Maruti ktl (2)


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Maruti ktl (2)

  3. 3. DECLARATIONI, VINAY KUMAR, student of S.S.A.I.M. KANPUR, Batch 2009-2011 RollNo.0956870009, Hereby declares that this project work entitled “Total Product Controland Marketing Analysis” is the out come of my own research and prepared by me and thesame has not been submitted to any other university or institute for the award of anydegree or diploma.Place: [VINAY KUMAR ]Date 3
  4. 4. PREFACE This study has been conducted to know about the Total Product Control andMarketing Analysis in Rohilkhand region. To make the result as accurate and comprehensive as possible, the study coveredvarious aspects of the various branch experiences, like the sales process, after salesservice, product quality, product performance and design, cost of ownership and brandimage, while ranking the contenders. Most researchers assume that the batter productperforms the more satisfied to owner would be. Whoever that is not always the case.Satisfaction also depends on which thing of the product performing well. Demandacceleration is an example of the first type of performance, where there is a direct linkbetween return after certain period of time. Marketing plays a very important role in the success of any organization, throughwe can do sales promotion, and this helps us in the formulation of strategies according tothe current scenario. This is the only thing which helps us to maintain our existence in themarket. Now a day’s market very uncertain it changes with the change in time so farmaintaining our grip we have to get ready to face any challenge of the market, like whatever change has been occurred in the demand of the consumers. The company has to getready to face these rapid changes. in my report I have tried to touch all the importantpoints relevant to the project. I hope those who will go through it will appreciate thereport. 4
  6. 6. OBJECTIVE OF THE STUDYThe main objective of this project report is to find out the various reasons for fall indemand of the brand Maruti and also at the same time To make the right estimation of thedemand of the products of Maruti Suzuki .. • TO FIND OUT THE REASONS FOR FALL IN DEMAND AND CONSUMPTION. • TO FIND OUT THE CUSTOMER PREFERENCE. • TO ANALYSE THE PERCEPTION OF THE RESPONDENTS TOWARDS THE PRODUCTS OF MARUTI SUZUKI. • TO ANALYSIS THE PERFORMANCE OF SALES TEAM. • TO ANALYSIS THE COMPETITIVE STRENGTH OF MARUTI SUZUKI WITH COMPARE FORD, TATA, AND HYUNDAI ETC. 6
  7. 7. NEED OF THE STUDYConducting a study has important reasons behind it or it turns towards manyquestions like, objective of the study, purpose of the study. After getting theanswers of above questions, one thing which comes in mind is that surveyanalysis is one of the most effective ways to know about the real marketstanding of a product.Even though the international car industry is expanding day by day, themaximum market share is still in the hands of many automobil companiesnamely maruti Suzuki .Tata, Mahendra ,Honda, Hyundai etc.companies to gather data for knowing the consumer preferences, theirprospective market share etc. here lies the real need of the comparative marketstudy.The other aspect which can be covered by survey analysis is that the customersget the opportunity to express their individual opinion about particulars vehicleits deficiencies, reliability etc.Verification of visicoolers can be done by company’s persons also but there isless possibility for getting right information regarding its existence, workingcondition, specially maruti products is present inside the visicooler or not. If itis so then till what extent.Paintings are up to the mark or not to identity the appropriate spots & theplaces for paintings & their effect on customers.So such a survey, conducted by the management student is not only beneficialfor the companies, dealers or customers, but also helps to get a practicalexperience. 7
  8. 8. ACKNOWLEDGEMENTThe goal was fixed, moves were calculated and we moved with full enthusiasm, vigorand keen interest.There was a time when it proved to be on up hill task, the goal seemingbeyond our reach. But as worked progressed our determination and will power grewstronger and completion of this work further confined our belief that, “where there is awill there is a way. It’s a sheer pleasure for us to state with candidly that this entireproject is a heartily attempt to reach maximum accuracy. I highly express our sincerethanks to ASHISH KUMAR who helped us throughout the project. Last but not least I would like to pleasure a word of appreciation to our family andfriends who supported and helped us to make this project a success. 8
  9. 9. MARKET VIEWSMaruti Suzuki India Limited (MSIL, formerly Maruti Udyog Limited), a subsidiary ofSuzuki Motor Corporation of Japan, is Indias largest passenger car company, accountingfor over 50 per cent of the domestic car market. More than half the number of cars sold inIndia wears a Maruti Suzuki badge.We offer full range of cars- from entry level Maruti800 & Alto to stylish hatchback A star, Swift, Wagon R, Estillo and sedans DZire, SX4and Sports Utility vehicle Grand Vitara.Our turnover for the fiscal 2008-09 stood at Rs.203,583 Million & Profit After Tax at Rs. 12,187 Million.Product quality, safety and costconsciousness are embedded into our manufacturing process, which we have inheritedfrom our parent company.Right from inception, Maruti brought to India, a very simpleyet powerful Japanese philosophy smaller, fewer, lighter, shorter and neaterFrom the Japanese work culture we imbibed simple practices like an open office, acommon uniform and common canteen for everyone from the Managing Director to theworkman, daily morning exercise, and quality circle teams.Maruti Suzuki exports entry-level models across the globe to over 100 countries and the focus has been to identifynew markets. Some important markets include Latin America, Africa and South EastAsia.Interestingly with a brand new offering A-star, Maruti Suzuki is ready to take onEuropean markets.Maruti Suzuki sold 53,024 units during 2007-08. This is the highestever export volume in a year for the company, and marked a growth of 35 per cent overthe previous year. Be it a motorsport enthusiast, an amateur or a professional, MarutiSuzuki offers the thrill and joy of motorsport to all of them. what makes the MarutiSuzuki motorsport calendar an attraction in India (and internationally too) are Maruti-Suzuki Raid-de-Himalaya, Maruti Suzuki Rally Desert Storm and Maruti SuzukiMonsoon Car Rally of Kerala 9
  10. 10. AUTOMOBILE INDUSTRYIndian automobile industry has grown leaps and bounds since 1898, a time when a carhad touched the Indian streets for the first time. At present it holds a promising tenthposition in the entire world with being # 2 in two wheelers and # 4 in commercialvehicles. Withstanding a growth rate of 18% per annum and an annual production ofmore than 2 million units, it may not be an exaggeration to say that this industry in thecoming years will soon touch a figure of 10 million units per year.Reasons of GrowthEconomic liberalization, increase in per capita income, various tax relief policies, easyaccessibility of finance, launch of new models and exciting discount offers made bydealers all together have resulted in to a stupendous growth of India automobileindustry.MARKET SHAREAutomobile industry of India can be broadly classified under passenger vehicles,commercial vehicles, three wheelers and two wheelers, with two wheelers having amaximum market share of more than 75%. Automobile companies of India, Korea,Europe and Japan have a significant hold on the Indian market share. Tata Motorsproduces maximum numbers of mid and large size commercial vehicles, holding morethat 60% of the market share. Motorcycles top the charts of two wheelers with HeroHonda being the key player. Bajaj by far is the number one manufacturer of threewheelers in India.Passenger vehicle section is majorly ruled by the car manufacturerscapturing over 82% of the total market share. Maruti since long has been the biggest carmanufacturer and holds more that 50% of the entire market. Global recession has impacted, the Indian automobile industry also and can beseen clearly in the sales figures of the last financial year. Even then this industry has highhopes in 2009-2010, as banks have reduced loan interest rates and the major chuck ofautomobile customers belong to the middle income group who are becomingeconomically stronger with every passing day.The first automobile in India rolled in 1897in Bombay.India is being recognized as potential emerging auto market.Foreign playersare adding to their investments in Indian auto industry.Within two-wheelers, motorcyclescontribute 80% of the segment size.2/3rd of auto component production is consumeddirectly by OEMs.India is the largest three-wheeler market in the world.India is thelargest two-wheeler manufacturer in the world.India is the second largest tractormanufacturer in the world.India is the fifth largest commercial vehicle manufacturer inthe world.The number one global motorcycle manufacturer is in India.India is the fourthlargest car market in Asia - recently crossed the 1 million mark. Among the two-wheeler segment, motorcycles have major share in themarket. Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46%share in scooter and TVS makes 82% of the mopeds in the country.40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market share.Among the passenger transport, Bajaj is the leader by making 68% of the three-wheelers.Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in 10
  11. 11. passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehiclesMahindra holds 42% share.In commercial vehicle, Tata Motors dominates the market with more than 60% share.Tata Motors is also the worlds fifth largest medium & heavy commercial vehiclemanufacturerMISCELLANEOUS. – Hyderabad, the Hi-Tech City, is going to come up with the first automobile mallof the country by the second half of 2008. It would be set up by city-based PrajayEngineers Syndicate in area of more than 35 acres. This Autopolis would have facilitiesfor automobile financing institutions and insurance services to create a complete range ofservices required for both auto companies and customers. It will also have a multi-purpose convention centre for auto fairs and product launches. 11
