face pro!lems in maintaining good and effective relationships with

customers. 7ith changing customer needs its 6uite o!vious that maintaining good

relations with customers need an effort on part of the "ealers and Manufacturers.

H+ 00 =/; "+u, =+m:/;" i! ;ti<" it- ;! u- , =u-t+m ,-

♦ Maruti %dyog )imited@ According to the officials of M%), the company s

endeavor is to !e close to the customer, to anticipate and fulfill their

needs. They !elieve that the new !usiness initiatives ta en !y M%) have

74



e#panded the scope of this relationship. Maruti offers auto insurance, auto

finance, corporate lease and fleet management and resale of pre5owned

cars in partnership with its dealers. ;or the first time, car customers inIndia are a!le to access these services through a one5stop shop, !ac ed !y

the leader !rand. The way they loo at it is that this will provide complete

mo!ility solutions to the Maruti customer. This also ena!les them to

e#tend their relationship with the customer !eyond the point of purchase to

the entire ownership life cycle. &ince these services play a vital role in the

car customer/s ownership e#perience, the new initiatives ena!le them to

offer Maruti owner s greater value, assurance and convenience.♦ +yundai Motors India )td@ According to the officials of +yundai Motor

India is at a very e#citing stage in India today. They are e#periencing

tremendous growth 5 which is a true sign of enjoying customer confidence.

In order to strengthen their position further in the Indian mar et, they need

to continuously wor on !uilding their corporate reputation while

aggressively positioning their products. ;or +MI/s focus and commitment

to the Indian automo!ile customers is of critical importance. Its !een theircontinuous endeavor to fulfill the entire spectrum of customer needs and

desires, across all socio5economic lifestyle groups. They have therefore,

in just E years of +MI/s young life, esta!lished nationwide sales service

networ , scaled up state5of5the5art manufacturing capacity, launched

glo!al5standard cars in rapid succession and e#ported cars made5in5India

across the glo!e. -et3, a much admired lifestyle !rand in 1urope and

elsewhere, is a step in the same direction and is a cutting5edge, addition to

+MI/s e#tensive product portfolio.

♦ -eneral Motors@ According to the officials at -eneral Motors is positioned

as a mature and responsi!le car manufacturer, which offers great value5

for5money products to its customers. The company leverages its glo!al

e#pertise to manufacture and mar et well engineered and safe products

through its well5esta!lished retail networ that provide an e#cellent

ownership e#perience to its customers.

75



♦ Tata Motors@ According to the officials of Tata Motors the foundation of

the company s growth over the last JK years is a deep understanding of

economic stimuli and customer needs, and the a!ility to translate them into

customer5desired offerings through leading edge $ ".

♦ ;ord India )imited@ According to the officials of ;ord India has reaffirmed

its commitment to enhancing the purchase and ownership e#perience for

its customers with the rollout of ;ord BrandZ$etail concept across the

country. ;ord India has !een revamping all dealerships under the ;ord

BrandZ $etail, a glo!al corporate identity program to offer a world5class

purchase e#perience to the customer. ;ord India continues to e#pand itsdistri!ution networ and will grow to <<J dealer outlets in H= locations !y

the end of ?KKJ. The officials also mentioned that ;ord India provides

training support to dealers in areas including customer satisfaction, sales,

technical and non5technical aspects of the !usiness and in the financial

management of the dealership.

C/; "+u, =+m:/;" !i<< , ;ti/t it- =u-t+m ,- b/- ! +; t. i, ?/0ut+ "+u /;! t. i, ; !- <,+m "+u

es oMaruti %dyog )imited J 5+yundai Motors India)td

? 5

-eneral Motors ? 5Tata Motors J 5;ord India )imited < 5

76



Ye&100%

N/0%

;indings@ According to the respondents *officials at all the ;ive Automo!ile Majors

their company was a!le to differentiate its customers !ased on their value to them

and their needs from the company. This is important for the automo!ile industry

!ecause the dynamics of selling cars is changing and manufacturers and dealers who

fail to meet the rising needs and e#pectations of their customers will lose out to

those who can. Buying a new car is an e#perience customer will remem!er for a

long time and ensuring that this e#perience is a satisfactory one is essential in

!uilding !rand loyalty and customer advocacy.

