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A PROJECT STUDY REPORT ON

Maruti Suzuki India Ltd


The study of consumer buying behavior towards small &

medium car segment.


Submitted in partial fulfillment for the Award of degree of Master of Business Administration

Supervision by :Shubhangi Mam

Submitted by:Rajendra Singh MBA IIIRD Sem (2009-2011)

ST. WILFREDS INSTITUTE OF MANAGEMENT & TECHNOLOGY, JAIPUR


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CERTIFICATE

This is to certify that Mr. Rajendra Singh student of final year of Master of Business Administration (M.B.A.) has completed project entitled The study of consumer buying behavior towards small & medium car segment. Under my supervision. This project report has been submitted in the lieu of paper 6th for M.B.A. 4th Sem.

To the best of my knowledge, it is the original piece of work and the project is fit for the submission in partial fulfillment of the degree of M.B.A

DECLARATION
I, Rajendra Singh declare that the project report titled The study of consumer buying behavior towards small & medium car segment. study. This project report is original work and this has not been used for any purpose anywhere. based on my project

Rajendra Singh
MBA 4th Sem

PREFACE
Practical Knowledge is an important suffix to theoretical knowledge. One cannot merely depend upon the theoretical knowledge. Classroom lectures make the fundamental concept of Management clear. They also facilitate the learning of practical things. However, classroom lectures must be correlated with the practical training situations. It is in the sense that practical training in a company has a significant role to play in the subject of business management. Market Research is indeed an Ancient Art; it has been practiced in one form of the other since the day of Adam and Eve. Its Emergence is of relatively recent origin for success of any business and within this relatively short period, it has joined a carry great deal of importance. The demand for professional managers is increasing day by day. To achieve profession competence, manager ought to be fully occupied with theory and practical exposure of management. A comprehensive understanding of the principle will increases their decision making ability and sharpens their tools for this purpose. As an essential part of our course, I got the privilege to have training in MARUTI SUZUKI the work has been carried over a span of 2 months. The scope of the work under taken by me includes customer response in Jaipur and about their views about our products and services.

ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, Mr. Gyan Chand Gupta (General Manager), for guiding me right from the inception till the successful completion of the project. I also express my sincere thanks to Mr. Dharmendra Singh Tanwar (Sales Manager) for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project. I would also like to thank the supporting staff for help and cooperation throughout our project. I also give my sincere thanks to Shubhangi Mam my Project supervision ,MBA

Rajendra Singh
MBA 4th Sem.

EXECUTIVE SUMMARY
Title
The Study of Consumer buying behavior towards small & medium car segment with special reference to Maruti Suzuki India ltd.

Issue
Consumer behaviour is the mental and emotional processes and the observable behaviour of consumers during searching purchasing and post consumption of a product and service. People buy different products from different brands to satisfy their needs. Consumer purchases are influenced strongly by cultural, social, personal and psychological characteristic. Although marketers cannot control such factors, they must give attention to them. Boston Analytics, a customized knowledge services company, has announced the release of its Automotive Industry in India report as a part of the series of monthly reports that analyze consumer observations and sentiments regarding a automotive sector. According to this report consumer think about the following aspect while making decision of purchase a car:

CAR PURCHASING PREFERENCES


Primary factors of preference Price and fuel efficiency are the primary features that consumers expect today. There will be an increase in the importance of fuel efficiency in approximately three to five years from now for consumers. Sales service, brand image/prestige, and resale value are secondary factors of choice today and will remain so for the coming three to five years. Environmental issues have yet to take root in India and do not show signs of becoming a major factor for coming three to five years.

Car size
Affluence and aspiration are growing in parallelThe Indian consumer prefers a mid-size car. Our survey reveals that approximately one in two Indian consumers prefer a roomy mid-size family car.

Indian versus foreign brand


There is evidence of buy-Indian mindset across the metros Approximately three in four respondents prefer an Indian brand over a foreign one recently launched versus established model Indian consumers are divided in their preference for recently launched versus established models of cars. According to the results of the survey, 58% of respondents nationwide prefer a recently launched model by a slight plurality.

Color preference
The color pie in the Indian car market shows that White is the most preferred color, closely followed by Black and Silver Approximately 29% of respondents preferred White, followed by 27% and 21% of respondents opting for Black and Silver/Grey respectively Thus the main issue in this project is to analyzing consumer buying pattern while they make decision regarding purchase of car especially in small car segment.

PROBLEM
Thus problem of this project report is studying the consumer buying pattern regarding small & medium car segment with special reference to Maruti Suzuki India ltd and study about the consumer perception and attitude toward the same. 7

TABLE OF CONTENT
S. NO. 1. 2. 3. Descriptions Introduction to the industry Introduction to the Organization Research Methodology 1. Title of the Study 2. Duration of the Project 3. Objective of the Study 4. Types of Research 5. Collection Method and Sample Size 6. Scope of Study 4. 5. 6. 7. 8. 9. 10. 7. Limitation of Study Facts and Findings Data Analysis and Interpretation Swot Analysis Conclusion Recommendation and Suggestion Appendix BIBLIOGRAPHY 68 69-73 74-75 76 77 78-80 81 Page no. 9-16 17-63 64-67

1. INTRODUCTION TO THE INDUSTRY


The automobile industry is one of the core industries in India economy, whose prospect is reflective of the economic resilience of the economy. Indian automobile industry has come a long way to from the era of the Ambassador car to Maruti 800 to latest M&M Xylo. An industry is highly competitive with a number of global and Indian companies present today. It is growing at a pace of around 18% per annum for the last five years and is projected to be the third largest auto industry by 2030 and just behind to US & 9

China, according to a report. The industry is estimated to be a US$ 34 billion industry. With the liberalization of the economy, India has become the playground of major global automobile majors. Indian Automobile industry can be divided into three segments i.e. two wheeler, three wheeler & four wheeler segment. Two wheeler segments enjoys 75% market share of automobile industry, followed by passenger vehicles with the 16% share of market. Three wheeler segments have merely 4% share in domestic market. The domestic twowheeler market is dominated by Indian as well as foreign players such as Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, and Suzuki etc. Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the country. And India is considered as strategic market by Suzuki, Yamaha, etc. The major players have not left any stone unturned to be global. Major of the players have got into the merger activities with their foreign counterparts. Like Maruti with Suzuki, Hero with Honda, Tata with Fiat and latest Mahindra with Renault. In two-wheeler segment, motorcycles have the major share, Hero Honda, the leading bike manufacturer has more than 50% share in two-wheeler segment, followed by Bajaj Auto. In passenger car segment, Maruti Suzuki contributes the 52% market share, with complete monopoly over the small car segments. M&M enjoy the 42% market share in Multi Utility Vehicle in domestic market.

Current Scenario

The Indian automobile industry crossed a landmark with total vehicle production of 10 million units. The two-wheeler market grew by 13.6 per cent with 70, 56,317 units against 62, 09,765 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3, 50,683 units against 3, 18,430 units in 2004-05.

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India, in auto sector, is turning to be a sourcing base for the global auto majors. The passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple of years, says the ICRA report. The industry is likely to maintain the growth momentum picked up in 2002-03. The ICRA's analysis points on the auto sector that the passenger car market in the country was inching towards cars with higher displacements. The sports-utility-vehicle (SUV) that was getting crowded every day, would witness intense competition as many SUVs had been competitively priced, the report said. Honda, Suzuki, General Motors and Hyundai, the global automakers had already launched their premium SUVs in the market to broaden their portfolio and create product excitement in the segment estimated at about 10,000 units annually.

The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy commercial vehicles market would rise at 5.5 per cent and sales of light buses and trucks would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per cent.

Indian Auto Market Growth for the year 2005-06

The domestic automobile industry sales grew 12.8 per cent at 89, 10,224 units as against 78, 97,629 units in 2004-05. The automotive industry crossed a landmark with total vehicle production of 10 million units. According to the Society of Indian Automobile Manufacturers (SIAM), car sales was 8, 82,094 units against 8, 20,179 units in 2004-05. 11

The growth of domestic passenger car market was 7.5 per cent Car exports stood at 1, 70,193 units against 1, 60,670 units in 2004-05. The two-wheeler segment, the market grew by 13.6 per cent with 70, 56,317 units against 62, 09,765 units in 2004-05. Motorcycles had the upward march, 17.1 per cent in domestic market touching 58, 15,417 units against 49, 64,753 units in 2004-05. Scooter segment grew by 1.5 per cent, fall at 9, 08,159 units against 9, 22,428 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3, 50,683 units against 3, 18,430 units in 2004-05. Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per cent growth in the year ended March 31, 2005. Light commercial vehicles sales growth was 19.4 per cent at 1, 43,237 units against 1, 19,924 units in 2004-05. Three-wheelers sales rose by 17 per cent at 3, 60,187 units against 3, 07,862 units in 2004-05. In this competitive scenario consumer has number of choices for selecting motorbikes as well as cars thus there are number of choices and brands available to the customer. The basic issue with this project is to study about the consumer preference toward selecting/purchasing small & middle segment or economic car among the available alternatives.

