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A study on strategy followed by Maruti Suzuki to maintain Customer Relationship Management

COMPANY PROFILE OF MARUTI SUZUKI

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800,based on the Suzuki Alto key car which at the time was the only modern car available in India, its' only competitors- the Hindustan Ambassador and Premier Padding were both around 25 years out of date at that point. Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. Through 2004, Maruti has produced over 5 Million vehicles. Maruti are sold in India and various several other countries, depending upon export orders. Cars similar to Maruti (but not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries. Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi. During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. Maruti Suzuki offers 13 models, Maruti 800, Omni, Alto, Versa, Ritz, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara. Swift, Swift dzire, A star and SX4 are manufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit (CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant. Sales figure in the year 1993 has reached up to 1, 96,820. Maruti comes in a variety of models in the 800 segment. Its cars operate on Japanese technology, flexible to Indian conditions and Indian car users. By the year 1998-99, the company has modernize the existing facilities and expand its capacity by 1, 00,000 units. Maruti Suzuki's revenue has grown consistently over the years. In 2003-04, it recorded net sales of Rs 93,456 million that rose to Rs 109,108 million in 2004-05. In 2005-06 net sales touched Rs 120,034 million and further rose to Rs 145,922 million in 2006-07. In 2007-08 Maruti Suzuki's net sales was Rs 178,603 million, rising further to Rs 203, 583 million in 2008 -09. During the last fiscal (2009-10), the company posted a revenue of Rs 301,197 million.

Maruti Suzuki Q1 2010 -11 Financial Results New Delhi, July 24, 2010 The Board of Directors of Maruti

Suzuki India Limited approved the financial results for the first quarter of 2010-11 (April-June 2010) The Company registered Net Sales of Rs 80,507 million during the first quarter of 2010-11, a growth of 27 percent compared to the same period of the previous year. Net Profit during the quarter was Rs 4,654 million, against Rs 5,835 million during the same period of the last fiscal year. During the quarter the Company further strengthened its network. The sales network grew to 828 outlets covering 577 cities (end Mar'10: 802 outlets, 555 cities). The service network increased to 2,771 service outlets covering 1,342 cities. (end Mar'10: 2,740 outlets, 1,335 cities).

http://www.marutisuzuki.com/Maruti-Suzuki-Q1-2010-11-Financial-Results.aspx [Accessed on 23 July 25, 2010].

CUSTOMER RELATIONSHIP MANAGEMENT

In todays global market Customer relationship management (CRM) is one of the important strategy to gain the relation between consumer and organisation. Customer relationship management will leads to the enhancement of popularity of the organization in the global market. In todays market many of the organisations are implementing this customer relationship management because customer is the centre point at every business. From the past records organisation came to single opinion i.e. which organisation has good relation with it customer will survive for long period in the market.

Customer relationship management has been defined as a business approach that integrates people process and technology to maximize relationships with all customers through the seamless coordination between all customer facing functions. Customer relationship management is the development and maintenance of mutually beneficial long term relationship with strategically significant customers. Customer relationship management is broadly recognized widely implemented strategy for managing and development a companys interaction with customers clients and sales products. Customer relationship management is an information industry term for methodology, software and usually internet capabilities that help an enterprise manage customer relationships in an organized way. An enterprise might build a database about its customers that described relationships in sufficient details so that management salespeople people providing service, and perhaps the customer directly could access

information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth. Customer relationship management consists of the processes a company uses to track and organize its contacts with its current and prospective customers. Customer relationship management software is used to support these processes; information about customers and customer interactions can be entered, stored and accessed by employees in different company departments. Typical customer relation management goals are to improve services provided to customers, and to use customer contact information for targeted marketing.

Butler, 2000

The perception of the value need of relationship marketing as well as its importance in business.CRM is an approach to better faster and more effective organizing of any business interactions their customer s base on a customer foundation. The long term relationships with customers provide multiple benefits to businesses is rightly considered to be more profitability than the acquiring of new ones.

Research Background This research paper is focused strategy fallowed by M/s Maruti Suzuki to maintain customer relationship. In this research paper we will go through the different methods implemented by Maruti Suzuki to gain relation with a customer. In todays global market relationship management had gained a lot of importance in every business. The customer relationship is not confined with service industry, now a days manufacturing industries too fallowing good relationship with their customers. The customer relationship management is applied by most of organizations because customer is the king in every business and he is the centre point to provide the revenue to a organization. Customer relationship management is a transparent wall between the customer and organization. Customer relationship will be measured based on the loyalty presenting by customer. So now going to discuss about the strategy fallowed by Sainsbury to maintain customer relationship.

[Accessed on 23 July 25, 2010]. Customer Relationship management Butler, 2000

What are CRM systems? (Concerned with developing an understanding of the interviewees view of CRM)

How are they introduced into organisations? (Aimed at exploring how CRM systems are selected and implemented) What are the implications of CRM system adoption? (Examines the multiple effects and perspectives of the implementation of CRM systems) What are the differing viewpoint of CRM systems? (Aims to develop understanding of the consequences of a unitary perspective of CRM system Projects) The data was collected using a number of techniques including formal and informal interviews with users And managers of CRM projects, review of CRM software whilst operating in organisations and literature Such as strategy documents. Table 1 details the interviewees by case.