H+ 00 !+ "+u i;t ,/=t it. "+u, =u-t+m ,-

♦ Maruti %dyog )imited@ According to the officials of M%), their overall strength

lies in !uilding an organi3ation that is sharply focused on the voice of thecustomer. Maruti/s consistent performance over the past several years has

resulted in a steady increase in the percentage of its customers who say they

intend to remain loyal to the !rand. n order to !e closer to the customers, it is

essential that we should have multiple avenues of one5to5one interaction with

our customers. As a major step in this direction they have started Call Center

service with toll5free num!er for the people of ational Capital $egion in year

?KKK. This service, named A;"tim M/,uti , is now availa!le nation5wide.Customers in +? , 366 =iti -@t+ ;- /=,+-- I;!i/ can contact them any time

77



during the day and all days of the wee . The toll5free service is '966 '966 '96 ,

it is accessi!le from any fi#ed5line or mo!ile phone of B& )2MT ) networ

across the nation. The A;"tim M/,uti Call5center can also !e accessed usingtelephones on other networ s !y dialing 6*9''96')') *not toll5free . The

o!jective of this service is to ensure that customers have 6uic and easy access

to all information on their models, prices, dealers, value added services, finance

options, and the locations of our numerous service stations. Anytime Maruti

helps customers to learn more a!out their Maruti Cars and also a!out other

services offered !y Maruti. ;or prospective !uyers, Anytime Maruti can help

them deciding amongst various Maruti Models and !enefits of !uying fromMaruti.

♦ +yundai Motors India )td@ According to the officials at +MI The

Company has set up more than HK dealer wor shops that are e6uipped with

the latest technology, machinery, and international 6uality press, !ody and

paint shops, across the country, there!y providing a one5stop shop for a

+yundai customer. +yundai also has a fleet of H> emergency road service

cars 5 specially e6uipped &antro that can provide emergency service to allits customers anytime, anywhere. The customers can also call on <>KK5<<5

GEGJ *Toll ;ree 5 Only from MT ) B& ) num!ers

K<<5 ?E=?GEGJ *;or all -&M Connections 2 )andline other than MT )

B& ) num!ers for any 6ueries customer complaints.

♦ -eneral Motors@ According to the official at -M, to !ring greater value

and service to customers, they have introduced the -M &ervice 8lus auni6ue cluster of services, designed to compliment every aspect of owning

a car and ensuring complete peace of mind. &o !e it emergency assistance,

an urgent car servicing or even sourcing genuine accessories, Customers

can !e assured of yet another great moment from -eneral Motors. ;or any

car related 6uery or emergency re6uirement, customers can call ?G5hour

assistance at K K>K>K. The uni6ue 5hour service programme comes with

a promise of servicing your car in just hours, or you get the service free.

7ith their ?G5hour wor shops, customers can now conveniently get their

78



car serviced, when they use it the least. 7idespread sales and service

outlets across the country ensure that you have the assurance of great

service wherever you travel in India.♦ Tata Motors@ according to the officials of Tata Motors the company has

strengthened its distri!ution and customer care networ and today has HH

dealers and ? K authori3ed service outlets spread across <<= locations in

India.

♦ ;ord India )imited@ According to the officials at ;ord solutions aims to

provide 6uality, peace5of5mind products for the customer and em!odies a

!rand synonymous with its a!ility to provide products that can !e tailoredto suit one/s individual needs. ;ord &olutions serve to develop products for

;ord and the "ealer !ody that enhance customer satisfaction. 7hen your

vehicle needs a repair or a component replaced, you need 9uality Care

service. our ;ord "ealership is simply the !est place to have your

vehicle serviced. Bra es, shoc s, !atteries or anything your vehicle may

need, your dealership is the place to get it. Customers can place a online

service re6uest at ;ord.

79



H+ 00 !+ - "+u, =+m:/;" =u-t+mi it- :,+!u=t- /;! - ,?i= -

b/- ! +; ./t it ;+ - /b+ut it- =u-t+m ,-

+ighly Customercentric

&omewhatCustomer centric

ot Customercentric

Maruti %dyog)imited

J 5 5


? 5 5

-eneral Motors ? 5 5

Tata Motors J 5 5

;ord India)imited

< 5 5

Highly Customercentric100%

SomewhatCustomer centric

0%

Not Customercentric

0%

;indings@ All the officials of the Automo!ile Majors agree that all products and

services are highly customer centric and !ased on the information they now a!out

the customers.