Auto industry in 2009


All the major auto companies enjoyed the high growth ride till the mid 2009. But at the end of the year, industry had to face the hard truth and witnessed the fall in sales compared to last year. In December 2009, overall production fell by 22 % over the same month last year. Global recession has hit the Indian auto industry, India is strong and growing industry but the impact of recession is evident now on industry as sales & 12

growth of automobile companies have declined. Passenger Vehicles segment registered negative growth. One of its supporting facts is that the sales in December 2009 for passenger vehicles fell by 13.86% over December 2008. Maruti- the leading car manufacturer, registered 10% fall in sells (56293 units), as compared to December08 (62,515 units). But interestingly, Hyundai motors, the second largest car maker of country, registered a growth in sells, with the help of export; Hyundai Motors reported 19% growth. Two Wheelers registered minor growth of 1.85 % during April December 2009. However, Two Wheelers sales recorded 15.43 percent fall in December 2009 over the same month last year. In two wheeler segment, Hero Honda has witnessed 10% fall (215,931 units in Dec 2009) in sales as compared to December 2009 (240,532 units). Bajaj Automobile has registered 33% fall in its over all two wheeler sells, compared to last year. The company has reported 37% negative growth in bike sells. Although the year 2009 saw a record launches of new products of various categories. Maruti launched A Star, its new small segment car. Honda Motors launched the new version of Honda city, its best selling sedan, also Civic Hybrid. Hyundai motor was not also far behind, in the end of the year, Hyundai launched its much awaited sedan i20. In Bikes segments, this year was full of happening. Yamaha introduced its two new hiend models YZF & R15. Suzuki Motorcycle India also launched its legendary bike Hayausa & Intruder in Indian market.

Road ahead- 2010


The Indian automobile market is expected to grow by 9%. Although the industry has faced the brunt of recession, the sales figures of December09 are the true indicator of bang of global slow down. India with growing middle class, strong economy (although recession has hit the economy, but to be on positive side, will come over soon) and with 13

trained workforce has a strong future of automobile industry. All the big foreign players are eyeing on Indian market. Japanese company Nissan Motors has identified India as its global manufacturing hub Hyundai has invested huge money in India and has positioned it as small car manufacturing hub in the word General Motors, Mercedes Benz, Skoda Auto, all have big plans for India and will invest huge funds It is sacrilege to say that the world economy has been undergoing with the huge crisis. And automobile industry is not far behind in league. Undoubtedly, the coming time would be a challenge for the automobile industry. Bike manufacturers have already started facing the problems, loan & finance for new bike is not available easily in semi urban & rural market. Banks and other financial institutions have baked out from finance. In spite of all these, this year will see a positive growth with some new launches of cars & bikes. We should not forget the launch of much awaited Tata Nano which will soon be seen on Indian roads. Bajaj Auto is planning to roll out 6 new bikes in the year 2009. Hero Honda, Suzuki Motorcycle, Yamaha India, all is set to knock the Indian market with their new products. I believe that Indian automobile industry is bit immune in comparison to its competitors. Global big three, GM, Ford & Chrysler are not in good state of health, US Govt. has released a bailout, Considering all these facts & current situations, we can conclude the following : Indian automobile industry may face the liquidity crunch in the upcoming months. Few projects have already been on halt. For example, Honda Motors has stopped work on its upcoming project in Rajasthan Sells may drop in the upcoming months as the finance for the new products are easily not available. Motorcycle manufactures will face the brunt of financial institutions unwillingness of providing loans to the smaller cities.

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The Government of India should make the norms and policies bit lenient like making the loan process easier & affordable, asking the public sector banks to cut the interest rates, etc.

Global Recession Hits Indian Auto Industry Global recession has devastated the global auto industry with pinching effects on the Indian auto industry. India is a strong and growing economy but the hit of recession has put red marks on the entire balance sheet of the Indian economy. Among the leading car manufacturers, General Motors and Ford were the first one to file for bankruptcy. GM is struggling to stay alive and claims that the company has just enough cash to continue its operations. Even the merger talks of GM and Chrysler have been officially brought to a halt because of the liquidity crunch. U.S sales have fallen down by 32% which has directly affected the HYPERLINK "http://www.carazoo.com/article/1911200802" Indian car industry where GM has recorded a fall of 45%, Ford of 30% and Chrysler down by 35%. All the three major car manufacturers have reported declined growth after the hit of recession. After the industry experienced a heavy fall in the month of August due to inflation, September proved to be a promising month with things setting out at the right place. Then again the market went in the negative terrain swayed by the wind of recession. October usually is considered to be the best month for car sales because of the festive season. Unfortunately, this year it proved to be a curse for the Indian auto industry. At one end of the spectrum, car manufacturers like Tata Motors, GM, Hyundai, Ford, Renault, Mahindra, and HYPERLINK "http://blog.carazoo.com/2008/11/maruti-cutsproduction.html" Maruti Suzuki are investing huge amounts to establish new production plants and line up launch of car models. At the other end of the spectrum, SIAM has cut down the growth forecast of automotive sales from 12.5% to 9.5%. This initiative taken by SIAM further forced few car manufacturers like Tata Motors and Maruti Suzuki to cut down their production which further took away the job of almost 300 workers. Even Mahindra-Renault reduced the number of production units of their Logan. In addition, the severe liquidity crunch in the U.S market has also forced many of the car buyers to cut upgrades to bigger cars and many are pushed back from buying new cars. 15

With deteriorating car sales, even production has gone down to a great extent, which has eventually put a negative impact on the auto component industry. In October, overall car sales declined to about 9.05% over October 2007 and the car production fell down to about 12.32%. Further to that even the month of November was not successful in bringing some charm to the industry. Infact, November recorded the steepest fall in car sales in the past five years. Maruti Suzuki recorded a fall of 27%, Mahindra & Mahindra recorded a fall of about 40%, and Tata Motors showed 12% decline in the car sales. It is also said that the recent Mumbai terror attack and the cyclonic rain in South India have added to the woes of Indian car manufacturers. India is one of the most promising car industries across the globe. It has gradually strengthened its foothold in the international arena as well.

APPRAISAL & REWARD

Appraisal
New Appraisal System based on KRAs & Targets Review of Targets at regular Intervals 16

People Development an important KRA

Reward
Promotions based on Performance Productivity & Profit-linked Incentive Schemes Training including Long-term SMC Japan Trg. Highest paid workforce in the Industry, if not the Country

LEADERSHIP
Vision, Value & Team Building Workshops for Top Management CFT (Cross Functional Teams) of Managers for Major Thrust Areas Managers sent to Joint Ventures to upgrade their practices to MUL standards

2. INTRODUCTION TO THE ORGANIZATION


Established in December 1983, Maruti Suzuki India Ltd. has ushered a revolution in the Indian car industry. This car is meant for an average Indian individual which is affordable as well as has elegant appeal. Maruti Suzuki India Ltd. is the result of collaboration of Maruti with Suzuki of Japan. At this time, the Indian car market had stagnated at a volume of 30,000 to 40,000 cars for the decade ending 1983. This was from where Maruti took over. 17

The company has crossed the milestone of becoming the first Indian company in March 1994, by manufacturing in totality one million vehicles. It is known for its massproduction and selling of more than a million cars. Maruti Suzuki India Ltd. is the India's largest automobile company which entered in the market with affirmed aim to render high quality fuel efficient and low - cost vehicles.

Sales figure in the year 1993 has reached up to 1,96,820. Maruti comes in a variety of models in the 800 segment. Its cars operate on Japanese technology, pliable to Indian conditions and Indian car users. By the year 1998-99, the company has modernize the existing facilities and expand its capacity by 1,00,000 units. Recently to ward off the growing competition, Maruti has completed Rs. 4 billion expansion project at the current site, which has raised the total production capacity to over 3,20,000 vehicles per annum. With the coming of each and every year, the total production of the company exceed by 4,00,000 vehicles. In the small car segment it produces the Maruti 800 and the Zen. The big car segment includes the Maruti Esteem and the Maruti 1000. Along with them, the company also manufactures Maruti Omni. Other models includes Wagon R and the Baleno. Headquarter in Gurgaon, on 17 September 2007, Maruti Udyog was renamed to Maruti Suzuki India Limited. Both in terms of volume of vehicles sold and revenue earned, the company is India's leading automobile manufacturers and the market leader in the car segment. Sales recorded in June 2008, is Rs. 4,753.58 crores Now lets have a look on Marutis products like Maruti 800, Maruti Omni, Maruti Wagon R, Maruti Swift and Maruti Alto. 18

INTERNATIONAL BUSINESS
In August, 2003 Maruti crossed a milestone of exporting 300,000 vehicles since its first export in 1986. Europe is the largest destination of Marutis exports and coincidentally after the first commercial shipment of 480 units to Hungary in 1987, the 300,00 mark was crossed by the shipment of 571 units to the same country. The top ten destinations of the cumulative exports have been Netherlands, Italy, Germany, Chile, U.K., Hungary, Nepal, Greece, France and Poland in that order. The Alto, which meets the Euro-3 norms, has been very popular in Europe where a landmark 200,000 vehicle were exported till March 2003. Even in the highly developed and competitive markets of Netherlands, UK, Germany, France and Italy Maruti vehicles have made a mark. Though the main market for the Maruti vehicles is Europe, where it is selling over 70% of its exported quantity, it is exporting in over 70 countries. Maruti has entered some unconventional markets like Angola, Benin, Djibouti, Ethiopia, Morocco, Uganda, Chile, Costa Rica and El Salvador. The Middle-East region has also opened up and is showing good potential for growth. Some markets in this region where Maruti is, are Saudi Arabia, Kuwait, Bahrain, Qatar and UAE. The markets outside of Europe that have large quantities, in the current year, are Algeria, Saudi Arabia, Srilanka and Bangladesh. Maruti exported more than 51,000 vehicles in 2009-10 which was 59% higher than last year. In the financial year 2009-10 Maruti exports contributed to more than 10% of total Maruti sales.

