Summer report MBA

852 views

Published on

Customer’s Perception

Published in: Education

Summer report MBA

  1. 1. A Summer Report On ‘Customer’s Perception- A Survey of Industrial Customers of Gwalior (Towards Cars) At MARUTI SUZUKI Submitted to JIWAJI UNIVERSITY GWALIOR For The Partial Fulfilment of The Award Of Degree MASTER OF BUSINESS ADMINISTRATION (2014-2016) FACULTY GUIDE SUBMITTED DR. SUBEER BANERJEE HIMANSHUCHOUMAL MAHARAJA INSTITUTE OF MANAGEMENT & TECHNOLOGY Airport Road, Gwalior
  2. 2. DECLARATION Himanshu Choumal, student of MBA III Semester from Maharaja Institute Of Management & Technology, Gwalior, declare that all the information, fact and figures represented in this report entitled “Customer’s Perception- A Survey Of Industrial Customer Of Gwalior Towards Cars’’. Are first hand in nature. They are actively based on my intensive research. I have made the project under the safe roof of realistic data which was a sweet dream before handling due to strong faith and elastic string of my heart. I have succeeded in equaling the efforts with the output, for which I am very excited just like a blooming seed. Any resemblance to earlier project or resource is purely coincidental. Date …………. HIMANSHU CHOUMAL Place: Gwalior MBA III Semester
  3. 3. CERTIFICATE This is to certify that Mr. Himanshu Choumal student of MBA III Semester of Maharaja Institute Of Management And Technology Gwalior affiliated to “ Jiwaji University, Gwalior” has completed his summer training of 6 weeks ( from 1st of JULY to 15th AUGUST ) and prepared this report on “Customer’s Perception A Survey Of Industrial Customers Of Gwalior Towards Cars” under my guidance. Date: …… DR.SUBEER BANERJEE Place: Gwalior Faculty Guide
  4. 4. ACKNOWLEDGEMENT It is privilege to express my gratitude & sincere thanks to Maharaja Institute Of Management & Technology, Gwalior has given us the opportunity to summer training report on the topic. I am thankful to Mr. Achal Pillai (Director-MIMT), Dr. Subeer Banerjee (Dean Academics) and also Faculty Guide for his valuable guidance and support throughout report preparation. I would also like to thank Mr. Sandeep Arora (General Manager of Prem Motor). I sincerely thank computer laboratory in-charge and library staff for their timely co-operation. I would also like to thank to all people who directly or indirectly helped to complete the report. Date: ……………… HIMANSHU CHOUMAL Place: Gwalior M.B.A. 3rd SEM.
  5. 5. PREFACE The project is based on the “Customer’s Perception- A Survey Of Industrial Customers Of Gwalior Towards Cars’’. The project took 7 weeks for completion. The main motive of project report was to enhance my expertise and extensive knowledge I gained through my course, by applying it practically to the market of automobile Gwalior. The project has been completed by collecting the primary data by interviewing the various companies of Gwalior. Secondary data was also used as per the availability from different sources. In all the study was to find out at which geographical area the potential customer may exist and also to study the consumer behavior regarding automobile sectors. During the project, I learnt the procedures and various other aspects of marketing of automobile by applying theoretical knowledge and concepts to the best. Needless to say, errors and omissions are bound to occur. Last but not the least, I am grateful to all those who happened to be a part of the successful completion of this Project and my mind and heart for going hand in hand! HIMANSHU CHOUMAL
  6. 6. CONTENTS Chapter1. INTODUCTION OF THE COMPANY 1.1 History Of The Organization 1.2 Market Liberalization 1.3 Joint Venture Related Issues 1.4 Manufacture Facilities 1.5 Industrial Relations 1.6 Manesar Violence 1.7 Product And Services 1.8 Sales And Service Network 1.9 Maruti Insurance 1.10 Maruti Finance 1.11 Maruti True Value 1.12 N2N Fleet Management 1.13 Maruti Accessories 1.14 Driving School Maruti 1.15 Exports 1.16 Awards And Recognition 1.17 Maruti Growth Chart 1.18 Executive Summary Chapter2. METHODOLOGY 2.1 Topic 2.2 Objective Of Study 2.3 Research Methodology 2 .4 Research Design 2.5 Research Process 2.6 Exploratory Research 2.7 Data Collection 2.8 Data Analysis 2.9 Summary Of Finding Chapter3. CONCLUSION Chapter4. LIMITATION OF RESEARCH PROCESS Chapter5. RECOMMENDATION Chapter6. BIBLIOGRAPHY Chapter5. QUESTIONNARE
  7. 7. History of Maruti Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile manufacturer in India. It is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki. As of November 2012, it had a market share of 37% of the Indian passenger car markets. Alto, Ritz, Celerio, Swift, WagonR, Zen, Ciaz, Kizashi, SX4, Eeco, Omni, Ertiga, S- Cross, D-Zire. The company's headquarters are at No 1, Nelson Mandela Road, New Delhi. In February 2012, the company sold its ten millionth vehicle in India. Maruti Udyog Limited was established in February 1981, though the actual production commenced only in 1983. It started with Maruti 800, based on the Suzuki Alto key car which at the time was the only modern car available in India. Its only competitors were Hindustan Ambassador and Premier Padmini. Originally, 74% of the company was owned by the Indian government, and 26% by Suzuki of Japan. As of May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog. Chronology Beginnings Maruti's history begins in 1970, when a private limited company named 'Maruti technical services private limited' (MTSPL) was launched on November 16, 1970. The stated purpose of this company was to provide technical know-how for the design, manufacture and assembly of "a wholly indigenous motor car". In June 1971, a company called 'Maruti limited' was incorporated under the Companies Act and Sanjay Gandhi became its first managing director. "Maruti Limited" went into liquidation in 1977. On 23 June 1980 Sanjay Gandhi died when a private test plane he was flying crashed. A year after his death, and at the behest of Indira Gandhi, the Indian Central government salvaged Maruti Limited and started looking for an active collaborator for a new company. Maruti Udyog Ltd was incorporated in the same year through the efforts of Dr. V. Krishnamurthy.
