Marketing Strategies of Maruti Suzuki Cars

A
SUMMER TRAINING PROJECT REPORT

ON
MARKETING STRATEGIES OF MARUTI SUZUKI CARS
UNDERTAKEN AT
AUDI MOTORS LIMITED
SUBMITTED TO
GOVERMENT COLLEGE OF ENG.&TECH., BIKANER

Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration
Submitted to:Mamata pareek

(Lecturer)
Submitted by:Manish bhatiwal

(MBA III Sem.)
[1]
Karni Industrial Bikaner, Pugal Road, Bikaner 334004
DATE:-_______
CERTIFICATE FROM GUIDE

This is to certify that Mr. Manish bhatiwal of MBA 3 rd sem. has undertaken
the project study on the topic MARKETING STRATEGIES OF MARUTI
SUZUKI CARS at Audi Motors Limited, Bikaner under my supervision and
guidance.
The best of my knowledge his work is original and genuine.
I wish him all the best in his future endeavors.
(mamata pareek)
(Signature of the Guidance)
[2]
PREFACE
SUCCESS COMES WITH KNOWLEDGE &
KNOWLEDGE COMES WITH TRAINING
To excel in any field practical training is an integral part to imply theoretical

studies to a practical approach it makes the individual to the actual practical
conditions. Which could have been impossible to be tough in a classroom? A
trainee learnt dealing with the worker and management working environment
along with operational skills.
Marketing ranks as one of the most important industry in any part of the world. It
is also an industry where competitors drive excellence. This is why the entry in the
India of foreign insures, as minority partners in domestic joint ventures, has bought
the hope that market will reach a new level.
In this study I tried to find out those facts, which do matter for an advisor for doing
this job in marketing sector.
MANISH BHATIWAL
[3]
ACKNOWLEDGEMENT
The goal was fixed, moves were calculated and I moved with full of enthusiasm,
vigor and keen interest. There was a time when it proved to be on uphill task, the
goal seeming beyond my reach. But as work progressed my determination and will
power grew stronger and completion of this work further confined my belief that,
WHERE THERE IS A WILL THERE IS A WAY. Its a sheer pleasure for me to
state with candidly that this entire project is a heartily attempt to reach maximum
accuracy. I therefore take this opportunity to express my utmost gratitude and
indebtness to all who have contributed in some way.
I would also like to thank Mr. Surender Singh Rajpurohit (Sales Manager) who
given me a chance to be a part of Audi Motors Limited and guided me as a teacher,
motivated me as a motivator and supported me as a friend throughout my training
period. And my deep indebtedness to all employees of Audi Motors Limited who
helped me directly or indirectly for the success of this report.
I highly express my sincere thanks to Mamata pareek (Faculty Guide) who
helped me throughout the project.
Last but not least I would like to pleasure a word of appreciation to my family &
friends who supported & helped me to make this project a success.
(MANISH BHATIWAL)
[4]
EXECUTIVE SUMMARY
Only theoretical knowledge stands nowhere and cannot have any positive and
meaningful result until and unless supplemented with the real practice of business
environment. Summer training is the implementation of the theory in practice to
learn what actually management is.
The summer training of a management student plays an important role in
developing him or her into a well-groomed professional. It is an excellent
opportunity for them to give theoretical concepts a practical shape in the field of
application. It gives him an idea of dynamic and versatile professional world as
well as an exposure to the intricacies and complexities of the corporate world.
The researcher has had an excellent opportunity of being a part of Maruti Suzuki
India Ltd. towards fulfilling the requirement of his summer training. During his
training the researcher was assigned a topic STUDY THE MARKETING
STRATEGY OF MARUTI SUZUKI CARS. For this, the researcher studied the
literature regarding customer satisfaction level of Maruti Suzuki then he prepared
one questionnaire for customers. After that, the researcher went to the market and
collected the data then detailed analysis was done and finally conclusion was
drawn and the findings are presented in this project report.
Date:
manish bhatiwal
[5]
Certificate from Guide

Certificate from the industry
Preface
Acknowledgement
Executive Summary
(i)
(ii)
(iii)
(iv)
(v)
Table of Content
Chapter No.
1.
Topic
Page No.
INTRODUCTION
1.1 Introduction of Industry
1.2 Introduction to the Company
1.3 Organization Chart
1.4 Production/ product
1.5 Marketing Mix
2.
TOPIC THEORY
3.
PROJECT PROFILE & RESEARCH

METHODOLOGY
3.1 Title of Research
3.2 Objective of Research
3.3 Scope of Research
3.4 Type of Research
3.5 Significance of Research
3.6 Limitations of Research
4.
FACTS & FINDINGS AND DATA

INTERPRETATION
5.
SWOT ANALYSIS
6.
CONCLUSIONS & SUGGESTIONS
ANNEXURE
BIBLIOGRAPHY
[6]
01-05
06-
CHAPTER 1
INTRODUCTION
1.1
INTRODUCTION OF INDUSTRY:
THE CAR
The birth of the car as we know it today occurred over a period of years. It was only in 1885 that
the first real car rolled down on to the streets. The earlier attempts, though successful, were
steam powered road-vehicles.
The first self-propelled car was built by Nicolas Cugnot in 1769 which could attain speeds of up
to 6kms/hour. In 1771 he again designed another steam-driven engine which ran so fast that it
rammed into a wall, recording the worlds first accident.
In 1807 Francois Isaac de Rivaz designed the first internal combustion engine. This was
subsequently used by him to develop the worlds first vehicle to run on such an engine, one that
used a mixture of hydrogen and oxygen to generate energy.
This spawned the birth of a number of designs based on the internal combustion engine in the
early nineteenth century with little or no degree of commercial success. In 1860 thereafter, Jean
Joseph Etienne Lenoir built the first successful two-stroke gas driven engine. In 1862 he again
built an experimental vehicle driven by his gas-engine, which ranat a speed of 3kms/hour. These
cars became popular and by 1865 could be frequently espied on the roads.
The next major leap forward occurred in 1885 when the four stroke engine was devised. Gottileb
Damlier and Nicolas Otto worked together on the mission till they fell apart. Daimler created his
own engines which he used both for cars and for the first four wheel horseless carriage. In the
meanwhile, unknown to them, Karl Benz, was in the process of creating his own advanced tricycle which proved to be the first true car. This car first saw the light of the day in 1886.
The season of experiments continued across the seas in the United States where Henry Ford
began work on a horseless carriage in 1890. He went several steps forward and in1896,
completed his first car, the Quadricycle in 1896. This was an automobile powered by a two
cylinder gasoline engine. The Ford Motor Company was launched in 1903 and in1908 he
catapulted his vehicle, Model T Ford to the pinnacle of fame. Continuing with his innovations,
he produced this model on a moving assembly line, thus introducing the modern mass production
techniques of the automobile industry. Then onwards, it has been one big journey...on the roads.
[1]
AUTOMOBILE INDUSTRY
India is the second-biggest market for small cars after Japan. It accounts for 60% of the
domestic market.
CURRENT SCENARIO:
India represents one of the largest two-wheeler markets in the world, with an estimated
size of 5.4 million units a year.
India is the two-wheeler capital of Asia with an average of 27 two-wheelers per thousand
people, compared to China's 8 two-wheelers per thousand people.
India became the fastest growing car market in the world in 2004, growth rate of 20%.
OVERVIEW:
Snippets
India is being recognized as potential emerging auto market.

Foreign players are adding to their investments in Indian auto industry.
Passenger vehicles sales crossed the mark of 1 million in 2004-05.
Automobile industry expert predicts that by 2050 every sixth car in the world will be for
Indians.
2/3rd of auto component production is consumed directly by OEMs.
FACTS & FIGURES

It seems that India has finally arrived in the big league of Asian car markets. Steady and
impressive annual growth rate, presence of international automakers, relaxation of foreign
exchange and equity regulations, reduction of tariffs on imports and few others are the
components of its booming auto market. The country has now come to be recognized as a
potential emerging auto market. The perception of foreign investors has changed, everybody
wanting to be here.
For the first time, in the financial year end in 2009, the total sales of passenger vehicles -cars,
utility vehicles and multi-utility vehicles - crossed the one-million mark to touch 1.5 million,
with exports of 336,000 vehicles. Study says that by 2012 India will take over Japan in sales
volumes. And by 2050, Indians will buy every sixth car produced in the world.
Apart from serving the domestic market, the auto sector has turned as a sourcing base for the
global auto majors. The auto component market is also in its full swing. As per the research of
RNCOS, one of the leading industry firms, the Indian automobile component industry is
estimated to triple from USD 63 billion to USD 190 billion within a span of six years by 2012.
[2]
AUTOMOTIVE INDUSTRY IN INDIA

A well developed transport network indicates a well developed economy. For rapid development
a well-developed and well-knit transportation system is essential. As India's transport network is
developing at a fast pace, Indian Automobile Industry is growing too. Also, the Automobile
industry has strong backward and forward linkages and hence provides employment to a large
section of the population. Thus the role of Automobile Industry cannot be overlooked in Indian
Economy. All kinds of vehicles are produced by the Automobile Industry. India Automobile
Industry includes the manufacture of trucks, buses, passenger cars, defense vehicles, twowheelers, etc. The industry can be broadly divided into the Car manufacturing, two-wheeler
manufacturing and heavy vehicle manufacturing units.
The automotive industry in India is one of the largest in the world and one of the fastest growing
globally. India's passenger car and commercial vehicle manufacturing industry is the seventh
largest in the world with an annual production of more than 3.7 million units in 2010. According
to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle
producer in the world, growing 16-18 per cent to sell around three million units in the course of
2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind
Japan, South Korea, and Thailand.
As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive
vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second
fastest growing automobile market in the world. According to the Society of Indian Automobile
Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than
9 million by 2020. By 2050, the country is expected to top the world in car volumes with
approximately 611 million vehicles on the nation's roads.
The major Car manufacturer are Hindustan Motors, Maruti Suzuki India Limited, Fiat India
Private Ltd., Ford India Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd.,
Hyundai Motors India Ltd., Skoda India Private Ltd., Toyota Kirloskar Motor Ltd., to name a
few. The two-wheeler manufacturing is dominated by companies like TVS, Honda Motorcycle
&Scooter India (Pvt.) Ltd., Hero Honda, Yamaha, Bajaj, etc. The heavy motors like buses,
trucks, defense vehicles, auto rickshaws and other multi-utility vehicles are manufactured by
Tata-Telco, Ashok Leyland, Eicher Motors, Bajaj, Mahindra and Mahindra, etc.
INDIAN AUTOMOBILE INDUSTRY ESTIMATION

Estimated turnover USD 12 billion, plus components revenue USD 3 billion, this is the vastness
of Indian automobile industry. Industry analysts predict this industry to touch USD 15000
million marks by 2013, a cumulative growth of 9.5% annually. It is said that for every Re 1
spent, the auto sector returns Rs. 2.24 to the Indian economy.
[3]
CARS BY PRICE RANGE:

Under Rs. 3 Lakhs
Maruti 800, Alto, Omni

Tata Nano
Hyundai Eon, Santro Xing
Maini Reva i
Hyundai Eon, Santro Xing,i10, i20,
Chevrolet Spark, Beat, Aveo U-VA
Maruti Alto,Ritz,Swift,Zen-Estilo,A-star,AltoK-10,Wagon-R,Eeco
Ford Figo
Skoda Fabia
Toyota Etios Liva
Volkswagen Polo
Tata Indica V2, Indica Vista, Venture, Indigo eCS
Honda Brio
Nissan Micra
Hindustan Motors Ambassador
Fiat Grande Punto
Chevrolet Optra Magnum, Tavera, Aveo

Hyundai Accent, Elantra, i10, i20, Verna
Skoda Rapid
Ford Fiesta,
Fiat Linea
Mahindra Bolero, Verito, Thar, Xylo, Scorpio
Maruti Suzuki Gypsy, New Swift DZire, SX4, Swift Dzire
Nissan Sunny
Honda Jazz, City
Volkswagen Vento
Toyota Corolla, Innova, Etios
Tata Sumo, Manza, Winger, Xenon XT, Safari
Mitsubishi Lancer, Lancer Cedia
Ford Mondeo, Endeavour

Fiat 500
Mahindra XUV500
Tata Aria, Fortuner, Camry, Prius
Rs. 3-5 Lakhs
Rs. 5-10 Lakhs
Rs. 10-30 Lakhs
[4]
Toyota Corolla Altis

Volkswagen Jetta, Beetle, Passat
Chevrolet Cruze, Forester, Captiva
Skoda Yeti, Laura, Octavia Classic & Combi, Superb
Honda Civic, Accord, CR-V
Maruti Suzuki Grand Vitara, Kizashi
Hyundai Sonata Transform, Santa Fe,
Mitsubishi Outlander, Pajero
Nissan X-Trail, Teana
BMW 3 Series, X1,
Mercedes Benz C Class,
Audi A6, A8 & TT, Q5, A7, Q7, RS5

Nissan 370Z
BMW X5, 5 Series & 7 Series, X3, Z4, X6, 6 Series, M3
Mercedes Benz E Class, S Class, R Class, SLK, ML, SL & CLSClass, GL
Porsche Boxster, Cayenne, 911 Carrera & Cayman S
Toyota Land Cruiser Prado
Volkswagen Touareg, Phaeton
Misubushi Montero, Lancer Evolution,
BMW M5, M6
Audi R8
Mercedes Benz- G Class, SLS
Porshe Panamera
Lamborghini Gallardo, Murcielago
Bentley Continental GT/GTC, Flying Spur,Arnage, Mulsanne
Rolls Royce Ghost
Ferrari California, 458 Italia
Ferrari 599 GTB Fiorano, FF

Rolls Royce Phantom, Phantom Coupe, Phantom Drophead Coupe,
Bentley Azure
Maybach 57 S, 62
Bugatti Veyron
Rs. 30-100 Lakhs
Rs. 1 3 Crore
Rs. 3 6 Crore
Above 12 Crore
The segregation is made on Ex-Showroom price of base models.
1.2
INTRODUCTION TO THE COMPANY:

[5]
Maruti is India's largest automobile company. The company, a joint venture with Suzuki
of Japan, has been a success story like no other in the annals of the Indian automobile industry.
Today Maruti is India's largest automobile company. This feat was achieved by the missionary
zeal of our employees across the line and the far-sighted vision of our management.
The Companys Mission:

To provide a wide range of modern, high quality fuel efficient vehicles in order to meet
the need of different customers, both in domestic and export markets. And To provide maximum
value for money to their customers through continuous improvement of products and services.
The Companys Vision:
Internationally competitive Company in terms of our products and services.

