Assignment of Service Marketing

On

Workshop

Submitted to: submitted by:

Prof. Shalini Singh Amir Khusroo -010

Amrita Singh -014

Ankit Khandelwal -019

Ankur Ober

Anu Nigam 029

Anusha Arora -30

Apurva Chaturvedi -32

INTRODUCTION

Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.

Maruti Suzuki India Ltd. The Group's principal activity is to manufacture, purchase and sale of Motor Vehicles and Spare parts. The Group is a subsidiary of Suzuki Motor Corporation. The other activities of the Group comprises of facilitation of Pre-Owned Car Sales, Fleet Management and Car Financing. The Group also provides services like framing of customized car policies, economical leasing of cars, maintenance management, registration and insurance management, emergency

assistance and accident management. The product range includes ten basic models with more than 50 variants. The Groups operations are in 1200 towns and cities with 2628 workshops and also exports cars to other countries. Maruti Suzuki offers 15 models, Maruti 800, Omni, Esteem, Baleno, Alto, Versa, Ritz, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara. Swift, Swift dzire, A star and SX4 are manufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit (CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

HISTORY

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its' only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti has produced over 5 Million vehicles. Maruti are sold in India and various several other countries, depending upon export orders. Models similar to Maruti (but not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries.

Maruti Suzuki was born as a government company, with Suzuki as a minor partner to make a people's car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is Maruti’s mission to motorized India.

The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment.

Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model.

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades.

Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi. Maruti’s Gurgaon facility has an installed

capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually.

Maruti is clearly an “employer of choice” for automotive engineers and young managers from across the country. Nearly 75,000 people are employed directly by Maruti and its partners.

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

MARUTI SERVICE STATIONS

Maruti is one of the companies in India which has unparalleled service network. To ensure the vehicles sold by them are serviced properly, Maruti has 2628 listed Authorized service stations and 30 Express Service Stations on 30 highways across India.

Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti trains the local staff. Other automobile companies have not been able to match this benchmark set by Maruti. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle. Maruti Suzuki is one of the companies in India which has unparalleled sales and service network.

As of March 2010 it has 802 dealerships across 555 towns and cities in India. To ensure the vehicles sold by them are serviced properly, Maruti Suzuki has 2,740 workshops (including dealer workshops and Maruti Authorized Service Stations) in 1,335 towns and cities. It has 30 Express Service Stations on 30 National Highways across 1,314 cities in India. The company is planning to expand the number of dealerships to 1,500 by 2015.

Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti Suzuki trains the local staff. Other automobile companies have not been able to match this benchmark set by Maruti Suzuki. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle.

Marketing mix of Maruti Suzuki service centre

PeopleAn essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills, attitude, and service knowledge to provide the service that consumers are paying for. Maruti Suzuki aim to apply for the Investors In People accreditation, which tells consumers that staff are taken care off by the company and they are trained to certain standards. In Maruti Suzuki skilled people are hired in order to give effective and timely service. It is the people which make things separate; otherwise all the service station has same technology and sophistication. In each service station 30-40 people are there, including managers to technician, mechanic, and office boy.

ProcessRefers to the systems used to assist the organization in delivering the service. Imagine you walk into Maruti Suzuki service station and you leave your vehicle for regular servicing and you get it delivered within prescribed time what was the process that allowed you to obtain an efficient service delivery? Process is the important ingredient which makes the organization success or failure, the delivery time is totally dependent on this part.. An efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company. Service includes the way by which personnel do their work. It starts from registration to cleaning, to oil change, to repair n maintenance to final handling the vehicle to the customer.

Physical EvidenceWhere is the service being delivered? Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organization. If you walk into a service centre, your expectations are of a clean, friendly environment, latest technology, and fair deal. Physical evidence is an essential ingredient of the service mix; consumers will make perceptions based on their sight of the service provision which will have an impact on the organizations perceptual plan of the service. In case of Maruti service centre, physical evidence include lathe machine, equipment, and the condition in which the vehicle is kept.

In marketing, a product is anything that can be offered to a market that might satisfy a want or need.

It is not a tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cell phone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. Product differentiation is required and is one of the strategies to differentiate a product from its competitors. Maruti Suzuki has a range of products.

Products of Maruti Suzuki. 800 (Launched 1983) Omni (Launched 1984) Gypsy (Launched 1985) Wagon R (Launched 2002) Alto (Launched 2000) Swift (Launched 2005) Estilo (Launched 2009) SX4 (Launched 2007) Swift DZire (Launched 2008) A-Star (launched 2008) Ritz (Launched 2009) Eeco (launched 2010)

Price The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product.

Price is the only p which generate revenue otherwise all P’s incur cost. Maruti Suzuki has different price range for different product, different price package are there.

Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

Promotion Represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations.