Company Board Of Directors

Mr. Shinzo Nakanishi

Managing Director (M.D) and Chief Executive Officer (C.E.O)

Mr. R.C. Bhargava Mr. Maninder Singh Banga Mr. Amal Ganguli 19

Chairman Director Director

Mr. D.S.Brar Mr. Keiichi Asai Mr. Osamu Suzuki Mr. Shuji Oishi Ms. Pallavi Shroff Mr. Kenichi Ayukawa Mr. Tsuneo Ohashi

Director Director Director Director Director Director Director and Management Executive Officer

AWARDS
2005 Number one in JD Power SSI for the second consecutive year Number one in JD Power CSI for the sixth time in a row - the only car to win it so many times M800, WagonR and Swift topped their segments in the TNS Total 20

Customer Satisfaction Study Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the 2nd time in a row, Esteem number one in its segment for the 3rd year in a row, Swift number one in the premium compact segment WagonR and Esteem top their segments in the JD Power APEAL study TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05 Maruti bagged the "Manufacturer of the year" award from AutocarCNBC ( 2nd time in a row)-Feb 05 First Indian car manufacturer to reach 5 million vehicles sales Business World ranks Maruti among top five most respected companies in India-Oct 04 Maruti ranked among top ten (Rank7) greenest companies in India by Business Today - Sep '04 Maruti Suzuki was No. 1 in Customer atisfaction, No. 1 in Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R) No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto) Business World ranked us among the country's five most 21

respected companies Business World ranked us the country's most respected automobile company Voted Manufacturer of the year by CNBC Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003" J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003. MUL tops in J D Power CSI (2001) for 4th time in a row 2001 MUL tops in J D Power CSI (2001) for 2nd time in a row: another international first Maruti bags JD Power CSI - 1st rank; unique achievement by market leader anywhere in the world MSM launched as model workshop in India; achieves highest CSI rating. Central Board of Excise & Customs awards Maruti with "Samman Patra", for contribution to exchequer and being an ideal tax assessee CII's Business Excellence Award Maruti wins INSSAN award for "Excellence in Suggestion Scheme" Awarded the Star Trading House status by Ministry of Commerce Engineering Exports Promotion Council's award for export 22

performance 1994 Best Canteen award among Haryana Industries as part of employee welfare

ORGANISATION STRUCTURE

Maruti Udyog Limited has a flat organization structure with a maximum of three levels. The Organization Structure of Maruti Udyog Limited is follows:-

MANAGING DIRECTOR

Manufacturing Director

Financial Controller

General Manager

DGMs/AGMs

DGMs/AGMs

DGMs /AGMs

Managers / AM

Managers /AM

Managers / AM

Engineers and Sr. Executives

Sr. Executives

Sr. Executives

Jr. Executives

Jr. Executives 23

Jr. Executives

QUICK FACTS
Year of Establishment Vision February 1981 "The Leader in The Indian Automobile Industry, Creating Customer Delight and Shareholder's Wealth; A pride of India." Automotive - Four Wheelers BSE - Code: 532500 NSE - Code: MARUTI Bloomberg: MUL@IN Reuters: MRTI.BO With Suzuki Motor Company, now Suzuki Motor Corporation, of Japan in October 1982. 11th Floor, Jeevan Prakash 25, Kasturba Gandhi Marg New Delhi - 110001, India Tel.: +(91)-(11)-23316831 (10 lines) Fax: +(91)-(11)-23318754, 23713575 Telex: 031-65029 MUL IN Palam Gurgaon Road 24

Industry Listings & its codes

Joint Venture

Registered & Corporate Office

Works

Gurgaon -122015 Haryana, India Tel.: +(91)-(124)-2340341-5, 23413415 Website www.marutiudyog.com

MILESTONES 1981 1982 1983 1984 1985 1986 1987 1988 1992 1994 1995 1996 1997 1998 1999

Maruti Udyog Ltd. was incorporated. Steped into a JV with SMC of Japan. Maruti 800, a 796 cc hatchback, India's first affordable car was produced. Installed capacity reached 40,000 units. Omni, a 796 cc MUV was in production. Launch of Maruti Gypsy (970cc, 4WD off-road vehicle). Produced 100,000 vehicles (cumulative production).

Exported first lot of 500 cars to Hungary.

Installed capacity increased to 100,000 units. SMC increases its stake to 50 per cent. Produced the 1 millionth vehicle since the commencement of production. Second plant launched, the installed capacity reached 200,000 units. Launch of 24-hour emergency on-road vehicle service. Produced the 2 millionth vehicle since the commencement of production. Launch of website as part of CRM initiatives. Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives. 25

2000 2001 2002

IDTR (Institute of Driving Training and Research) launched jointly with Delhi government to promote safe driving habits. Launch of customer information centers in Hyderabad, Bangalore, and Chennai. SMC increases its stake to 54.2 per cent. Launch of Maruti Finance with 10 finance companies in Mumbai. Start of Maruti True value in Mumbai. Production of 4 millionth vehicle. Listed on BSE and NSE after a public issue oversubscribed 10 times. Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago. The fiftieth lakh car rolls out in April, 2005.

2003

2004

2005

1. Maruti 800: Launched - 1983 2. Maruti Omni: Launched - 1984 3. Maruti Gypsy: Launched - 1985 4. Maruti Alto: Launched - 2000 5. Maruti Wagon-R: Launched - 2002 6. Maruti Versa: Launched - 2003 7. Maruti Grand Vitara Launched - 2004 8. Maruti Suzuki Swift: Launched - 2005 9. Maruti Suzuki SX4: Launched - 2007 10. Maruti Swift Dzire: Launched - 2008 11. Maruti Suzuki A-STAR: Launched - 2008 12. Maruti Suzuki Ritz: Launched - 2009 Maruti Suzuki Estilo: Launched 2009

History
Around 1970, Sanjay Gandhi, Political advisor and younger son to then Prime minister of India, Indira Gandhi , envisioned the manufacture of an indigenous , cost effective , 26

low maintenance

compact car for the Indian middle class. Indira Gandhis cabinet

passed a uninamous resolution for the devlopment and production of peoples car. Sanjay Gandhis company was christened Maruti Limited. The name of the car was choosen as Maruti, after the name of a hindu deity named Marut. At that time Hindustan Motors Ambassador was the cheif car and the company had came out with a new enterant , the Premium Padmini which was slowly gaining a part of the market share dominated by the Ambassador. For the next ten years the Indian car market had stagnated at a volume of of 30,000 to 40,000 cars for the decade ending 1983. Sanjay Gandhi was awarded the exclusive contract and license to design, develop and manufacture the Peoples car. This exclusive right of production generated some criticism in certain quarters, which was directly targeted at Indira Gandhi. Over the next few years the company was sidelined due to the Bangladesh Liberation war and the emergency. In the early days under the powerful patronage of Sanjay Gandhi, the company was provided with free land, tax breaks, and funds. Till the end of 1970s the company had not started the production and a prototype test model was met with criticism and skepticism. The company went into liquidation in 1977. The media perceived it to be another area of growing corruption. Unfortunately Maruti started to fly only after the death of Sanjay Gandhi, when Suzuki joined the Govt. Of India as a joint venture partners with 50% share. After the death of Sanjay Gandhi, Indira Gandhi decided that the project should not be allowed to die. Maruti entered into collaboration with Suzuki Motors . The collaboration heralded a resolution in the Indian car industry by the production of Maruti 800. The car went into sale on December 14, 1983. It created record by taking 13 months to go from design to rolling out car from a production line. By the year 1994 the company had sold upto 1, 96,820 cars, mostly by selling its chief product the Maruti 800. By March 1994, it produced one million vehicles, becoming the first Indian company to

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cross this milestone. It reaches the 2 million mark in October 1997, and rolled out its 4th million vehicle an ALTO (LX) on April 19, 2003. Maruti Udyog Ltd. is the premium car company in India. Maruti Udyog Limited (MUL) was established in February 1981 through an act of parliament. The Company entered into collaboration with Suzuki Motors of Japan to manufacture cars.The main objectives behind formation of Maruti Udyog Limited was to meet the growing demand of a personal mode of transport caused by the lack of an efficient Public Transport System. Today Maruti Udyog Limited is garnishing share of automobile market in India. It has completely revolutionized the Indian car market and has brought out numerous model to cater to every section of society. These ranges from Economy cars to Luxury cars to Super SUVs.

Companys Profile
Around 1970, Sanjay Gandhi, political advisor and younger son to the then Prime minister of India, Indira Gandhi, envisioned the manufacture of an indigenous, cost effective, low maintenance compact car for the Indian middle class. Indira Gandhis cabinet passed an uninamous resolution for the development and production of Peoples car. Sanjay Gandhis company was christened Maruti Limited. The name of the car was was chosen as Maruti, after a hindu deity named Marut. Unfortunately Sanjay Gandhi died without fulfilling his dream. After this death , Indira Gandhi decided that the project should not be allowed to die. Maruti entered into collaboration with the Suzuki Motors of Japan. The collaboration heralded a resolution in the Indian car industry by producing Maruti 800. The car went into sale on 14 December 1983. And from 1980s to till day today Marutis have dominated the Indian Automobile industry as well as automobile market.

Stock Exchange on which company is listed


Maruti Suzuki is listed on Bombay stock exchange now Mumbai. It is also listed on NYSE ( New York Stock Exchange) as well as stock exchange of Japan.