The Leader in the India Automobile Industry,
Creating customer Delight and Shareholders Wealth;
A pride of India
The Companys Core Value:
Customer Obsession.
Fast, Flexible and First Mover
Innovation and Creativity
Networking and Partnership
Openness and Learning
Their focus is on:
Building a continuously improving organization adaptable to quick changes.

Providing value and satisfaction to the customer
Aligning and fully involving all our employees, suppliers and dealers to face
competition
Maximizing Shareholder's value
Being a responsible corporate citizen.
Maruti Suzuki India Limited (NSE: MARUTI, BSE: 532500) is a subsidiary company
of Japanese automaker Suzuki Motor Corporation. It has a market share of 44.9% of the Indian
passenger car market as of March 2011. The company is listed on Bombay Stock Exchange and
National Stock Exchange.
[6]
It was the first company in India to mass-produce and sell more than a million cars. It is
largely credited for having brought in an automobile revolution to India. It is the market leader in
India, and on 17 September 2007, Maruti Udyog Limited was renamed as Maruti Suzuki
India Limited. The company's headquarters are located in New Delhi. In February 2012, the
company sold its 10th million vehicles in India.
Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a
subsidiary of SMC, Japan. MSIL has been the leader of the Indian car market for over two and a
half decades. The company has two manufacturing facilities located at Gurgaon and
Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce
over a 1.2 million (1,200,000) vehicles annually. The company plans to expand its manufacturing
capacity to 1.75 million by 2013.
The company offers a wide range of cars across different segments. It offers 15 brands
and over 150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto,
Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans
SX4, Swift DZire and Kizashi. In an environment friendly initiative, in August 2010 Maruti
Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These include
Eeco, Alto, Estilo, Wagon R and Sx4.
In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell
One Million cars in a year. Maruti Suzuki has employee strength over 8,500 (as at end March
2011). In 2010-11, the company sold over 1.27 million vehicles including 1,38,266 units of
exports. With this, at the end of March 2011, Maruti Suzuki had a market share of 44.9 per cent
of the Indian passenger car market.
At Maruti, they have a clear perspective on manpower. They see it as a unique resource,
in the sense that optimal productivity of other resources depends largely on the way human
resources are utilized. The basic philosophy of management that underlies the Maruti culture is
that all employees of the company should be molded into a team which then strives as one, to
achieve commonly shared company goals and objectives. To make this philosophy tenable, the
Company takes several initiatives. Inputs are sought from employees at all levels. They believe
that everyone should contribute to the formulation of company vehicles, goals and objectives.
Secondly, at Maruti they encourage leadership in the best sense of the word. According to us, a
leader is one who must be impartial, must have the ability to rise above his own subjectivity, and,
most importantly, must practice what he preaches.
They understand that the process of creating a sense of belonging that all employees can
identify with is a lengthy one. To ensure that this translates into concrete reality, they have taken
several simple but specific and well thought out measures. The first step in this direction has
been the introduction of a common uniform for all employees. Another measure is the creation of
[7]
a common canteen where all employees have lunch, stand in common queues, and sit on the
same table. Common toilets, common transport and similar facilities for all levels of employees
are other measures that reinforce their emphasis on genuine equality in the workplace.
At Maruti they do not believe in the notion of organizational hierarchies. As a matter of
fact, the management structure and systems in Maruti have been designed to promote
decentralization of authority. Maruti has a horizontal management structure with only four
functional levels of responsibility to facilitate quicker decision making.
Another focus area of the Maruti culture is the maintenance of a smoothly functioning
communication network. Maruti believes that communication channels between labour and
management cannot simply consist of having a labour representative on the Board of the
Company. They have faith in the ability of labour to effectively participate in management and
make constructive suggestions. To encourage this, they ensure that there is a thorough
dissemination of information at all levels, through newsletters or via a letter from the Chief
Executive to all employees. Meetings with the Union are held regularly, and programs being
contemplated by the Company are discussed with the Union. The Sahyog Samiti, a collection of
representatives of non-unionized employees, training program in Japan, Quality Circles,
productivity-linked incentive schemes, and an ethos of discipline and teamwork, all contribute to
the Maruti culture.
Several measures of performance have made amply clear that Maruti has established a
truly healthy work culture. They have met all project and performance targets since inception.
Their productivity levels are constantly improving. The Company has had good labour relations
with employees from the very beginning, and they have been successful in the export market.
Yet, the Maruti culture is one that does not believe in resting on its laurels. They adhere to the
spirit of Kaizen, which states that constant improvement is always possible. The most basic tenet
of productivity that they hold dear is that "Today should be better than Yesterday and Tomorrow
should be better than Today".
COMPANYS FLASHBACK
Maruti Suzuki India Limited (MSIL) was established in Feb. 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an
efficient public transport system.
Suzuki Motor Company was chosen from seven prospective partners worldwide. This
was due not only to their undisputed leadership in small cars but also to their commitment to
actively bring to MSIL contemporary technology and Japanese management practices (which
had catapulted Japan over USA to the status of the top auto manufacturing country in the world).
[8]
A license and a Joint Venture agreement were signed between Government of India and
Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The objectives
of MSIL then were:
Modernization of the Indian Automobile Industry.
Production of fuel-efficient vehicles to conserve scarce resources.
Production of large number of motor vehicles, which was necessary

for economic growth.
The company went into production in a record time of 13 months and the first car was rolled out
from Maruti Suzuki India Limited Gurgaon in December, 1983.
FIRST CUSTOMER:-
Mr. Harpal Singh, Marutis first customer, proudly received the keys of the Maruti 800
car from the Prime Minister Smt. Indira Gandhi on December 14, 1983.
When Maruti began operations in 1983, there were only two other car companies in India
and the total size of the Indian passenger car market was a measly 40,000 units per year. From
the start, Maruti caught the imagination of Indian car customers and launched four new models,
including a hatchback, a mini multipurpose van, an entry sedan and a SUV, over the next decade.
Each of these models was an instant draw with the Indian consumers. Suzuki Motor
Corporation increased its stake on two occasions (26>> 40 >> 50 >> controlling stake and
brought it to 50 per cent in the mid 1990s (and to 54% with privatization in 2002).
[9]
SERVICES OFFERED BY MARUTI SUZUKI

AUTHORIZED SERVICE STATIONS:
Maruti is one of the companies in India which has unparalleled service network. To ensure the
vehicles sold by them are serviced properly Maruti had 2,946 service stations (inclusive of dealer
workshops and Maruti Authorised Service Stations) in 1,395 towns & cities and 30 Express
Service Stations on 30 highways across India.
Service is a major revenue generator of the company. Most of the service stations are managed
on franchise basis, where Maruti trains the local staff. Other automobile companies have not
been able to match this benchmark set by Maruti. The Express Service stations help many
stranded vehicles on the highways by sending across their repair man to the vehicle.
MARUTI INSURANCE
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the
National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The
service was set up the company with the inception of two subsidiaries Maruti Insurance
Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited.
This service started as a benefit or value addition to customers and was able to ramp up easily.
By December 2005 they were able to sell more than two million insurance policies since its
inception.
MARUTI FINANCE
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002.
Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and
Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in
securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak
Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic
[10]
partners in car finance. Again the company entered into a strategic partnership with SBI in March
2003. Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance.
SBI-Maruti Finance is currently available in 166 cities across India.
MARUTI TRUEVALUE
Maruti True Value service is offered by Maruti Suzuki to its customers. It is a market place for
used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with
the help of this service in India. As of 31 March 2010 there are 341 Maruti True Value outlets
MARUTI N2N FLEET MANAGEMENT
N2N is the short form of End to End Fleet Management and provides lease and fleet
management solution to corporate. Clients who have signed up of this service include Gas
Authority of India Ltd, DuPont, Reckitt Benckiser, Sona Steering, Doordarshan, Singer India,
National Stock Exchange and Transworld. This fleet management service includes end-to-end
solutions across the vehicle's life, which includes Leasing, Maintenance, Convenience services
and Remarketing.
MARUTI GENUINE ACCESSORIES
Many of the auto component companies other than Maruti Suzuki started to offer components
and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti
[11]
Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine
Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps,
stereo systems, seat covers and other car care products. These products are sold through dealer
outlets and authorized service stations throughout India.
MARUTI DRIVING SCHOOL
As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School
in Delhi. Later the services were extended to other cities of India as well. These schools are
modeled on international standards, where learners go through classroom and practical sessions.
Many international practices like road behaviour and attitudes are also taught in these schools.
Before driving actual vehicles participants are trained on simulators.
AWARDS
2013
Declared Business Standard Company of the Year 2011

WagonR won the Compact Car of the Year 2011 and Alto K10 won the Best Variant of
the Year in the Auto car Awards 2011
Ranked No.1 in JD Power Customer Service Index (CSI) Study 2011 for the 12 Th time in
a row.
2012
Maruti Suzuki manufactures 10 lakh units in 2009-10

Ranked No.1 in JD Power Sales Satisfaction Index (SSI) Study 2010
Ranked No.1 in JD Power Customer Service Index (CSI) Study 2010 for the 11Th time in
a row
Awarded the Best Automobile Manufacturer of the Year 2010 and the Hall of Fame
award for single handedly changing the face of Indian automobile Industry by Car India
Won National HRD Network Trailblazer Award 2010 for HRD Excellence
Received Signicant Achievement in Sustainability award in CII-ITC Sustainability
Awards 2010
DZire ranked No.1 in JD Power Initial Quality Study (IQS) 2010
DZire won the JD Power APEAL Study for a third time in a row
[12]
WagonR won the Best Entry Level Mini Car of the Year category of the 2010 ET
ZigWheels Car of the Year awards
Ranked among the top 10 Most admired companies from India by Wall Street Journal
2010
Maruti Suzuki Swift becomes fastest to reach 3-lakh milestone.

Maruti Suzuki A-star breaks own record of fuel efficiency.
Maruti Suzuki wins 'Golden Peacock Eco-Innovation Award'.
Haryana allots 700 acres to Maruti Suzuki for hi-tech R&D complex at Rohtak.
Maruti Suzuki ships out 100000th A-star in less than a year.
ICSI awards top honours to Maruti Suzuki for corporate governance
.MSIL tops in J D Power CSI (2009) for 10th time in a row
Zen Estilo, WagonR and Alto ranked as the top three most dependable vehicles in the
compact segment in 2009 JD Power Asia Pacic India Vehicle Dependability Study
2009
Maruti Suzuki becomes the first Indian car company to export half a million cars.
Maruti Suzuki Ranks Highest in Automotive Customer Satisfaction in India for Ninth
Consecutive Year.
Maruti Suzuki moves A-star for Europe on Auto Wagons.
Maruti Suzuki displays Fuel Efficiency of its 12 brands from the New Year
2008
Maruti Alto becomes first car in India to cross 2 lakh domestic sales in a fiscal.
MSIL tops in J D Power CSI (2007) for 8th time in a row
Maruti Suzuki MD conferred a Doctorate (Honorary) by London Metropolitan
University.
Global launch of Concept Car from Maruti Suzuki
Maruti's highest ever sales.
2007
UGS Asia Pacific PLM Excellence Award Grand Prize.

Maruti and Magma in pact for financing cars.
2006
Number one in JD Power SSI for the second consecutive year,
[13]
Number one in JD Power CSI for the sixth time in a row - the only car to win it so many
times,
M800, Wagon R and Swift topped their segments in the TNS Total
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,
Wagon R 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 Auto car-CNBC
(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
2005
Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in Sales

Satisfaction, No.1 in Product Quality (Esteem and Alto) and No. 1in
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 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
2004
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: Wagon R, Zen and Esteem,
Maruti 800 and Wagon R top in NFO Total Customer Satisfaction Study 2003,
[14]
2003
MSIL tops in J D Power CSI (2001) for 2nd time in a row: another
international first
2002
Maruti bags JD Power CSI - 1st rank; unique achievement by market

leader anywhere in the world
2001
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.
2000
CII's Business Excellence Award
1999
Maruti wins INSSAN award for "Excellence in Suggestion Scheme",

Awarded the Star Trading House status by Ministry of Commerce
1994-98
Engineering Exports Promotion Council's award for export performance
1994
Best Canteen award among Haryana Industries as part of employee welfare
1992-93
1991-92
[15]
[16]
1.3
ORGANIZATION CHART:
[17]
ORGANISATIONAL STRUCTURE:
The Company has a multi-tier management structure, compromising the board of directors at
the top followed by five business vertical heads reporting to the Managing Director. These
business verticals are Marketing & Sales, Engineering, Production, Administration and Supply
Chain. Each of these verticals is headed by a term of two members, one of whom is a Japanese
Manager and the other, an Indian Manager. The Japanese Managers are also the Executive
Directors of the board. The Indian Managers are designated as Managing Executive Officers
(MEOs) and Executive Officers (EOs) and attend all board meetings. They are supported by
divisional and departmental heads.
This system has ensured regular flow of strategic direction from the board to the operational
management, effective implementation of the strategy, clear delegation of decision making with
accountability, timely risk identification and mitigation, adequate controls and reporting of the
companys operations, and a healthy financial performance.
Over the last 25 years, the company has been able to build a large pool of highly productive
and skilled manpower and an experienced management team. They receive training on an
ongoing basis, including training at SMC, Japan. The company had on its rolls 7,159 employees
as on 31st March, 2009.
MSIL is a Board-managed company. Currently the directors on the Board are:
Mr. R.C. Bhargava, Chairman
Mr. Shinzo Nakanishi, Managing Director and CEO
Mr. Manvinder Singh Banga, Director
Mr. Amal Ganguli, Director
Mr. D.S. Brar, Director
Mr. Keiichi Asai, Director & MEO(Engineering)
Mr. Osamu Suzuki, Director
Mr. Shuji Oishi, Director & MEO(Marketing & Sales)
Ms. Pallavi Shroff, Director
[18]
Mr. Kenichi Ayukawa, Director
Mr. Tsuneo Ohashi, Director & Managing Executive Officer(Production)
[19]
1.4
PRODUCTION AND PRODUCT
PRODUCTION
Maruti Production System or MPS draws learning's from its parent company Suzuki Motor
Corporation's concepts on `lean manufacturing' under Suzuki Production System i.e. SPS.
Setting trends in new products and achieving customer delight starts with Manufacturing
Excellence and Maruti's manufacturing excellence hinges around four important pillars-Cost,
Quality, Safety and Productivity.
Cost
Every employee working on the line is 'cost sensitive' and functions in capacity of a Cost
Manager. He is a key contributor in suggesting how to keep costs of production under control.
Quality
A product of poor quality requires repeated inspections, entails wastage in terms of
repairs and replacements. "Do it right first time", is the principle followed to avoid wastage.
To ensure quality, robots were devices and deployed especially where they reduced
worker fatigue and were critical in delivering consistent quality. With consistent improvements
in the plant the company was able to manufacture over 600,000 vehicles in 2006-07 with an
installed capacity of just 350,000 vehicles per year.
Safety
"Home or work place; Safety takes First Place". This has been the motto of the company
where safety is concerned. Maruti attaches great significance to safety of its people and strongly
advocates that safety at work place adds to quality of the products and improves productivity of
the plant significantly.
In the Japanese manufacturing system, the central role is accorded, not so much to
Quality, Productivity or Cost, but to Safety. When process flow, lay-out and systems are designed
for maximum safety, they automatically contribute to better quality and productivity.
[20]
PRODUCTION MANAGEMENT SYSTEM