  8. 8. Suzuki Enters In 1982, a license & Joint Venture Agreement (JVA) was signed between Maruti Udyog Ltd. and Suzuki of Japan. At first, Maruti Suzuki was mainly an importer of cars. In India's closed market, Maruti received the right to import 40,000 fully built-up Suzuki in the first two years, and even after that the early goal was to use only 33% indigenous parts. This upset the local manufacturers considerably. There were also some concerns that the Indian market was too small to absorb the comparatively large production planned by Maruti Suzuki, with the government even considering adjusting the petrol tax and lowering the excise duty in order to boost sales. Finally, in 1983, the Maruti 800 is released. This 796 cc hatchback is based on the SS80 Suzuki Alto and is India’s first affordable car. Initial product plan is 40% saloons, and 60% Maruti Van. Local production commences in December 1983.In 1984, the Maruti Van with the same three-cylinder engine as the 800 was released and the installed capacity of the plant in Gurgaon reached 40,000 units. In 1985, the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, was launched. In 1986, the original 800 was replaced by an all-new model of the 796 cc hatch back Suzuki Alto and the 100,000th vehicle was produced by the company. In 1987, the company's started exporting to the West, when a lot of 500 cars were sent to Hungary. By 1988, the capacity of the Gurgaon plant was increased to 100,000 units per annum. Marketliberalization In 1989, the Maruti 1000 was introduced and the 970 cc, three-box was India’s first contemporary sedan. By 1991, 65 percent of the components, for all vehicles produced, were indigenized. After liberalization of the Indian economy in 1991, Suzuki increased its stake in Maruti to 50 percent, making the company a 50-50 JV with the Government of India the other stake holder. In 1993, the Zen, a 993 cc, hatchback was launched and in 1994 the 1298 cc Esteem was introduced. Maruti produced its 1 millionth vehicle since the commencement of production in 1994. Maruti's second plant was opened with annual capacity reaching 200,000 units. Maruti launched a 24-hour emergency on-road vehicle service. In 1998, the new Maruti 800 was
  9. 9. released, the first change in design since 1986. Zen D, a 1527 cc diesel hatchback and Maruti's first diesel vehicle and a redesigned Omni were introduced. The 1.6 liter Maruti Baleno three- box saloon and Wagon R were also launched. In 2000, Maruti became the first car company in India to launch a Call Center for internal and customer services. The new Alto model was released. In 2001, Maruti True Value, selling and buying used cars was launched. In October of the same year the Maruti Versa was launched. In 2002, Esteem Diesel was introduced. Two new subsidiaries were also started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited. Suzuki Motor Corporation increased its stake in Maruti to 54.2 percent. In 2003, the new Suzuki Grand Vitara XL-7 was introduced while the Zen and the Wagon R were upgraded and redesigned. The four millionth Maruti vehicle was built and they entered into a partnership with the State Bank of India. Maruti Udyog Ltd was listed on BSE and NSE after a public issue, which was oversubscribed tenfold. In 2004, the Alto became India's bestselling car overtaking the Maruti 800 after nearly two decades. The five-seater Versa 5-seater, a new variant, was created while the Esteem was re-launched. Maruti Udyog closed the financial year 2003-04 with an annual sale of 472,122 units, the highest ever since the company began operations and the fiftieth lakh (5 millionths) car rolled out in April 2005. The 1.3 L Suzuki Swift five-door hatchbacks was introduced in 2005. In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles India", to build two new manufacturing plants, one for vehicles and one for engines. Cleaner cars were also introduced, with several new models meeting the new "Bharat Stage III" standards. In February 2012, Maruti Suzuki sold its ten millionth vehicles in India. For the Month of July 2014, it had a Market share of >45 %.
  10. 10. Joint venture related issues Relationship between the Government of India, under the United Front (India) coalition and Suzuki Motor Corporation over the Joint venture was a point of heated debate in the Indian media until Suzuki Motor Corporation gained the controlling stake. This highly profitable joint venture that had a near monopolistic trade in the Indian automobile market and the nature of the partnership built up till then was the underlying reason for most issues. The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987 and further to 50% in 1992. In 1982 both the venture partners had entered into an agreement to nominate their candidate for the post of Managing Director and every Managing Director will have tenure of five years. Manufacturing facilities Maruti Suzuki has two manufacturing facilities in India. Both manufacturing facilities have a combined production capacity of 14, 50,000 vehicles annually. The Gurgaon manufacturing facility has three fully integrated manufacturing plants and is spread over 300 acres (1.2 km2). The Gurgaon facilities also manufacture 240,000 K- Series engines annually. The Gurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni, Gypsy, Ertiga, Ritz, and Eeco. The Manesar manufacturing plant was inaugurated in February 2007 and is spread over 600 acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this was increased to 300,000 vehicles annually in October 2008. The production capacity was further increased by 250,000 vehicles taking total production capacity to 800,000 vehicles annually. The Manesar Plant produces the A-star, Swift, Swift DZire, SX4, Ritz and Celerio. On 25 June 2012, Haryana State Industries and Infrastructure Development Corporation demanded Maruti Suzuki to pay an additional Rs 235 corer for enhanced land acquisition for its Haryana plant expansion. The agency reminded Maruti that failure to pay the amount would lead to further proceedings and vacating the enhanced land acquisition. It plans to set up a plant in Gujarat and has acquired 600 acres of land.