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Vision, Mission and Core values of Maruti Suzuki

Vision:Vision of any company is those values on which company works. As the Maruti Udyog Limited (MUL) is started by governmental initiatives it tends to be more consumer oriented and hence cost- effective, but on the other hand Suzukis participation ensures not only need of profit, but the need of maximum profit. The only way of Noras dilemma of selecting principles for the companys working vision was to maximize profit and sales and hence Maruti Udyog Limited (MUL) declared its vision as:The leader in the Indian Automobile Industry, creating Customer Delight one and shareholders wealth two eventually become pride of India. Customer Delight One is making sure that Performance, after sales service and customer are best and beyond expectations, shareholders wealth two is the prime concern for running business smoothly. Maruti Udyog Limited (MUL) knows this and understands Customer Is King , he can change the future of any company hence goes companys brand line : COUNT ON US!

Mission:Mission is the statement of any organisations purpose , what is want to accomplish in the larger environment and its goal which are specific , realistic, and motivating. Missions are described over Visions and Visions demand certain objectives.

The main Objectives / Mission of Maruti Udyog Limited are: Modernisation of Indian Automobile Industry. Developing cars faster and selling for less. 29

Production of fuel- efficient vehicles to conserve scarce resources. Production of large number of motor vehicles which are necessary for the Economic Growth.

Market penetration, Market developments, similar product development and diversification.

Parter relation management, value chain, value delivery networks.

Core Values: Customer Obsession Fast, Flexible and First Mover Innovation and Creativity Networking and Partnership Openness and Learning

SMALL & MEDIUM CAR SEGMENT IN INDIA


Small cars are classified according to the price range which varies from 1 to 3 lakhs. It has the capacity to carry 4 passengers- 2 adults, 2 children. These are basically entry level cars which are preferred by service group and middle income group. These cars are basically manufactured by - Maruti Udyog and Reva. While companies like Volks wagon and Reva are yet to launch their models in the market.

Maruti 800
Driving with the high quality of fuel efficiency and economical purchasing price have enhanced the popularity of the Maruti 800. Its lowest fuel consumption cost has made this car forever better choice for the buyer. Its easy accommodating small structure of 4.4 meters of radius has made it a user 30

friendly car. For its easy to park structure, it is very comfortable to parking anywhere, even if the space is too little. It can be smoothly driven in an overcrowded street or in a narrow lane. Various safety features of Maruti 800 give assurance of secured driving to the buyer. Here is an overview on few salient features of Maruti 800 : Side impact beams Laminated windshield Additional body reinforcement

Other extra new features:


Collapsible steering columns High mount stop lamp Clear lens Headlamps Front Grille Dual Tone interior upholstery Bharat stage III : Hi-tech 32 ECM and ultra-refined engine Suzuki budging Clear multi reflector headlights Attractive tail lamp Specifically placed crumple zone

Maruti 800 is found in different colors:


Superior white Bright red 31

These are the metallic colors :


Icy Blue (new) Caribbean Blue (new) Silky silver Crystal gold(new)

There are two variants found in Maruti 800:


Maruti 800 STD BS III Maruti 800 AC BS III Maruti 800 Duo

Maruti 800 STD BS III


Its weight is 650kg. It is without Air-conditioner

Maruti 800 AC BS III


To give the comfort of an Air conditioner, especially during sultry summer days, Maruti 800 is running its name as the low cost air-conditioned car. Its weight is 655kg. Maruti 800 Std. & AC variants are available in Bharat Stage III version.

Maruti 800 Duo


Maruti 800 Duo runs both on petrol and LPG. With the soaring petrol prices, the 800 Duo is a great relief for the car users from the economic point of view. In addition to this, being factory fitted it is completely safe to drive. As far as power and 32

performance is concerned, it delivers a power of 35ps@5000 rpm and torque of 56Nm@2500 rpm.

TECHNICAL QUALIFICATION MARUTI 800


Dimensions Overall length 3335 mm Overall width 1440 mm Overall height 1405 mm. Wheelbase 2175 mm Minimum turning radius 4.4 m Ground clearance 170 mm. Seating Capacity 4 persons Weight Unladen weight 665 kg (AC BS III), 650 kg (Std. BS III) Laden weight 1000 kg.

Engine
Type 4 stroke cycle, water cooled SOHC (1C2V) No. of cylinders 3 Piston displacement 796 cc Maximum output (Std.,AC) 37 bhp at 5000 rpm Maximum torque (Std.,AC) 59 Nm at 2500 rpm Power Transmission Std., AC 4-forward, all synchromesh, 1 reverse

Steering
Steering Rack & pinion Suspension Front McPherson strut & coil spring Rear Coil spring with gas filled shock absorbers 33

Brakes
Front Disc Rear Drum Tyre size (Radial) 145/70 R-12

Capacity
Fuel tank capacity 28 liters (BS III)

Maruti Alto
Maruti Alto is one of the best selling car in India. It has included different new features in it like clear lens headlamps, sparkling tail lamps, dynamic front grill and bumper, stylish fabric, rotary control for AC etc. Other features that are really important for the comfort and safety of the passenger are electronic power steering, excellent services back up, convenient cup holders, high rigid monocoque frame made of high tensile steel, front and rear seat belts, booster assisted brakes etc. Its better mileage and low engine friction make this car most fuel efficient car in A2 segment (petrol).

It has three variants:


Maruti Alto Maruti Alto Lx 34

Maruti Alto Lxi

Maruti Alto
It has new features like front bumper, dynamic front grill, S mark, clear lens headlamps, clear lens tail lamps etc.

Maruti Alto Lx
Along with the features that are present in Alto, there are many additional new features like rotary control for AC, integrated rear seat head restraints etc.

Maruti Alto Lxi.


Along with all the features that are present in Alto LX and Alto, another distinctive extra feature included in this model is electronic power steering.

Various colors found in this car are:


Midnight Black Superior White Pearl Silver Silky Silver Bright Red Brilliant Yellow Wine Red (new) Caribbean Blue(new) ICAL SPECIFICATIONS OF MARUTI ALTO

WEIGHT Kerb weight Alto 725 kg Alto Lx / Alto Lxi 740 kg Gross vehicle weight 1165 kg

ENGINE Swept volume 796cc No. of cylinders 3

35

Engine control 32 bit computer Maximum power 47 bhp @ 6200 rpm Maximum torque 62 Nm @ 3000 rpm Transmission 5 speed, all synchromesh, manual SUSPENSION SYSTEM Front McPherson Strut with torsion type anti-roll bar Rear Coil spring with double action telescopic shock absorbers SEATING Capacity 4 Persons TYRES Tyre size 145 / 80 R12 DIMENSIONS Overall length 3495 mm Overall width 1495 mm Overall height 1460 mm

Wheelbase 2360 mm 36

Tread - Front / Rear 1290 mm / 1290 mm

Maruti Omni
Maruti Omni can accompany anybody during the lazy holidays. Its seating capacity can accommodate a group of people going for picnic or outing. Stylish, smart and sporty looks of newly launched Maruti Omni is very comfortable. Its reclining and sliding front seat, enough leg space and ample headroom Make it more spacious. Its sleek sliding door and new side body graphics are giving new taste to the car lovers. Apart from this, smart new steering wheel, clear lens headlamps and head lamp leveling device are lining up to market this car properly. With 37 bhp @ 500rpm and torque of 6.32 kgm @ 3000rpm, this car is running strong over the years. MPFI engine fulfills all the Bharat III emission norms. The features that make this car safe and secure are like side impact door beams, thermoplastic bumpers, booster assisted disc brakes, secured seat belts, laminated glass winshield etc. Turning radius of 4.1 m, Omni solves the purpose of narrow lane driving, keen turning and small space parking.

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5 seater Maruti Omni


5 seater Maruti Omni has capacity to arrange seating for five. In 5 seater Maruti Omni behind the front seats there is an arrangement for 3 seats in a row one after another.

8 seater Maruti Omni


8 seater Maruti Omni is with the accommodation facility for eight. In 8 seater Maruti Omni behind the fronts seats there is a seating arrangement for two long seats to accommodate six more occupants. Those both rear seats are arranged face to face which give scope to gossip with each other while going for family picnic or friendly freak out.

LPG Maruti Omni


LPG Maruti Omni is the most cost saving new car of the Maruti Omni. Its 5 seater accommodation arrangement with LPG kit (Ville, Netherlands) fitted by the factory keeps it noticeable to the buyers. It has capacity of 62.1 ltr LPG cylinder / reserve fuel tank (petrol, 5 ltr). It runs with the power of 27bhp@ 4500rpm.