80



D+ - t. =+m:/;" ./? -t/b0i-. ! u/0it" /--u,/;= :,+= -- -

es oMaruti %d yog )imited J 5+yundai Motors India)td

? 5


Ye&100%

N/0%

;indings@ According to all the respondents their respective companies have

esta!lished 6uality assurance processes.

81



D+ - t. =+m:/;" t/ =u-t+m ,- ; !- i;t+ =+;-i! ,/ti+; . ;- 0 =ti;> /;! im:0 m ;ti;> t =.;+0+>"


? 5


Ye&100%

N/0%

;indings@ According to all the respondents their respective companies ta e

customers/ needs into consideration when selecting and implementing technology.

As per officials of -M the Tavera is a classic case of an India5specific product.

Though it is an international product, the car has !een totally re5engineered for

Indian mar et re6uirements.

At +yundai &egment5needs and !udgets are specific and a suita!le variant

strategy is inevita!ly re6uired to meet different segment5needs and to !e a

volume player in the segment. The variants are decided after considera!le

research. They have !een targeted at different segments and they presently

witness a healthy mi#. As this segment evolves they rationalise the variant

strategy and add or delete variants to meet mar et re6uirements. They have

put in place a customer contact programme where they interact with

82



customers in groups as well at an individual level at regular intervals to assess

their needs and overall e#perience with their product.

The typical Indian consumer loo s for value and does not mind paying a little

more for it. ;uel efficiency, airconditioning and relia!ility along with ease of

service and low cost of ownership are major considerations during the

purchase process in India.

D+ - t. =+m:/;" :,+?i! it- m:0+" - it. t =.;+0+>" t./t

;/b0 - t. m t+ . 0: =u-t+m ,-

es oMaruti %d yog )imited J 5+yundai Motors India)td

? 5


Ye &100%

N/

0%

;indings@ According to all the respondents the company provides its

employees with technology that ena!les them to help customers. 1mployee

and "ealer Training is a part of every company Customer &ervice Initiative.

This ena!les them to provide the customers with state of art products and

service to customers.

83



D+ - t. =+m:/;" m/i;t/i; / -t,/t >" <+, =+00 =ti;> /;! u-i;>

i;<+,m/ti+; /b+ut =u-t+m ,-


? 5


Ye&100%

N/0%

;indings@ According to all the respondents they have proper information a!out their

most profita!le customers. Companies use Informal Meetings, &ales Interaction and

calls to collect relevant information needed to maintain good customer relationship.

The most effective companies li e Tata Motors use all the a!ove while most of othertrac the data during sales interaction. All the Automo!ile majors surveyed used

C$M software for trac ing Customer Information. According to the officials

Customer and &upplier ;eed!ac are gathered through Call Centers, Mails and

"irect Interviews. There are other methods too !ut the a!ove three are the most cost

effective.

H+ << =ti? 0" !+ - t. =+m:/;" =+mbi; i;<+,m/ti+; +; =u-t+m ,- it.it- 1: ,i ;= - t+ > ; ,/t ;+ 0 !> /b+ut it - =u-t+m ,-

+ighly 1ffective &omewhat ot 1ffective

84



1ffectiveMaruti %dyog)imited

G < 5


? 5 5


Tata Motors ? 5

;ord India)imited

< 5 5

Highly Effective80%

Somewhat effective20%

Not Effective0%

;indings@ All the >KQ officials of the Automo!ile Majors their company

highly effective in com!ining information on customers with its e#periences

to generate nowledge a!out its customers while ?KQ said that the company

was somewhat effective.

85



W./t -t :- ./- t. =+m:/;" t/ ; t+ im:,+? t. t+t/0 1: ,i ;=

+< it- =u-t+m ,-

♦ According to the Maruti %dyog )imited Officials@ &ales e#perience is the

most important factor, accounting for H per cent of the &&I score, and

includes issues such as fulfillment of commitments and lac of hassles

during the sales process, overall honesty and integrity of the dealership

personnel and sufficient time to ma e the decision. Maruti entered the

Indian car mar et, to provide fuel efficient, low5cost vehicles, which wererelia!le and of high 6uality. It also offered customers a friendly sales and

after sales service. 7ith high customer satisfaction ratio and Total

automo!ile value these o!jectives shaped Maruti as !ig -iant in the field

of automo!iles.