Production Management System (PMS) is the next step towards moving ahead to sustain the
momentum. It is a strategy to achieve Manufacturing Excellence evolved through participative
approach. The system is people driven and ensures involvement of all levels (Managers,
Executives, and Supervisors).
The concept ensures participation and error free communication. The result is clarity of content,
better understanding and openness towards feedback. These values make PMS a sustainable
system. Having achieved the target of selling a million cars in the financial year 2009 - 2010,
PMS has lead the production team towards greater enhanced productivity with perfection.
PMS is derived from the basic Japanese principles of 5S, 3G and 3K.
In order to bring an improvement in overall processes and systems in Production Division
through involvement of all levels, PMS was launched in Maruti Suzuki. Through various phases
of PMS the company embarked on its journey of brings in a) Clarity of Role, Non-duplication of
work, Ownership, Commitment and Standardization in all our process and systems across the
production division.
PMS is
A system which is people driven and ensures involvement of all levels (Managers,
Executives, Supervisors)
A system which ensures ownership
A system which brings in standardization of systems & processes
A system which ensures Sustainability
PMS has entered the fourth phase of implementation and the results have been overwhelming.
[21]
Excellence through participative approach

PMS is a bottoms-up approach where people of the work area are encouraged to give solutions to
the problems at their end. It is implemented across levels. This motivates the operator and
ensures his ownership all through the solution finding process.
The concept ensures participation and error free communication. The result is clarity of content,
better understanding and openness towards feedback. These values make PMS a sustainable
system.
Clarity of the Role
One of the aspects that have bothered hierarchical structures is the clarity of the roles and
responsibility across strata. Clarity on what is expected out of a supervisor, a manager or a
technician at the shop floor has brought in structure and standardization to production
management at Maruti. The result is that job duplication is eliminated and no man-hours are lost
in understanding what each person is expected to do.
The outcome of such clearly defined roles is increased efficiency of operations.
Bringing in Standardization
Through such people participation, PMS has brought in standardization that eliminates any scope
of confusion at shop floor. A visual consistency across the manufacturing facilities is notable.
Bins and trolleys are earmarked for tools and components. Pictorial charts explaining processes
and procedures are pasted at convenient and strategic points helping shop floor employees
understand various mechanisms with ease.
Wherever possible a colour coding control or visual control is followed to eliminate operator
errors arising out of language constraints. This helps in clear distinction of different model and
its
components.
All around Gains
These processes have led to many operational improvements that have saved cost and time. At
the same time these have brought in operational ease and a defined activity flow and sequence.
Marching ahead towards the goal of selling a million vehicles by 2010, PMS will lead the
production team towards greater enhanced productivity with perfection.
PRODUCTION MILESTONE
1st vehicle produced, December 1983
1,00,000 vehicles produced by August, 1986
5,00,000 vehicles produced by June, 1990
[22]
10,00,000 vehicles produced by March, 1994

15,00,000 vehicles produced by April, 1996
20,00,000 vehicles produced by October, 1997
25,00,000 vehicles produced by March, 1999
30,00,000 vehicles produced by June, 20003
5,00,000 vehicles produced by December 2001
And Finally
1,00,00,000 vehicles produced by 12th February, 2012
MANUFACTURING FACILITIES
Maruti Suzuki has two state-of-the-art manufacturing facilities in India. Both manufacturing
facilities have a combined production capacity of 1,250,000 vehicles annually.
Gurgaon Manufacturing Facility
The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is
spread over 300 acres (1.2 km2). All three plants have an installed capacity of 350,000 vehicles
annually but productivity improvements have enabled it to manufacture 700,000 vehicles
annually. The Gurgaon facilities also manufacture 240,000 K-Series engines annually. The entire
facility is equipped with more than 150 robots, out of which 71 have been developed in-house.
The Gurgaon Facilities manufactures the 800, Alto, Wagon R, Estilo, Omni, Gypsy and Eeco.
Manesar Manufacturing Facility
The Manesar Manufacturing Plant was inaugurated in February 2007 and is spread over 600
acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this was
increased to 300,000 vehicles annually in October 2008. The production capacity was further
[23]
increased by 250,000 vehicles taking total production capacity to 550,000 vehicles annually. The
Manesar Plant produces the A-star, Swift, Swift DZire and SX4.
PRODUCTS
Current Car Models:

1. 800 (Launched 1983)
2. Omni (Launched 1984)
3. Gypsy (launched 1985)
4. Zen (launched 1995)
5. WagonR (Launched 1999)
6. Alto (Launched 2000)
7. Swift (Launched 2005)
8. Estilo (Launched 2009)
9. SX4 (Launched 2007)
10.Swift DZire (Launched 2008)
11. A-star (Launched 2008)
12.Ritz (Launched 2009)
13.Eeco (Launched 2010)
14.Alto K10 (Launched 2010)
15.Maruti Ertiga, seven seater MPV R3 designed and developed in India, will compete with
Toyota Innova, Mahindra Xylo, and Tata Sumo Grande. In early 2012, Suzuki Ertiga will
be exported first to Indonesia in Completely Knock Down car.
[24]
16.Maruti XA Alpha will be launched in the year 2014
Imported Car Models:

1. Grand Vitara (Launched 2007)
2. Kizashi (Launched 2011)
Discontinued Car Models:

1. 1000 (19901994)
2. Zen (19932006)
3. Esteem (19942008)
4. Baleno (19992007)
5. Zen Estilo (20062009)
6. Versa (20012010)
7. Grand Vitara XL7 (20032007)
1. MARUTI 800 (CHANGE YOUR LIFE)

Maruti 800 is a city car manufactured by Maruti Suzuki in India. It was launched in
December 1983 with almost 100% imported components. It used to be the bestselling car
in India until 2004; upon its launch the Maruti Alto took that title.
It is a rebadged version of an old model of the Suzuki Alto. Over 2.5 million Maruti 800s
have been sold since its launch in 1983. The same car is sold in Pakistan as the Suzuki
Mehran with a much older 1980s era Suzuki SS80 carburetor based engine.
The ex-showroom price of MARUTI 800 is Rs.2 Lakhs Rs.2.15Lakhs.
[25]
[26]
2. OMNI (FITS ALL)

The Maruti
Omni is
a microvan manufactured
by
Indian
automaker Maruti
Suzuki. The first version of
Maruti Omni had 796 cc engine,
same as the Maruti 800 city car.
This was the second vehicle to
be launched by Maruti, one year
after the 800, in 1984.
The Omni is truly Indias
original Multipurpose Vehicle.
Today it is available in 5 avatars 5 Seater, 8 Seater, Cargo, Ambulance and LPG. It
Meets diverse needs across different user segments and can double up both as a people
carrier and a goods carrier. This faithful workhorse is easy on the pocket, yet tough on the
job.
The ex-showroom price of OMNI is between Rs.2.08 Lakhs Rs.2.67Lakhs.
3. GYPSY
The Maruti Gypsy is
a fourwheel-drive SUV based on the
long
wheelbase Suzuki
JimnySJ40/410 series vehicles.
It is manufactured in India by
Maruti
Suzuki.
It
was
introduced in the Indian market in December 1985 with the 970 cc F10A Suzuki engine
and while sales were never very high it became very popular with law enforcement.
The Maruti Gypsy is available as soft top, hard top and as ambulance car. As
quoted by Autocar India, "There is nothing that can touch a Gypsy off the road, except
perhaps an Arjun battle tank.
[27]
The ex-showroom price of GYPSY is between Rs.5.21 Lakhs Rs.5.73Lakhs.
4. ZEN (LOOK AT IT)

The Maruti
Zen is
a
5door hatchback produced and sold
in India by Indian automaker
Maruti Suzuki. It has acquired
significant popularity in India
since the nameplate was first
introduced in 1993. The word
"ZEN" is an acronym standing
for Zero Engine Noise.
The best part of the Zen is it remained in trend for over a very long period without any
changes in Exterior Design or looks. It underwent a facelift in 2003. The production of
this model ended in March 2006.
In 2000 its cost (of LX model) was around Rs 3,80,000.
5. WAGON R (FOR THE SMARTER RACE)

The Maruti Suzuki Wagon R is a made-for-India version of Suzuki Wagon R. The Wagon
R was launched in December 1999, and has since undergone three upgrades (one in 2003,
another in 2006 and another in 2010).
When the second-generation Wagon R was launched in 2010, the car was built on a
newer platform, & claimed more interior space, and new features such as an under-seat
[28]
tray below the front passenger seat (top-end only). Its looks were also revamped,
shedding the boxy look at the back. It is one of the best selling models of Maruti Suzuki
in India and continues to be the
second best seller of the company
after Alto every month. Wagon R
has 6 versions.
The
ex-showroom
price
of
WAGON R is between Rs.3.41
Lakhs Rs.4.28 Lakhs.
6. ALTO (LETS GO)

It was launched in the local Indian market on September 27, 2000 although the Alto
nameplate was very successfully being used to export the Maruti Zen to Europe from
India. It is the best selling hatchback in India. Since 2006, it is India's largest selling
car and crossed the 1 million production figure in February08 becoming the 3 rd Maruti
model to cross the million marks in India after Maruti 800 & Maruti Omni.
This is testified by the 24-hour endurance record set on August 03, 2003 of covering
3082kms in 24 hours at an average speed of 128kmph.
ALTO K10 : Maruti Suzuki has launched a new version of Maruti Alto in the Indian auto
market in August 2010. The new
Maruti Alto K10 is equipped with
the company's 1.0 L, K-series
petrol engine which also currently
powers the A-Star and Wagon R.
The ex-showroom price of ALTO is
between Rs.2.36 Lakhs Rs.3.33
Lakhs.
7. SWIFT (YOURE THE FUEL)
[29]
In India, Suzuki has launched Swift as a joint venture with Maruti and the car is known as
Maruti Suzuki Swift in 2005. In the Indian auto market Swift is available with seven
variants four with petrol and three with diesel engine option. The petrol version of Maruti
Swift is powered by 1.2-litre K-series engine. However, the diesel version of Maruti
Swift is packed with 1.3-litre, DDiS engine (borrowed & licensed by Suzuki from FIAT's
renowned Multijet technology) with a displacement of 1,248 cc.
In February 2007, Maruti has finally taken the plunge by planking one of the best diesel
engines in the world in Maruti's best car. The combination is potentially explosive. The
gearbox is joy to use; smooth and very precise this coupled with commendable fuel
efficiency, will make the Swift Diesel delight to own.
The ex-showroom price of SWIFT is between Rs.4.36 Lakhs Rs.5.87 Lakhs.
8. ESTILO (COME ALIVE WITH)

The first generation model went on sale in India in December 2006 as the "Maruti Zen
Estilo". The Zen Estilo however, is powered by a largerF10D 1.1L MPFI engine that also
powers the Wagon R in the Japanese market. A facelifted variant was released in
August09 as the "Maruti Estilo", losing the Zen moniker entirely.
A Spanish expression for style,
the new Zen Estilo stands true to its
name. Its aerodynamic body, unique
bean shape sparkling colours and
snazzy lights will rev up your style
quotient this transition has brought
about a steady decline in sales for
this model though the facelift has
brought significant improvement in
performance and styling over the
car's Japanese variants.
The ex-showroom price of ESTILO is between Rs.3.31 Lakhs Rs.4.23 Lakhs.
[30]
9. SX4 (MEN ARE BACK)

Revolutionary European design,
world class Drive by wire
technology, most spacious in its
class, Steering mounted audio
controls, maximum groung clearance
in its class, high on safety with dual
front airbags, ABS & EBD features.
Maruti Suzuki launched SX4 sedan
with the 1.6-litre gasoline engine
without VVT in 2007. The SX4 was
updated to the 1.6-litre engine with VVT. Minor cosmetic differences can be seen
between the Indian version and others sold elsewhere. Maruti introduced a compressed
natural gas (CNG) factory fitted kit in August 2010.
Maruti Suzuki launched SX4 diesel on 17th Feb 2011. The car will carry the same
features as the petrol version of SX4 except the engine.
The ex-showroom price of SX4 is between Rs.7.02 Lakhs Rs.9.25 Lakhs.
10. SWIFT DZIRE (THE HEART

CAR)
Suzuki introduced a sedan based
version of the Swift called the
"Maruti Swift Dzire" in the Indian
market. Launched on26thMarch08,
Swift DZire replaces Maruti
Suzukis popular entry level
sedan, Maruti Suzuki Esteem, production of which was discontinued in late 2007. Maruti
Suzuki has introduced Swift DZire only in the Indian market. The Dzire has exactly the
same wheelbase as the hatchback version and has an increased overall length due to the
addition of the boot.
The ex-showroom price of SWIFT DZIRE is between Rs.5.04 Lakhs Rs.7.39 Lakhs.
NEW SWIFT DZIRE
[31]
Maruti India launched the second generation of its sedan Maruti Swift Dzire on 1st
February, 2012 in India. The new car that is based on the recently launched new Swift is
available in 1.2 litre petrol and 1.3
litre diesel options.
MSIL introduced New SWIFT
DZIRE, at a price between Rs 4.79
lakh and Rs 7.09 lakh.
11. A-Star (STOP @ NOTHING)