  11. 11. Industrial relations Since its founding in 1983, Maruti Udyog Limited has experienced problems with its labor force. The Indian labour it hired readily accepted Japanese work culture and the modern manufacturing process. In 1997, there was a change in ownership, and Maruti became predominantly government controlled. Shortly thereafter, conflict between the United Front Government and Suzuki started. In 2000, a major industrial relations issue began and employees of Maruti went on an indefinite strike, demanding among other things, major revisions to their wages, incentives and pensions. Employees used slowdown in October 2000, to press a revision to their incentive-linked pay. In parallel, after elections and a new central government led by NDA alliance, India pursued a disinvestment policy. Along with many other government owned companies, the new administration proposed to sell part of its stake in Maruti Suzuki in a public offering. The worker's union opposed this sell-off plan on the grounds that the company will lose a major business advantage of being subsidized by the Government, and the union has better protection while the company remains in control of the government. The standoff between the union and the management continued through 2001. The management refused union demands citing increased competition and lower margins. The central government privatized Maruti in 2002 and Suzuki became the majority owner of Maruti Udyog Limited. Manesarviolence On 18 July 2012, Maruti's Manesar plant was hit by violence as workers at one of its auto factories attacked supervisors and started a fire that killed a company official and injured 100 managers, including two Japanese expatriates. The violent mob also injured nine policemen. The company's General Manager of Human Resources had both arms and legs broken by his attackers, unable to leave the building that was set ablaze, and was charred to death. The incident is the worst-ever for Suzuki since the company began operations in India in 1983. Since April 2012, the Manesar union had demanded a three-fold increase in basic salary, a monthly conveyance allowance of 10,000, a laundry allowance of 3,000, a gift with every new
  12. 12. car launch, These claims were denied by the company and the police Maruti said the unrest began, not over wage discussions, but after the workers' union demanded the reinstatement of a worker who had been suspended for beating a supervisor. The workers claim harsh working conditions and extensive hiring of low-paid contract workers which are paid about $126 a month, about half the minimum wage of permanent employees. Maruti employees currently earn allowances in addition to their base wage. Company executives denied harsh conditions and claim they hired entry-level workers on contracts and made them permanent as they gained experience. It was also claimed that bouncers were deployed by the company. The police, in its First Information Report (FIR), claimed on 21 July that Manesar violence is the result of a planned violence by a section of workers and union leaders and arrested 91 people. Maruti Suzuki in its statement on the unrest announced that all work at the Manesar plant has been suspended indefinitely. The shutdown of Manesar plant is leading to a loss of about Rs 75 crore per day. On 21 July 2012, citing safety concerns, the company announced a lockout under The Industrial Disputes Act, 1947 pending results of an inquiry the company has requested of the Haryana government into the causes of the disorder. Under the provisions of The Industrial Disputes Act for wages, the report claimed, employees are expected to be paid for the duration of the lockout. The report claimed the salary difference between contract workers and permanent workers has been much smaller than initial media reports - the contract worker at Maruti received about 11,500 per month, while a permanent worker received about 12,500 a month at start, which increased in three years to 21,000-22,000 per month. n a separate report. Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India, said this kind of violence has never happened in Suzuki Motor Corp's entire global operations spread across Hungary, Indonesia, Spain, Pakistan, Thailand, Malaysia, China and the Philippines. Mr. Nakanishi went to each victim apologizing for the miseries inflicted on them by fellow workers, and in press interview requested the central and Haryana state governments to help stop such ghastly violence by legislating decisive rules to restore corporate confidence amid emergence of this new 'militant workforce' in Indian factories.
  13. 13. He announced, "We are going to de-recognize Maruti Suzuki Workers’ Union and dismiss all workers named in connection with the incident. We will not compromise at all in such instances of barbaric, unprovoked violence." He also announced Maruti plans to continue manufacturing in Manesar, that Gujarat was an expansion opportunity and not an alternative to Manesar. The company dismissed 500 workers accused of causing the violence and re-opened the plant on 21 August, saying it would produce 150 vehicles on the first day, less than 10% of its capacity. Analysts said that the shutdown was costing the company 1 billion rupees ($18 million) a day and costing the company market share. In July 2013, the workers went on hunger strike to protest the continuing jailing of their colleagues and launched an online campaign to support their demands.
  14. 14. Products and services Current models Model Launched Category Image Omni 1984 Minivan Gypsy 1985 SUV WagonR 1999 Hatchback Swift 2005 Hatchback DZire 2008 Sedan
  15. 15. Ritz 2009 Hatchback Eeco 2009 Hatchback Alto K10 2010 Hatchback Ertiga 2012 Mini MPV Alto 800 2012 Hatchback Stingray 2013 Hatchback
  16. 16. Celerio 2014 Hatchback Ciaz 2014 Sedan Discontinued models Model Launched Discontinued Category Image Estilo August 2009 2013 Hatchback Gypsy E 1985 2000 SUV 1000 1990 2000 Sedan
  17. 17. Zen 1993 2006 Hatchback Esteem 1994 2008 Sedan Baleno 1999 2007 Sedan Versa 2001 2010 Minivan 800 1983 2012 Hatchback Alto 2000 2012 Hatchback A-star 2008 2014 Hatchback
  18. 18. Sales and service network As of 31 March 2014 Maruti Suzuki has 933 dealerships across 666 towns and cities in all states and union territories of India. It has 3,060 service stations (inclusive of dealer workshops and Maruti Authorized Service Stations) in 1,454 towns and cities throughout India. It has 30 Express Service Stations on 30 National Highways across 1,436 cities in India. Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti Suzuki trains the local staff. Other automobile companies have not been able to match this benchmark set by Maruti Suzuki. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle. In the year 2015 Maruti Suzuki launched a new premium sales channel called NEXA. Maruti Suzuki India Limited’s Managing Director & CEO, Kenichi Ayukawa said: “NEXA provides a new experience of hospitality from Maruti Suzuki. Indian market and Indian society are rapidly changing and new segments of customers are emerging. We have to take new initiatives to meet diversifying expectations from our customers”. He added: “The mission of NEXA is to offer innovative value and direction so that we can adequately respond to the new segments of Indian customers and offer them the experience which they value. While we will of course continue to enhance customer satisfaction in our current network, with NEXA, I am confident Maruti Suzuki will be able to cater to a broader range of customers who value pampering, innovation and a personal touch in their car owning experience”. S-Cross, India’s first premium crossover that debuts in August 2015 will be the first car to be sold under NEXA. Several new models will be added to both channels as part of the Company’s medium term goal of 2 million annual sales by 2020.