♦ According to +yundai Motors *India Officials@ +yundai/s !ig hit was its

compact family car named &antro which !ecame a huge hit with its launch

and capture hearts of millions with increasing satisfied customers day !yday. 7hen +yundai forayed into the Indian mar et it moved 6uic ly to set

up a networ of dealers and service stations 5 it has close to ?EK of the

latter. &ervice was identified as a powerful differentiator to the way things

were done and word of mouth did the rest. It was one of the ways to eep

the +yundai customer within our fold. Also, these are advanced cars,

which can/t !e repaired !y a corner mechanic. +yundai offers service for

less, it/s easily reacha!le and allows fle#i!ility and customers appreciatethat. +yundai Motor India )td *+MI) launched Achieve 9<8<D 6uality

campaign on March ?G, ?KKE primarily focusing on achieving the -lo!al

o.< 9uality Brand image. The campaign has !een initiated across the

+yundai vendor fraternity. This new initiative will strengthen the 0endor

6uality organisation and will ensure the major part 6uality improvement

such as &i# &igma Activity, training and improve the Tier ? suppliers. The

campaign will also help the suppliers to improve their CJ& * C Correct

Container, Correct 9uantity Correct )ocation and J& &orting,

86



&ystemati3ing, &hining, &tandardi3ing &elf5"iscipline , T8M *Total

8roductivity Maintenance , !enchmar ing activities and upgrade 6uality

systems.

According to ;ord India )imited officials@ 8resently ;ord is offering seven

different models, ;ord India )imited *;I) is catching up fast with the Indian

consumer. ;I) was the first su!sidiary of a multinational car manufacturer in

India to launch a car designed specifically for India. They have consistently

adapted the specification of the I on to ensure it meets the needs of Indian

consumers. They have improved the horn and the steering column switch so

that they are more ro!ust the new com!ination switch has proved so effective

that it is used worldwide. They have also developed a hydraulically activated

clutch system, improved ground clearance and upgraded air conditioning to

satisfy the specific needs of the Indian customer. This is part of a continuous

improvement process. &atisfying our customers They have introduced

initiatives to assess customer satisfaction and to act on their concerns. The

Intensified Customer Concern "efinition *ICC" is a telephone survey of

customers conducted to assess pro!lems in three areas@

They recognise the need for additional products. They are wor ing towards

introducing products to match our customer s dynamic lifestyle, products

which have progressive styling and are great to drive.

[ 0ehicle 6uality concern [ "esign and general comments [ egative sales and

service

♦

According to -M officials@ -eneral Motors target is to offer a choice of products to their customers to match their different needs and !udgets.

Being the world s largest car manufacturer, they have access to a range of

products through their glo!al alliances. They are already present in most

segments and will shortly have products in additional segments. +owever,

they are focusing on the fast growing M80 segment with the Chevrolet

Tavera and have invested su!stantially in this product line. They loo for

customers for life who will have a choice of products to !uy from their

sta!le. &ustained !rand !uilding efforts coupled with intensive ground5

87



level activity has ensured that Optra has remained among the top two

players in its segment. They have refreshed the product through

continuous product improvements and have emerged as segment leader infuel efficiency. They have recently launched a limited edition of <JK cars,

which has received a very positive response and given us rich dividend in

terms of !rand !uilding and imagery. A product refreshment plan ensures

that they remain competitive and are ready to meet future challenges in

this segment. They also have a regular Customer $elation Management

programme where!y e#isting cus tomers are offered loyalty programmes

and great offers. &o far, they have organised si# Optra Ma# Mileage $allymeets where Optra customers compete to e#tract the !est fuel efficiency

out of their cars and all participants are treated to an overnight stay at an

e#otic locale with an evening of entertainment. The winners of these

rallies are given healthy cash rewards. These vents go a long way in

!uild ing goodwill and !rand loyalty.