The 7th Generation is known in India as the Maruti Suzuki A-Star (short for "Alto-Star"),
but is also known as the Suzuki Celerio in some other countries. It was launched in
December 2008 Maruti Suzuki. The car is manufactured exclusively in Haryana, India
and is exported worldwide.
It is available in European markets with a somewhat different front end as the Nissan
Pixo. The car was rolled out to the Indian customers in December 2008 and exports
began in April 2009. The Indian market version comes in three variants - LXi, VXi and
ZXi. With the price tag, the car is
targeted at customers with budgets
somewhere
between
theZen,
Estilo and the Swift.
The ex-showroom price of ASTAR is between Rs.3.66 Lakhs
Rs.4.50 Lakhs.
12. RITZ (LIVE THE MOMENT)

In the Indian auto market, Suzuki Splash is known as Maruti Suzuki Ritz and launched on
15th May09. Maruti Suzuki has changed its name because the name Splash was already
registered by Ford.
In India, Maruti Ritz is available with nine variants, five with petrol and rest four with
diesel engine options. The petrol variants of Maruti Ritz are powered by the companys
[32]
popular 1.2L, 1197 cc, K12M KB series petrol engine. This engine is getting much
popularity in the Indian market because of its excellent performance and fuel efficiency.
The mileage it delivers in city is around 14.5kmpl in city and 18kmpl on highway.
The diesel variants of Maruti Ritz
are powered by the Fiats 1.3L
Multijet diesel engine. The
mileage it delivers is 17.7 kmpl in
city while on highway it gives
21kmpl.
The ex-showroom price of RITZ is
between Rs.4.09 Lakhs Rs.5.63
Lakhs.
13. EECO (HAPPINESS FAMILY

SIZE)
EECO was introduced in India by
Maruti Suzuki during 2010. This
car is essentially an updated Versa,
this is an urgent refresh in lines
with Maruti Suzuki not being able
to come up with a new minivan.
EECO comes with 5-seater and 7seater options. EECO is equipped
with advanced Engine Management System for optimizing fuel efficiency and
performance. It is branded by the manufacturer as a perfect car for every occasion-a
business trip or a picnic with the loved ones.
The ex-showroom price of RITZ is between Rs.2.91 Lakhs Rs.3.86 Lakhs.
14. GRAND VITARA

[33]
The Vitara model first hit the road in Japan in 1988 as a 3-door part time four wheeled
drive.
In Its second avatar, the Vitara came armed with a stylish design, superior engineering
and a new name, the Grand Vitara.
The third generation Vitara, redesigned and re-engineered, excited millions across the
world, bagging multiple awards and accolades. It became an instant success in India in
2007 as it found favour with both luxury seekers as well as adventure lovers.
Keeping up to its glorious tradition of being luxurious and adventours at same time, the
new Grand Vitara 2.4 is here in 2008. With a powerful 2.4 WT engine producing 163.5
bhp, and an all time 4x4 wheel drive. The Grand Vitara breed of Suzuki has sold over 2.5
million units worldwide winning over 32 reputed awards across countries.
The ex-showroom price of GRAND VITARA is between Rs.16.94 Lakhs Rs.18.26
Lakhs.
15. KIZASHI
Maruti Suzuki, Suzuki's Indian subsidiary launched the Kizashi on 2 February 2011. It is
imported as Completely Built Unit, which attracts high import duties.
[34]
The Kizashi features bold and sporty styling inside and out, and delivers a fantastic value
compared to other sedans in the class.
This model has a J24B 2.4 petrol engine with 4 cylinders, 16 valves DOHC. The 2400 cc
engine is capable of producing 185 hp of peak power at 6,500 rpm (manual transmission)
and 180 hp at 6,000 rpm (CVT).
The Maruti Kizashi utilizes a direct ignition system for increased fuel efficiency with
decreased emissions. With the help of this and other engine technologies, the car gives 9
km/l in city and 12 km/l at highway. The maximum fuel tank capacity of the car is 63ltrs.
The ex-showroom price of KIZASHI is between Rs.16.50 Lakhs Rs.17.50 Lakhs.
[35]
PRODUCT
Brand
Packaging
Innovations
Quality
1.5
PRICE
Pricing strategy
Pricing and quality
Pricing and alternatives
discounts
PROMOTION
Personal selling
Advertising
Public relations
PLACE
Channel of distributions
Physical distribution
Wholesaler and retailers
MARKETING MIX
Marketing is the process by which a product or service originates and is then priced, promoted,
and distributed to consumers. The principal marketing functions involve market research and
product development, design, and testing. It is the business activity of presenting products or
services in such a way as to make them desirable.
One has to consider promotion that is balanced with a suitable product available at a reasonable
price, provided at all places to maximize the sale of ones product.
1. PRODUCT (Brand, Packaging, Innovations, Quality):

a. Brand: Advertising is often used to make consumers aware of a products special low
price or its benefits. But an even more important function of advertising is to create an
image that consumers associate with a product, known as the brand image. The brand
image goes far beyond the functional characteristics of the product. The products of
Maruti Suzuki have many special characteristics to them, but when consumers think of it,
they not only think of its features, but they may also associate it with quality,
performance, and class. All of these meanings have been added to the product by
advertising. Consumers frequently buy the product not only for its functional
characteristics but also because they want to be identified with the image associated with
the brand.
Maruti Suzuki has been successful in creating and maintaining a professional brand
image.
b. Packaging: A vehicle cannot have a material packaging. Here, packaging refers to an
effective assembly of features. Maruti Suzuki provides many innovative features to suit
the target customers and the product.
c. Innovations: The various motives behind buying an automobile are Need, Prestige,
Comfort, Fashion, Jealousy and Novelty. The R & D Department continuously strives to
bring new innovations in their product. MSILs have an industrial experience of over 100
years and they are well known with the Psychology of Indian customers, who desire more
at less price. This experience has helped them to develop products which fulfil the
expectations of Indian consumers.
[36]
d. Quality Control: Maruti Suzuki has their Quality Control standards and the QC Dept.
ensures that the customer does not face any inconveniences of a defective Service.
2. PRICE (Pricing Strategy, Alterations, Discounts)

a. Pricing Strategy: The prices are fixed keeping in mind a number of factors. As told by
Mr. Bhargava, prices have to be at par with the prices of the competitors. Maruti Suzuki
gives a relative price advantage as compares to its competitors. The various determinants
of price are Market Condition, Costs incurred, Profit percentage desired by the Co., Tax
Benefits.
b. Alterations: The Company does not allow any alterations to any of the features of the
product. If there is an alteration which affects the performance of the engine, then the
warranty becomes void. However, there may be alterations in the accessories, if desired
by the customer.
c. Discounts: Discounts are decided by the Co. every month. Any further discounts made
from the profits of the Dealer. However, the Co. may compensate the Dealer for the
discounts allowed to a certain extent.
3. PROMOTION (Personal Selling, Advertising, Sales Promotion, Public

Relations)
a. Personal Selling: There is minimal personal selling involved. The Sales Officers at the
Dealer collect prospective customer databases and perform cold calling to attract
customers.
b. Advertising: Advertising is a form of life Insurance mass communication designed to
promote the sale of a product or service. Maruti Suzuki is responsible for the advertising
of its products. The Dealer does play any role in the advertising. The various media used
for advertising are T.V., Newspapers, Magazines, Hoardings, and Internet etc. The Dealer
conducts point-of-purchase displays to advertise the products. The advertisements done
by the Co. help the Dealer to capitalize on the market.
c. Sales Promotion: The purpose of sales promotion is to supplement and coordinate
advertising and personal selling; Sales promotions are designed to persuade consumers to
purchase immediately by providing special incentives such as cash rebates, prizes, extra
product, or gifts. The Co. conducts intensive sales promotion during festivals such as
festive discounts during Diwali.
d. Public Relations : Public Relations is a management function that creates, develops, and
carries out vehicles and programs to influence public opinion or public reaction about an
idea, a product, or an organization. The Co. takes serious measures to maintain good
[37]
public relations. The Co. follows business ethics to ensure that the customer is satisfied
and receives good service whenever and wherever he desires
4. PLACE (Channels of Distribution, Physical Distribution)

a. Channels of Distribution: In case of Vehicles, Dealership method of distribution and
sales is generally adopted. Maruti Suzuki has also adopted Dealership method of
distribution of its products. The Dealers purchase products from the Co. at a negotiated
price. The MRP is fixed by the Co. and the Dealer gets a profit within these prices. As a
company deals with passenger vehicles there may be a single or distinct dealership to
market its commercial and passenger vehicles in a town. However, if there is a single
Dealership appointed, then the commercial and passenger Vehicles are managed under
commercial and passenger Vehicles Dept. respectively.
Maruti Suzuki has contracts with the Government of India and it supplies MUV, in some
cases, to the Govt. Sometimes, bulk quantities of Vehicles are ordered by a Govt. Dept. or
a private company. The sales, distribution and billing of these are looked after by
the Co. itself.
b. Physical Distribution: The commercial vehicles are manufactured at Gurgaon and
Manesar. From the plant, the finished product is transported to the Dealerships. The
nation-wide Dealership, sales, services and spare parts network comprises over 2,000
touch points. The Dealerships are strategically located in the target and potential markets
to ensure efficient and timely availability of its products in the market.
[38]
CHAPTER 2
TOPIC THEORY
Marketing Strategies of Maruti Suzuki Cars
Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage.
DEVELOPING A MARKET STRATEGY

Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill
market needs and reach marketing objectives. Plans and objectives are generally tested for
measurable results. Commonly, marketing strategies are developed as multi-year plans, with a
tactical plan detailing specific actions to be accomplished in the current year. Time horizons
covered by the marketing plan vary by company, by industry, and by nation, however, time
horizons are becoming shorter as the speed of change in the environment increases. Marketing
strategies are dynamic and interactive. They are partially planned and partially unplanned.
Marketing strategy involves careful scanning of the internal and external environments. Internal
environmental factors include the marketing mix, plus performance analysis and strategic
constraints. External environmental factors include customer analysis, competitor analysis, target
market analysis, as well as evaluation of any elements of the technological, economic, cultural or
political/legal environment likely to impact success. A key component of marketing strategy is
often to keep marketing in line with a company's overarching mission statement.
Once a thorough environmental scan is complete, a strategic plan can be constructed to identify
business alternatives, establish challenging goals, determine the optimal marketing mix to attain
these goals, and detail implementation. A final step in developing a marketing strategy is to
create a plan to monitor progress and a set of contingencies if problems arise in the
implementation of the plan.
TYPE OF STRATEGIES
[39]
Marketing strategies may differ depending on the unique situation of the individual business.
However there are a number of ways of categorizing some generic strategies. A brief description
of the most common categorizing schemes is presented below:
1. Strategies based on market dominance - In this scheme, firms are classified based on
their market share or dominance of an industry. Typically there are four types of market
dominance strategies:
a)
b)
c)
d)
Leader
Challenger
Follower
Nicher
2. Porter generic strategies - strategy on the dimensions of strategic scope and strategic
strength. Strategic scope refers to the market penetration while strategic strength refers to
the firms sustainable competitive advantage. The generic strategy framework (porter
1984) comprises two alternatives each with two alternative scopes. These
are Differentiation and low-cost leadership each with a dimension of Focus-broad or
narrow.
a) Product differentiation (broad)
b) Cost leadership (broad)
c) Market segmentation (narrow)
3. Innovation strategies this deals with the firm's rate of the new product development
and business model innovation. It asks whether the company is on the cutting edge of
technology and business innovation. There are three types:
a) Pioneers
b) Close followers
c) Late followers
4. Growth strategies In this scheme we ask the question, How should the firm grow?.
There are a number of different ways of answering that question, but the most common
gives four answers:
a) Horizontal integration
b) Vertical integration
c) Diversification
d) Intensification
A more detailed scheme uses the categories:
[40]
Prospector
Analyzer
Defender
Reactor
Marketing warfare strategies - This scheme draws parallels between marketing strategies
and military strategies
STRATEGIC MODELS
Marketing participants often employ strategic models and tools to analyze marketing decisions.
When beginning a strategic analysis, the3Cs can be employed to get a broad understanding of the
strategic environment. An off Matrix is also often used to convey an organization's strategic
positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to
pursue a defined strategy.
There are many companies especially those in the Consumer Package Goods (CPG) market that
adopt the theory of running their business centered on Consumer, Shopper & Retailer needs.
Their Marketing departments spend quality time looking for "Growth Opportunities" in their
categories by identifying relevant insights (both mindsets and behaviors) on their target
Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in
market trends, segment dynamics changing and also internal brand or operational business
challenges. The Marketing team can then prioritize these Growth Opportunities and begin to
develop strategies to exploit the opportunities that could include new or adapted products,
services as well as changes to the 7Ps.
REAL-LIFE MARKETING
Real-life marketing primarily revolves around the application of a great deal of common-sense;
dealing with a limited number of factors, in an environment of imperfect information and limited
resources complicated by uncertainty and tight timescales. Use of classical marketing techniques,
in these circumstances, is inevitably partial and uneven.
Thus, for example, many new products will emerge from irrational processes and the rational
development process may be used (if at all) to screen out the worst non-runners. The design of
the advertising, and the packaging, will be the output of the creative minds employed; which
management will then screen, often by 'gut-reaction', to ensure that it is reasonable.
For most of their time, marketing managers use intuition and experience to analyze and handle
the complex and unique situations being faced; without easy reference to theory. This will often
[41]
be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the
knowledge of the customer which has been absorbed almost by a process of osmosis, will
determine the quality of the marketing employed. This, almost instinctive management, is what
is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing,
form favored by the theorists.
CHAPTER 3
PROJECT PROFILE & RESEARCH METHODOLOGY
3.1
Title of Research
An evaluation study of Marketing Strategies of Maruti Suzuki Cars.
3.2
Research Objectives
The objective of study is:1) To know the marketing strategies of MSIL.