  19. 19. Maruti Insurance Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited. This service started as a benefit or value addition to customers and was able to ramp up easily. By December 2005 they were able to sell more than two million insurance policies since its inception. Maruti Finance To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003. Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India. Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%. GE Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti Countrywide. Maruti claims that its finance program offers most competitive interest rates to its customers, which are lower by 0.25% to 0.5% from the market rates.
  20. 20. Maruti True Value Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this service in India. As of 31 March 2010 there are 342 outlets. N2N Fleet Management N2N is the short form of End to End Fleet Management and provides lease and fleet management solution to corporate. Clients who have signed up of this service include Gas Authority of India Ltd, DuPont, Reckitt Benckiser, Doordarshan, Singer India, National Stock Exchange of India and Transworld. These fleet management services include end-to-end solutions across the vehicle's life, which includes Leasing, Maintenance, Convenience services and Remarketing. Maruti Accessories Many of the auto component companies other than Maruti Suzuki started to offer components and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers and other car care products. These products are sold through dealer outlets and authorized service stations throughout India. Driving School Maruti A Murti Driving School inBangalore
  21. 21. As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School in Delhi. Later the services were extended to other cities of India as well. These schools are modeled on international standards, where learners go through classroom and practical sessions. Many international practices like road behavior and attitudes are also taught in these schools. Before driving actual vehicles participants are trained on simulators. A launch ceremony for the school Jagdish Khattar stated "We are very concerned about mounting deaths on Indian roads. These can be brought down if government, industry and the voluntary sector work together in an integrated manner. But we felt that Maruti should first do something in this regard and hence this initiative of Maruti Driving Schools". Exports Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it does not operate in the domestic Indian market. The first commercial consignment of 480 cars was sent to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki crossed the benchmark of 300,000 cars. Since its inception export was one of the aspects government was keen to encourage. Every political party expected Maruti Suzuki to earn foreign currency. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka, Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti Exports. Awards and recognition The Brand Trust Report published by Trust Research Advisory, a brand analytics company, has ranked Maruti Suzuki in the thirty seventh position in 2013 and eleventh position in 2014 among the most trusted brands of India. Blue bytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed Car Company in their Reputation Benchmark Study conducted for the Auto (Cars) Sector which launched in April 2015
  22. 22. Maruti Suzuki Parent Company Suzuki Motor Corporation Category Sedans, Hatchbacks, SUV’s Sector Automobiles Tagline/ Slogan Way of life; Count on us USP Maruti has car models in every segment with a wide price range to choose from, apart from being the most reliable name in Indian automobile market STP Segment Complete automobile segment including sedans & SUV’s Target Group Indian urban and semi-urban middle class and upper middle class Positioning India’s No.1 automobile brand with strong legacy Product Portfolio Models 1. Maruti 800 2. Maruti A Star 3. Maruti Alto 4. Maruti Eeco 5. Maruti Grand Vitara 6. Maruti Gypsy King 7. Maruti Omni 8. Maruti Swift 9. Maruti Swift Dzire 10.Maruti SX4 11.Maruti Wagon R 12.Maruti Zen Estilo
  23. 23. SWOT Analysis Strength 1. Maruti is the largest passenger car company in India, accounting for around 45% market share 2. Over 6,000 people are employed with Maruti 3. Good advertising, product portfolio, self-competing brands 4. Largest distribution network of dealers and after sales service centers 5. Strong brand value and strong presence in the second hand car market 6. Having different revenue streams like Maruti finance, Maruti Insurance 7. Over 700,000 units sold in India annually including 50,000 exports Weakness 1.Inability to penetrate into the international market 2.Employee management, strikes, worker wage problems Opportunity 1.Developing hybrid cars and fuel efficient cars for the future 2.Tapping emerging markets across the world and building a global brand 3.Fast growing automobile market and increased purchasing power Threats 1. Government policies for the automobile sector across the world 2.Ever increasing fuel prices 3. Intense competition from global automobile brands and cheaper brands 4. Substitute modes of public transport like buses, metro trains etc
  24. 24. Competition Competitors 1.Honda 2.Toyota 3.Nissan 4.Hyundai 5.Fiat 6.Mitsubishi 7.Chevrolet 8.TataMotors 9.Skoda 10.Toyota 11.MarutiSuzuki 12. Ford