♦ According to Tata Motors Officials@ TATA Motors is India/s foremost, and

the only fully integrated automo!ile manufacturer. 1sta!lished in <=GJ asTATA 1ngineering )ocomotive Company *T1)CO , to manufacture

locomotives and other engineering products, the company is today among

the world/s top <K producers of commercial vehicles. TATA Motors was

also previously nown as TATA 1ngineering. It is today one of the !iggest

and most prominent companies in the TATA group, with an annual

revenue of S<.> !illion in ?KK<5K?. Today TATA motors/ vehicles run in

more than HK countries. TATA Motors use a manual dealer managementsystem, where every dealer managed details. 7ith legacy5!ased systems,

the environment produced inconsistent data, ma ing interpretations

difficult and resulting in inefficient planning for capacity and spare parts.

TATA Motors re6uired a standardised solution that would provide them

with@

• Increase in sales and profita!ility !y easy management.

• Improved accuracy of dealer5captured information.

88



• Colla!oration !etween vehicle manufacturers and dealers.

<. A strong feed!ac mechanism and interface for communicating with

customers. TATA Motors chose IBM as its partner to provide an

infrastructure solution. IBM created a &ie!el solution to provide a "M&

solution for TATA Motors and then provided a relia!le and scala!le IT

infrastructure for developing and deploying its "M& application. The IBM

solution has simplified the IT infrastructure for TATA Motors. The !enefits

include 5 low total cost of ownership, a more comprehensive view of

customers, enhanced customer e#periences and improved loyalty. 7ith

reengineered !usiness process, the company can also analyse customer

interactions and other information more accurately, improve capacity

planning and increase profita!ility. ;aced with increasing competition from

a!road, a cyclical !usiness environment, and the challenge of a widely

dispersed dealer networ , Tata Motors implemented &ie!el Automotive, a

comprehensive customer relationship management *C$M solution designed

specifically for companies in the automotive industry. &eamlessly integrated

with Tata Motors dealer management system and &A8 !ac 5officeapplications, &ie!el Automotive has delivered significant !enefits across the

e#tended organi3ation, including improved customer satisfaction, increased

revenue and productivity, and reduced costs. Apart from providing its

customers with high performance automo!iles, Tata Motors strongly

!elieves in customer safety. &everal cases have !een cited where passengers

driving Tata vehicles have !een saved after terri!le accidents. Tata Motors

esta!lished a crash5testing facility, the only one of its ind in the country, in8une in <==E. The small wor force of ?< mem!ers including engineers aims

to control the serious ris s and intrusions in accidents. The company !elieves

that this factor has !een vital to the success of the Indica and other products

under the company s passenger car unit. The ey things that the critical

people spend time on <. Commitment to 6uality manufacturing standards ?.

"eveloping new products . Customer &afety and satisfaction G. -lo!al

e#pansion orms.

89



H+ mu=. i;<0u ;= !+ =u-t+m ,- ; !- ./? +; t. =+m:/;" -:,+!u=t- /;! - ,?i= -

0ery +igh &u!stantial 0ery )owMaruti %dyog)imited

? 5


? 5 5


Tata Motors ? < ?

;ord India )imited < 5 55

Very High6 %

Su!stantial20%

Very "ow1#%

;indings@ All the EHQ*<K responding officials of the Automo!ile Majors

customer needs have a very high influence on company s products and

services while ?KQ* respondents said that it had su!stantial influence while

< Q*? respondents said that customer needs had very low influence on

company s product and services.

90



FINDINGS OF THE STUDY

PRICES OF MARUTI PRODUCTS

Car mar et leader Maruti %dyog )imited has announced a marginal increase in price

of certain models. The increase, which comes into effect from today, varies from

K.<H percent to <.GH percent.

The price increase is due to rise in input costs and freight costs, which

increased following the rise in oil prices. In this phase, the company has

decided to pass on only a part of the increase in costs to the customers. There

is no change in the prices of &wift, 'en, Baleno *0#i and 7agon$ *8etrol .