  12. 12. COMPANY PROFILEMaruti Udyog Ltd. (MUL) is the first automobile company in the world to be honouredwith an ISO 9000:2000 certificate. The company has a joint venture with Suzuki MotorCorporation of Japan. It is said that the company takes only 14 hours to make a car. Fewof the popular models of MUL are Alto, Baleno, Swift, Wagon-R and Zen. Maruti Udyog Limited (MUL), established in 1981, had a prime objective to meetthe growing demand of a personal mode of transport, which is caused due to lack ofefficient public transport system. The incorporation of the company was through an Actof Parliament. Suzuki Motor Company of Japan was chosen from seven other prospectivepartners worldwide. Suzuki was due not only to its undisputed leadership in small carsbut also to commitments to actively bring to MUL contemporary technology andJapanese management practices (that had catapulted Japan over USA to the status of thetop auto manufacturing country in the world). at Maruti Udyog Ltd. A license and a Joint Venture agreement were signed between Government ofIndia and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct1982.The objectives of MUL, then are as cited below: • 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. In 2001, MUL became one of the first automobile companies, globally, to behonoured with an ISO 9000:2000 certificate. The production/ R&D is spread across 297acres with 3 fully-integrated production facilities. The MUL plant has already rolled out4.3 million vehicles. The fact says that, on an average two vehicles roll out of the factoryin every single minute. The company takes approximately 14 hours to make a car. N[edit]at only this, with range of 11 models in 50 variants, Maruti Suzuki fits every car-buyersbudget and any dream. Maruti Suzuki is one of Indias leading automobile manufacturers and the marketleader 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 thecompany in June 2003. As of May 10, 2007, Govt. of India sold its complete share Indianfinancial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though theactual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto keicar which at the time was the only modern car available in India, its only competitors- 12
  13. 13. the Hindustan Ambassador and Premier Padmini were both around 25 years out of date atthat point. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are soldin India and various several other countries, depending upon export orders. Cars similarto Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki and manufacturedin Pakistan and other South Asian countries. The company annually exports more than 50,000 cars and has an extremely largedomestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, wasthe Indias largest selling compact car ever since it was launched in 1983. More than amillion units of this car have been sold worldwide so far. Currently, Maruti Alto tops thesales charts and Maruti Swift is the largest selling in A2 segment. Due to the large number of Maruti 800s sold in the Indian market, the term"Maruti" is commonly used to refer to this compact car model. Till recently the term"Maruti", in popular Indian culture, was associated to the Maruti 800 model. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan,has been the leader of the Indian car market for over two decades.It’s manufacturingfacilities are located at two facilities Gurgaon and Manesar south of New Delhi. Maruti’sGurgaon facility has an installed capacity of 350,000 units per annum. The Manesarfacilities, launched in February 2007 comprise a vehicle assembly plant with a capacityof 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000engines and transmissions. Manesar and Gurgaon facilities have a combined capability toproduce over 700,000 units annually.More than half the cars sold in India are Maruti cars. The company is a subsidiary ofSuzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is ownedby the public and financial institutions. It is listed on the Bombay Stock Exchange andNational Stock Exchange in India.During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all,over six million Maruti cars are on Indian roads since the first car was rolled out onDecember 14, 1983. Maruti Suzuki offers 12 models, Maruti 800, Omni, Alto, Versa, Gypsy, A Star,Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, Grand Vitara. Swift, Swift dzire, A starand SX4 are maufactured in Manesar, Grand Vitara is imported from Japan as acompletely built unit (CBU), remaining all models are manufactured in Maruti SuzukisGurgaon Plant. Suzuki Motor Corporation, the parent company, is a global leader in mini andcompact cars for three decades. Suzuki’s technical superiority lies in its ability to packpower and performance into a compact, lightweight engine that is clean and fuel efficient. Maruti is clearly an “employer of choice” for automotive engineers and youngmanagers from across the country. Nearly 75,000 people are employed directly by Marutiand its partners. The company vouches for customer satisfaction. For its sincere efforts it has beenrated (by customers)first in customer satisfaction among all car makers in India for nineyears in a row in annual survey by J D Power Asia Pacific. 13
  14. 14. Maruti Suzuki was born as a government company, with Suzuki as a minorpartner to make a peoples car for middle class India. Over the years, the product rangehas widened, ownership has changed hands and the customer has evolved. What remainsunchanged, then and now, is Maruti’s mission to motorise India.QUICK FACTS Year of Establishment February 1981 Vision "The Leader in The Indian Automobile Industry, Creating Customer Delight and Shareholders Wealth; A pride of India." Industry Automotive - Four Wheelers Listings & its codes BSE - Code: 532500 NSE - Code: MARUTI Bloomberg: MUL@IN Reuter: MRTI.BO Joint Venture With Suzuki Motor Company, now Suzuki Motor Corporation, of Japan in October 1982. Registered & Corporate Office 11th Floor, Jeevan Prakash 25, Kasturba Gandhi Marg New Delhi - 110001, India Tel.: +(91)-(11)-23316831 (10 lines) Fax: +(91)-(11)-23318754, 23713575 Telex: 031-65029 MUL IN Works Palam Gurgaon Road Gurgaon -122015 Haryana, India Tel.: +(91)-(124)-2340341-5, 2341341-5 Website 14
  15. 15. MILESTONES1981 • Maruti Udyog Ltd. was incorporated.1982 • Steped into a JV with SMC of Japan.1983 • Maruti 800, a 796 cc hatchback, Indias first affordable car was produced.1984 • Installed capacity reached 40,000 units. Omni, a 796 cc MUV was in production.1985 • Launch of Maruti Gypsy (970cc, 4WD off-road vehicle).1986 • Produced 100,000 vehicles (cumulative production).1987 • Exported first lot of 500 cars to Hungary.1988 • Installed capacity increased to 100,000 units.1992 • SMC increases its stake to 50 per cent.1994 • Produced the 1 millionth vehicle since the commencement of production.1995 • Second plant launched, the installed capacity reached 200,000 units.1996 • Launch of 24-hour emergency on-road vehicle service.1997 • Produced the 2 millionth vehicle since the commencement of production.1998 • Launch of website as part of CRM initiatives.1999 • Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives.2000 • IDTR (Institute of Driving Training and Research) launched jointly with Delhi government to promote safe driving habits.2001 • Launch of customer information centers in Hyderabad, Bangalore, and Chennai.2002 • SMC increases its stake to 54.2 per cent. • Launch of Maruti Finance with 10 finance companies in Mumbai. • Start of Maruti True value in Mumbai.2003 • Production of 4 millionth vehicle. • Listed on BSE and NSE after a public issue oversubscribed 10 times. 15
  16. 16. 2004 • Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago. 2005 • The fiftieth lakh car rolls out in April, 2005.Cars by Price RangeUnder Rs. 3 Lakhs • Maruti 800, Maruti Alto, Omni • Reva • Tata NanoRs. 3-5 Lakhs • Ambassador • Chevrolet Aveo U-VA, Chevrolet Spark, Chevrolet Opel Corsa • Fiat Palio, Fiesta, Ford Icon • Hyundai Santro, Hyundai i10, Hyundai Getz Maruti Wagon R, Maruti A-star ,Maruti Eco, .Maruti Versa, Maruti Esteem, Maruti Gypsy, Maruti Suzuki A-Star, Maruti Suzuki Zen Estilo, Maruti Suzuki Swift, Maruti Suzuki Ritz New, Mahindra Logan • Indigo XL, Indigo Marina Tata Indica, Toyota Qualis, Tata Indigo CSRs. 5-10Lakhs • Chevrolet Swing, Chevrolet Aveo, Chevrolet Tavera, Chevrolet Optra Magnum • Fiat Linea, Fiat Adventure, Fiat Grande Punto, Ford Fusion • Hyundai Accent, Hyundai Elantra, Hyundai i20, Hyundai Verna, Hyundai Sonata Embera, Honda City ZX, Honda Jazz New • Maruti Baleno, Maruti Suzuki Sx4, Maruti Suzuki Swift Dzire, Mahindra Scorpio, Mitsubishi Lancer, Mitsubishi Cedia, Mahindra Bolero • Toyota Innova, Tata Sumo Victa, Tata Sumo Grande, Tata Safari Skoda Fabia10-15 Lakhs • Chevrolet ForesterFord Mondeo & 16
  17. 17. Ford Endeavour, Ford Focus • Honda Civic • Skoda Octavia & Combi • Toyota Corolla, Toyota Corolla Altis Volkswagen JettaRs. 15-30 Lakhs • Audi A4 • Chevrolet Captiva • Honda CR-V, Honda CRV 2008, Honda Civic Hybrid, Honda Accord, Hyundai Santa Fe New • Maruti Suzuki Grand Vitara, Mitsubishi Pajero, Mercedes C Class • New Skoda Superb New • Opel Vectra • Skoda Laura • Toyota Camry, Ford Endeavour Thunder Plus, Terracan & Tucson, Toyota Fortuner New 30-90Volkswgen Passat , Volkswagen JettaRs. 30-45Lakhs • Audi A6, A8 & Audi TT, AUDI Q7 • BMW X5, 5 Series & 7 Series • Mitsubishi Montero, Mercedes Benz S-Class, Mercedes E Class, S Class, SLK, SL & CLS-Class • Porsche Boxster, Cayenne, 911 Carrera & Cayman S • Toyota Prado • Volvo Xc90, Volvo S80Above Rs. 1 Crore • Bentley Arnage, Bentley Continental GT & Flying Spur, • Maybach Rolls Royce PhantomThe segregation is made on Ex-Showroom price of base models.The following links will give you the complete picture of Indian Auto Industry:Industry Growth The passenger car and motorcycle segment in Indian auto market is growing by 8-9 per cent. The two-wheeler segment 17
  18. 18. will clock 38.5% rise by 2009. Commercial vehicle to grow by 5.2 per cent.Vehicle Production India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks. Maruti Udyog Ltd. is the leading 4-wheelers manufacturer. Hero Honda is the leading 2-wheelers manufacturer. PRODUCTSCurrent sales of automobileand models  Maruti 800: Launched - 1983  Maruti Omni: Launched - 1984  Maruti Gypsy: Launched - 1985  Maruti Alto: Launched - 2000 18