  25. 25. Market Growth In Value Mar '15 Mar '14 Mar '13 Mar '12 Mar '11 12 mths 12 mths 12 mths 12 mths 12 mths Total Share Capital 151.00 151.00 151.00 144.50 144.50 Equity Share Capital 151.00 151.00 151.00 144.50 144.50 Share Application Money 0.00 0.00 0.00 0.00 0.00 Preference Share Capital 0.00 0.00 0.00 0.00 0.00 Reserves 23,553.20 20,827.00 18,427.90 15,042.90 13,723.00 Net worth 23,704.20 20,978.00 18,578.90 15,187.40 13,867.50 Secured Loans 0.00 0.00 0.00 0.00 0.00 Unsecured Loans 180.20 1,685.10 1,389.20 1,078.30 170.20 Total Debt 180.20 1,685.10 1,389.20 1,078.30 170.20 Total Liabilities 23,884.40 22,663.10 19,968.10 16,265.70 14,037.70 Mar '15 Mar '14 Mar '13 Mar '12 Mar '11 12 mths 12 mths 12 mths 12 mths 12 mths Application Of Funds Gross Block 26,076.90 22,435.00 19,633.90 14,678.30 11,718.60 Less: Revaluation Reserves 0.00 0.00 0.00 0.00 0.00 Less: Accum. Depreciation 13,817.60 11,644.60 9,834.70 7,157.60 6,189.20 Net Block 12,259.30 10,790.40 9,799.20 7,520.70 5,529.40 Capital Work in Progress 1,882.80 2,621.40 1,940.90 611.40 862.50 Investments 12,814.00 10,117.90 7,078.30 6,147.40 5,106.80 Inventories 2,615.00 1,705.90 1,840.70 1,796.50 1,415.00 Sundry Debtors 1,069.80 1,413.70 1,469.90 937.60 824.50 Cash and Bank Balance 18.30 629.70 775.00 2,436.10 2,508.50 Total Current Assets 3,703.10 3,749.30 4,085.60 5,170.20 4,748.00 Loans and Advances 2,891.80 3,256.70 3,830.20 2,852.50 2,178.40 Fixed Deposits 0.00 0.00 0.00 0.00 0.00 Total CA, Loans & Advances 6,594.90 7,006.00 7,915.80 8,022.70 6,926.40 Deferred Credit 0.00 0.00 0.00 0.00 0.00 Current Liabilities 8,013.60 6,996.90 5,892.00 5,338.00 3,861.60 Provisions 1,653.00 875.70 874.10 698.50 525.80 Total CL & Provisions 9,666.60 7,872.60 6,766.10 6,036.50 4,387.40 Net Current Assets -3,071.70 -866.60 1,149.70 1,986.20 2,539.00 Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00 Total Assets 23,884.40 22,663.10 19,968.10 16,265.70 14,037.70 Contingent Liabilities 9,228.60 7,210.20 8,193.30 6,108.00 6,384.80 Book Value (Rs) 784.70 694.45 615.03 525.68 479.99 Source : Dion Global Solutions Limited
  26. 26. Maruti Growth Chart
  27. 27. The ConsumerBehaviorRegarding Automobile Sector Customer Perception is also known as geographical market analysis and it is the Easiest Way to Identify Where Your Customers Come From and Who They Are. This project focus on to know the profile and from which geographical part of Gwalior the potential customer of Maruti Suzuki cars can be and what is the consumer behavior of various users of cars like how many cars do they have and after how much do they like to change their cars . The whole survey has been done in various parts of Gwalior city like Focal Point, Industrial Area, Gwalior (M.P.). So, in this research I studied the Perception of the customers and behavior of the customers. So, overall it was great learning experience for me to get such an intro spect about automobile industry and various aspects related to its marketing strategy. Executive Summary Customer Perception is the Easiest Way to Identify Where Your Customers Come From and Who They Are. Customer Perception Analysis may include: · A customer profile to understand where to find more like them. · Market penetration and market share reports showing performance in existing markets and expected performance in new markets. · Market ranking reports allowing company to prioritize resource deployment into new markets.
  28. 28. Customer Perceptionhelps to know market potential by using following steps. MapCustomer Locations Create a "pin map" of where your customers live. Find out at a glance what parts of town you draw from and where to advertise. If you have your names and addresses in a data file, you can order right now with no payment required in advance. Identify Your Trade Area Map your customers to see what your trade area is. Compare your customers with the market potential to see your market penetration. Define Customer Profile Once you have your customers mapped, you can analyze the demographic characteristics and define a profile of your best customers. From this it is a short step to finding more potential customers like them. Target Your Advertising Given your trade area, and your customer profile, you can focus advertising to the places and media that are most likely to hit your target market. Customer Perception Customer Perception shows organizations which neighborhoods and markets they are serving with their products. The results of customer Perception can often be surprising and show trends that were otherwise unknown. In addition, customer Perception can be applied not only to an entire client database, but also to selected kinds of customers such as: • Those who have bought certain products, or certain services. • Those whose purchases exceed a specified amount gain the greatest value from Customer Perception, it can be combined with market share analysis to reveal the strongest areas that are being reached, and those that are not being reached.
  29. 29. Strategies forCustomerPerception What is a geographic market worth to your business? Perception Analytics will help you find the answer. Market potential can be expressed as a function of: • The number of customers purchasing. • Amount purchased. • Frequency of purchase. In other words, market potential = (how many * how much * how often). Bottom Up or Top Down Market Analysis It all depends on your specific needs. Perception Analytics can advise you on the best approach to sizing any market. We employ various methodologies and data sets to get you the answers you need. • A bottom up approach to market sizing starts with your customers. How much and often do they buy? What is their profile? How many potential customers do you have in the market based on your customer profiles? How can you reach them? • A Top down approach starts with market and industry data. It takes a close look at a geographic market area and profiles the consumers and/or businesses to let you know their propensity to buy your products and services. Perception Analytics has expertise in both these approaches to market sizing. We also have a wealth of data sources through partnerships with the best data providers in the industry. We can match the right data for market analysis to your business and market strategy. Cluster Analysis for Customer Perception We often use lifestyle clustering systems to size consumer markets. Clustering systems operate under the premise that "birds of a feather flock together." That means people with similar buying behaviors and demographic profiles tend to live close together. This helps you identify neighborhoods or markets where your potential is highest.