E14S.+ ,++m P,i= - i; D 0.i i; R-

M+! 0 N O0! I;=, /-C./;>

M966 St! <=<EGE <=<<GE JKK K.?EQ

M966 St! A= ?< KE? ?<?JE? JKK K.?GQ

A0t+ St! ? <J>J ? <K>J JKK K.??Q

A0t+ L1 ?EJ?E? ?EGHE? JKK K.<=Q

A0t+ L1i ?> >H> ?> H> JKK K.<>Q

Om;i C/,>+ LPG <=GH?J <=?H?J ?KKK <.KGQ

Om;i C/,>+ ?< HKE ?< ?KE JKK K.? Q

Om;i Ei>.t S /t , ??<?E> ??KHE> JKK K.? Q

Om;i LPG ? K >> ??H >> KKK <. ?Q

E-t m L1 GGJ=E> GGG=E> <KKK K.??Q

E-t m L1i GHE?? GHJ?? <KKK K.?<Q

91



E-t m #1i J<<J?K J<KJ?K <KKK K.?KQ

B/0 ;+ L1i JHE<H JHJ<H <KKK K.<HQ

# ,-/ D1 G JHJ G ?JHJ <KKK K.? Q

# ,-/ D18 GH<HH= GHKHH= <KKK K.?<Q

# ,-/ St! EK<>? J=<>? <KKK K.?>Q

W/>+;R L1 LPG GJ<KE GK<KE JKKK <.GHQ

W/>+;R L1i LPG H <EK E><EK JKKK <. EQ

Limit/ti+;- +< t. Stu!"

&ince the road to improvement is never ending, so this study also suffers from

certain limitations. &ome of them are as follows@

Because of illiteracy, it was a time consuming method in which

continuous guidance was re6uired.

9uestionnaire method involves some uncertainty of response. Co5

operation on the part of informants, in some cases, was difficult to

presume.

It is possi!le that the information supplied !y the informants may !e

incorrect. &o, the study may lac accuracy.

92



93



CONCLUSION

The price of a car is just one5third of what it cost you over its lifetime. $unning and

maintaining it ma e up the other two5thirds. Ta e into account resale value and its

real cost !ecomes clear. Maruti &u3u i stands for value as much as it stands for

performance. In spite of rising input costs, we try our !est to eep prices down.

Their running costs and resale values are un!eata!le too. othing matches the

delight their cars deliver. In the 4" 8ower C&I study ?KKJ, >JQ of Maruti &u3u i

owners stated that they would definitely recommend the car they drive to someoneelse. Infact, you don t !uy a Maruti &u3u i. ou invest in it.

After the rash of new cars launches the past two years, the relative lull in the auto

industry is showing up in the customer satisfaction indices. According to the ?KKJ

four5wheeler Total Customer &atisfaction *TC& study conducted !y the specialist

division of T & Automotive, the automo!ile ownership e#perience or customer

ownership e#perience has declined in all areas compared to ?KKG. The study is one

of the largest syndicated automotive studies in India, representing the responses of

more than H,KKK new car !uyers. The comprehensive study covers over JK models

with customer evaluations ta en in the ey areas of sales satisfaction, product

6uality, vehicle performance and design, after5sales service, !rand image, and cost5

of5ownership. The TC& inde# score provides a measure of satisfaction and loyalty a

given model enjoys with its customers. According to T & Automotive, the decline

is predominantly for older, small and entry mid5si3e car models. The ageing of these

models seems to !e posing a stiffer challenge for manufacturers to sustain past

performance levels at a time when customer e#pectations are rising sharply.

94



The study reveals a significant increase in the importance of sales satisfaction,

product 6uality *!oth performance and design and !rand image since ?KK ,

indicating rising customer e#pectations over the years. This year/s study shows the

Maruti &u3u i &wift and the Toyota Innova as the winners, with the two vehicles

achieving segment5!est ratings !y performing well in areas of greater relevance,

particularly product and !rand image. &ales satisfaction is wea in !oth these

models, largely !ecause of the longer waiting time for new deliveries.

95



T & Automotive/s TC& &tudy has, since its inception in ?KK?, surveyed over ?J,KKK

car !uyers and has!uilt a si3ea!le sample !ase. &ome of the ey findings, indicators

and inferences from the ?KKJ study are@

8rogressive reduction in car ownership cycle5time from an average of E< months in

?KK? to J months in ?KKJ@ This shortened cycle5time is !ringing these owners for

repeat purchases sooner and will, therefore, further fuel the growth of the four5wheeler mar et. This trend is already visi!le in the growing additional2replacement

purchases. -rowth in additional *multi5car households and replacement purchases

up from J< per cent in ?KK? to EJ per cent in ?KKJ@ This will impact the volume

growth in higher5end segments as the current car owners show upward mo!ility.