  19. 19.  Maruti Wagon-R: Launched - 2002  Maruti Versa: Launched - 2003  Maruti Grand Vitara Launched - 2004  Maruti Suzuki Swift: Launched - 2005  Maruti Suzuki SX4: Launched - 2007  Maruti Swift Dzire: Launched - 2008  Maruti Suzuki A-STAR: Launched - 2008  Maruti Suzuki Ritz: Launched - 2009  Maruti Suzuki Estilo: Launched – 2009  Maruti Suzuki Eco : Launched – 2010  Maruti Wagon-R ,Alto BS 4: Launched - 2010  Maruti EEco Launched- 2010 RITZMMMM 19
  20. 20. DescriptionEconomy :Great technology enables the Maruti 800 to deliver great fuel efficiency. The Maruti 800has topped every fuel efficiency survey that has been conducted in the past. The Maruti800 has the lowest fuel cost per kilometer of any petrol car in the country with a cost ofRs 1.94 per kilometer.This confirms the position of the Maruti 800 as the most fuel efficient petrol car in thecountryManoeuvrability :The Maruti 800 can take you where you want to go. Slim dimensions and a tight turningradius of just 4.4 metres guarantee amazing manoeuvrability. This makes it easy to run incrowded city streets and to park in small places.Safer Drive :The Maruti 800 comes packed with safety features. Side Impact beams, LaminatedWindshield and additional body reinforcements make it a very safe car to drive. Theaddition of new safety features -collapsible steering columns and a high mount stop lampmake it even saferCool Drive :The Maruti 800 AC is the most affordable air-conditioned car available in the markettoday. This Maruti 800 AC makes the comfort of an air-conditioned car available at anunbeatable price 20
  21. 21. DescriptionDesign:The Omni is truly India’s original multipurpose vehicle. Today it is available in 6 avatars– 5 Seater, 8 Seater, Cargo, Ambulance, CNG and LPG. It meets diverse needs acrossdifferent 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.Advantages: • MPFI EngineThe multi-point fuel injected engine helps to lower emissions and achieve greater fuelefficiency. With 35 bhp @ 5000 rpm, you have greater pulling power. A torque of 6.1kgm @ 3000 rpm ensures better climbing power and lesser gear changes. In other words,less fatigue. The MPFI engine also meets all the BHARAT III emission norms.SafteyThe Omni comes equipped with safety features like front safety rod, side impact doorbeams, thermoplastic bumpers, booster assisted disc brakes, ELR type front and rear seatbelts and laminated windshield to give you absolute peace of mind.The protective reinforced safety bar is placed in the center of the front panel of thevehicle. Together with a laminated windshield, this protects passengers from seriousinjury in the event of a frontal collision.ManeuverabilityWith a tight turning radius of 4.1 m, the Omni is the perfect city vehicle. Navigatingthrough congested lanes and heavy traffic, parking in narrow slots and negotiating sharpturns is childs play when you are behind the wheel of an Omni.Space Stretch out. Open up. Enjoy the luxury of space inside the Omni. The ample headroomand legroom make long rides comfortable and enjoyable. Reclining front seats withadjustable head restraints let you relax completely.With it sample luggage space, the Omni is equipped for anything. Pack in your family, your group offriends, your luggage, your golfing gear, your picnic hamper…all can fit in snugly.StylingInterior 21
  22. 22. The reclining and sliding front seats minimize fatigue and makes for better spacemanagement.Comfortable seats and ample legroom and headroom ensures a pleasant journey,even if you are going for a long drive.The new Omni sports a smart & stylish dashboard and an elegant two-toneUpholstery for a whole new experienceExteriorThe clean straight lines flowing from front to the back along with its side bodygraphics defines character of the Omni.Its powerful clear-lens headlamps and back bumpers with rear tail light clusterand built-in reversible lamps warn other vehicles while reversing.Sleek sliding doo 22
  23. 23. DescriptionDesign:Macho lines. Sensuous curves. Dynamic looks. Aggressive stance.The Alto is all of thisand more. It is beauty in motion, a harmonious mix of form and function that transcendsbarriers of geography, language and culture.The Alto is universal in its appeal confident,trendy and dynamic, the Alto turns heads in India and Europe alike.In short, it demands to be driven.Safety:The Alto comes packed with a host of active and passive safety features. Multiplecrumple zones ensure your safety in case of frontal or side collisions. The body of the cartakes maximum impact so that you and your family are safe.The interior of the Alto is equipped with pre-emptive safety measures- like a steeringwheel that collapses on impact (driver safety), front and rear ELR seat belts (passengersafety) and auto child lock (child safety).Mileage:Plenty of power, great mileage and low emission make the Alto the perfect choice forIndian roads. The fuel efficiency of the Alto is better than any other vehicles in its class.The 16x4 hypertech MPFI engine delivers unadulterated power, begging for fun. The 4-valves per cylinder MPFI engine mated with a 5-speed gearshift and a 16-bit on-boardcomputer allows the Alto to effectively combine power with optimal fuel efficiency. 23
  24. 24. Comfort:Supercool AC:43 degrees Celsius in the shade? Not to worry. Just turn on the Supercool AC inside yourAlto and zoom off. The Alto boasts the most powerful and effective air-conditioningsystem in its segment that keeps you cool and comfortable during the hottest summers.And a heater that makes you feel warm and cosy in the coldest winters.Suspension and Ride:It hugs a corner like it is on rails. Through winding avenues or rough terrain the Altogives you definite smoothness and control. Gas filled shock absorbers, McPherson strutsand suspension calibration, ensure you are always the master on any road.. 24
  25. 25. Performance:The 1061cc MPFI low friction engine delivers an awesome 64bhp@6200rpm power forsmoother pick-up and faster acceleration, making it an ideal choice for the smarter race.A 16 bit on-board computer with diagnostic capability monitors engine performancecontinuously. It checks the condition of the engine as soon as you turn it on and monitorsthe air-fuel ratio for optimum fuel efficiency.The 4 valves per cylinder engine configuration gives better fuel economy than other cars.As per Autocar (May 04), WagonR gives a mileage of 14.15 Km per litre, as against 13.3Km per litre by Santro Xing.Dual Distributor-less Digital Ignition (DDLI) ensures an instant, hassle-free start everytime and a more efficient power distribution. A flat torque curve ensures quick pick-up athigher gears and lower rpm, so that you dont need to change gears often.Styling:The smarter race is more demanding. Thats why the all-new Wagon R has so many head-turning new features. Like clear lens headlamps and tail lamps, classy new grille,attractive wheel covers, rear defogger and elegant upholstery. So, whether itsperformance, comfort, safety, or style, the Wagon R is simply unmatchedComfort:The smarter race knows exactly how to take the stress out of driving and push drivingcomfort to the max. Full flat folding front seats and reclining rear seats allow you tostretch yourself during long drives. This ensures that you travel in maximum comfort ascompared to cramped seating arrangements in other cars. 25
  26. 26. The McPherson strut suspension in the front and coil springs at the rear ensures a smoothcomfortable drive. Its not just comfort, Wagon R also has a 1061cc MPFI low frictionengineSafety:Caution, safety and protection are integral to a smarter mindset. And the Wagon R isdesigned to satisfy every concern. Just check out the battery of safety features:Dual side-impact beams in the front and rear doors protect you from lateral collisions.A long crumple zone shields you in the unlikely event of a frontal collision.A Roll Control device in the front suspension imparts greater stability and helps theWagon R to negotiate sharp curves at high speeds.The 8 inch booster-assisted brakesequip you well to handle any emergency High seating position gives you a bigger field ofview, allowing you to better anticipate traffic problems before they occur 26
  27. 27. Zen EstiloDescriptionPackage:Brand Zen has always known for style, sporty looks, unmatched performance and prideof ownership. The key functional parameters considered for purchase decision areperformance, extremely trusted brand having very strong referrals and repeat purchase,while the key reservations the brand faces are ground clearance and lack of space to someextent. Of late the biggest stumbling block against the purchase turned out to be ageingproduct notwithstanding new launches & technology upgrades in other cars.The new Zen has been designed to address the concerns faced earlier andalso to further enhance the image of the car by bringing more appealing &contemporary looks, trendy colors. To say the least, more powerful and hi-tech engineExteriors:New body shell & engine (contemporary univolume styling) : A completely new producthas been developed, very contemporary in design and styling, more powerful enginecoupled with extra space and height as compared to the old Zen. Also the curvilinearprofile of the car gives very distinctive and clutter breaking feel from outsideNew body colors: Zen Estilo comes in 8 vibrant colours out of which 4 are new bodycolors to lend freshness, excitement and peppiness to the cute and appealing looks of thecar. In all 8 colors have been introduced namelyPurple Fusion, Sparkling Olive, Champagne Beige, Virgin Blue, Bright Red, BrilliantYellow, Pearl Silver and Midnight Black 27
  28. 28. The Aspirations associated with Zen Estilo :The new shape of style: Futuristic design, snazzy headlamps, stylized rear and foglamps, blackout film for extra style.The new shape of technology: 32X4 hypertech. engine, 4 valves per cylinder, electronicORVM, Electronic power steering.The new shape of luxury: Beige interiors, powerful AC, front and rear power windowsfor added comfort.The new shape of beauty: Meter cluster with 3D illumination effect, 3 spoke steeringwheel, front quarter window for panoramic view.The new shape of safety: ABS and airbag, TESS (total effective strength structure, fourheadlight leveler.The new shape of leisure: 212 ltr. Boot space, rear folded seats, side door pocket, largeglove compartment.The new shape of life: Chrome finish brake lever, sporty gear knob, can and bottleholder, 4 door speaker, sporty antenna etc. 28