Striking colors are keeping this car out of the crowd:

Bright Red Silky Silver Superior White

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The Metallic colors are:


Caribbean Blue Icy Blue Crystal Gold Silky Silver

TECHNICAL SPECIFICATIONS OF MARUTI OMNI


Dimensions Length 3370 mm Width 1410 mm Height 1640 mm Wheel base 1840 mm Ground clearance 165 mm turning radius 4.1 m Weight Omni 785 kg, Omni E - 800 kg Engine Type 4-stroke cycle, water cooled Number of cylinders 3 Number of engine valves 6 Piston displacement 796 cc Power Transmission Type Manual, 4 forward, all synchromesh, 1 reverse Brakes Front Booster assisted Disc Rear Drum Capacity Fuel Tank (Petrol) 36 liters Performance Maximum Power 35.0 bhp @ 5000 rpm Maximum Torque 6.1 kgm @ 3000 rpm

Maruti Zen Estilo


Zen Estilo is Maruti's latest launch pad in the automobile sector. Estilo, Spanish word for 39

"style", radiates both Japanese simplicity and European sophistication & is made perfectly suitable for Indian roads. The car is much more roomier than Zen & its plush & sleek interiors impart a more royal touch to its persona. Sporting a much larger engine of 1061 cc., the car's elevated size offers extra boot space. Best feature boasts of its superior air conditioning which eases the task of beating the sultry summers. With a capacity of 64 bhp. & a low-end torque of 84 nm (i.e. 3500 rpm), the new model ensures the Indian market with a smooth & comfortable drive. The car exhibiting fine upholstery matched up with its' color theme has an immense stamina to sweep away the customer with its' elan appearance. Other salient characteristics include: Modern design Two tone color design Redesign seats

Other Features
Maruti Zen Estilo has a series of other plus points which makes is an instant hit among Indian buyers. They are: * spacious * Handy driver's side airbag * Rear defogger, tachometer & ABS * Electronic power steering * Black bumpers 40

* Hatchbacks * Dual tone theme * Accelerated & top speed * Has four-cylinder engine * Combo of five-speed gearbox * Electrically adjustable side view mirrors * Built in 6 audio speaker provision * Mobile and fax connectivity at the back door There are three variants found in this car:

Maruti Zen Estilo Lx This model has certain specific points such as no body colored side or back door handles, outside door mirrors, accessory socket. Though, it has rear door child lock & steering lock. Maruti Zen Estilo Lxi This variant of Estilo is almost the same like its other model LX. It has body colored bumpers & back door handles. Though, it is fully air conditioned like others & has numerous other qualities. Maruti Zen Estilo Vxi Estilo Vxi bosts of almost all the benefits, thus, fitting easily in the ultra modern automobile category.

TECHNICAL SPECIFICATIONS OF MARUTI ZEN ESTILO


Length 3495 Width 1475 (Lx, Lxi), 1495 (Vxi) Height 1595 Wheel Base 2360 Tread, Front 1295 Tread, Rear 1290 Turning Radius (m) 4.6 Seating Capacity 5 persons Ground Clearance 165 Max Power (bhp/rpm) 64/6,200 Max Torque (Nm/rpm) 84/3,500 Engine F10D Engine Capacity (cc) 1061

41

Engine Type 4 cyl Transmission 5MT Drive 2WD Clutch Type Cable Kerb Weight (kg) 855 (Lx, Lxi), 875 (Vxi) GVW (kg) 1275 Tyre Size 145 / 70 R13 (Lx, Lxi) 155 / 65 R13 (Vxi) Fuel Tank Capacity (lt) 35 Front Break Ventilated Disc Rear Brake Drum Transmission Type Manual -5 Speed, all synchromesh with teo overdrive gears Suspension System Front: McPherson Strut with Torsion type roll control device Rear: Coil Spring, Gas field shock absorbers with three link ride and isolated trailing arm Power Steering Type: Electronic Power Steering (EPS) (Lxi, Vxi) Maruti Swift INCLUDEPICTURE "http://auto.indiamart.com/cars/marutiswift/gifs/maruti-swift-car.gif" \* MERGEFORMATINET Competing with the other cars of Maruti, Maruti Swift is gradually making its position in the world of mid-sized family car. Maruti Swift has come up with the special technical specifications of 16 valve 4-cylinder, 1300 cc engine generating power of solid 87bhp @ 6000 rpm Maruti swift is equipped with various safety features and well advanced equipments.

Swift LXi
3 assist grips, 3 spoke urethane steering wheel, antenna, cabin light (3 position), 42

console box (lower), cup holders (front 2, rear1), front door trim pockets, green tinted glass window, halogen headlamps, headlamp leveling device, heater and manual Air conditioning, OVRM (internally adjusted), rear fog lamps, wind screen wiper 2 speed plus 1 speed intermittent, tailgate opener key type, trip meter (digital display), sun visors (both sides), brake assist , child lock (rear door), high mounted stop lamp, power steering, rear seat belts etc. are the features available in this model.

Swift VXi
Apart from the features found in other model, striking features of this model are black colored A & B pillars, 12v accessory socket in center console, day and night rear view mirror, door ajar warming lamp, driver's seatbelt warning lamp, tachometer, driver's seat belt warning lamp, vanity mirrors (sun visor co-driver side), rear seat head restraints, 43

fabric accented door trims, central door locking (4 door), front and rear electronic windows, front fog lamps, light off/ key reminder, manual air-conditioning, key not removed warning buzzer, etc.

Swift ZXi
Special features that have made this model more market friendly are rear window demister, rear parcel shelf, rear window wiper, room lamp and luggage room, keyless entry, dual front airbags, colored outside door mirror cowls, colored outside door handles, 12v accessory socket in luggage room, driver seat height adjuster, central door locking (5 doors), seat belts 3-point ELR with shoulder adjusters, seat belts front 3-point ELR with pretension, tailgate opener electromagnetic type etc.

Maruti Swift Diesel


Before making a buying decision for a car, comfort is always the first priority that we usually look for. Make no compromises with your comforts, as 'Maruti Swift Diesel' incorporates the best comfort features which any swanky car does have these days.

Maruti Swift Diesel'Ldi'


Right from power steering to antenna and manual air conditioning to heater, you would get maximum comfort level with this 'Ldi' model. As far as safety and security is concerned, it comes with child lock (rear door), side impact beams and the icats. In addition to this, it has cabin light in three positions, sports-type spherical shift knob, sun visors on both sides, 3 assist grips and lots more inside the car.

Maruti Swift Diesel 'Vdi'


Apart from all those features mentioned with the Ldi, you can get front and rear electric windows and central door locking in the comfort segment. On the other hand, the Vanity mirrors, day/night rearview mirror, head restraints (rear seat) and 12V accessory socket 44

in central console are also some of the extra features which are found inside the car. The additional external features include colored door mirror cowls and handles, front fog lamps and 165/80 R14 steel wheels with cap (tubeless)

TECHNICAL SPECIFICATIONS OF MARUTI SWIFT


Body Type Hatchback Number of doors 5 Seating capacity 5 Engine Capacity 1298cc Number of cylinders 4 Number of valves 16 Bore x Stroke 74.0 x 75.5 mm Compression ratio 9.0:1 Maximum power 87bhp @ 6000rpm Maximum torque 113Nm @ 4500rpm Fuel distribution Multipoint injection Transmission Type Five-speed manual, with synchromesh in all gears, one reverse Gear ratios 1st 3.545 4th 0.966 2nd 1.904 5th 0.757 3rd 1.280 reverse 3.272

Dimensions Overall length 3695mm Overall width 1690mm Overall height 1530mm Wheelbase 2390mm Track 170mm Minimum turning radius 4.7 meters Luggage capacity 232 liters (with seatback raised) 368 liters (with seatback folded) Chassis Steering Rack & pinion, power assisted Front 1470mm Rear 1480mm Ground clearance

45

Brakes

Front Ventilated Discs Rear Drums Suspension

Front

McPherson strut and coil spring Rear Torsion beam and coil spring

Maruti Wagon R

Wagon R wiith1061cc low friction engine does not only run , but always fly high with its super power of 64bhp@6200rpm and faster acceleration. Its smooth pick up has made this car more popular than other cars in this category. Its on board computer of 16 bit capacity always keeps an eyes on the performance of the engine. Its engine configuration of 4 valves per cylinder capacity keeps its fuel consumption lower than other cars. Its Dual Distribution less Digital Ignition (DDLI) gives better start and ideal power distribution. At the same time its mileage of 14.15 kmpl and other features make it more reliable car to the buyer.

WagonR Lx It is well equipped with chrome plated grille, clear headlamps and tail lamps, right outside rear view mirror, front wiper (2 speed + intermittent), new plush upholstery, air 46

conditioner with heater, full flat front seat, remote fuel lid opener, new headlamp leveling device etc. WagonR Lxi Along with the features that are present in WagonR LXi, few exclusive features present in this model are central door locking (all 5 doors), electronic power steering, roof rails, newly added body colored bumpers, right outside rear view mirrors etc. WagonR Vxi Apart from the features that are present in WagonR LXi ,few exclusive special features are only available in this model like side molding, front power window, rear defogger, full wheel covers, boot lamp, day/ night rear view mirror, electronic tachometer, Key Not Removed warning buzzer, Lights On warning buzzer, vanity mirror, newly added accessory socket, two tone leather steering wheel cover; newly added anti lock braking system (ABS), dual SRS airbags, key less entry etc. WagonR AX Along with the common features that are present in other models, this model contains special features like right and left outside rear view mirror, new added roof rails etc. WagonR Duo This extremely dynamic and vibrant variant of WagonR is flooded with all the latest technologies and features not only externally but internally too. As the name itself suggests, it has been designed to run on both petrol as well as the CNG mode whichever ways you want it to be. The car has got some latest modifications such as 3 spoke steering, matching door trim fabric and much more TECHNICAL SPECIFICATIONS OF MARUTI WAGONR Dimensions in mm. Length 3495 Width 1495 Height 1660 47

Wheelbase 2360 Front Track 1295 Weight in Kg.