96



Increasing !udget for future purchases@ ;uture intenders with a !udget of $s E la h

plus have increased from GG per cent in ?KK? to J> per cent in ?KKJ. 7hile first5time

!uyers are declining as a composition of total volumes, the figure in a!solute termsis high, fuelled !y the up5gradation !y two5wheeler owners The study also throws

up the 6uestion as to whether it is also possi!le that the first5time car !uyer who is

generally a two5wheeler owner, is getting more fuel efficiency conscious and

tending towards postponing the car purchase decision due to the high cost of fuel. Of

course a shift in composition is also to !e e#pected with the upper premium compact

and mid5si3e segments projected to grow at a much faster rate than rest of the

industry. The TC& study was conducted from August through Octo!er across ?<cities. &mall sample models have not !een featured in the charts. These include the

;iat 8etra "iesel, ;ord ;usion, ;ord Mondeo, +yundai Terracan, Maruti 1steem

"iesel, Maruti &u3u i -rand 0itara, Maruti 'en "iesel, and Opel Corsa &ail. T &

has a glo!al networ spanning HK countries and is listed on the )ondon &toc

1#change.

M/,uti U!"+> Lt! is one of India /s leading automo!ile manufacturers and the

mar et leader in the car segment, !oth in terms of volume of vehicles sold and

revenue.

-ood Technology

%niform 8ricing

-ood &trength

More Coverage Area

;re6uent 2$egular 8roduct )aunch

Mar et )eader *with GHQ share

Oriented "riven Company

More 8roduct Offering

97

http://c/wiki/India

http://c/wiki/India

http://c/wiki/India



+ealthy Annual $eport

Brand Image

Ma#imum "ealership as compared to other !rands

-ood &ale &ervice

&pare parts are cheap as compared to any other !rand

Cheap relia!le 6uality

AREAS FOR IMPO#EMENT @ RECOMMENDATION

;acade29uality of "ealership should !e improve

%niform of &ales 1#ecutives

8roper visiting cards should !e availa!le to the e#ecutives

Mostly dealers don t have their specific we!site

All 4apanese J s concept *&eiro, &ieton, &ciso, &eioetse, &hitsu e

should !e put into practice at "ealership

Maruti should regard as generous discount offers during ;estival

&eason li e avratra, "usshera, and "iwali to gear5up their sales

Maruti should advertise in &ports !ecause sports are increasingly

cutting into the share of mass entertainment channels

Maruti can start Money Bond &cheme instead of giving Cash

"iscount with more value. Customers eligi!le for an income !ond,

encasha!le after a <Jyear period.

98



QUESTIONNAIRE

NAME%

SE %

DATE OF BIRTH%

ADDRESS%

TELEPHONE NO%

E4MAIL ID%

'% H+ !i! "+u > t t+ ;+ /b+ut +u, :,+!u=t- /;! - ,?i= -

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! 3)66t+ 9)66

9)66 /;! /b+?

(%H+ +<t ; !+ "+u < 0 t. ; ! t+ u- t.i- :,+!u=t

/ E? ,"!/"

99



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= O;= i; / m+;t.0"

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b G++!

= A? ,/>

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)$W. , !+ "+u u-u/00" -.+: <+, +u, :,+!u=t-

/ O; t. i;t ,; t

b E1=0u-i? -.+ ,++m

= F/=t+," +ut0 t-

! A;" :/,ti=u0/, -.+:

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L++

100



BIBLIOGRAPHY

• $eference Boo s, 4ournals, ewspaper, 7e! &ites, $eports, etc areto !e listed, out here

• Boo s

• (otler 8hilips, Mar eting Management Analysis, 8lanning

Implementation Control 1dition <==>. 8rentice hall of India )td. ew "elhi

• Maga3ines 4ourals ewapaper

• ame of the articles, Business Today@ <J5??May ?KKK

• ame of the articles, The times of India . Mum!ai@ ?< st May ?KKK

E: ITE• www.marutisu3u i.com

• 'igwheels.com

• Oncars.in

l

http://www.marutisuzuki.com/

http://www.marutisuzuki.com/

marketing strategies of maruti suzuk.doc shani

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