  29. 29. Maruti Suzuki RITZLIVE THE MOMENT Life is just a drive towards a goal, but it’s the moments, big and small, that markthe journey to our destination, Needless to Say, the true essence lies in enjoying thesemoments, truly living them and relishing the milestones we carve our life around. TheRitz embodies this spirit – it lets you live the moment.THE MOMENT OF STYLE Experience the aerodynamic shape designed to reduce drag while liberating space.A sleek, dynamic profile which promises bliss yet packs in loads of practicality. Thestand-out tailgate design and boomerang taillights ensure outstanding road presence.The achingly chic waterfall console, classy AC louvers and retro tachopod, along withthe ergonomically Placed gearshift lever, together create a sublime driving experience.THE MOMENT OF INDULGENCE The ultra modern and sporty dashboard, dual-tone colour coordinated interiorsand plush fabric seats add to a vibrant and cheerful feel. Topped up with the digitalodometer, digital fuel meter and a large clear-to-read speedometer, gives you a car thatensures every moment spent in it is memorable.THE MOMENT OF POWER Experience the silky smooth power of the technological marvel that is the K12engine. Featuring Double overhead camshaft (DOHC), Drive – by –wire technology,Plastic Intake Manifold, offset crankshaft and Chain Drive. So whether you’re driving inthe city or burning up miles on the highway, the K12 engine does it all with acombination of class-leading fuel efficiency and whisper quiet performance. Or, if you 29
  30. 30. prefer, experience the ecstasy of one of the best engines ever made, the renowned DDiSDiesel engine.THE MOMENT OF COMFORT Height adjustable wheel a delight seats, tilt adjustable steering and shoulder-height adjustable seatbelts, ergonomically placed gearshift lever, steering mountedcontrols and the never-ending list of smart storage options like 60:40 split rear sat, under-seat tray , shopping bag hooks, coin holder, etc, all come together to make life behind the. 30
  31. 31. SWIFT DZIRE……………The Heart Car : Presenting a car that has everything you ever desired. Striking looks,luxurious interiors, all the features you’ve always wanted and enough power to captureyour heart. Just slide in the DZire and take it for a spin. It’s sure to steal many a heart,beginning with yours 31
  32. 32. SX4 – In a league of its own :It stands out from the rest of the crowd. The new Maruti Suzuki SX4 is a splendidcrossover car that provides the elegance of a saloon while offering unparalleled comfort.Its muscular and dynamic exterior styling reflects the power it keeps bridled under itshood. The tallest, the widest and the broadest in its class, the SX4 stands a head andshoulder above the competition.With imposing exteriors, luxurious interiors and a sporty driving performance, it is easilyany man’s dream car some to life. Influenced by the latest European design trends, theSX4 Sedan boasts of a trapezium form, with wide treads and large wheels to accentuatethe ‘active lifestyle’ look.The SX4’s new, contemporary and economical 1.6-litre M-Series petrol engine deliversgenerous power and torque throughout the rev range, it delivers good drivability andresponse. The suspensions, brakes, and transmissions were tuned in Europe, with furtherfine-tuning for local preferences.The SX4 is a wish come true for all those seeking style and comfort, the roundeddashboard, the high roofline, height adjustable seats, audio system controls at the steeringwheels, automatic air-conditioning system and lights around dials…The SX4 has beenthoughtfully designed to provide the best of luxuryBrand logo: A freshly designed stylized brand logo has been put on the vehicle with arelevant brand extension to enhance the style quotient and bring in a fresh perspectiveClear lens, bold headlamps, curvaceous front grille, stylized rear hatch etc. 32
  33. 33. Interiors:The new Zen comes with plush interiors. Generally its the premium A3 cars like Corolla,City etc where we find beige interiors, but we have introduced two-tone beige interior asa standard offering in the new Zen. Also, we have provided color coordinated seat fabricsacross all variants to further enhance the premium feel of the interiors. Spacious seatingand large boot space Innovative/utility features like electrically adjustable ORVM,tachometer etc. 33
  34. 34. DescriptionDistinctively styled, the third generation Grand Vitara takes three decades of Suzuki SUVheritage to the next level.The Vitara model first hit the roads in Japan in 1988 as a 3-door part-time four wheeldrive.In its second avatar, the Vitara came armed with a stylish design, superior engineeringand a new name, the Grand Vitara.In its current completely redesigned and re-engineered form, the all new Grand Vitaracontinues to excite millions across the world, bagging multiple awards and accolades.The Grand Vitara has become an instant success in India. The car has not only foundfavour with luxury seekers but is also being cherished by adventure lovers.It is the very same internationally acclaimed model that is now available in India 34
  35. 35. MARUTI TRUE VALUEplace for used Maruti Vehicles. One can buy, sell or exchange used Maruti vehicles withthe help of this service in India .True Value – Initiative to capture used car marketAnother significant development is MULs entry into the used car market in 2001,allowing customers to bring their vehicle to a Maruti True Value outlet and exchange itfor a new car, by paying the difference. They are offered loyalty discounts in return.Thishelps them retain the customer. With Maruti True Value customer has a trusted name toentrust in a highly unorganized market and where cheating is rampant and the biggestconcern in biggest driver of sale is trust. Maruti knows its strength in Indian market andhas filled this gap of providing trust in Indian used car market. Maruti has created asystem where dealers pick up used cars, recondition them, give them a fresh warranty,and sell them again. All investments for True Value are made by dealers. Maruti hasbuild up a strong network of 172 showrooms across the nation. The used car market has ahuge potential in India. The used car market in developed markets was 2-3 times as largeas the new car market.Planning to sell your car?You’ve reached the right place. Only Maruti TrueValue guarantees that you get the fullvalue for your car. We start by ensuring that you get the highest price for your carthrough our scientific and transparent evaluation process. What’s more, we will makesure that there are no post-sales hassles or obligations for you.We will do this by taking care that your car goes into the right hands by properlychecking the bona fides of the future buyer. And if that’s not enough, we will also ensurethat you get your payment fast, without commissions and without hassles.The most reliable way of buying, selling or exchanging your pre-owned carWhile buying, selling or exchanging a pre-owned car, going to the right place is allimportant, you can take your chances with the local roadside mechanic or depend foreveron friends and colleagues or gamble with classified advertisements or fix up a deal withthe small-time used car dealer. Or, you could simply choose to enjoy all the advantagesof dealing directly with Indias most trusted car company.In our endeavor to provide you Quality, Reliability, Transparency and Convenience, webring in all the experience and expertise that we have gained over the last 20 years ofleadership in India. Therefore we ensure that whenever you come to Maruti TrueValue tobuy, sell or exchange a pre-owned car, you get nothing but the full value for yourdealings, with your eyes closed. 35
  36. 36. When you buy a Maruti certified pre-owned car you pay only for the best pre-owned car,everything else along with complete peace of mind comes for free. Maruti TrueValueoffers you the widest range of quality pre-owned cars, acquired from genuine sources,refurbished with Maruti Genuine Parts and with complete service backup. Besides a solidwarranty program.Every TrueValue car is re-conditioned to Maruti Suzuki standards in state-of-the-artworkshops by trained mechanics using only genuine parts. The cars are then put througha stringent 120-point check that covers all major systems like engine, transmission,brakes, fuel system, etc. before being certified by our highly trained engineers for theirtrustworthiness. Only then is your car handed over to you. And that’s not all; every caralso comes with a solid warranty program, three free-services and a host of financeoptions to choose from. Also our no-hassle paperwork procedure that we do on yourbehalf ensures that all your transactions are quick and enjoyable.Planning to sell your car?You’ve reached the right place. Only Maruti TrueValue guarantees that you get the fullvalue for your car. We start by ensuring that you get the highest price for your carthrough our scientific and transparent evaluation process. What’s more, we will makesure that there are no post-sales hassles or obligations for you.We will do this by taking care that your car goes into the right hands by properlychecking the bona fides of the future buyer. And if that’s not enough, we will also ensurethat you get your payment fast, without commissions and withoutBuyers:1. What does Maruti Certified cars mean?Certification is assurance of quality of the car that we deliver to you. You get a MarutiSuzuki warranty upto one-year and three free services only when Maruti Suzuki engineercertifies the car. Your car has passed through a comprehensive 120-point check toascertain the Maruti Suzuki standard. The car you get is refurbished with Maruti genuineparts (MGP) and by Maruti Suzuki trained personnel at the state-of-the-art Maruti Suzukiauthorised workshops. We also verify the bona fides of the seller.2. What criteria cars are sold under TrueValue?Maruti Suzuki cars up to 10 years old and mileage up to 1,00,000 Km are sold underTrueValue.3. Is there any financing facility on the TrueValue cars?There are attractive finance options available. To find out more, you can visit the"TrueValue" outlets. 36