PROCESSES

Vehicle enters the workshop. At the entrance gate, guard checks all the accessories and other thing as a part of entrance security and procedure

and gives the respected number to the car and makes it stand in the queue.

After the car is lined up in the queue, the vehicle inspection manager comes and inspects the vehicle.

While inspecting the car, he/she jots done the things to be done in the vehicle and also asks the customer if something specific is to be done in it.

After this everything is noted down on the job sheet including everything to be done in the vehicle, kms traveled at the time of servicing, fuel present at the time of servicing, accessories, spare tyre (stepney), music system etc.

Estimate is prepared and is mentioned on the job sheet and shown to the customer for his/her consent. After the consent of the customer, time is given to the customer to collect the vehicle.

Now the job sheet is send to the main office. There the job sheet is evaluated and three copies of it is made and is send to various departments which includes floor supervisor, washing floor supervisor and to account department.

Now when the floor supervisor receives the copy of job sheet, the supervisors allocates the work to the following workers and mentions the time boundation in which they have to complete it and report it.

After the completion of the work, floor inspection manager checks the work of the respected workers and checks whether they have completed their work and whether they have done work correctly i.e. they have done what ever was assigned to them.

Then the inspection manager puts a tick on the job sheet mentioning that these work/job has been done and is been inspected by him.

Then the vehicle is send to another floor for some other jobs to be done and same procedure is followed.

Finally when the vehicle is ready, the final inspection is done by the same supervisor who had earlier inspected the vehicle at the entry point because he might be checking out everything what he had seen to be repaired or changed.

If the supervisor is not satisfied then and the vehicle is send back for the task for which he/she is dissatisfied and same process is followed.

After the satisfaction of the supervisor, the customer is called to take away the vehicle.

The customer and supervisor go for road test and after the satisfaction of customer the vehicle is let out of the gate.

After six days customer is called up and asked whether he/she is satisfied from the services or not. If the customer

is not satisfied with anything, the CRM (customer relationship manager) looks into the case and customer satisfaction is achieved.

Follow up calls are regularly made to remind about their upcoming services, various limited seasonal schemes, insurance lapsing etc.

SERVICE BLUE PRINT

Blue Print of Maruti Work Shop

ccC Car entered in workshop

Car enters in the workshop

Advisor greeted the customer

Technical trial

Confirmed detailed requirements to the customer

Bill estimated

F

Time declared for servicing

Maintained Job card

Printed copy of Job Card is distributed

Floor

Supervisor

Advisor Customer

Floor supervisor

Floor supervisor

Assigned Mechanic

Send a message to the customer about their start of work

Mechanic Ticked the work done in a job card

Work started

In major problem informed the customer.

Adhered CW steaker

Inform the floor advisor

Work completed by mechanic

Inform the Floor supervisor

Floor supervisor assign to washing supervisor

Washing supervisor assign to mechanic

Mechanic do Mopping and Washing

Final inspection by Technician

Inform the customer

Road test with customer and technician

Billing

Feedback Card

QUESTONAIRE

Ques1: How your service quality is different from other workstations?

Ans1: We only use MGP (Maruti genuine products) in our services. Customer satisfaction is our first priority. There is so much complaining in demanded services in case of this complaint we call the customer and ask about their problems and provide free re-service. For our lady customers we provide door to door services and our service process is crystal clear we keep on updating the customer about their work. Our service charges are also nominal. We segregated our services into two categories A+ and Express. So these things differentiate us from other service providers.

Ques:2 How do you overcome time limit if customer set so?

Ans2: If customer wants his or her car before time we offer him express service in this service we hand over the car to the customer within 45 minutes. In case of any major problem we prior inform to the customer about the delay of delivery and also told the reasons.

Ques3: How work is allotted between the workers?

Ans3: First our technician define the problem to the customer and put all the details in the job card after that job card is given to the floor supervisor then he decide which worker to assign for this particular job because each worker is not skilled in every kind of work so division of work for mechanic is very important.

Ques4: If certain spare part is not available how do you manage it?

Ans4: In case if certain spare part is not available we quickly contact with the nearest MARUTI service station and ask for that particular part. If that service station do not have that part we ask the dealer to provide the spare part, at that time we inform the customer that we do not have this particular part and insure the customer that the part will be only MGM.

Ques5: Problems faced while delaying or tackling with the customer?

Ans5: Major problem we face while tackling the customer are:

The service charges are too high.

Do not have faith in the service provider.

Negotiation for price on MGM products.

Major problem faced while delaying the delivery of car:

Customers do not want to wait.

Blame on services.

Ques6: If certain problem is tackled by a particular employee and in case he is not present then how do you tackle that situation?

Ans6: Before leaving his particular job the floor supervisor informs in the office that the particular car is having this much problem and this much work has been done then the office staff informs to the next assigned supervisor so in this way we manage situation.