  30. 30. • Cluster analysis identifies key segments in the population that are more likely to purchase your products than the average consumer. • Knowing in which clusters people reside provides a reasonable means of understanding and predicting how they will behave. • Understanding which clusters are more likely than others to purchase allows better targeting. • Clusters are tied to geography, allowing you to identify and prioritize neighborhoods, trade areas and markets. Access Market Opportunity Market analysis services from Perception Analytics will provide the key intelligence we need to rank and prioritize markets. We will know: · The top new geographic markets to target based on customer or revenue potential. · Which markets where we currently do business have untapped potential Gaining this market understanding is essential to growing and expanding our business. But it isn't enough on its own. Demographic Site Selection When we work with Perception Analytics, we will discover that demographic site selection leads to a sound business site selection decision. We include a series of important analyses when helping we select new sites, including: · Customer profiling. · Perception customer locations. · Competitive analysis. · Trade area development and Perception. · Demographic, Census, and market data analysis. · Market potential analysis.
  31. 31. Customer Profiling Customer profiling services from Perception Analytics create descriptive segments or groups of your customers. Each segment has specific defining characteristics. A customer segment is not as simple as applying a demographic label, such as "women age 45-54" or "businesses with revenue >$500 million. "Those descriptions alone won't tell you enough about your customer. For example, not all women age 45-54 have the same tendency to purchase your products. So a profile like this may not help you much, and you may waste resources marketing and selling to the wrong people. That's why Perception Analytics takes a more comprehensive and disciplined approach to customer profiling. We use your own customer data, lifestyle cluster data, and analytical techniques. The result is a more accurate description of your customer that can be used to identify areas where you can find more of your best customers. What Goes Into a Customer Profile? What makes up a customer profile? It depends on whether your customers are businesses or consumers. In either case, you typically start with your own customer data (such as location, purchases, spending volume), append additional consumer or business data, and then group into segments that share similar characteristic. Perception Customer Attitudes By Cliff Allen However, it's hard to predict which car someone will buy just by knowing demographic characteristics. While one person of a certain age, income level, and family situation may drive an expensive imported car, his next-door neighbor might share the same demographic profile and drive an inexpensive domestic car.
  32. 32. Thus, the demographic data doesn't explain the difference in automotive preferences. But understanding the differences in how these two consumers perceive the features and benefits of automobiles could help marketers understand their needs and interests and which cars they are likely to prefer. By surveying consumers about their attitudes toward the leading products in a market, marketers can map customers' dominant attitudes toward products. Market research companies such as Simmons conduct detailed interviews to gather the data needed to identify clusters of buyer attitudes.
  33. 33. Introduction To Prem Motors The Beginning It was a humble beginning with a small spare parts shop in 1981 at Gwalior. The journey from that day till now was not always smooth but with true grit and determination of the promoters and the employees of the company we have reached where we are today. The turnover of the company during the financial year 2014-15 has been more than Rs 775 corers approx. We shall continue to grow and have positive impacts on the social and economic life of our surroundings. Profile of the Company Prem Motors Pvt. Ltd. a company incorporated under the Companies Act having its registered office at Knawels Complex, A G Office Road, Gwalior came into existence as a Private Limited Company on the 28th day of November, 1990. Mr. Charanjeet Nagpal is the main promoter of Prem Motors Pvt. Ltd. who established the organization in the year 1990 when he acquired a dealership of Rajdoot Motorcycles, formerly a proprietary firm called “Prem Motors”. Over the period, with strong intentions, determination and commitment, he re-established the dealership as a market leader and earned the image of a hardworking successful entrepreneur. Since then, there was no looking back, the business kept on increasing in manifolds. The company has the honor of being associated with various automobile houses as their authorized dealers. Other than being Maruti Suzuki authorized dealers in Gwalior, Jaipur, Agra, and e-outlets, Prem Motors is also an authorized dealer for Piaggio, Suzuki and Yamaha. The transport venture was started in 2011 based out of Gurgaon possessing a fleet of 81 trailers.
  34. 34. Quality Policy Prem Motors are fully committed towards total customer satisfaction.We believe in continual professional improvement. Hence we keep updating our systems and facilities to offer the very best for: •Total Commitment to customer satisfaction. •Focus on employee’s involvement and improve retention. •Work professionally and honestly. Strategy: A long-term strategy is being the leading benchmark company in the Indian auto motive market by constant investments in our people and facilities.
  35. 35. Objectives of the Study The study has been under taken to analyze the customer profile and mapping to understand the consumer behavior regarding automobile sector. Objectives: • To know the customer profile. • To analyze the exact segregation of the industry of Gwalior. • To know at which geographical segment the potential customer exist. • To know the consumer behavior regarding cars on following parameter: I. To analyze the factors influencing the customer before buying a car. II. To find out the replacement pattern of customers. III. To find out the purchase pattern.
  36. 36. ResearchMethodology A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate actions. The research process provides a systematic, planned approach to the research project and ensures that all aspects of the research project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question. This chapter aims to understand the research methodology establishing a framework of evaluati on and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results. ResearchDesign I propose to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. This stage shall help me to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry. The various tasks that I have undertaken in the research design process are: • Defining the information need. • Design the exploratory, descriptive and causal research.
  37. 37. Research Process The research process has four distinct yet interrelated steps for research analysis. It has a logical and hierarchical ordering: •Determination of information research problem. • Development of appropriate research design. • Execution of research design. • Communication of results. Each step is viewed as a separate process that includes a combination of task, step and specific procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and ongoing. Exploratory Research The method I used for exploratory research was: 1. Primary Data. 2. Secondary Data. PRIMARY DATA is represented:  First classified i.e. grouped qualitatively and quantitatively according to the situation or the type of the data which was collected.  After classifying is represented in the form of tables i.e. systematically arranged in columns and rows.  Some of the data is also graphically represented in the form of PIE DIAGRAM.