Rear Track 1290 Min. Ground Clearance 165

Kerb Weight 825 (LX, LXi) 830 (VXi 840 (AX) Gross Vehicle Weight 1225 (LX, LXi) 1230 (VXi) Capacity Seating Capacity 4 persons Fuel Tank Capacity 35 litres Engine Swept Volume 1061 cc Engine Type 4 cylinder in line, FC Engine, 4 Valvs per cylinder, MPFI Engine Control 16 - Bit Electronic Control Module (ECM) in bharat Stage || variant 32 - Bit Electronic Control Module (ECM) in bharat Stage ||| variant Max. Power, bhp Power Steering Type Electronic Power Steering (EPS) (LXi, VXi & AX) Transmission Type Manual (LX, LXi, VXi) 5 speed, All-synchromesh with two overdrive gears Automatic (AX), 3 speed Suspension System Front McPherson Strut with torsion type roll control device 48 Rear 64@6200 rpm Max. Torque, Nm 84@3500 rpm 1240 (AX)

Coil spring, gas-filled shock absorbers with three-link rigid axle and isolated trailing arms Apart from Maruti Suzuki, for my research I have to study some other company through secondary resource .these are as follow

FINANCIALS FOR 2009-10


Total Income up 14.28 per cent; Premium compacts and sedan segment drive top line growth

Fiscal 2009-10
The company's Total Income (Net of Excise) (Income from Operations plus Other Income) for the financial year 2009-10 climbed to Rs 21,453.8 Crore. This is the highest Total Income (Net of Excise) ever in the company's history, and marks a growth of 14.28 per cent over 2008-09. The growth in Total Income (Net of Excise) included higher realizations, largely contributed by the company's popular hatch-back Swift and premium sedan Swift Dzire (Diesel and Petrol variants). Net Profit during the year stood at Rs 1,218.7 Crore, down 29.6 per cent over 2008-09. The company's EBDITA for the year stood at Rs 2,433.4 Crore, a fall of about 22 per cent over the previous year. During the year, commodity prices went up sharply and remained high for most part of the year. Forex fluctuations were also adverse and impacted the bottom-line significantly. In recent months, commodity prices have eased. With regard to foreign currency exposure, the company's exports in 2009-10 are expected to be higher and cover its imports.

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Highlights of 2009-10

Particulars Net Sales (In x10M Rs) Profit Before Tax (In x10M Rs) Reported Net Profit (In x10M Rs) Earnings Per Share-Unit Curr ( In Rs)

2009

2008

2007

2006 12015.9

2005 10923.8

2004 9104.4

2003 7180.1

20530.1 17891.6 14696.3

1675.8

2503

2279.8

1750

1304.9

769.8

282.1

1218.7

1730.8

1562

1189.1

853.6

542.1

146.4

41.57

59.03

53.29

40.65

29.25

18.56

4.88

In the fiscal 2009-10 Maruti Suzuki sold a total of 792,167 vehicles. The annual sales in 2009-10 is the highest ever by the company in its 25 year history. The previous highest annual sales were 764,842 units in 2008-09. During the fiscal, Maruti Suzuki Swift crossed the 3 lakh-sales mark cumulative domestic sales since launch and became the quickest vehicle model to do so. During the fiscal, Maruti Suzuki's Alto continued to be the preferred vehicle for the great Indian middle class crossing the 1 million-mark in cumulative sales in domestic market. The company's sales included exports of 70,023 units in 2009-10, up by 32.1 per cent over sales of 53,024 recorded in 2008-09. The 2009-10 export numbers, the highest ever by the company, was led by A-star, the fuel efficient compact car launched in Europe during the year as Suzuki Alto. The export tally includes around 19,000 units of

50

A-star exported to Europe including United Kingdom, France, Germany, Italy, Netherlands, Denmark and Switzerland. Fiscal 2009-10 marked Maruti Suzuki's Silver Jubilee year in India. Over these 25 years the company has sold over 7 million (70 lakh) cars in the domestic market. Additionally, over half a million cars made by Maruti Suzuki have been exported world-over.

During the year, the company continued its focus on long term initiatives, despite the challenging market situation. These include: Focus on R&D: Manpower strength to 730 engineers from 460 in end March 2008. Company plans 1,000 engineers in R&D by 2010. New technology engine: Brand new facility for K-series engine launched on schedule. Launching new models: A-star launched. Introduced Maruti 800 Duo - an alternate fuel option that runs on LPG and petrol. Annual capacity to manufacture expanded from 800,000 to one million units (Gurgaon plus Manesar plants). Reached out to new segments of customers - government employees and rural customers - through innovative programs. Export of A star (as Suzuki Alto) to Europe commenced as per schedule. Dedicated export port facilities for cars at Mundra completed, used for A-star shipment. Network expansion:

o Sales: From 600 sales outlets (in 393 cities) last year to 681 outlets (in 454 cities)

51

o Service: From 2,628 service outlets (1220 cities) last year to 2,767 (in 1314

cities);
o True Value: From 265 outlets (in 166 cities) last year to 315 outlets (181 cities)

Increased Pre-owned car sales from 1.01 lakh units in 2008-09 to 1.23 lakh units in 2009-10 National Road Safety Mission launched - a nation-wide Corporate Social Responsibility (CSR) initiative to train 500,000 people in safe driving in three years. The network of Maruti Driving Schools further expanded and crossed 50 schools. MEANING OF ANALYSIS AND OBJECTIVE OF STUDY: Financial statement namely the statement of the profit & loss account and the balance sheet are indication of two signify-cant factors profitability and financial soundness analysis of statements means such a treatment of the information contained to afford a diagnosis of the profitability and financial statements analysis as the process of methodical classification comparison with other co-rising question and then seeking answer for them. Finance is the very typical aspect in course of management. The main objective behind the study is to get precisely. It also helps us to study the present finance scenario. The objective is such that companys profitability, liquidity and capacity by such analysis we can interpret the position of the company. So it is very important to study. Profit Trend for 7 years: Particulars Operating Profit (EBDIT) Gross Profit (EBDT) PROFIT COMPARISION (IN x10M Rs) 2009 2008 2007 2006 2005 2433.3 2382.3 3130.8 3071.2 2588.8 2551.2 52 2055.8 2035.4 1797.7 1761.7 2004 1308.1 1264.7 2003 656.9 604.2

Profit Before Tax (EBT) Adjusted Net Profit (EAT)

1675.8

2503

2279.8

1750 1197.07

1304.9 860.1

769.8 621.82

282.1 129.72

1072.63 1669.71 1535.29

IMPORTANCE OF CASH PROFIT THEORY:


MEANING Cash flow means inflows that is, sources of cash which are at the disposable at the firm and outflows of the fire that is the use of the firm. The difference between inflows and outflows is either net inflow or net outflow. A cash outflow statement deals with the cash fund flow, which excludes working capital movements. The Accounting standard (A53) classifies cash flows as under: 1) Cash from operating activities 2) Cash from investing activities 3) Cash from financing activities The operating activities include receipts from sale of goods or Rendering of services receipts from royalty, fees, commission etc. Outflow is the resulting from payment to creditors for goods and services, payment for expenses such as lighting, power, rent, wages salaries etc. Only cash from operating activities is included in this report.

IMPORTANCE OF CASH PROFIT:


The cash profit is an important measure of profitability as well as liquidity. When the cash profit differs from the profit is shown in the profit and loss account or profit and loss statement. Adjusting depreciation arrives at the cash profit; amortize action of capital expenses etc. The cash profit is much less or negative compared to the profit declared in the profit and loss account. It indicates liquidity and signals for appropriate cash 53

management. The net cash from operations can be calculated through adjustment of non-cash items like depreciation, changes in inventory and receivable and payables, and or other items for which cash offers the investing and financing activities.

MEANING & IMPORTANCE OF RATIO:


The Balance Sheet and the Statement of Income are essential, but they are only the starting point for successful financial management. Apply Ratio Analysis to Financial Statements to analyze the success, failure, and progress of your business. Ratio Analysis enables the business owner/manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. To do this compare your ratios with the average of businesses similar to yours and compare your own ratios for several successive years, watching especially for any unfavorable trends that may be starting. Ratio analysis may provide the all-important early warning indications that allow you to solve your business problems before your business is destroyed by them. Ratio is a figure showing, logical relationship between any two items taken from financial statement as prepared and presented annually are of little use for guidance of prospective investors, creditors and even management. If relationships between various related items in these financial statements are established, they can provide useful dues to garage accurately the financial health and ability of business to make profit. The relation between in two related items of financial statements is known ratio.

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UTILITY OF RATIO ANALYSIS:

It is very important to find the ratio of liquidity, profitability etc. Because the ratio analysis provides useful data to the management, important uses of it are given as below:

PROFITABLITY : Useful information about the trend of profitability is from profitability ratio. The gross profit ratio, net profit ratio and ratio of return on investment give a good idea of the profitability of the business. On the basic of this ratio, investors get an idea about overall efficiency of managers and bank as well as other creditors draw useful conclusion about repaying capacity of the borrowers. LIQUIDITY : In fact the use of ratio was made initially to ascertain the Liquidity of business. The current ratio, acid test ratio will tell whether the firm will be able to meet its current liabilities and when they nature. Banks and other leaders will be able to conclude from these ratios whether the firm will be able to pay regularly the interest and loan installments.

55

EFFCIENCY : The turnover ratios are excellent guide to measure the efficiency of managers. All such ratio related to sales present a good picture of the success on the business.