  37. 37. 4. How quickly can the vehicle can be transferred in my name?We complete all the formalities and submit the documents with RTO within a day or two.5. What are the documents that I get when I buy a TrueValue car?You get a certificate signed by Maruti Suzuki engineer.A warranty booklet signed by Maruti Suzuki Engineer.A certificate card.Registration transferred in your name.6. What warranty is given on TrueValue cars?TrueValue cars comes with upto 1 year Maruti Suzuki warranty based on the age andmileage of the cars and you also get 3 free services with a TrueValue car.7. Which are the parts covered in warranty?As per the warranty policy provided in the owners manual, all mechanical and electricalparts are covered except the following: All wear and tear parts, parts worn due to aging,consumables like oil, filters, spark plugs, C.B. points, fuses, bulbs, paint problems, A/Cgas leak, battery, tyres, rubber and plastic items.8. How do you ascertain that vehicle has not been involved in any third party case?We verify the bona fides of the seller and also carry out R.T.O. verifications beforebuying the car.9. What is the time period for the free services?On purchase of a Maruti Suzuki "TrueValue" pre-owned car, the owner shall be entitledto avail of three free inspection services at the workshops of any Maruti TrueValue aftersales service center. The three free services will be available at the following intervals ormileage, as the case may be. - First free inspection service: Within 45 to 60 days orrunning 1000 - 1500 km, (over and above the mileage at the time of delivery) whicheveroccurs earlier. - Second free inspection service: Within 90 to 120 days or running 5000 -5500 km, (over and above the mileage at the time of delivery) whichever occurs earlier. -Third free inspection service: Within 210 to 240 days or running 10,000 - 10,500 km,(over and above the mileage at the time of delivery) whichever occurs earlier. 37
  38. 38. Sellers:1-What is TrueValue price of my car?The TrueValue price of your car is arrived at through our transparent evaluation system,which looks in to the merits of your car, to give you the best possible price of yourMaruti Suzuki. Maruti Suzuki brings in all its experience it gained in the past 20 yrs toprovide you with the transparent and reliable evaluation system.2. Where can I get the evaluation of my car done?You can visit any of our Exclusive TrueValue outlets in your city. Our trainedprofessionals perform the evaluation of your car. The procedure would take 15-20minutes, and then the price is offered to you.3. Is there any fee or commissions charged when I get my car evaluated or sell throughTrueValue?No, the evaluation is absolutely free, also there are no commissions charged when yousell your car to TrueValue, as there are no middlemen.4. Which cars are bought under TrueValue?TrueValue buys Maruti Suzuki cars of any age and mileage, however in exchange with aBrand new Maruti Suzuki cars of any cars of all makes are accepted for purchase.5. How fast does a seller get the payments?The payments in full immediately are made once the seller bona fides are verified at theRTO.6. How do you ensure that there are no hassles in the entire process?Once you decide to sell your car to TrueValue, our professionals ensure all thedocumentation is done smoothly. We make the complete payments immediately. Weensure that your car goes in to the right hands by verification of the bona fides of thefurther buyer. Also we transfer the ownership on to the buyers name eliminating any kindof post sale hassles.Exchange:1. What is Maruti TrueValue exchange?It is the most reliable way of exchanging/upgrading your existing car with a brand new 38
  39. 39. Maruti Suzuki. You get the full value when you exchange your existing can of any makewith a brand new one. We ensure that you get the best possible price on your car. Youcan choose from attractive exchange options on our wide range of products.2. Where can I avail this exchange facility?You can avail this facility at any of the Exclusive Maruti TrueValue outlets, new carshowrooms and workshops of the TrueValue dealers.3. What is the procedure for exchanging my car for a new Maruti Suzuki?It is very simple. Our trained professionals will give the value of your car after atransparent evaluation. The value thus arrived is adjusted in the new car price you wish tobuy. The remaining amount can be financed in very easy installments (EMI) or can bepaid by cash. All other requirements like, finance, insurance, accessories are availableunder one roof. And we take care of all the documentation so you ca just drive in withyour car and drive out with a brand new Maruti Suzuki 39
  40. 40. Maruti FinanceHISTORY Maruti Finance was launched in January 2002 with an objective to increase theMaruti car sales by providing organized finance across the country and also toconsolidate the car finance market there by giving the finance partners economies ofscale and preferred financier status. In a market where more than 80% of cars arefinanced, Maruti has strategically entered into this and has successfully created a revenuestream for Maruti. This has been found to be a major driver in converting a Maruti carsale in certain cases. Finance is one of the major decision drivers in car purchaseMaruti Finance was initially formed with eight finance partners namely ICICI Bank,HDFC Bank, Maruti Countrywide (MCW), Citicorp Maruti Finance Limited (CMFL),Kotak Mahindra Primus Limited (KMPL), Sundaram Finance Ltd (SFL)), ABN AMROBank and Standard Chartered Bank.It was introduced across the country in a phased manner with the final launch in January2004 in the North I market. MF is now available in all locations across the country exceptfor a few locations in the North East..CURRENT STATUSAfter consolidation in the market ABN AMRO bank and Standard Chartered Bank hasexited the Maruti finance consortium.Currently we have Six players under MarutiFinance.OBJECTIVE The objective of Maruti finance was: To consolidate the Car finance market. To provide organized finance across the country. To provide the best transparent deal to the customer. To provide more bargaining power to the dealer. To bring additional revenue to the dealer To provide customized loan schemes to the customer based on his requirements To Providing the customer with value adds like discounted price for extendedwarranty, loan for insurance and accessories.To provide transparency in the finance deal to the end customer 40
  41. 41. BUSINESS MODELUnder the MF model each dealership is aligned with 4 different finance companies andthe customer has a flexibility to take finance from any of the finance companies presentat the dealership depending upon his choice.The business development fee paid by the finance company for sourcing the finance caseis paid to the dealer through MUL at the end of the month.A software system has been developed for the dealer to log in the finance cases. The datafor the finance cases gets collated through this IT system at MUL which is then used forpaying the sourcing fee to the dealers. There is a slab wise target incentive paid to thedealers for the finance done by the under Maruti Finance.INITIATIVES TAKENMF has taken various new initiatives like Credit Life insurance and extended warranty toadd value to the customer .This not only adds value to the customer but also providedenhanced revenue to the dealers through cross sell.CONTACT DETAILSA dedicated team of Regional Representatives at all regional offices of MUL is there toassist the dealers and to solve any problems that they might have in their MF system.Apart from that a core team at the HO is also there which takes care of the IT system andthe payouts/service fees to be paid to the dealer on a monthly basis.Maruti Finance has been one of the focus areas in your business and we are sure that ithas helped not only in enhancing your profitability but also helped in having organizedfinance at your dealerships thus making buying cars affordable and transparent.We had revised the Maruti Finance payout structure w.e.f 1st June 2005 via ourcommunication dated 26th May 2005. It was with an aim to make it more challengingand in tune to the present market volumes and finance penetration.However based on your feedback we have decided not to implement the said newstructure. Henceforth we have designed a simplified payout structure which will now beeffective 1st August 2005. Payout for business before 1st August 2005 has been paid asper old slabs. 41
  42. 42. The new structure is as follows:Part AWe shall be paying a fixed percentage of 2.80% for all the cases sourced by the Dealer inmonth M irrespective of location, penetration and the volume of the dealer. This shall bepaid as soon as the cases are matched in the system either in month (M+1) or (M+2).There shall be no fixed payout for the Direct Sourced Cases (DST) of FinanceCompanies.Part BOver and above the fixed payout, Dealers will be incentivised based on their performancein Maruti Finance. The incentive will be as per the matrix below, where weightage isgiven both to percentage penetration and the volume under Maruti Finance. Thepercentage penetration shall be based on the following formula:(No of approved Finance Cases / No of cases in RIPS for the dealer) * 100. 42
  43. 43. Maruti InsuranceAll Maruti dealers and a select group of Maruti Authorized Service Stations (MASSs)will provide the customer with near cash-less repairs in their claim settlement. Thismeans that the customer wold not have to pay to the dealer for the repair charges to theextent it is payable by Insuruance Co. Customer will just pay for the compulsory excess(fixed as per tariff according to the cubic capacity (cc) of the car) and applicabledepreciation, which varies depending on the age of the vehicle and the type of thereplaced parts. The rates at which the depreciation is charged are mentioned on the faceof the policy. Rest of the amount will be settled directly between the dealer and theInsurance Company.Insurance being a major concern of car owners. Maruti has brought all car insuranceneeds under one roof. Maruti has tied up with National Insurance Company,BajajAllianz, New India Assurance and Royal Sundaram,Icici lomoard to bring this service forits customers. From identifying the most suitable car coverage to virtually hassle-freeclaim assistance its your dealer who takes care of everything. Maruti Insurance is ahassle-free way for customers to have their cars repaired and claims processed at anyMaruti dealer workshop in India.Seamless services across nation The customer can get all the services like buying new policy, effecting renewals,endorsements and claims at any Maruti authorized dealer outlet across the dealer networkspread all over India. The services cover right from policy issuance to emergencyassistance to post accident repairs and claim settlement. Faster & Fair Claim settlement With Maruti Insurance there are no hassles likeInsurance Co. is not giving fair claim settlement. Whatever is payable by standards isadmissible by Insurance Co. This takes away a lot of hassles like Electronic parts andradiator are being treated as plastic parts, 2K paint charges are not being paid by variousInsurance cos. etc. The customer is not forced to bear the undue differential cost ofrepair/ replacement.Easy settlement of claims with no follow-ups There would not be any need of the customer’s personal involvement with thesurveyor or Insurance company, nor would the customer have to worry about salvagedisposal in the process of settlement of claims. All this will be taken care of by the dealer . 43