  38. 38. SECONDARY DATA is represented:  In The Form Of Tables  By the way BAR GRAPHS and SUBDIVIDED BAR GRAPHS ( Graphical representation) Data Collection Data collection took place with the help of filling of questionnaires. The questionnaire method has come to the more widely used and economical means of data collection. I found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researcher to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 minutes. These questionnaires were personally administered. The first hand information was collected by making the people fill the questionnaires. The primary data collected by directly interacting with the people. Data Analysis SAMPLE SIZE AND AREAS COVERED A customer-based survey was conducted in which 100 people were asked to fill the questionnaire in which 50 people belong to cities of Gwalior and Shivpuri. Because it was not possible to consider each and every person of those cities or of villages so, PROBABILITY SAMPLE or RANDOM SAMPLE was taken.
  39. 39. 1) PERCENTAGE OF MARUTI SUZUKI OWNERS INFERENCE:  76% of the respondents were owners of Maruti Suzuki.  24% of the respondents were owners of others company. 76% 24% Owners Of Maruti Suzuki 1 2
  40. 40. 2) CUSTOMER SATISFACTION RATING INFERENCE:  83% of the Respondents were satisfied with their cars and the services of MARUTI SUZUKI  However 17% of the Respondents were dissatisfied at the same time. 83% 17% CUSTOMER SATISFACTION RATING 1 2
  41. 41. 3) PREFERENCES OF BUYING A NEW CAR INFERENCE:  18% of the respondents would prefer to buy a Maruti Suzuki car against its competitors.  37% of respondents preferred for Maruti Suzuki.  21% and 24% respectively preferred for Hyundai & Honda. 50% 20% 16% 14% PreferencesOf Buying A New Car 1 2 3 4
  42. 42. 4) WHERE DO YOU MANAGE TO FIND INFORMATION ABOUT MARUTI SUZUKI. INFERENCE:  Information through Internet and Print media accounts for more than half or 75% of the information shared with the masses.  Rest 25% was shared by T.V. and Dealers for providing the information. 12% 20% 13% 55% InformationAbout Maruti Suzuki 1 2 3 4 5
  43. 43. 5) MARUTI SUZUKI CARS HAS THE MOST FUEL EFFICIENCY INFERENCE:  78% of the respondents felt that Maruti Suzuki has the most fuel efficiency.  While 22% felt it isn’t the most fuel efficient. 78% 22% Fuel Efficiency Of Maruti Suzuki 1 2
  44. 44. 6) THE FEATURES OF MARUTI SUZUKI AS COMPARED TO OTHER CARS INFERENCE:  70% of the respondents felt that the features of the maruti suzuki are good.  While 8% of respondents thought it was not so good, 10% thought it was very good and 12% felt satisfactory about the features. 70% 10% 8% 12% Features Of Maruti Suzuki 1 2 3 4
  45. 45. 7) THE QUALITIES THAT BEST DESCRIBES MARUTI SUZUKI INFERENCE:  Maruti Suzuki is best known for its design & comfort.  Then comes Handling and Fuel Efficiency . 15% 18% 38% 29% Features That Best Describes Maruti Suzuki 1 2 3 4
  46. 46. 8) HOW DO YOU FIND THE INTERIORS OF MARUTI SUZUKI INFERENCE:  The interiors of maruti suzuki are very good according to 74% of the respondents.  16% said it was very good, 7% said it was satisfactory and 3% felt it was not so good. 74% 16% 3% 7% Interiors Of Maruti Suzuki GOOD VERY GOOD NOT SO GOOD SATISFACTORY
  47. 47. 9) WHAT SHOULD BE DONE TO MAKE MARUTI SUZUKI THE BEST CAR INFERENCE:  To make it the best car in its class it should be made more futuristic which was felt by 60% of the respondents.  15% of the respondents thought it should be made more sporty.  10% wanted it to have a retro look and 15% wanted to give it a concept car look. 60%15% 10% 15% What Should Be Done To Make Maruti Suzuki The Best Car MAKE IT MORE FUTURistic MAKE IT MORE SpORTY GIVE IT A RETRO LOOK GIVE TO CONCPET CAR LOOK
  48. 48. 10) ARE YOU HAPPY WITH THE AFTER SALES SERVICES PROVIDED BY MARUTI SUZUKI. INFERENCE:  Overall 85% of the respondents were happy with the after sales service provided by Maruti Suzuki.  15% were unhappy with Maruti Suzuki due to poor after sales services provided by them. 85% 15% Happy With After Sales Services Provided By Maruti Suzuki HAPPY UNHAPPY
  49. 49. Summary Of Findings  76% of the respondents were owners of Maruti Suzuki.  83% of the Respondents were satisfied with their cars and the services of Maruti Suzuki However 17% of the Respondents were dissatisfied at the same time  18% of the respondents would prefer to buy a Maruti Suzuki car against its competitors  Information through Internet and Print media accounts for more than half or 75% of the information shared with the masses. Rest 25% was shared by T.V. and Dealers for providing the information  78% of the respondents felt that Maruti Suzuki has the most fuel efficiency  70% of the respondents felt that the features of the Maruti Suzuki are good. While 8% of respondents thought it was not so good, 10% thought it was very good and 12% felt satisfactory about the features  Maruti Suzuki is best known for its design & comfort. Then comes Handling and Fuel Efficiency.  If Maruti Suzuki is made more affordable then it would win more customers, a theory which was backed by 72% of the respondents.15% and 13% respectively want cheaper spare parts and more service stations.  To make it the best car in its class it should be made more futuristic which was felt by 60% of the respondents.15% of the respondents thought it should be made more sporty.10% wanted it to have a retro look and 15% wanted to give it a concept car look.