Classification of ratio Profitability ratio Gross Profit Ratio: Meaning: It is expresses relationship between Gross Profit earned to net sales. It is a significant indicator of the profitability of business. It expresses in percent. For example, a ratio shows that for a sale of every Rs. 1000 a margin of 250 rupees is available from which operating expenses of business are recovered. The ratio shows whether the mark up obtained on cost of production is sufficient or not. There is no calibration against reasonability of gross profit ratio. However it must be enough to cover its operating expenses. In many industries, there are more or less recognized gross profit ratios and the business should strive to maintain this standard. If this ratio is low, it indicates that the cost of sales is high or that the purchasing is inefficient. Alternatively, it may also mean that due to depression, the selling price is reduced but there are may be no corresponding reduction, the selling 56

price is reduced but there may be no corresponding reduction in cost of sales. In such a case, the management must investigate the causes and try to bring up this ratio.

COMPETITORS INFORMATION:MARUTI UDYOG LIMITED Managing competition successfully


Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. It was established with the objectives of modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. There was an option in the agreement to raise Suzukis equity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government organization managed on the lines of Japanese management practices. Maruti created history by going into production in a record 13 months. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by May 2005. Maruti is one of the most successful automobile joint ventures, and has made profits every year since inception till 2000-01. In 2000-01, 57

although Maruti generated operating profits on an income of Rs 92.5 billion, high depreciation on new model launches resulted in a book loss.

FUTURE CHALLENGES
Maruti has always been identified as a traditional carmaker producing value-for-money cars and right now the biggest hurdle Maruti is facing is to shed this image. Maruti wants to change it for a more aggressive image. Maruti Baleno has failed due to one of the major reasons being that customers could not identify Maruti with a car as sophisticated as Maruti Baleno. Maruti is looking forward to bring about a perception change about the company and its cars. Maruti started the exercise with the new-look Zen, and Suzuki's decision to pick India as one of the first markets for this radically different-looking car gave this endeavor a new thrust. Maruti has also changed its logo at the front grill. It has replaced the traditional Maruti logo on grill stylish M with S. The major thrust in the facelift endeavor is with the launch of 1.3 litre Swift. Its a style statement from Maruti to Indian market. The next threat Maruti faces is the growing competition in compact cars. Companies like Toyota, Ford, Honda and Fiat are planning to come out with small segment cars in near future. Ford is launching Focus and Fiesta, GM is launching Aveo in 2006, Chevrolet is launching Spark in 2006, Hyundai is launching its new compact car in 2006, Honda is launching Jazz in 2006, GM is has reduced prices of its Corsa, Fiat is coming up with Panda and new Fiat Palio, Skoda is launching Fabia. All this will pose a major threat to Maruti leadership in compact cars. New emission norms like Bharat Stage 3 which has come into effect from April 2005 has increased car prices by Rs.20000 and Bharat Stage 4 which is coming into force in 2007 will contribute in increasing car prices further. This could be of concern to Maruti which is low cost provider of passenger cars. Rise in petrol prices and growing popularity of other substitute fuels like CNG will be another threat to Maruti. There is also a threat to Suzuki from R&D investment by

58

Toyota and Honda in Hybrid cars. Hybrid cars could run on both petrol and gaseous fuels. There is a threat to Maruti models ageing. Maruti models like Maruti 800 which is in market for the last twenty years and others like Zen and Esteem which have also entered the decline phase are the other threats. Maruti is planning phasing out Zen in 2007 and there were rumors of phasing out Maruti 800 also. This all makes Suzuki to replace these brands with new launches. As Swift and Wagon R are replacing the Zen market.

HYUNDAI INDIA LTD


Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest car manufacturer and the largest passenger car exporter from India. HMIL presently markets 33 variants of passenger cars across segments. The Santro in the B segment, the Getz Prime, i10 and the Premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Embera in the E segment and the Tucson in the SUV segment. Hyundai Motor India Ltd, continuing with its tradition of being the fastest growing passenger car manufacturer, registered total sales of 489,328 vehicles in the calendar year (CY) 2008, an increase of 49.6 percent over CY 2007. In the domestic market it clocked a growth of 22.4 percent with 245387 units in 2008, while overseas sales grew by 92.5 percent, with exports accounting for 243,931 units in 2008. HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and te sting capabilities in the country. In continuation of its commitment to provide the Indian customer with global technology, HMIL commissioned its second plant in February 2008 which produces an additional 300,000 units per annum, raising HMIL's total production capacity to 600,000 units per 59

annum. HMIL has invested to expand capacity in line with its positioning as HMC's global export hub for compact cars. Apart from the expansion of production capacity, HMIL currently has 251 strong dealer network across India, which will be further bolstered in 2009. In 2008, HMIL also successfully completed 10 glorious years of operations in India and to commemorate its achievements, initiated a unique trans-continental drive from Delhi to Paris in two of its hugely popular i10 Kappa cars. The drive created automobile history by completing a distance of 10,000km in just 17 days after which the i10s were showcased at the Paris Motor Show in October. In fact it was at the Paris Motor Show that HMIL first unveiled the Hyundai i20 and the car received a phenomenal response from the auto enthusiasts across the world. Hyundai Motor India also accomplished the landmark of producing the fastest 20th lakh cars in India in 2008. Like 2008, the year 2007 had also been a significant year for Hyundai Motor India. It achieved a significant milestone by rolling out the fastest 400,000th export car. Hyundai exported to over 95 countries globally; even as it plans to continue its thrust in existing export markets, it is gearing up to step up its foray into new markets. 2007 also saw the launch of the i10 and yet another path-breaking record in its young journey by rolling out the fastest 1,500,000th car. Hyundai's new model i10 made a clean sweep of all the 'Car of the Year 2008' awards from the leading automotive magazines and TV channels like BS Motoring, CNBC-TV18 AutoCar, NDTV Profit Car & Bike India and Overdrive magazine. The i10 was also the choice of the discerning automotive media of the country as they conferred the prestigious 'Indian Car of the Year' (ICOTY) award to the i10 as well. The Santro and the Accent also received the 'TNS Voice of the Customer - 2008' award for the Premium Compact Car (Santro) and the Entry Mid size Car (Accent). In March 2008 it achieved yet another milestone by rolling out the fastest 500,000th export car. 60

In 2007, the Hyundai Verna had also bagged some of the most prestigious awards starting with the Overdrive magazines Car of the Year 2007, the Best Mid-size Car of the Year award from NDTV Profit Car & Bike India, the Best Value for Money Car from CNBC Autocar and 'Performance Car of the Year' from Business Standard Motoring. Hyundai cars have been a favorite at all awards ceremonies and has won many awards. The Sonata Embera won the 'Executive Car of The Year 2006' award from Business Standard Motoring magazine and NDTV Profit Car & Bike India had declared the Tucson as the 'SUV of The Year 2006'.

TATA MOTORS LTD


Tata Motors Limited is Indias largest automobile company, with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the worlds fourth largest truck manufacturer, and the worlds second largest bus manufacturer. The companys 23,000 employees are guided by the vision to be best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics. Established in 1945, Tata Motors presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The companys manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) 61

to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The companys dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first company from Indias engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Koreas second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well. Hispanos presence is being expanded in other markets. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand at the Bangkok Motor Show 2008. Tata Motors is also expanding its international footprint, established through exports since 1961. The companys commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal.

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The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. With over 2,500 engineers and scientists, the companys Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, Indias first Sports Utility Vehicle and, in 1998, the Tata Indica, Indias first fully indigenous passenger car. Within two years of launch, Tata Indica became Indias largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, Indias first indigenously developed mini-truck In January 2008, Tata Motors unveiled its Peoples Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at Rs.100, 000 (excluding VAT and transportation cost). Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The lean design strategy has helped minimise weight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint.

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The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. Besides product development, R&D is also focussing on environment-friendly technologies in emissions and alternative fuels. Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact

3. RESEARCH METHODOLOGY
RESEARCH is a scientific and systematic search for pertinent information on a specific topic. It is also said to be the pursuit of truth with the help of study, observation, comparison and experiment. research methodology is a way to systematically solve the research problem.

3.1 Title of the study: - The study of consumer buying behavior towards small &
medium car segment The study showing the consumer buying behavior in small & medium car segment with special reference to Maruti Suzuki India ltd It describe the attitude behind the purchasing of car by any middle income level segment. This research is done at Jaipur.

3.2 Duration of the study: - 15 days.

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3.3 Objective of the study:- The basic objective of the project during the research
and study will be focused on the following parameters: To know consume preference regarding small & medium cars To know what features and services attract the customers Effect of brand image (Maruti Suzuki)in buying behavior Impact of advertisement in buying behavior Impact of celebrity endorsement in buying behavior Effect of family &friends in buying behavior (Focus group)

3.4 Type of research: - It refers to the search for knowledge. It can be defined as
scientific and systematic search for pertinent information on a specific topic. It is careful investigation or inquiry through search for new facts of any branch of knowledge. Research plays an important role in the project work. The results of the project are completely based upon the research of the facts and figures collected through the different ways of research. That is why it is also called a movement from known to unknown. Research is the original contribution to the existing stock of knowledge.

A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making. Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also a part of the research design. The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. Research can classify in one of three categories: Exploratory research 65

Descriptive research Causal research The type of research conducted here is descriptive research. Descriptive research is more rigid than exploratory research and seeks to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product. As opposed to exploratory research, descriptive research should define questions, people surveyed, and the method of analysis prior to beginning data collection. In other words, the who, what, where, when, why, and how aspects of the research should be defined. Such preparation allows one the opportunity to make any required changes before the costly process of data collection has begun. There are two basic types of descriptive research: longitudinal studies and crosssectional studies. Longitudinal studies are time series analyses that make repeated measurements of the same individuals, thus allowing one to monitor behavior such as brand-switching. However, longitudinal studies are not necessarily representative since many people may refuse to participate because of the commitment required. Crosssectional studies sample the population to make measurements at a specific point in time. A special type of cross-sectional analysis is a cohort analysis, which tracks an aggregate of individuals who experience the same event within the same time interval over time. Cohort analyses are useful for long-term forecasting of product demand.