2) Aimed at understanding the working of Dealers.
3) Also meant for providing reasonable solutions to the problem after marketing
strategies of different vehicles company.
Research can be defined as a systematic effort to gain knowledge. A research is carried out by
different methodology which has theft own pros and cons.
Research Methodology is a way to solve research problems along with the logistic behind them.
Thus when we talk of the research methodology we not only talk about research method but also
context of our research study and explain why we are using a particular method or techniques
and why we are not using other so that search results are capable of being evaluated by the
researcher himself or by others.
Research methodology means the method carried out to only the problem it shows the type of the
sample design used, its size and the procedure
Research methodology has following steps -
[42]
Step 1. To decide the objective of the study

Step 2. To design research design
Step 3. To determine the source of data.
Step 4. To design data collection form (questionnaire).
Step 5. To determine sample size and sample design.
Step 6. To organize and conduct fieldwork
Step 7. To process and analyze the collected data.
Step 8. To prepare research report.
3.3
SCOPE OF RESEARCH
A big boom has been witnessed in Automobile Industry in recent times. A large number of new
players have entered the market and are trying to gain market share in this rapidly improving
market. The study deals with Maruti Suzuki in focus and the various segments that it caters to.
The study then goes on to evaluate and analyze the findings so as to present a clear picture of
trends in the Automobile sector.
1. Technical knowledge of automobiles.
2. Position of Marutis product in the Market.
3. At present, car penetration in India is about 7 cars per 1000 people, which is even
lessthan some of our neighboring countries. There is also a large population of two
wheeler owners, who would naturally upgrade to an entry-level car. Therefore there is
large latentdemand for passenger cars waiting to be tapped. The compact cars will
continue todominate the passenger car industry in India.
4. The highway and road construction projects, such as the Golden Quadrilateral Project,
ahighway connecting the four metropolitan areas of Kolkata, New Delhi, Mumbai
andChennai. Availability of better road infrastructure will also affect demand for cars.
5. Passenger car sales account for over 77% of total passenger vehicle market and
UVsaccount for the balance. In fact, UVs have a higher share than what they did in the
earlier years. It is still lower compared to some of the developed countries. In USA for
instance,UVs account for 50% of the total Passenger vehicles market and in Indonesia
they accountfor 80% of the market. Hence in the future there will be more and more
demand for UVshence an opportunity for MUL.
[43]
6. The enabling factors for Indian passenger car industry are all in place namely,
robusteconomic growth, favourable regulatory framework, availability of affordable
finance andimprovements in road infrastructure. However, there are some uncertainties
like thegrowing higher oil prices, which could impact the auto industry. Hence the Indian
automarket is at an interesting juncture where both challenges and opportunities are
immense
3.4
TYPE OF RESEARCH:
The type of the project work has been exploratory as no hypothesis, is taken to be tested.
Though the conclusions drawn could be taken as the hypothesis and further tested by the
research work undertaken in the relevant field. The reason for choosing the exploratory
research design is the fact the project report has been primarily based upon the secondary
sources of data and whose authenticity could be assured of.
The reluctance of the company's personnel in parting with much of information led the
project report to be based substantially on the secondary source of data. The sources of
data used in data collection are the following:
Primary sources:
In order to gather information about the various products, I personally visited a number
of retail markets and collected data pertaining to the prices of the products offered. The
market visits were useful in knowing the comparative prices and quality of the offered
brands vis--vis the competitive brands. Detail regarding the packaging of the products
was collected and I also inquired about the various sales promotion schemes followed by
these companies.
By interviewing these retailers valuable information was collected. I inquired from them
about their marketing advertising and distribution strategies.
Secondary sources:
Information was collected from secondary sources such as public libraries, newspapers,
business magazines.
Beside these the use of Internet was also made in collecting relevant information. The
data collected from the above mentioned sources has been adequately structured and used
at appropriate places in the report. This particular way of data collection was used
because of its low cost (except data collected through surfing the internet) and less time
consumption.
3.5
SIGNIFICANCE OF RESEARCH
[44]
1. To decide the objective of the study to be carried out. The objective of the study as stated
in the previous chapter was finalized so as to initiate the survey for the study.
2. To decide the research design.
Research design is a plan. Structure strategy of an investigation conceived so as to obtain
answers to research questions and control variance. There are three type of research
design system: (a) Explanatory Research, (b) Descriptive Research, (C) Casual Research.
Among the above mentioned types descriptive research design has been chosen
Descriptive research is to find an efficient sales force of Agents I Financial Consultants I
Agent Advisors. In order to study the characteristics and variables, cross sectional
analysis was conducted by using field survey method in the process of field survey a
questionnaire was developed and circulated.
3. To determine the sources of data.
Data sources are the collection of fresh hand data to obtain results. There are types
of data sources. (a) Primary data: Primary data is that which is collected fresh and thus
happen to be original in character. (b) Secondary data : Secondary data is any data which
have been gathered earlier for some other purpose. Among the above mentioned types,
primary data was used for the study and analysis of the objective of this project. Also the
secondary data proved to be helping in framing up the industry scenario and also the
relevant topics in the entire project report.
Reasons for selecting primary data. In terms of primary data structure
questionnaire was prepared to interview the professionals, students, house wives,
investment consultants, post office agents etc. in Bikaner, Deshnok and Ratnagiri
location. Analysis clearly reflected the views and preference regarding the perception of
the people towards joining life insurance companies.
4. To design data collection.
Their two types of mode to collect the data. (a) Observation method, (b) Survey
method. As far as the data collection method for this project is concerned, designing the
data collection forms or survey form is applicable to the project. The method selected was
survey method.
A survey can be conducted by: Personal interview or Telephonic interview.
Amongst the above methods personal interview method was selected and conducted to
gather information to detail. This method was chosen because along with the study of
projects primary objective i.e. study of people was achieved.
5. To determine sample design, sample size sample size specification200 respondents which include professionals, unemployed students, house wives,
investment consultants, post office agents. The distribution of this sample size was
decided to be as 100 respondents at Bikaner (Urban area), 50 respondents at Nokha (semi
urban area) and 50 respondents at Ratnagiri (rural area) in order to compare the
difference in these areas.
[45]
Field Methodology: The methodology adopted in the field to collect the data represented
diagrammatically below.
S e g m e n fi l l i n g u p
t a t io n o f Q u e s t io n
p e o p le
n a ir e
3.6
M e e t in g
w it h t h e
p e o p le
LIMITATIONS OF THE RESEARCH
Since the road to improvement is never ending, so this study also suffers from certain
limitations. Some of them are as follows:
Because of illiteracy, it was a time consuming method in which

continuous guidance was required.
Questionnaire method involves some uncertainty of response. Co-operation on the

part of information, in some cases, was difficult to presume.
It is possible that the information supplied by the informants

may be incorrect. So, the study may lack accuracy.
[46]
CHAPTER 4
FACTS & FINDINGS AND DATA INTERPRETATION
FACTS & FINDINGS
1. From the survey it was find out 60% of customers know about Maruti Suzuki
cars.While 30% Customer are not aware with Maruti Suzuki cars and rest of the
customers theyhave no idea about the Maruti Suzuki cars.
2. In the survey it was find out that 60% customer having the Maruti Suzuki cars
and40% customer have no cars of Maruti Suzuki.
3. In the survey 65% customers told us that they have satisfied with the Maruti
Suzukiservice and 20% customer told us that they are not satisfied with the
Maruti Suzuki service.Remaining 15% customer told us they have not yet
satisfied with the Maruti Suzuki service.
4. From the survey I was found that 60% of customers are satisfied with the
MarutiSuzuki ltd.While 40% Customers are not satisfied with the Maruti Suzuki
ltd.
5. In the survey it was found out that 55% customers think that Maruti Suzuki
providegood service & satisfaction and 25% customer think that the Maruti
Suzuki not provide goodservice & satisfaction Remaining 20% customer have no
idea.
[47]
6. In the survey it was find out 60% customers like to use the Maruti Suzuki cars
and40% customer dont like to use the Maruti Suzuki cars.
7. Working women are less interested because at home and office.
8. House wives, especially well educated house wives are able to give enough time and
therefore they are willing to become an insurance agent.
DATA INTERPRETATION
Total Number of Respondents: 15 Officials
Number of Respondents
5
2
2
5
1
Maruti Udyog Limited

Hyundai motors India Limited
General Motors
Tata Motors
Ford India Limited
Do you face problems in maintaining good and effective relationships with

customers?
Quite Frequently Frequently Average Rarely
2
3
Hundai Motors India Limited
2
General Motors
2
Tata Motors
3
2
Ford India Limited
1
-
[48]
Quite Frequently; 33%
Frequently; 67%
Findings: According to the responses of the respondents it can be concluded that all the
respondents face problems in maintaining good and effective relationships with customers. With
changing customer needs its quite obvious that maintaining good relations with customers need
an effort on part of the Dealers and Manufacturers.
How well can your company identify its end user customers?
Maruti Udyog Limited: According to the officials of MSIL, the companys endeavor is
to be close to the customer, to anticipate and fulfill their needs. They believe that the new
business initiatives taken by MSIL have expanded the scope of this relationship.
Hyundai Motors India Ltd: According to the officials of Hyundai Motor India is at a
very exciting stage in India today. They are experiencing tremendous growth - which is a true
sign of enjoying customer confidence. In order to strengthen their position further in the Indian
market, they need to continuously work on building their corporate reputation while aggressively
positioning their products. For HMI's focus and commitment to the Indian automobile customers
is of critical importance.
Can your company differentiate its customers based on their value to you
and their needs from you?
Yes
5
2
2
5

Hyundai Motors India Limited
General Motors
Tata Motors
[49]
No
-
Ford India Limited
Yes
No
100%
Findings: According to the respondents (officials) at all the Five Automobile Majors their
company was able to differentiate its customers based on their value to them and their needs
from the company. This is important for the automobile industry because the dynamics of selling
cars is changing and manufacturers and dealers who fail to meet the rising needs and
expectations of their customers will lose out to those who can. Buying a new car is an experience
customer will remember for a long time and ensuring that this experience is a satisfactory one is
essential in building brand loyalty and customer advocacy.
How well do you interact with your customers?
Maruti Udyog Limited: According to the officials of MSIL, their overall strength lies in
building an organization that is sharply focused on the voice of the customer. Maruti's consistent
performance over the past several years has resulted in a steady increase in the percentage of its
customers who say they intend to remain loyal to the brand in order to be closer to the customers,
it is essential that we should have MSILtiple avenues of one-to-one interaction with our
customers. As a major step in this direction they have started Call Center service with toll-free
number for the people of National Capital Region in year 2000. This service, named Anytime
Maruti, is now available nation-wide. Customers in over 700 cities/towns across India can
contact them any time during the day and all days of the week. The toll-free no. of this service is
1800 1800 180, it is accessible from any fixed-line or mobile phone of BSNL/MTNL network
across the nation. The objective of this service is to ensure that customers have quick and easy
access to all information on their models, prices, dealers, value added services, finance options,
and the locations of our numerous service stations. Anytime Maruti help customers to learn more
about their Maruti Cars and also about other services offered by Maruti.
Hyundai Motors India Ltd: According to the officials at HMI The Company has set up
more than 70 dealer workshops that are equipped with the latest technology, machinery, and
international quality press, body and paint shops, across the country, thereby providing a one[50]
stop shop for a Hyundai customer. Hyundai also has a fleet of 78 emergency road service cars specially equipped Santro that can provide emergency service to all its customers anytime,
anywhere. The customers can also call on 1800-11-4645 (Toll Free - Only from MTNL & BSNL
numbers) 011- 26924645 (For all GSM Connections / Landline other than MTNL &BSNL
numbers) for any queries & customer complaints.
General Motors: According to the official at GM, to bring greater value and service to
customers, they have introduced the GM Service Plus a unique cluster of services, designed to
compliment every aspect of owning a car and ensuring complete peace of mind. So be it
emergency assistance, an urgent car servicing or even sourcing genuine accessories, Customers
can be assured of yet another great moment from General Motors. For any car related query or
emergency requirement, customers can call 24-hour assistance at 30308080. The unique 3-hour
service program comes with a promise of servicing your car in just 3 hours, or you get the
service free. Widespread sales and service outlets across the country ensure that you have the
assurance of great service wherever you travel in India.
Tata Motors: According to the officials of Tata Motors, the company has strengthened its
distribution and customer care network and today has 77dealers and 230 authorized service
outlets spread across 119 locations in India.
Ford India Limited: According to the officials at Ford solutions aims to provide quality,
peace-of-mind products for the customer and embodies a brand synonymous with its ability to
provide products that can be tailored to suit one's individual needs. Ford Solutions serve to
develop products for Ford and the Dealer body that enhance customer satisfaction. When your
vehicle needs a repair or a component replaced, you need Quality Care service. Your Ford
Dealership is simply the best place to have your vehicle serviced. Brakes, shocks, batteries or
anything your vehicle may need, your dealership is the place to get it. Customers can place an
online service request at Ford.
How well does your company customize its products and services based on
what it knows about its customers?

General Motors
Tata Motors
Ford India Limited
Highly
Customer
Centric
Somewhat
Customer
Centric
Not Customer
Centric
5
2
2
5
1
[51]
Highly Custome r Ce ntrric; 100%
Findings: All the officials of the Automobile Majors agree that all products and services are
highly customer centric and based on the information they know about the customers.
Does the company have established quality assurance processes?