Ques7: Any complaint by the customer after your service is completed?

Ans7: We try our level best that there should be no repeated complaint but the major problem is the demanded servicing. Customer complains that he is facing same kind of problem what the problem he is facing before the service.

Ques8: How do you tackle such complaints?

Ans8: We insure the customer that we will again check the problem free of cost and ask him to bring his car to the service station. If he does not have time to reach the station next time we offer him home delivery and send our mechanic to bring that car to the service station. After completion of the work we inform the customer to take his car.

Ques9: How you tackle in peak hours?

Ans9: Our peak hour is basically Saturday morning. On this day we have almost 70-80 cars so that day it is very difficult for us to manage. So on this day we call all the mechanics from both the shifts but we have less availability of space so we inform the customer that on peak hours we would not be able to provide your vehicle on time.

Ques10: What strategies you follow to increase your efficiency?

Ans10: We believe in effective and efficient work. We judge our efficiency by our customer feedback card on which customer have to mark on 1 to 10 scales.

8to 10 marking is good us.7 is average but below 7 is poor for us. Now by seeing the data our efficiency is 80% and it lies in the category of good.

Ques11: What you do to keep your customer happy?

Ans11: Customer is like God for any business and we try our level best to keep the customer happy. It is our policy to greet the customer with in 3 minutes after entering into the service station.

We inform him about our new service plans and always try to minimize the cost of the customer. We provide home delivery service to the customer. After the service we offer him that in case of any problem within seven days we greet him free of cost and insure the customer that we are there for him.

Ques12: How Maruti showroom makes it different from others?

Ans12: Various characteristics make us different from others. They are:

Our loyalty towards customers.

Maruti genuine products.

Efficient workers.

Less lead time.

Timely delivery.

Ques13: If customer complains you regarding your service or duplicacy of any component then what you do to satisfy him?

Ans13: We ensure the customer that that the product we are using is Maruti genuine product and if the customer is still not satisfied we show him the box of a particular product that time our senior manager greet the customer.

Ques14: What is MGP and MASS?

Ans14: MGP stands for the Maruti genuine product and these products are authorized by Maruti ltd. MASS stands for Maruti Authorized Service Station.

Ques15: What steps you are taking to keep a check on your employees and their efficiency?

Ans15: To check the performance of the employee we regularly have meeting at the end of the every month, where we discuss the problem and the major complains which came in that particular month. The technicians or the mechanics for who’s end the complains came we send them for the training or keep and eye on the work of that particular person, so that there is not the repeat complain.

Ques16: Do you have reward system or appreciation for your employees?

Ans16: Yes we have the reward system for each and every person. We are given target by Maruti for services and the employee who gets the maximum points on the score card from the customer will be rewards by the company and by the agency where he is working.

Qualities of Work shop Explanation of work prior to service.

Addressed appropriately.

Inform when vehicle would be ready.

Explanation of work after services.

Service personnel neatly dressed.

Repair order provided before service.

Inform when to schedule next visit.

Service charges explained.

Post service follows up by workshop personnel.

Work shop opened during late hours.

Transportation provided.

Informed vehicle setting changed.

Dealing with Initial Quality Study(IQS)

Owner feed back card.

Home visit by Service Advisor.

Focused customer meet.

Focused on customer complain.

Free vehicle pick up and drop service for lady customer.

Road test.

Final inspection.

Discrepancies in the Work Shop

Lack of proper management in peak hours.

Different treatment for A+ and Express car services.

Duplicacy of spare parts.

Different service charges for different customers. E.g.

Mopping, washing and other small fault charges are different for different vehicles but service provider charge same charge which is higher in amount.

Not proper inventory management. Spare parts are not segregated in to different sections only one person has knowledge about spare parts. In case of his absence nobody is able to handle the inventory.

There are so many processes involved which will increase the lead time.

Lack of optimum utilization of resources.

Workers are skilled on a particular task so in case of any urgency or high demand of a particular task increase the pressure on a mechanic which will lead to reduce in efficiency.

Malpractices are also involved and always try to fetch more money from nuisance customers.

Service centre is not equipped with all the facilities like denting, welding due to inefficient space which also increases the lead time.

Advice from Maruti service provider to their customer:

What Maruti suggest to customers for the better performance of the vehicles?

The customer should DO the following things before starting there vehicle.

Tyre pressure and condition Any oil leaks Any coolant leaks Wiper blade condition Body scratches deep enough to cause rust Rear view mirror condition Top wash remove and leaves, dirt etc. Start vehicle periodically if parked or unused for long.

The customer should don’t do the following things.

Do not touch or open radiator cap when engine is hot. Do not fir non genuine accessories that may effect performance Do not use non genuine spares. Use only Maruti’s genuine parts Do not park in sun for too long. Park under shade Start vehicle periodically if parked or unused for long.