  44. 44. Repairs at Authorized Dealer workshopsAfter an accident, the damaged vehicles are repaired at the Authorized Dealer workshopsthat are equipped with the best facilities and infrastructure. This would lead to qualityrepairs with Maruti Genuine spare parts and trained mechanics with Maruti Insurance thecustomer need not compromise on the quality of repairs and thus health of the car, bygoing to smaller roadside workshops.Dealer Assisted towing facilityTowing assistance would be provided, for getting the vehicle to the dealer workshop, incase of accidents where the vehicle has been rendered immobile. This facility is availablefree of cost upto Rs 1500/- If the cost incurred for towing is more than Rs1500/- then theexcess amount will be borne by the customer. This can be increased should the insuredprefer so by paying extra premium at the time of policy issuance.Easy transfer of No claim bonusNo matter which Insurance company the customers’ vehicle was previously insured with,his no claim bonus earned on previous policy will be easily transferred to MarutiInsurance policy that a customer is buying at the time of renewalInstant Policy issuanceNo longer would the customer need to wait for the policy document, which sometimestakes months to get delivered from the Insurance company. With MI, the policy is issuedthrough Internet and it is instantaneous.Faster refunds and cancellations & Policy VerificationMaruti Insurance is completely driven by IT systems and thus it is possible to have afaster response time for cancellations and refunds compared to other Insurancecompanies. At the time of payment of claims also, the policy and premium creditverification is instant. This adds to both Dealer and Customer comfort.Assistance by MI Central TeamBoth the customer and the dealer are provided assistance by the Central Maruti InsuranceTeam during settlement of their disputed matters with the Insurance Companies alignedto Maruti Insurance. 44
  45. 45. COMPETITORS INFORMATIONMARUTI UDYOG LIMITED – Managing competition successfullyMaruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament,to meet the growing demand of a personal mode of transport caused by the lack of anefficient public transport system. It was established with the objectives of - modernizingthe Indian automobile industry, producing fuel efficient vehicles to conserve scarceresources and producing indigenous utility cars for the growing needs of the Indianpopulation. A license and a Joint Venture agreement were signed with the Suzuki MotorCompany of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreedto provide the latest technology as well as Japanese management practices. Suzuki waspreferred for the joint venture because of its track record in manufacturing and sellingsmall cars all over the world. There was an option in the agreement to raise Suzuki’sequity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki furtherincreased its equity to 50% turning Maruti into a non-government organization managedon the lines of Japanese management practices.Maruti created history by going into production in a record 13 months. Maruti is thehighest volume car manufacturer in Asia, outside Japan and Korea, having produced over5 million vehicles by May 2005. Maruti is one of the most successful automobile jointventures, and has made profits every year since inception till 2000-01. In 2000-01,although Maruti generated operating profits on an income of Rs 92.5 billion, highdepreciation on new model launches resulted in a book loss.COMPETITIVE FORCES IN INDIAN PASSENGER CAR MARKETCritical Issues and Future TrendsThe critical issue facing the Indian passenger car industry is the attainment of break-evenvolumes. This is related to the quantum of investments made by the players in capacitycreation and the selling price of the car. The amount of investment in capacities bypassenger car manufacturers in turn depends on the productionThreat from the new players: Increasing· Most of the major global players are present in the Indian market; few more areexpected to enter Financial strength assumes importance as high are required for buildingcapacity and maintaining adequacy of working capital Access to distribution network isimportant. Lower tariffs in post WTO may expose Indian companies to threat of imports. 45
  46. 46. Rivalry within the industry: High· There is keen competition in select segments. (compact and mid size segments).· New multinational players may enter the market.Market strength of suppliers: LowA large number of automotive components suppliers.Automotive players are rationalizing their vendor base to achieve consistency in quality.Market strength of consumers: Increasing· Increased awareness among consumers has increased expectations. Thus the abilityto innovate is critical.Product differentiation via new features, improved performance andafter-sales support is critical. General Motors (GM) India has allayed fears of any impact of its parent GeneralMotor‘s ill-health on its operations. At the same time, industry officials cautioned thatthere is a possibility that payments due to Indian auto component manufacturers may getstuck if the US-based company files for Chapter 11 of the United States BankruptcyCode. At a time when the parent company is likely to seek protection from creditors, theIndian subsidiary is bullish about its future in the sub-continent. ―We have completed allour expansion plans and do not require fresh investments. As far as product plans areconcerned they are funded by General Motors India itself,‖ P Balendran, director andvice-president – corporate affairs said. However, he refused to divulge any informationon GM India‘s financial position. The company is learnt to have accumulated losses onits books and is probably still to make net profits, say industry experts. A top AutomotiveComponent Manufacturers Association official said if the Detroit-based auto major filesfor bankruptcy, payments of Indian component supplierswhose order have been acceptedor are en-route, might get stuck. Unless, the suppliers have taken export credit guaranteeinsurance, their losses would not be made good. Suppliers to a company generally rank asunsecured creditors and ranks last in order of priority of payment in a normal bankruptcyfiling. Usually, most creditors have to forgo some of what they are owed to allow acompany that has filed for Chapter 11 to successfully restructure itself. The US treasurydepartment had earlier approved a $5 billion package for auto parts suppliers to protecttheir credit lines. The US suppliers had requested up to $25.5 billion in emergencyfunding, saying two-thirds of some 5,000 companies face financial distress due to thedrastic cutback in production that accelerated in the early weeks of 2009, reportedReuters. It further said major suppliers, including Lear and American Axle &Manufacturing Holdings, received warnings in March from auditors about their ability tocontinue as a ―going concern,‖ while Visteon has warned it was in danger of breachingits debt covenants. DNA India Sylvain Bilaine established Renault SAs India operationsand successfully managed the companys multiple relationships here since 2004. A 25-years Renault veteran, Bilaine was instrumental in negotiating the marketing joint venturewith Mahindra & Mahindra for the Logan as also theRenault-Nissan manufacturingfacility at Chennai. He has also been the Renault representative in negotiating the UltraLow Cost (ULC) car project of the Renault, Nissan and Bajaj combine. Now that he isquitting Renault to become an entrepreneur, DNA caught up with him on his experiencesin India. Excerpts: On his stint in India I started off by studying the Indian market fromParis, making frequent visits to India and negotiating the creation of Mahindra-Renault 46
  47. 47. Ltd (MRL) in April 2004. The creation of Renault India Ltd as a 100% subsidiary wasthe next big task. My India stint has been an interesting and a learning journey... Ileave with a deep sense of satisfaction at having kick-started Renaults involvement withIndia and ensuring that our partnerships with Indian companies evolve and flourish.Getting MRL up and running was easy as we had M&M with us. But our experience withsetting up Renault Nissan Automotive India Ltd in Chennai was an eye opener in manyways -- we were amazed at the level of support we got. Most of the people that we had tointeract with were very knowledgeable and articulate. On Logan performance andwhether Mahindra-Renault needs further investments The Logan plant was set up with apeak capacity of 50,000 cars per year... something we expected to reach in 3-4 years. Itmay not have been a blockbuster, but by all accounts, did fairly well in the first 12-15months, notching up sales of more than 33,000. Of course, what hit us most was that theeconomic scenario started to deteriorate in July-August 2008 and there was nothing wecould have done to stop the slide. However, even during these tough times, the LimitedEditionLogan - Logan Edge - was a sell-out in 60 days. On the slow progress of ULC projectThe ULC project started a year ago as a dream in Carlos Ghosns eyes.He was not only convinced that such a project was absolutely feasible, but was also surethat it could be conceived and realised only in a country like India, which has enormousengineering strengths and is skilled at "frugal engineering". We have progressed fairlywell since then and are now in a position where we can see the project taking shape in thenext few months... of course, taking into account some of the re-working that is currentlybeing undertaken by the Renault-Nissan-Bajaj teams. Since this project is still in the latestages of evolution, it does not require any immediate cash injection (which I agree is inshort supply)... hence, there seems to be no real danger of it being affected by the currenteconomic scenario. On the Chennai facility and whether a third partner is needed We areabsolutely committed to building the car manufacturing facility along with Nissan. OnceM&M pulled out of Chennai, the Renault-Nissan Alliance took over the project and evenincreased the investment and capacity, demonstrating commitment to the Indian market.Construction activity commenced in December 2008. Then, due to the severe economiccrisis, Renault has now announced a temporary freeze/delay in product plansfromChennai. But that does not mean we are walking out of the project. The alliance is going ahead with the construction of facilities for a 4,00,000 carplant and Nissan will roll out its first car around mid-2010. We are monitoring theeconomic situation on a monthly basis and the moment 47