Yes
5
2
2
5
1

General Motors
Tata Motors
Ford India Limited
[52]
No
-
Yes; 100%
Findings: According to all the respondents their respective companies have established quality
assurance processes.
Does the company take customers' needs into consideration when selecting
and implementing technology?
Yes
5
2
2
5

Hyundai Motors India limited
General Motors
Tata Motors
[53]
No
-
Ford India Limited
Yes; 100%
Findings: According to all the respondents their respective companies take customers' needs into
consideration when selecting and implementing technology.
Does the company provide its employees with technology that enables them
to help customers?
Yes
5
2
2

General Motors
[54]
No
-
Tata Motors
Ford India Limited
5
1
Yes; 100%
Findings: According to all the respondents the company provides its employees with technology
that enables them to help customers. Employee and Dealer Training is a part of every company
Customer Service Initiative. This enables them to provide the customers with state of art
products and service to customers.
Does the company maintain a strategy for collecting and using information
about customers?
Yes
5
2

[55]
No
-
General Motors
Tata Motors
Ford India Limited
2
5
1
Sales
Yes
No
100%
Findings: According to all the respondents they have proper information about their most
profitable customers. Companies use Informal Meetings, Sales Interaction and calls to collect
relevant information needed to maintain good customer relationship. The most effective
companies like Tata Motors use all the above while most of others track the data during sales
interaction. All the Automobile majors surveyed used CRM software for tracking Customer
Information. According to the officials Customer and Supplier Feedback are gathered through
Call Centers, Mails and Direct Interviews. There are other methods too but the above three are
the most cost effective.
How effectively does the company combine information on customers with

its experiences to generate knowledge about its customers?
Highly Effective Somewhat
Effective
[56]
Not
Effective

General Motors
Tata Motors
Ford India Limited
4
2
2
3
1
1
2
-
Some what Effe ctive ; 20%
Highly Effe ctive ; 80%
Findings: All the 80% officials of the Automobile Majors their company highly effective in
combining information on customers with its experiences to generate knowledge about its
customers while 20% said that the company was somewhat effective.
What steps has the company taken to improve the total experience of its
customers?
[57]
According to the Maruti Udyog Limited Officials: Sales experience is the most important
factor, accounting for 37 per cent of the SSI score, and includes issues such as fulfillment of
commitments and lack of hassles during the sales process, overall honesty and integrity of
the dealership personnel and sufficient time to make the decision. Maruti entered the Indian
car market, to provide fuel efficient, low-cost vehicles, which were reliable and of high
quality. It also offered customers a friendly sales and after sales service. With high customer
satisfaction ratio and Total automobile value these objectives shaped Maruti as big Giant in
the field of automobiles.
A strong feedback mechanism and interface for communicating with customers. TATA
Motors chose IBM as its partner to provide an infrastructure solution. IBM created a Siebel
solution to provide a DMS solution for TATA Motors and then provided a reliable and
scalable IT infrastructure for developing and deploying its DMS application. The IBM
solution has simplified the IT infrastructure for TATA Motors. The benefits include - low
total cost of ownership, a more comprehensive view of customers, enhanced customer
experiences and improved loyalty. With re-engineered business process, the company can
also analyse customer interactions and other information more accurately, improve capacity
planning and increase profitability. Faced with increasing competition from abroad, a cyclical
business environment, and the challenge of a widely dispersed dealer network, Tata Motors
implemented Siebel Automotive, a comprehensive Customer Relationship Management
(CRM) solution designed specifically for companies in the automotive industry.
Ho w much influence do customers needs have on the companys products

and services?
[58]

General Motors
Tata Motors
Ford India Limited
Very High
3
2
2
2
1
Substantial
2
1
-
Very Low
2
-
Very Low; 13%

Substantial; 20%
Very High; 67%
Findings: All the 67%(10) responding officials of the Automobile Majors customer needs have a
very high influence on companys products and services while 20%(3) respondents said that it
had substantial influence while13%(2) respondents said that customer needs had very low
influence on companys product and services.
CHAPTER - 5
SWOT ANALYSIS
[59]
STRENGTHS
COMPETITIVE STRENGTHS
MSIL believes that they are well positioned to maintain and enhance their leadership position in
the small car segment in India, while continuing to offer products in most segments of the Indian
market, on account of their competitive strengths, which include the following:
Expertise in small car technology: As a subsidiary of Suzuki, they have access to globally
respected technology in the small car segment. They have the advantage of Suzukis expertise in
all aspects of small car technology and design, with respect to their products, their manufacturing
processes and business practices, the development of their supply chain and the training of their
personnel.
Extensive product portfolio: Their diverse product range includes cars in segments A, B and C,
and utility vehicles. They manufactured five out of the ten models that were sold in the combined
A and B segments in India in fiscal 2002. They are the only manufacturer of cars in segment A
(priced below Rs.3,00,000) where they have two models, the Maruti 800 and the Omni. The
Maruti 800 has been the largest selling car in India for several years, and continued to have the
highest sales volumes of any model, with a market share of 25.3%. The Omni, a versatile vehicle
that can seat more passengers than the Maruti 800 or be used as an ambulance or cargo vehicle,
had a market share of 10.5% in fiscal 2002. They are also the only manufacturer to sell three
distinct models, the Zen, the Alto and the Wagon R, in segment B (priced between Rs.300,000
and Rs.500,000).
Quality products: In November 2001, they were one of the first automobile manufacturers in
the world to receive the ISO 9001:2000 certification. They began to export products in 1988,
primarily in order to benchmark our products against international quality standards. They have
exported products to approximately 70 countries, including countries in Western Europe. Their
products for export are manufactured using the same assembly line as our products for the
domestic market.
Extensive sales and service network: They believe that they have the largest network of dealers
and service centers amongst car manufacturers in India. As of 31 March 2011, Maruti Suzuki has
933 authorized dealers across 666 towns and cities in all states and union territories of India.
They estimate their car parc to be in excess of 3.5 million vehicles. It has 2,946 service stations
(inclusive of dealer workshops and Maruti Authorized Service Stations) in 1,395 towns and cities
throughout India. It has 30 Express Service Stations on 30 National Highways across 1,314 cities
in India. In addition to the distribution of their cars, their dealership network is a critical
resource in our efforts to provide customers with a one-stop shop for automobiles and
automobile related products and services such as automobile finance, automobile insurance,
[60]
Maruti-certified pre-owned cars available for purchase, and leasing and fleet management, in
order to promote customer loyalty.
Brand strength: They have been present in the Indian market for almost twenty years and have
built their brand on the basis of the values of trust and reliability. Most of their principal
competitors have been present in the Indian passenger car market for a significantly shorter
period. Certain manufacturers have ceased to manufacture certain products shortly after
introducing them, or have left the market altogether. In contrast, they continue to support the
maintenance of their products. This has contributed to the strength of their brand. From 20002011 J. D. Power Asia Pacific, Inc. ranked us No. 1in the India Customer Satisfaction Index
(CSI), which assesses customer satisfaction with product quality and dealer service. They believe
that this was the first time that a volume leader in the automobile industry anywhere in the world
was ranked first on the JD Power Customer Satisfaction Index. NFO Automotives 2002 Total
Customer Satisfaction Survey ranked Maruti products as No. 1 in the Economy, Premium
Compact and Entry Midsize segments respectively, for 2002.
Integrated manufacturing facility: Their manufacturing facility comprises three integrated
plants with flexible assembly lines located at Gurgaon in the northern state of Haryana. Their
facility has advanced engineering capability and each plant is upgraded on an ongoing basis to
improve productivity and quality. As a result, their first plant set up in fiscal 1984 is
technologically at par with their newer plants and is also used in the production of their new
models. They believe that they are one of the most efficient among the vehicle manufacturing
facilities of Suzukis subsidiaries outside Japan in terms of productivity measured as the ratio of
number of vehicles produced to number of employees. They have an installed capacity of
350,000 vehicles per year, which is the highest among passenger car manufacturers in India and
among the passenger car manufacturing facilities of Suzukis subsidiaries outside Japan. They
have consistently produced in excess of their installed capacity in the five fiscal years ended
March 31, 002.
They believe that they would be able to expand their production to 500,000 cars per year with
minimal additional capital expenditure. This would enable them to benefit from significant
economies of scale.
Strong vendor base and higher rates of localization: They work closely with their vendor base
for the supply of raw materials, components and spare parts of their products. In order to
improve quality and generate economies of scale, they have reduced the number of their vendors
of components in India from 370 as of March 31, 2000 to 299 as of March 31, 2003, and intend
to continue to reduce the number of our vendors. 113 of their vendors at March31, 2003 were in
technical collaboration with foreign entities. As of the same date, we had strategic equity
interests through joint venture agreements in 13 of their vendors, who together supply a
substantial portion of their purchases of components. A number of their vendors are their
dedicated suppliers in that they account for a majority of their turnover. Vendors located within a
radius of 100 kilometers from their facility supply the majority of their components. The
[61]
production systems of their vendors are generally aligned to their need for a reliable and timely
supply of components that meet their quality requirements. This has enabled them to increase the
proportion of locally sourced, lower cost components in their models, a concept they refer to as
localization. They have been able, in collaboration with their vendors, to increase the rate at
which they are able to localize production of their new models over time. This has helped them
reduce the cost of their components.
Skilled labour and experienced management: The highly skilled labour force has become
increasingly productive in terms of vehicles produced per employee and receives training on an
ongoing basis, including training by Suzuki. As of March 31, 2003, 1,900 of their employees had
been trained at Suzukis facilities in Japan. They have been present in the Indian passenger car
market for a significantly longer period than most of their principal competitors. As a result, they
have been able to build a highly experienced management team that is familiar with conditions in
the Indian passenger car market. For instance, their managing director has almost ten years of
experience with them, and most of the heads of their divisions have more than15 years of
experience with them.
Capital resources: They have cash and bank balances and current investments amounting to
Rs.9,992 million. As of the same date, they had relatively low levels of outstanding indebtedness,
in the amount of Rs.4,555 million. As a result, they have relatively low interest expense and
flexibility to raise funds, if necessary, for their working capital and capital expenditure in the
future.
BUSINESS STRATEGY
They intend to continue to focus on the small car segment, while offering products in most
segments of the Indian passenger car market. They aim to achieve their principal objectives by
pursuing the following business strategies:
Maintain and enhance their product range: They intend to utilize Suzukis expertise in small
car technology to produce new variants of their existing models and to upgrade their products
with contemporary technology and features.
Increase reach and penetration: They plan to continue to utilize their extensive sales and
service network to increase the reach, in terms of geographical spread, and penetration, in terms
of sales volumes, of their products across India.
Increased availability of automobile finance: They continue to seek opportunities to expand
the size of the Indian passenger car market, especially in the small car segment, through
facilitating easy availability of automobile finance. To that end, they have recently entered into
an agreement with the State Bank of India.
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Secure repeat purchases by offering a 360 degree customer experience: On the basis of
their belief that securing repeat purchases from an existing customer requires less expenditure
than acquiring a new customer, they aim to provide customers with a one-stop shop for
automobiles and automobile-related products and services.
Continue to benchmark their manufacturing capabilities: They plan to continue to
benchmark our manufacturing capabilities with the most efficient car manufacturing facilities of
Suzuki and its subsidiaries.
Continue to reduce costs to offer more competitive products: Cost competitiveness has been,
and continues to be, central to their strategy as the leading manufacturer in the small car segment
to expand the size of the market by offering competitively priced, high quality products. The
components of this strategy are:
Higher levels of localization

Vendor participation in cost reduction
Cost reduction on warranties
Reduction in initial investment cost
Reduction in number of vehicle platforms
Achieve further cost reduction through higher productivity
Lower cost of ownership: Through their business strategies, they seek to reduce the consumers
cost of ownership of their cars, which comprises the cost of purchase, the cost of fuel and
maintenance, including spare parts and repairs, during the life of the vehicle, insurance, and
resale value.
SALES NETWORK
Dealers: They offer their products to the customer through a network of 933 authorized dealers
across 666 towns and cities in all states and union territories of India. They believe that this is the
largest network of dealers amongst car manufacturers in India. Their dealers employed more than
3,500 sales executives. They are linked to their sales network through their secure extranet-based
information network. The sales of their spares, accessories and automobile-related services such
as insurance and finance serve as additional sources of revenue for our dealers. They believe that
the availability of these related products and services at sales outlets also helps to attract
customers to the outlets and promotes sales of their cars.
Agreements with dealers: They generally appoint a limited number of dealers for a certain
geographical territory. Their dealers provide services to customers such as pre-delivery
inspection of vehicles, sales of cars, after sales service, supply of spare parts and other services
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that promote sales of cars within the territory for which they are appointed. They have the right
to sell their products and services through other dealers or intermediaries in any territory,
whether or not one of their dealers is already established in that territory. Their dealers are
required to maintain their outlets in accordance with their specifications and employ well-trained
sales staff.
Their agreements with their dealers usually have terms of five years. These agreements are
generally renewable for successive terms of three years, by mutual agreement. The agreements
typically permit termination by either the dealer or them with six months prior notice.
Enhancing dealer performance: Their central offices are in Delhi, their regional offices and
their area offices monitor and assist their dealer network. They have nine regional offices, five
area offices and 187 sales and marketing personnel.
They follow the performance of their dealers and frequently suggest improvements. In order to
assist their dealers in enhancing their performance and capabilities, they have introduced a
concept of Balanced Scorecard. Using this tool, they seek to measure the performance of a
dealership in several areas of operations, including sales, service, spares and accessories,
financial management and management systems. They reward dealers who perform well on the
Balanced Scorecard with a cash payment at the end of the fiscal year. They believe that the
Balanced Scorecard serves as an effective incentive for dealers to enhance their performance.
Dealer training: They have established standard operating procedures, showroom ambience and
service quality standards for dealerships. They provide periodic training through their training
centers located at their manufacturing facility and at Chennai, Kolkata, Guwahati and Pune. They
have trained more than 2,600 and 3,400 dealer sales personnel. Their subsidiary, True Value
Solutions Ltd., provides value-added services, such as manpower recruitment and training, to
their dealers.
AFTER-SALES SERVICE
Network:
As on date there are 2,946 service stations (inclusive of dealer workshops and Maruti
Authorized Service Stations) in 1,395 towns and cities throughout India. In addition, 24-hour
mobile service is offered in 38 cities under the brand Maruti On-road Service. They intend to
extend this service to an additional 25 cities over the next three years. As a benchmark for
dealers with respect to service quality and infrastructure facilities, they have launched service
stations under the brand Maruti Service Masters, or MSMs, in three locations in India. They
have service stations on 30 National Highways across 1,314 cities in India under the brand
Express Service Stations.
To promote sales of their spare parts and the availability of high quality, reliable spare
parts for their products, they sell spares under the brand name Maruti Genuine Parts, or MGP.
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These are distributed through their dealer network and through authorized sellers of their spare
parts, to whom they refer as stockiest.
Many of their MASSs are at remote locations where they do not have dealers. In order to
increase the penetration, in terms of sales volumes, of their products in these remote areas, they
are exploring opportunities to integrate some of the MASSs into the sales process in order to
increase sales of their cars and related products and services such as spares and accessories,
insurance and financing.
Genuine Accessories:
They have also entered the business of marketing car accessories under the brand name
Maruti Genuine Accessories, or MGA, through their dealership network. They seek to provide
customers with the opportunity to customize their vehicles with accessories such as music
systems, security systems, car-care products and utility products.
Warranty and Extended Warranty Program:

They offer a two-year warranty on all their vehicles at the time of sale. Their dealers are
required to address any claim made by a customer, in accordance with practices and procedures
prescribed by them, under the provisions of the warranty in force at that time. The dealers
subsequently claim the warranty cost from them. They analyze warranty claims from dealers and
either claim the cost from vendors, in the case of defective components, or bear the cost
ourselves, in the case of manufacturing defects.
They offer an extended paid-warranty program marketed under the brand, Forever
Yours for the third and fourth year after purchase. They have entered into arrangements with
insurance companies to cover the costs of warranties offered under this program. The extended
warranty program is intended to maintain the dealers contact with the customer and increase the
revenue generated from sale of spares, accessories and automobile-related services. An effort is
made during the period of the extended warranty to encourage the customer to exchange his
existing Maruti car for a new Maruti car, or upgrade to a new Maruti car.
NEW BUSINESS INITIATIVES

As the largest manufacturer and leader in the small car segment, they continually seek
new ways to utilize their vast car parc, range of products and extensive sales and service network
to expand the size of the passenger car market in India. They have recently launched new
initiatives to develop the market for automobile insurance, automobile finance, leasing and fleet
management, and pre-owned cars. They aim to provide customers with a one-stop shop for
automobiles and automobile-related products and services, and build on their wide customer base
and extensive sales and service network to make available to their customers a wide range of
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Maruti-branded services at different stages of ownership, which they refer to as the 360 degree
customer experience.
Atithi Devo Bhava: One-stop shop
Inspired by the spirit of India, Atithi Devo Bhava, in Sanskrit, means a guest is like
God. It captures the Indian tradition of honoring guests. It's also the inspiration for the welcome
youll receive at a Maruti Suzuki dealership, and the caring relationship they share with those
who drive their cars. At Maruti Suzuki, you will find all your car related needs met less than one
roof. Whether it is easy finance, insurance, fleet management, Services, exchange Maruti Suzuki
is set to provide a single window solution for all your car related needs.
That's why they have Maruti True Value, the best place to buy and sell reliable used cars.
Maruti Finance an agglomeration of the biggest finance companies in India brought together by
Maruti Suzuki to ensure that the dream car is within everyone's reach. Similarly, Maruti
Insurance brings together some of the biggest names in the car insurance industry to provide
insurance solutions to every type of car consumer. Then, finally, there is N2N, which offers fleet
related solutions.
WEAKNESS
NEED FOR CRM IN AUTOMOBILE INDUSTRY
The global automotive industry exhibits most of the characteristics of mature industries
and closely follows their business cycles. While vehicle industry sales have been strong for the
past several years, they have started to slow recently due to the current global economic
slowdown. Deteriorating economic conditions result in a drop in consumer confidence, which
quickly impacts automotive sales due to their big-ticket status and the relative low cost of
extending the life of an existing vehicle through maintenance and repair.
The advent of the Internet as a research tool (75 to 80 percent of auto consumers
research using the Internet) has shifted power to consumers, further increases pressure on prices.
At the same time, government regulation and consumer demands for sophisticated features have
increased development, production, and marketing costs. Regional economic fluctuations favor
consolidation among car companies, suppliers, and retailers -resulting in fewer, larger companies
that have more complete product lines targeted at existing and new markets. Consolidation has
heightened competition in all vehicle segments. Low-cost manufacturers are expanding beyond
their home markets with entry level vehicles, traditional passenger car manufacturers are
expanding into the light truck markets, and luxury manufacturers are moving down market with
passenger cars and SUVs. As a result of these product and market extensions, consumers find it
difficult to exhibit brand loyalty because vehicles have unclear brand identities, similar features,
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and comparable prices. In addition, an overpopulation of dealers has resulted in local and
regional competition among same make dealers. This further reduces margins and damages the
brand images the car companies spend large amounts of money to build.
Relations between the car companies and their suppliers traditionally have been difficult.
In response to competitive pressure, suppliers have been forced by the car companies to provide
higher-quality components at constantly lower costs. The resulting decrease in margins and the
reduction in volume due to slowing sales have increased the pressure to consolidate and forced
some suppliers to the brink of bankruptcy. Dealers too have a long history of adversarial
relationships with the car companies. Independent entrepreneurs who view some of the car
companies with skepticism or serious mistrust, dealers believe that many manufacturer
sponsored customer satisfaction programs are actually designed to force smaller dealers out of
business or to gain control of customer relationships that the retailers believe they "own."
These difficult relationships have prevented car companies and dealers from maximizing
the lifetime value of their combined customers. There are few incentives or efficient methods for
dealers and car companies to share critical data, resulting in ineffective management of product,
service, and household information. In addition, consumers receive conflicting marketing
communications from the two groups, which results in reduced brand value.
KEY INDUSTRY PAIN POINTS:

Decreasing sales and market share - The long-term battle for market share continues
to intensify. In the mature automotive industry, where business cycles drive sales fluctuations,
market share is critical to survival. Consumers are less brand-loyal than in the past, and every
market segment has an increasing number of vehicle choices. To increase sales and gain ground
in the market share battle, companies must improve their ability both to acquire first-time
customers and to develop customer loyalty to their current brands. To achieve these related
objectives, companies must set an aggressive goal -deliver the best customer experience in the
automotive industry.
Difficult dealer relationships and a lack of dealer collaboration As the consumers
primary touch point; the dealer network is a critical component of customer-facing operations.
Therefore, the integration of the dealer network is absolutely essential to improving the quality
of the customer experience. Only with an infrastructure that enables the effective flow of
information to and from dealers can companies create a complete view of their customers. Car
companies must take the initiative in understanding the customers perspective throughout the
buying cycle.
Lack of Multichannel capabilities - With the advent of the Internet as a research tool,
the majority of customers are accessing the automotive enterprises through several different
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channels. Many times, the switch between channels happens very rapidly as a prospect or
customer can view a Web site, make a phone inquiry, and visit a retail store within days or even
hours of an initial contact. To improve customer satisfaction and secure customer lifetime value,
companies must be able to capture these Multiple interactions, provide seamless management
between channels, and leverage shared customer information to create rewarding experiences
and to develop and execute highly targeted marketing campaigns.
Inefficient demand chain planning and high associated IT cost - Cost reduction is an
ongoing competitive requirement. Just as supply chain management must be supported by a
sophisticated information infrastructure, effective demand chain management also requires the
right supporting infrastructure; enabling car companies to fully leverage each customer
relationship through exceptional customer service, efficient lead generation and management,
and effective promotions and campaigns. In addition, global automotive enterprises operate a
wide variety of IT systems in their various business units and functional groups. Rationalizing
these systems offers significant cost savings.
Lack of effective information sharing - Car companies must integrate global
operations in order to achieve the benefits of consolidation cost reduction, effective
communication, and true integration of core competencies. In addition, internal alignment
between business units and functional groups is required to create a unified view of consumers,
products, and services. Currently, each business unit, functional group, and brand operates
through independent systems, programs, and touch points. As a result, there is limited synergy
across the ecosystem, leading to significant inefficiencies, lack of coordination, and most
important, an inability to maximize "share of wallet "from every customer through well-targeted
marketing and cross-selling. Synergy between traditionally independent business units such as
captive finance companies and between functional groups such as sales, service, and marketing
is more critical now than ever before. Only by sharing customer information can customer
lifetime value be maximized among different groups.
Complex data governance requirements - Global automotive enterprises have large,
complex information technology ecosystems. While customer information must be shared within
this ecosystem in order to fully maximize global operations, it must also be protected. Proper
management of customer information requires a sophisticated capability to manage a variety of
access rules and to accommodate legal restrictions that can change very quickly. The trust
required for successful collaboration between groups in the automotive enterprise must be built
by demonstrating that customer information can be shared while observing these complex
requirements.
Difficulty managing employee relationships - In today 's fast-paced business environment,

automotive companies need to ensure that their most valuable asset -their employees -have
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immediate access to the critical information, services, and applications required to be productive.
Organizations must enable employees to make better decisions, work collaboratively, enhance
customer relationships, and maximize productive time. Global automotive enterprises must be
able to enact and enforce consistent vehicles across business units, instill a common corporate
culture across a geographically dispersed and diverse workforce, equip employees with effective
search tools to access corporate knowledge bases, and provide employees with the training
necessary to service customers in a volatile and demanding market.
OPPORTUNITY
These days consumers are looking for convenience and instant gratification.
Communication media like the telephone and e-mail facilitate communication to a great extent.
But many greeting card sites are moving from a 'free' to a 'pay' mode. This could be an emerging
revenue earning opportunity for content providers.
Increased purchasing power of Indian Middle Class Family.
Government Subsidies.
Tax Benefits.
Prospective Buyers from 2 Wheeler segment.
Great opportunities to go global with success of Swift and SX4 all over.
Introduction of more diesel models. The diesel car segment is growing.
THREATS
'Expressions' which is a competitor of ITC in this segment is currently the second biggest
greeting card brand in India with a market share of 20 per cent. ITC has a five per cent share in
the stationery market. The greeting card market in India is estimated to be around Rs. 250 crore
in terms of yearly consumer spent. The unorganized sector in the greeting card market will be
close to 40 per cent. The organized sector, controlling 60 per cent of the market, is divided
between ITC, Archies and Hallmark. While Archies have licensing agreement with international
greetings brands.
THE PLAYERS IN THE INDIAN AUTOMOBILE INDUSTRY