  50. 50. Conclusion I have analyzed the attached Balance Sheet of (Maruti Suzuki India Limited Formely Maruti Udyog Limited), as of Five years comparison and the related Profit and Loss Account and Cash Flow Statement for the year ended on that dates Annexed thereto !These financial statements are the Responsibility of the company's management. My pleasure is to express an opinion on these financial statements based on analysis Those Standards an analysis includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An analysis also includes assessing the accounting principles used and significant estimates, marketing Techniques, HRM strategies, financial position of the Maruti Udyog Limited. The company analysis done by me on Maruti Udyog Limited, sorted out that the automobile industry in India is prosperous and growing with innovating technology. Cars in the market through different marketing strategies such as pricing strategy, products development etc. Finally “Maruti Udyog Limited” has it financial trend in ascending order from previous four years. Thus, Maruti Udyog Limited, is counting its profits, and fulfilling the Social responsibility, by making its tag line to be implemented i.e.
  51. 51. Limitations of The Research Project The research study suffers from following limitations:  The Gwalior market was too vast and it was not possible to cover each and every customer in the available short span of time.  Generally, the respondents were busy in their work and were not interested in responding.  Respondents were reluctant to disclose complete and information about themselves and their organization.  Most respondents were reluctant to provide exact information as in why they preferred particular company’s car.  The research was conducted in present prevailing conditions. There can be some fluctuations in the market, which can offset the findings.  The project is carried out for the period of 45 days only.  Measurement of customer satisfaction is complex subject, which uses non- objective methods, which are not reliable.
  52. 52. Recommendations  Maruti Suzuki should increase their service stations.  Facilities regarding after sales services should be increased.  People were aware about Maurti brand, there should be more brand awareness in the market  They should increase advertisement activities.  They should promote more road shows in the respective areas.  The company should promote about the entire feature offered by it.  Everyone is knowing Maruti Suzuki but they are aslo promote their new product because other competitor are doing that i.e. they are also use all that strategies for stand in market growth.
  53. 53. Bibliography References Books 1. Learning C.N. Sontakki, “Marketing Research”, Himalaya Publishing House, New Delhi, 2006. 2. C.R. Kothari, “Research Methodology Methods and Techniques”, New Age International (Pvt.) Ltd., publishing New Delhi, 2004. 3. Churchill, Gilbert and Dawn Iacobucci, “Marketing Research – Methodological Foundations”, South-Western, Thomson, 2002. 4. Crosby, Philip, “Quality is free: The art of making quality certain”, McGraw Hill Custom Publishing, 1978. 5. Dr S.C.Gupta, “Statistical Methods”, Sultan Chand & Sons Educational Publishers, New Delhi, 2006. Websites - www.marutisuzuki.com www.automobile.com Newspaper: The Economics Time Business Time Magazine: Autoindia Hot wheels TVs Shows: Speed Velocity
  54. 54. Questionnare I am currently doing my project in MARUTI Company. As a part of my study I am collecting information of the existing customers to know the consumers perception on value added services provided by MARUTI. I kindly request you to fill the following questionnaires. (A )NAME (B) ADDRESS (C) CONTACT NUMBER (D)INCOME GROUP _________15,000-25,000 _________25, 000-50,000 _________50,000-75,000 _________Above 75,000 1. DO YOU OWN A CAR? o YES o NO IF YES, THEN WHICH ONE? (i) MARUTI (ii) OTHERS 2. HOW SATISFIED ARE YOU WITH THE SERVICES OFFERED BY MARUTI SUZUKI? (i)SATISFIED (ii) DISSATISFIED 3. IF SATISFIED, THEN ARE YOU HAPPY WITH THEIR CHARGES AND TIMELY DELIVERY THEY WERE OFFERING? (i)HAPPY (ii) UNHAPPY
  55. 55. 4. IF GIVEN A CHOICE TO CHOOSE A CAR COMPANY, WHICH COMPANY WOULD YOU CHOOSE? (i) MARUTI (ii) Others 5. WHERE DO YOU MANAGE TO FIND INFORMATION ABOUT MARUTI SUZUKI? (i)DEALERS (ii) PRINT MEDIA (iii)T.V. (iv) INTERNET 6. DO YOU THINK MARUTI SUZUKI HAS THE MOST FUEL EFFICIENCY? (i)YES (ii) NO 7. HOW DO YOU FIND THE FEATURES OF MARUTI SUZUKI AS COMPARED TO OTHER CARS? (i)GOOD (ii) VERY GOOD (iii)NOT SO GOOD (iv) SATISFACTORY 8. WHICH OF THESE QUALITIES DO YOU THINK BEST DESCRIBES MARUTI SUZUKI? (i)HANDLING (ii) FUEL EFFICIENCY (iii)DESIGN (iv) COMFORT 9. HOW DO YOU FIND THE INTERIORS OF MARUTI SUZUKI? (i)GOOD (ii) VERY GOOD (iii)SATISFACTORY (iv) NOT SO GOOD
  56. 56. 10. ACCORDING TO YOU WHAT SHOULD BE DONE TO IMPROVE MARUTI SUZUKI ? (i) MAKE IT MORE AFFORDABLE (ii) CHEAPER SPARE PARTS (iii)MORE SERVICE STATIONS 11. ACCORDING TO YOU WHAT SHOULD BE DONE TO MAKE MARUTI SUZUKI THE BEST CAR? (i)MAKE IT MORE FUTURISTIC (ii)MAKE IT MORE SPORTY (iii)GIVE IT A RETRO LOOK (iv)GIVE IT A CONCEPT CAR LOOK 12. ARE YOU HAPPY WITH THE AFTER SALES SERVICES PROVIDED BY MARUTI SUZUKI? (i) YES (ii) NO (iii) HAPPY BUT IT CAN BE BETTER

×