  48. 48. COMPETITOR ANALYSISHYUNDAI MOTOR INDIA LIMITEDHyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai MotorCompany, South Korea and is the second largest and the fastest growing carmanufacturer in India . HMIL presently markets over 25 variants of passenger cars in sixsegments. The Santro in the B segment, and Getz in the B+ segment.HYUNDAI SANTROWe are mainly going to concentrate on the various marketing and positioning strategiesof Hyundai Santro as against that of Maruti Zen and Alto and Hyundai Getz as againstMaruti Swift.POSITIONING OF SANTROThe old positioning of the Santro was that pf a ‘family car’, this positioning strategy waschanged in around 2002 and Santro was repositioned as to that of ‘a smart car for youngpeople.’ The target age group for the car had now shifted from 30-35 years to 25-30years. The repositioning followed the face-lifts the car has been getting from time to timein the form of engine upgradation, new power steering, automatic transmission, etc, tokeep the excitement around it alive in the highly competitive small car market. Therepositioning also comes ahead of the possible launch of a new design Santro, and thesuper B-segment car ‘Getz’, sometime in 2003.The Santro was given a fresh new positioning — from a ‘complete family car’ to a‘sunshine car’ denoting a fresh new attitude and a ‘changing your life’ positioning.Asthe average age of a car owner has declined from around 30-35 three years ago to 25-30,primarily because of changing lifestyles, cheap and easily available finance, etc. thecompany thought that instead of promoting the Santro as a family car, it should bepromoted as a car that can change the life of a young person since many of the buyerswere young buyers.HYUNDAI’S PRICING STRATEGYWith the launch of Maruti Swift recently a price war was expected to kick in .Immediately after maruti raised prices on its debutante Hyundai Motor India hit backwith a Rs 16,000-19,000 markdown on three new variants of Santro Xing. The company has introduced the XK and XL variants at a lower tag of Rs3,26,999 and Rs .3,45,999 respectively. The new price variants are likely to give Maruti’sexisting B-segment models, Zen and WagonR a run for their money. Hyundai has alsolaunched a new non-AC variant of the Santo at Rs 2.79 lakh, a tad higher than what theexisting non-Ac Santro costs. The next offensive is due from Maruti. With the Santro’snew price positioning, Zen and particularly WagonR may be due for a correction, or atleast a limited-period subvention. If that happens the domino effect will kick in across theB-segment. 48
  49. 49. Hyundai is positioning its new variants on the tech platform. Strapped with 1.1litre engine with eRLX Active Intelligence technology, the new variants also come withnew colour-coordinated interiors, a new front grill and a 4-speed AC blower that makesthe air conditioning more efficient.TATA MOTORSEstablished in 1945, Tata Motors is Indias largest and only fully integrated automobilecompany. Tata Motors began manufacturing commercial vehicles in 1954 with a 15-yearcollaboration agreement with Daimler Benz of Germany.TATA INDICA – Tata motors flagship brandThe companys passenger car range comprises the hatchback Indica, the Indigo sedan andthe Marina, its station wagon variant, in petrol and diesel versions.The Tata Indica,Indias first indigenously designed and manufactured car, was launched by Tata Motors in1999 as part of its ongoing effort towards giving India transport solutions that weredesigned for Indian conditions. Currently, the companys passenger cars and multi-utilityvehicles have a 16-per cent market share.POSITIONING OF INDICA Tata has positioned Indica as `more car per car. The new car offers more space,more style, more power and more options. Emphasizing the delivery of world classquality. They have tried to redefine the small car market as it has been understood inIndia.True to its "More car per car" positioning, the Indica CNG offers all the corebenefits of the Indica combined with the advantage of CNG. One of the most popularadvertisements on television currently, is the one where the guy portrayed as the‘loveable liar’, gets socked everytime he lies ; but not when he speaks about the Indicathus implying- “ must be true”. Elaborating on the campaign, the new ad was launchedwith the intention of giving the Indica V2 brand a touch of youthfulness.TATA’S PRICING STRATEGYAfter the price war being triggered off by Hyundai being the first company to introducewhat came to be known as, pricing based on customers value perceptions , all othersfollowed suit.Telcos Indica came in the range of Rs 2.56 lakh to Rs 3.88 lakh with 4models. The price-points in the car market were replaced by price-bands. The width of aprice-band was a function of the size of the segment being targeted besides the intensityof competition. The thumb rule being the higher the intensity, the wider the price-band.CURRENT STRATEGIES FOLLOWED BY MULI. PRICING STRATEGY - CATERING TO ALL SEGMENTSMaruti caters to all segment and has a product offering at all price points. It has a carpriced at Rs.1,87,000.00 which is the lowest offer on road. Maruti gets 70% businessfrom repeat buyers who earlier had owned a Maruti car. Their pricing strategy is toprovide an option to every customer looking for up gradation in his car. Their sole motiveof having so many product offering is to be in the consideration set of every passengercar customer in India. Here is how every price point is covered. 49
  50. 50. II. OFFERING ONE STOP SHOP TO CUSTOMERS OR CREATINGDIFFERENT REVENUE STREAMSMaruti has successfully developed different revenue streams without making hugeinvestments in the form of MDS, N2N, Maruti Insurance and Maruti Finance. These helpthem in making the customer experience hassle free and helps building customersatisfaction.Maruti Driving School (MDS): Maruti has established this with the goal to capture the market where there is inhibitionin buying cars due to inability to drive the car. This brings that customer to Marutishowroom and Maruti ends up creating a customer.C) MAJOR FUTURE STRATEGIESThe launch of Swift and phasing out Zen is a strategic move. Alto was launchedI. PHASING OUT ZEN IN 2007keeping in mind that it will take over Maruti 800 market in future. Perhaps being theflagship product phasing out of Maruti 800 faced lots of resistance from dealers all over.Another reason behind not phasing out Maruti 800 was the fear of brand shift ofcustomers to other competitor’s product. Swift was launched in May, 2005 in the priceband starting from 4 lacs. Before launch of Swift Maruti management had decided thatthey will phase out Zen since it had already came up with two modifications. The majorreason behind this decision was cannibalization of Wagon R and Swift due tooverlapping of price band. It is a rational decision to kill a product before it starts facingthe decline stage in product cycle. Maruti is offering Rs. 3000.00 more margins to dealeron the sale of Wagon-R as compared to Zen. This is to let dealer push Wagon R insteadof Zen.II. MARUTI PLANS FOR A BIG DIESEL FORAYMaruti would set up a diesel engine plant at Gurgaon in line with its plan to become atthe new car manufacturing company, called Maruti Suzuki Automobiles India Limited,will be a joint venture between Maruti Udyog and Suzuki Motor Corporation holding a70 per cent and 30 per cent stake respectively. The Rs1,524.2 crore plant will have acapacity to roll out 1 lakh cars per year with a capacity to scale up to 2.5 lakh units perannum. The new car manufacturing plant will begin commercial production by the end of2006. major player in diesel vehicles in a couple of years. This has been done in the wakeof major competition from Tata Indica and meets the growing demand of diesel cars inIndia. While the annual growth in the diesel segment was 13 per cent in the last threeyears, it was 19-20 per cent in the first quarter (April-June) of the current fiscal. Marutihas currently an insignificant presence in diesel vehicle. It will manufacture newgeneration CRDI (common rail direct injection) engines in collaboration with Fiat-GM Opel and engines will be of 1200 cc. The plant with a capacity to produce onelakh diesel engines would be operational in 2006. At present, Peugeot of France, suppliesdiesel engines for Marutis Zen and mid-sized Esteem models. This will further reducethe imported component in Maruti vehicles, making them more competitive in the Indianmarket. 50
  51. 51. III. MARUTI PLANS FOR A NEW ENGINE AND TRANSMISSION PLANTThe engine and the transmission plant will be owned by Suzuki Powertrain India Limitedin which Suzuki Motor Corporation would hold 51 per cent stake and Maruti Udyogholding the balance. The ultimate total plant capacity would be three lakh diesel engines.However, the initial production would be 1 lakh diesel engines, 20,000 petrol engines and1.4 lakh transmission assemblies. Investment in this facility will be Rs.1,747.7 crore. Thecommercial production will start by the end of 2006. 51