Hyundai Motor India Limited:
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Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest and the fastest growing car manufacturer in
India. HMIL presently markets 31 variants of passenger cars in six segments. The Santro in the B
segment, Getz in the B+ segment, the Accent in the C segment, the Elantra in the D segment, the
Sonata Embera in the E segment and the Tucson and Terracan in the SUV segment.
The company recorded combined sales of 252,851 during calendar year 2005 with a
growth of 17.26% over year 2004. HMIL is India's fastest growing car company having rolledout over 970,000 cars in just over 80 months since its inception and is the largest exporter of
passenger cars with exports of over Rs. 1,800 crores. HMIL has recorded a growth of 27.2% in
exports over the year 2004.
HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts some of
the most advanced production, quality and testing capabilities in the country. In continuation of
its investment in providing the Indian customer global technology, HMIL has announced plans
for its second plant, which will produce 300,000 units per annum, raising HMILs total
production capacity to 600,000 per annum by 2007. The plant will be built on a 2.1 million
square meter site adjacent to the existing facility .HMIL is investing to expand capacity in line
with its positioning as HMCs global export hub for compact cars. Apart from expansion of
production capacity, HMIL plans to expand its dealer network, which will be increased from 157
to 200 this year. And with the companys greater focus on the quality of its after-sales service,
HMILs service network will be expanded to over 1,000 in 2006.
The year 2005 has been a significant year for Hyundai Motor India. It achieved a
significant milestone by rolling out the fastest 200,000th export car. HMIL exports to around
60 countries globally and recently made a foray into the highly competitive UK market by
exporting its first shipment of 820 cars. Propelled by the strong performance in year 2005,
Hyundai Motor India is on the threshold of yet another grand milestone of rolling out its One
millionth car which is expected soon.
Tata Motors:
Tata Motors is one of the largest companies in the Tata Group with a total income of US$
2.35 billion. More than 3 million Tata vehicles ply on Indian roads making Tata a dominant force
in the Indian automobile industry.
Tata Motors is India's only fully integrated automobile manufacturer with a portfolio that
covers trucks, buses, utility vehicles and passenger cars. It would be no exaggeration to say that
Tata Motors provides the wheels for India's growth.
Tata Motors has the unique distinction of giving India its first and only indigenously built
passenger car - The Tata Indica and the premium feature sedan - The Tata Indigo. The Indica,
launched in 1998, reached the 2,50,000 sales mark within 52months of launch.
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Tata Motors owes its leading position in the Indian automobile industry to its strong focus
on indigenization. This focus has driven the Company to set up world-class manufacturing units
with state-of-the-art technology. Every stage of product evolution-design, development,
manufacturing, assembly and quality control, is carried out meticulously. Their manufacturing
plants are situated at Jamshedpur in the East, Pune in the West and Lucknow in the North.
Ford India Limited:
The Ford Motor Company has a rich legacy of translating better motoring ideas to the
roads. It has manufactured notable brands such as the Ford, Lincoln, Mercury and the Jaguar. It
is among the top five industrial corporations in the world and is available in more than 200
countries around the world.
Ford has entered the Indian market through a tie - up with Mahindra Motors to
manufacture the Ford Escort. A project that has been set up with a investment of Rs.1700 crore.
Ford India Limited is a subsidiary of Ford Motor Company, currently Ford has a 78% stake,
which is going up to 92% soon. The Maraimalai Nagar Plant of Ford India Limited, located
roughly 45k.m.from Chennai, provides employment to over 20000 people. The plant has the
capacity to manufacture 1,00,000 vehicles per annum, equipped with state-of-the-art vehicle
manufacturing technology from Ford. Presently offering seven different models, Ford India
Limited (FIL) is catching up fast with the Indian consumer. This is secured through a quality
check program based on the principles of NOVA - C (New Overall Vehicle Audit - Customer)
where in daily random checks are conducted from a customer's point of view. To be doubly sure,
routine calls are made to dealerships to check the quality of cars delivered to them.
At Mahindra's dealerships are present trained professionals who provide the best levels of
service in India. Its intensive manpower training, advanced service equipment and dedicated
consumer satisfaction are their plus point which is being followed by the entire industry.
Acknowledgement has come in the form of the J D power 1997 India Initial Quality and
Customer Satisfaction Awards. These internationally acclaimed and recognized awards voted the
Ford Escort as the Best Quality car and the Mahindra Ford and its dealerships were rated the
highest in Customer Satisfaction. This is an honour as its only the second time in automotive
history that the same brand/manufacturer has received both the awards in the same year.
General Motors India:
General Motors India, incorporated in 1994 as a 50-50 joint venture company with the
C.K. Birla Group of Companies, became a fully owned subsidiary of GM in1999 when GMOC
bought the remaining shares. The company was restructured in1999 and was converted from a
Public Limited company to a Private Limited company. GM APH LLC currently holds 86
percent of voting shares, and Holden (Australia) holds 14 percent. The SPO business was
integrated with the main business in the same company in 2000.
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In India, GM strengthened its presence with new product launches Chevrolet Optrain
2003 and Chevrolet Tavera (MSILti Utility Vehicle) in 2004. Similarly in 2004, GM India is
expected to register a growth of 90% over 2003. With sales volume going up, the market share of
GM India has gone to nearly 2%. The sales volume in 2003was 15,155 units while 2004 figure is
expected to be around 27,000 units. In 2004, the company sold a total of 26,166 cars as against
15,155 cars in 2003 registering a growth of 73% while overall passenger car growth during the
year was only around23-24%. These included 9191 Chevy Optras in Entry 'D' Luxury sedan
segment,8369 Opel Corsas and 8417 units of the new generation premium MSILti-utility vehicle
(MUV) Chevrolet Tavera.
The existing GM India plant was originally built by Hindustan Motors. In 1994, GM
India entered into a 50% Joint Venture partnership with Hindustan Motors and modernized the
45,000-square-meter plant near Halol, 45 kilometers northwest of Vadodraa, in the western state
of Gujarat. In February, 1999, GM bought the holdings of Hindustan Motors and GM India
became a 100% subsidiary of General Motors Corporation of USA. The plant produces the Opel
Corsa, Corsa Sail, Chevrolet Optra, and Chevrolet Tavera. The Chevrolet Forester and Opel
Vectra are sold as CBUs (Completely Built in Units) and as imported from Japan and Germany
respectively.
Toyota Motor Corporation is the third largest automaker in the world. They have 34
dealers in India and in Delhi they have 2 dealers, first one is South Delhi Toyota and second
one is in Moti Nagar in which I have visited during my survey. Dealer in Moti Nagar which is
Galaxy Toyota have predetermined mission that-Customer comes first and everything they do
is to meet their customer needs, basically they work for creating a life time customer.
They work by dividing their work like in one showroom they have separate teams for
every product like relating to Corolla it comprises of 7 or 8executives who handle all the work
weather it is of sale or any enquiry or telemarketing call that team must have some specific target
to achieve. They reach to the customers either by distributing Leaflets, Brochures to the
customers. They collect customer database from Directory (Yellow Pages) or through customer
references even they solve customers query online and give information through e-mails.
Recently they organized one drawing competition between the kids of their existing customers
just to interact with the customer and build loyalty of their company products. They judge their
customer satisfaction by analyzing that repeat buyers are more or not & moreover they have
customer feedback form in which they can analyze customers background and can forecast
customer future demands. They target only high profile customers.
They build customer loyalty by giving happy calls to the customer after sale of every 1, 3,
7 month. They provide Periodic maintenance schedule, which will ensure that vehicle, is kept in
best able-bodied at all times. The maintenance schedule may include periodic inspection,
adjustment and lubrication that will keep vehicle in the safest and most efficient condition; they
provide one booklet in which they give simple and useful tips for maintenance of the car. They
offer good schemes like providing free Test Drive worth Rs 250 petrol at the time of sale of any
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car. They do road shows to attract customers. To promote their product they organize exchange
mela, events, various cash discounts like currently they are running one discount scheme on
purchase of any of their car (Innova, Toyota) they are giving free accessories worth Rs15000.
They provide 4 free services after sale and with full clean diesel.
All employees of Galaxy Toyota shall consider how they should act and how they might
change their ways to benefit the company. They launch one Co Branded Credit Card to provide
additional benefits and services to the Toyota customers. This Credit Card will give Toyota
customers better payment flexibility and convenience, like Customer gets free service voucher
with the card, Special Invite to co-sponsored events, Personal accident insurance coverage: Up to
20 lakhs etc. They have one Guest Book in which they store valuable comments of customers,
which they think are very important for them, which will help them to improve their service.
HONDA:
Honda is one of the leading manufacturers of automobiles and power products and the
largest manufacture of motorcycles in the world. They have 20 dealers in 42different cities
around India. In New Delhi they have 6 dealers; I have visited one of them, which is on
Najafgarh Road.
They do surveys to know customers need. They target either existing or their perspective
customers by giving advertisement in the newspaper or through there satisfied customers which
give references. They dont believe on targeting competitors customers because by not doing so
they have such a brand reputation with good quality products, only through this they are able to
make good sales.
They display their models in 8th Auto Expo, which held in New Delhi. They are now
focusing on their new model Civic. Honda's Civic perhaps drew the maximum attention. The
reason is simple: Civic is a new car from the house of Honda. During my survey I get to know
that Honda City Model is the second largest selling car in the C segment. They have a good
superiority with superior brand name in the country.
They prefer to have mode of communication with the customer through mail, telephone
and sometimes by letter. Customers who dont have time even to see the model or to call the
dealer to make inquiries about their reservation they desire to solve their query online itself.
To judge customer satisfaction they sometimes invite their customers to have a get
together, to have interaction with customer in a minute to know that are they satisfied with their
services and what they are expecting from them in the near future. They make maximum of their
sales from the fresh customers rather than their repeat purchasers. To increase their sales they try
to extort surreptitious information from the customers and on their end they aim to ensure that
the product quality and product quantity should be available in required quantity in their
dealership.
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They have Feedback form in which they take feedback of the customer as well as their
salesperson because through this they are able to get the information of both the customer & their
salesperson that are they giving the full information to the customer. This Dealership even
provide technical skills and techniques to their employees that how to deal with the customer
thoughtfully every after 6 months.
CHAPTER 6
CONCLUSIONS & SUGGESTIONS
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CONCLUSIONS
The price of a car is just one-third of what it cost you over its lifetime. Running and
maintaining it make up the other two-thirds. Take into account resale value and its real cost
becomes clear. Maruti Suzuki stands for value as much as it stands for performance. In spite of
rising input costs, we try our best to keep prices down. Their running costs and resale values are
unbeatable too. Nothing matches the delight their cars deliver. In the JD Power CSI study 2011,
85% of Maruti Suzuki owners stated that they would definitely recommend the car they drive to
someone else. In fact, you dont buy a Maruti Suzuki. You invest in it.
The study reveals a significant increase in the importance of sales satisfaction, product
quality (both performance and design) and brand image since 2003, indicating rising customer
expectations over the years. This year's study shows the Maruti Suzuki Swift and the Toyota
Innova as the winners, with the two vehicles achieving segment-best ratings by performing well
in areas of greater relevance, particularly product and brand image. Sales satisfaction is weak in
both these models, largely because of the longer waiting time for new deliveries.
TNS Automotives TCS Study has, since its inception in 2002, surveyed over 25,000 car
buyers and has built a sizeable sample base. Some of the key findings, indicators and inferences
from the 2005 study are:
Progressive reduction in car ownership cycle-time from an average of 61 months in 2002
to 53 months in 2005: This shortened cycle-time is bringing these owners for repeat purchases
sooner and will, therefore, further fuel the growth of the four-wheeler market. This trend is
already visible in the growing additional/replacement purchases. Growth in additional (MSILticar households) and replacement purchases up from 51 per cent in 2002 to 65 per cent in 2005:
This will impact the volume growth in higher-end segments as the current car owners show
upward mobility.
Increasing budget for future purchases: Future intenders with a budget of Rs. 6lakh plus
have increased from 44 per cent in 2002 to 58 per cent in 2005. While first-time buyers are
declining as a composition of total volumes, the figure in absolute terms is high, fuelled by the
up-gradation by two-wheeler owners The study also throws up the question as to whether it is
also possible that the first-time car buyer who is generally a two-wheeler owner, is getting more
fuel efficiency conscious and tending towards postponing the car purchase decision due to the
high cost of fuel. Of course a shift in composition is also to be expected with the upper premium
compact and mid-size segments projected to grow at a much faster rate than rest of the industry.
The TCS study was conducted from August through October across 21cities. Small sample
models have not been featured in the charts. These include the Fiat Petra Diesel, Ford Fusion,
Ford Mondeo, Hyundai Terracan, Maruti Esteem Diesel, Maruti Suzuki Grand Vitara, Maruti
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Zen Diesel, and Opel Corsa Sail. TNS has a global network spanning over 80 countries and is
listed on the London Stock Exchange.
Maruti Suzuki India Limited is one of India's leading automobile manufacturers and the
market leader in the car segment, both in terms of volume of vehicles sold and revenue.
Good Technology
Uniform Pricing
Good Strength
More Coverage Area
Frequent /Regular Product Launch
Market Leader (with 47% share)
Oriented Driven Company
More Product Offering
Healthy Annual Report
Brand Image
Maximum Dealership as compared to other brands
Good Sale Service
Spare parts are cheap as compared to any other brand
Cheap & reliable quality
SUGGESTIONS
Facade/Quality of Dealership should be improved

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Uniform of Sales Executives
Proper visiting cards should be available to the executives
Mostly dealers dont have their specific website
All Japanese 5s concept (Seiro, Sieton, Sciso, Seioetse, Shitsuke)should be put into
practice at Dealership
Maruti should regard as generous discount offers during Festival Season like Navratra,
Dusshera, and Diwali to gear-up their sales
Maruti should advertise in Sports because sports are increasingly cutting into the share of
mass entertainment channels
Maruti can start Money Bond Scheme instead of giving Cash Discount with more value.
Customers eligible for an income bond, encashable after a 15year period.
ANNEXURE
Name:
Address:
[77]
Gender:
Male
Yearly Income:
1-3 Lac
Female
3-6 Lac
6 Lac+
Currently, do you have any Maruti Vehicle?

Yes
No
If Yes, then which Car________.
How many Maruti Cars you have?

1
2
More Than 3
How many years have you been owning your current car?
0-3 yrs
3-5 yrs
Above 5 yrs
Does the Brand Name Influence you?

Yes
No
What is your main preference while buying a Car?

Price
Performance
Insurance facility
Warranty
Others
Appearance
Mode of Payment
Which price range Car does you more prefer?

<4 Lac
4-6 Lac
>6 Lac
Do you agree huge advertisement influences the changing market scenario?

Agree
Disagree
Does your Family size influence your choice of Car?

Yes
No
Which mode of payment will you choose while purchasing Car?

Hard Cash
Cheque
Finance By Bank
Which colour of Maruti Car will you prefer?

Black
White
Grey
Others
Red
Not considering the problem of financing; which car will you prefer depending on the
cost of maintenance, performance and other aspects?
[78]
Kizashi
Others
SX4
Grand Vitara
What is your opinion about the Maintenance Cost of Car?

Low Cost
High Cost
High But Affordable
Is the number of Maruti Car Stations enough in your City?

Yes
No
Do you have any main problem area in your Car?

Yes
No
If Yes, then what_______.
Are you satisfied with the Maruti Replacement Warranty?

Yes
No
Are you satisfied with ethical sales standard of your Maruti Dealer?
Yes
No
Do you recommend the Maruti Vehicle to your Friends and Relatives?

Yes
No
Are you satisfied with Maruti Services?

Yes
No
Please give the Star Ratings to the Maruti?

*Poor
**Average
****Very Good
***Good
*****Outstanding
BIBLIOGRAPHY
Reference Books, Journals, Newspaper, Web Sites, Reports, etc are to be listed, out here
BOOKS:
[79]
Kotler Philips, Marketing Management - Analysis, Planning, Implementation & Control, Prentice
Hall of India Ltd., New Delhi, 1998
V S RAMASWAMY and S NAMAKUMARI, Marketing Management - Planning,
Implementation & Control, Macmillan India Ltd., New Delhi, 2004.
Mehta, Subhash C., Indian Consumers Studies and Cases for Marketing Decisions, Tata
McGraw-Hill, New Delhi, 1974.
MAGAZINES & NEWSPAPERS:

Auto World
Over Drive
Business Today
Auto India
The Times OF India
The Economic Times
WEB SEARCH:
www.marutisuzuki.com
www.marutiudyog.com
www.carwale.com
www.wikipedia.com
www.google.com
www.scribd.com
[80]

Marketing Strategies of Maruti Suzuki Cars

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A

SUMMER TRAINING PROJECT REPORT

GOVERMENT COLLEGE OF ENG.&TECH., BIKANER

Master of Business Administration

Submitted to:Mamata pareek

Submitted by:Manish bhatiwal

Karni Industrial Bikaner, Pugal Road, Bikaner 334004

CERTIFICATE FROM GUIDE

(Signature of the Guidance)

To excel in any field practical training is an integral part to imply theoretical

Certificate from Guide

PROJECT PROFILE & RESEARCH

FACTS & FINDINGS AND DATA

CONCLUSIONS & SUGGESTIONS

India is being recognized as potential emerging auto market.

FACTS & FIGURES

AUTOMOTIVE INDUSTRY IN INDIA

INDIAN AUTOMOBILE INDUSTRY ESTIMATION

CARS BY PRICE RANGE:

Maruti 800, Alto, Omni

Chevrolet Optra Magnum, Tavera, Aveo

Ford Mondeo, Endeavour

Rs. 3-5 Lakhs

Rs. 5-10 Lakhs

Rs. 10-30 Lakhs

Toyota Corolla Altis

Audi A6, A8 & TT, Q5, A7, Q7, RS5

Ferrari 599 GTB Fiorano, FF

Rs. 30-100 Lakhs

INTRODUCTION TO THE COMPANY:

The Companys Mission:

The Companys Vision:

Internationally competitive Company in terms of our products and services.

The Companys Core Value:

Their focus is on:

Building a continuously improving organization adaptable to quick changes.

Modernization of the Indian Automobile Industry.

Production of fuel-efficient vehicles to conserve scarce resources.

Production of large number of motor vehicles, which was necessary

SERVICES OFFERED BY MARUTI SUZUKI

MARUTI N2N FLEET MANAGEMENT

MARUTI GENUINE ACCESSORIES

MARUTI DRIVING SCHOOL

Declared Business Standard Company of the Year 2011

Maruti Suzuki manufactures 10 lakh units in 2009-10

Maruti Suzuki Swift becomes fastest to reach 3-lakh milestone.

UGS Asia Pacific PLM Excellence Award Grand Prize.

Number one in JD Power SSI for the second consecutive year,

Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in Sales

Maruti bags JD Power CSI - 1st rank; unique achievement by market

MSM launched as model workshop in India; achieves highest CSI rating.

CII's Business Excellence Award

Maruti wins INSSAN award for "Excellence in Suggestion Scheme",

Engineering Exports Promotion Council's award for export performance

Best Canteen award among Haryana Industries as part of employee welfare

Engineering Exports Promotion Council's award for export performance

Engineering Exports Promotion Council's award for export performance

Mr. R.C. Bhargava, Chairman

Mr. Shinzo Nakanishi, Managing Director and CEO

Mr. Manvinder Singh Banga, Director

Mr. Amal Ganguli, Director

Mr. D.S. Brar, Director

Mr. Keiichi Asai, Director & MEO(Engineering)