3.5 Sample size and method of selecting sample


Sample size:- Sampling is simply the process of learning about population on the basis of learning about population on the basis of a sample drawn from it. The primary objective of the sampling survey is to obtain accurate and reliable information about universe with minimum cost, time and energy and to set out the limits of accuracy of such estimates. For sampling I have chosen non-probability sampling technique.

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Non probability sampling is based on the personal judgment. Under this method a desired number of sample units are selected deliberately depending upon the object of the enquiry so that only the important items representing the true characteristics of the population are included in the sample. Non-probability sampling is of two types:

purposive sampling quota convenience sampling

I have chosen convenience sampling under non-probability sampling technique keeping all constrains in mind a sample size of 50 people is selected from Jaipur. This sample contains a mix type of customer (Servicemen, student and businessmen) so as to remove any type be biased results. Research for the Importance of the Brand image of the companys which is kept in mind by customers while buying any product. As twowheeler is a durable thing, the customer interacts with the company only for little time. Therefore it becomes very difficult to get the actual feedback from the customer. Thats why I have designed a Questionnaire for the customers. for this research are as follows:

PRIMARY DATA Data is collected primarily through personal contact,


meeting, interview and questionnaire with the concerned authority of the organization and respondents.

SECONDARY DATA Data are collected through secondary modes


such as various published data, reports, related books and websites.

3.6 Scope of study: - The scope of the project during the research and study will be
focused on the following parameters: To know consume preference regarding small & medium cars To know what features and services attract the customers Effect of brand image (Maruti Suzuki)in buying behavior Impact of advertisement in buying behavior Impact of celebrity endorsement in buying behavior 67

Effect of family &friends in buying behavior (Focus group)

3.7 Limitation of study:-Every research study has its limitations likewise this
research has some limitation .These are: The sample consists of 50 customers and was restricted to people residing in Jaipur a study is restricted to the Jaipur Sample of the population (universe)might be knot the representative of whole This study is conducted before the launching of TATA Nano Customer perception is not always static. They frequently change their attitude Selection of car is also depends on income level of respondents This research is based on current economic condition which is not seem to be good

4. FACTS AND FINDINGS

In present Maruti is leading in small & medium car segment followed by Hyundai Existing customer are satisfied with their present car performance like mileage ,servicing etc

In

current scenario Maruti will be market leader followed by Hyundai(This

research is conducted before launching TATA Nano) Middle class segment like to buy any brand due to mileage followed by looks & style

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They change their cars after two years or more, due to fed up with car and for new advance technology

They highly influenced by family and friends while making purchase

5. ANALYSIS AND INTREPRETATION


For this research project, I choose the questionnaire as research tool and take 50 participants who either willing to buy a car or having a car in small and middle segment. So the findings are as follows Bikes which are mostly used A) Maruti B) Hyundai C) Tata D) Mahindra 33 28 20 19 69

35 30 25 20 15 10 5 0 1st Qtr Ma ruti Hunda i T ata Ma hindra

Purpose of a car A) B) C) D) E) College Office Business Travelling & Roaming House hold work

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30 25 20 15 10 5 0 A ) C o lle g e B ) O ffice 22 26 17 10 5 2 C ) B u sin e ss D ) T ra ve llin g E) H o u se h o ld & R o a m in g w o rk 1

OBJECTIVE: To Identify the Purpose to Use car

FINDINGS: The overall findings indicate the maximum use of car for businessmen and traveling followed by Office and Business.

Q. 1 Do you use cars? Interpretation;-Among 50 participants,84% respondents are currently having car .Through we can find out the potential market for car manufacturing companies

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Q.2 Which car do you use? Interpretation:-Among 84% respondents who having his own car 43% participants are having Maruti, 29% are owning Hyundai, 19% are having Tata, 7% are owing Gm and rest are the customer of Honda Motors

Q.3 Is the present car up to your expectations?

Interpretation: Approx 79% participants are satisfied with their current car i.e. their expectation are fulfilled by the car and rest are unsatisfied with their car performance Some factor like mileage ,performance and easy servicing expectation fulfill their

Q. 4 Are you planning to buy a new car in the near future? Interpretation:-

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Every person wants to buy a car for himself or for his family. My research is focus on middle income prospects and thus 74% respondents are planning to buy a new car 26% respondents are not willing to buy new car in near future

Q. 5 Which brand would you prefer? Interpretation:- Among 50 participants 54%of respondents prefer to buy a car of Maruti 30% participants like to purchase a car of Hyundai 20% respondants prefer TATA brand (Research is conducted before the launching of nano ) 12% and 4 % are preferring ratio for respectively GM cars and Honda cars

Q. 6 Why would you prefer the above mentioned car?

Interpretation:-The reason for the preference, among 50 respondents 38% preferred mileage follow by looks and style as 26% Comfort is taking third place by 24% followed by service and spares

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Q.7. How frequently do you change your car? Why?

Interpretation:-Generally middle class respondents never echange their car so frequently so far. They will change their car after more then two year or above but the reason behind the changing the car are as follows Almost 54% participants said tat they fed up with their car Near 36% respondents wants to change their car due to advance technology Approx 8% change their car due to fashion & trend

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6. SWOT ANALYSIS

STRENGTH

Maruti Suzuki Pvt. Limited is right now the market leader in Private segment. Brand Image Reliable and cheap. Established brand in Indian market. Great service and nationwide penetration Experience in Indian market Very old player in Indian market. First major player. Established distribution & after sales networks

WEAKNESS

All models are petrol base not to be diesel in comparison of Tata & Mahindra Diseconomies to scale No online presence Not diversified

OPPORTUNITY

Easy approachable service centers & Exchange fair. Acquisitions 75

Innovation Online Product and services expansion Takeovers Targeting Higher Middle Class requirements

THREAT

Other brand names like Hundai, TATA, Mahindra, Ford etc. Competition Cheaper technology External changes (government, politics, taxes, etc) Lower cost competitors or imports Price wars Product substitution

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7. CONCLUSION

From the analysis of the responses received from the customers in Jaipur, overall findings show that Maruti Suzukij is the most prefered brand among the participants.

Maruti Suzuki and Hyundai,Tata Motors are the biggest competitor in the small & madium car market..

Among the five attributes ( which we considered important for customers purchasing decision ) customers gave highest consideration to mileage followed by the looks and style. Other attributes like comfort, service and spares were considered later.

Most middle class person prefer Maruti Suzuki in this segment and usually they use car for their transport.

Servicemen still would like to go for small & medium car but with mileage with the first considerable thing followed by looks and style and power.

Study shows that middle class segment highly influenced by family & friends while purchasing the car. So companies should advertise their product targeted to families

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Graduly Hyundai & TATA captured the market of Maruti due to their new launching in small cars like TATA nanoetc.

8. RECOMMENDATION & SUGGESTIONS


Apart from mileage, Maruti should also focus on the looks and style of the bike which could atrract the consumers. Maruti should also focus its products on the student and the businessmen arena apart from just being concentrating on the servicemen segment. Tata although focussing on the demands of their target customers, it should also focus on the service and spare segment. To increase the demand for the newly launched products, Maruti should also focus on the advertising of its products. Companies should conduct reseach to know the preferences of the customer by allowing them to design their product on internet. This would help the companies to make a customised product. Mahindra Should be more focused on advertising and should add more product or varient to its portfolio.

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9. APPENDIX
Objective: Consumer buying behavior towards small & medium car segment Q. 1 Do you use cars? o Yes o No Q.2 Which car do you use? Company Maruti Honda GM TATA Hyundai Model

Q.3 Is the present car up to your expectations? 79

o Yes o No Elaborate (Why Yes / Why No)

______________________________________________________________________ ____________________________________________________________________ Q. 4 Are you planning to buy a new car in the near future? o Yes o No

Q. 5 Which brand would you prefer? o Maruti o Honda o GM o TATA o Hyundai If other, then please specify..

Q. 6 Why would you prefer the above mentioned car? o Mileage o Looks and style o Comfort o Service and spares 80

o Other If other, then please specify.. Q.8. How frequently do you change your car? Why? o 6-12 Months o Up to 2 years o More than 2 year o Till the life of the bike Reasons Status Fashion & Trend Advance Technology Fed up & Reseal Other

If other, then please specify..

o Family or Friends o Advertisement o Brand o Style & Features o Technical Advancement o Other Issue If other, then please specify..

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Personal Information:

Name

Occupation :

Age Date : Place :

1. 26-35 2. 36-45

3. Above 45 Signature

10. BIBLIOGRAPHY
BOOKS

C.R Kothari: Research Methodology

NEWSPAPERS

Economic Times. 82

Business Times. Business Standard

WEBSTIES
o o o o

HYPERLINK "http://www.tatamoters.co.in" http://www.tatamoters.co.in HYPERLINK "http://www.maruti.co.in." http://www.maruti.co.in. HYPERLINK "http://www.google.com/" \t "_blank" http://www.google.com/ HYPERLINK"http://www.valueresearch.com/"\t"_blank" http://www.valueresearch.com/ HYPERLINK "http://www.autojunction.com/" http://www.autojunction.com/ HYPERLINK"http://www.moneycontrol.com/"\t"_blank" http://www.moneycontrol.com/

o o

MAGAZINES

Business world Auto Expo

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