  52. 52. FUTURE CHALLENGESMaruti has always been identified as a traditional carmaker producing value-for-moneycars and right now the biggest hurdle Maruti is facing is to shed this image. Maruti wantsto change it for a more aggressive image. Maruti Baleno has failed due to one of themajor reasons being that customers could not identify Maruti with a car as sophisticatedas Maruti Baleno. Maruti is looking forward to bring about a perception change aboutthe company and its cars. Maruti started the exercise with the new-look Zen, and Suzukisdecision to pick India as one of the first markets for this radically different-looking cargave this endeavor a new thrust. Maruti has also changed its logo at the front grill. It hasreplaced the traditional Maruti logo on grill ‘stylish ‘M’ with S’. The major thrust in thefacelift endeavour is with the launch of 1.3 litre Swift. It’s a style statement from Marutito Indian market. The next threat Maruti faces is the growing competition in compact cars. Companieslike Toyota, Ford, Honda and Fiat are planning to come out with small segment cars innear future.Ford is launching Focus and Fiesta, GM is launching Aveo in 2006, Chevroletis launching Spark in 2006, Hyundai is launching its new compact car in 2006, Honda islaunching Jazz in 2006, GM is has reduced prices of its Corsa, Fiat is coming up withPanda and new Fiat Palio, Skoda is launching Fabia. All this will pose a major threat toMaruti leadership in compact cars. New emission norms like Bharat Stage 3 which has come into effect from April 2005has increased car prices by Rs.20000 and Bharat Stage 4 which is coming into force in2007 will contribute in increasing car prices further. This could be of concern to Marutiwhich is low cost provider of passenger cars. Rise in petrol prices and growing popularity of other substitute fuels like CNG will beanother threat to Maruti. There is also a threat to Suzuki from R&D investment by Toyotaand Honda in Hybrid cars. Hybrid cars could run on both petrol and gaseous fuels.There is a threat to Maruti models ageing. Maruti models like Maruti 800 which is inmarket for the last twenty years and others like Zen and Esteem which have also enteredthe decline phase are the other threats. Maruti is planning phasing out Zen in 2007 andthere were rumors of phasing out Maruti 800 also. This all makes Suzuki to replace thesebrands with new launches . As Swift and Wagon R are replacing the Zen market. Marutiwill have to keep on making modifications in its present models or its Maruti SuzukiIndia Ltd - Price Analysis SnapshotThis Report features up to a ten-year record of the equity Price history for Maruti SuzukiIndia Ltd. Tabular results include the High, Low and Closing price for the quarter. Thereis also a calculation of percentage change in price for both Quarterly and Annual periods.Price values are adjusted for stock splits and dividends.Maruti Suzuki India Ltd. The Groups principal activity is to manufacture, purchase andsale of Motor Vehicles and Spare parts. The Group is a subsidiary of Suzuki MotorCorporation. The other activities of the Group comprises of facilitation of Pre-Owned CarSales, Fleet Management and Car Financing. The Group also provides services likeframing of customized car policies, economical leasing of cars, maintenancemanagement, registration and insurance management, emergency assistance and accident 52
  53. 53. management. The product range includes ten basic models with more than 50 variants.The Groups operations are in 1200 towns and cities with 2628 workshops and alsoexports cars to other countries.Maruti Suzuki India Ltd - Earning & Dividend Analysis SnapshotThis detailed Report provides an Earnings and Dividends history for Maruti SuzukiIndia Ltd. Tabular results include up to a ten-year history of "as reported" Earnings perShare and Dividends per Share plus a calculation of the amount of earnings paid out overthe year in dividends (i.e. Payout Ratio). Earnings and Dividends are presented on both aQuarterly and Annual basis. An annual Percent Change factor is calculated for bothEarnings and Dividends.Maruti Suzuki India Ltd. The Groups principal activity is to manufacture, purchase andsale of Motor Vehicles and Spare parts. The Group is a subsidiary of Suzuki MotorCorporation. The other activities of the Group comprises of facilitation of Pre-Owned CarSales, Fleet Management and Car Financing. The Group also provides services likeframing of customized car policies, economical leasing of cars, maintenancemanagement, registration and insurance management, emergency assistance and accidentmanagement. The product range includes ten basic models with more than 50 variants.The Groups operations are in 1200 towns and cities with 2628 workshops and alsoexports cars to other countries 53
  54. 54. RESEARCH METHODOLOGY Marketing research is a systematic design, collection, analysis & reporting of Datawhich is relevant to specific market situation .My research process is as follows.DEFINES THE PROBLEM AND RESEARCH OBJECTIVESThe objective of the research conducted was to study of consumer’s preference for onlineshare trading. Secondary objective of the survey was to know the customer’s satisfactionlevel. My other objectives were to find out the overall perception about the system andwhat motivates the people to think about going for online share trading.DEVELOPING RESEARCH PLANThe second stage of marketing research calls for developing a most efficient plan forgathering needed information. Designing a research plan calls for taking decision on datasources research, approach, research instrument, sampling plan and contact methods.DATA SOURCEThere are two types of methods used in data collection i.e. primary data & secondary data.A) PRIMARY DATAThose data which are collected at first hand by the researcher especially for the purposeof the study ,are known as primary Data .The data is collected directly from the person insample population. In this project research the collection of data is directly interviewingcustomer. In the collection of the primary data, I have used survey method and use thequestionnaire methods.There are mainly two methods for the collection of the primary data which are givenbelow, • Observational Method. • Survey Method. 54
  55. 55. OBSERVATION METHOD:-In the observation method, it requires the observer. The observer will keenly observe theperson at the time of the interview & record his behavior accurately. it is also one of Theimportant method for the collection of data but it requires good & experienced observerwho can observer The behavior of the respondent properly and record it with greataccuracy.SURVEY METHOD:-It is most popular method for the collection of necessary data from the respondents. I haveused survey method for the collection of the necessary data.Different types of the survey are given below, • Personal interview. • Telephonic survey. • Mail questionnaires.PERSONAL INTERVIEW:-In the personal interview, the interviewer will personally meet the respondent and will takeis interview. The interviewer will ask question in face to face direction to the respondentsor group of respondents.TELEPHONIC SURVEY:-In the telephonic interview, the interviewer will make call to respondents, inform therespondents about the purpose of the call and then he will ask the related questions to therespondents. This method is used, when the information to be collected is limited. It ismostly used when information to be collected is limited.MAIL QUESTIONNAIRE:-In the mail questioner the interviewer will mail the questionnaire to the respondents andinform them about the purpose of the survey. Also the time limit for the questionnaire isspecified in the mail. This method is used when the area to be covered is large and thesurvey has to be conducted in the specific limit. 55
  56. 56. In my survey, I have used the personal interview to know customer awareness towardsonline share trading. I have visited respondents personally.B) SECONDARY DATAAny data which had been gathered earlier for other purposes are secondary data in hand ofmarketing research. These data has been collected from company dealer like Dealerprofile, industrial profile, company profile are collected from the internet.The secondary data are collected from the magazines, internet andWeb -sites. Different web sites like and GOOGLESearch engine help in collecting the detailed information.RESEARCH APPROACHOut of 4 ways of research approaches i.e. 1. Observation research. 2. Survey Research 3. Focus Group research 4. Experimental research.In this project the approach used was survey approach because the main objective of oursurvey was to study of the market potential and have an idea about the customerawareness.SAMPLINGResearch instruments can be of two types firstly questionnaire methods and secondlymechanical instruments. In this survey the research instrument was questionnaire method.SAMPLING PLAN:-Sampling size : 50Field Work area : Kanpur CityRandom samplingSAMPLING PROCEDURE:-The sampling Procedure can be of two types:1. Probable Samplings2. Non-probable samplingIn this survey expert Judgments sampling method can be used. 56
  57. 57. CONTACT METHODS:The method of contacts can be four types1. Mail Questionnaire2. Personal Interview3. Telephonic Interview.4. InternetSTATEMENT OF PROBLEMProblem definition is one of the most important parts of the study. It is very important toproperly define the problem. If the problem is properly defined then it will provideproper guide line for the further study. The properly defined problem will direct thesurveyor on the proper path. And it is truly said that a properly defined problem is a halfsolve.Here the main problem is to study on the INVESTOR PREFERENCES FOR ONLINETRADING (IN KANPUR). Market potential is nothing but the finding out potentialcustomers for the product of organization; which gives maximum profitability. To findout market potential study of competitors; consumer behavior; brand positioning is mustwhich gives idea about the market scenario. Online share trading –share trading isnothing but the buying and selling shares as per the market position, this is done throughbroker. Broker-broker is the person who brings buyer and seller together.So the problem is to know the market potential of online share trading and the popularityof online share trading among the people. It is also to know which options are preferredby customers.FINDINGS AND OBJERVATIONThe result that I get through analyzing and evaluating the data drawn from the scheduleand interview and expressed in the form of proper way and their result can batter explainthe position of maruti Suzuki in semi urban areas of Bareilly region. The findings of theproject after the analysis of the questionnaire and interview are:-After the analysis I found that retailers are not interested in promoting the products ofCoke at their level. Their aim is to earn more profit and they promote that brand whichgives them more benefits.Products have a good image in customers mind. 57