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Service quality and consumer satisfaction for maruti service center

  1. 1. AResearch Project Report ON “SERVICE QUALITY AND CONSUMER SATISFACTION FOR MARUTI SERVICE CENTER IN NOIDA” A report submitted to U.P. Technical University for the partial fulfillment of MBA DegreeSubmitted to: - Submitted by: -Prof. A.K. SINGH KAPIL KUMARSINGHDIRECTOR MBA- IVth Sem.Greater Noida Institute of Technology Roll no.(0513270020) Greater Noida Institute of Technology 7, Knowledge Park –II, Greater Noida (U.P.) (2006-2007) 1
  2. 2. CERTIFICATEThis is to certify that the Research Report entitled “SERVICE QUALITY ANDCONSUMER SATISFACTION FOR MARUTI SERVICE CENTERIN NOIDA” Being submitted by “KAPIL KUMAR SINGH” in fulfillment of therequirement of U.P. TECHNICAL UNIVERSITY is a record of an independent workdone by his under my guidance and supervision.Prof. Randhir Azad Concerned FacultyFacultyGreater Noida Institute of Technology GNIT, Greater Noida 2
  3. 3. DECLARATIONI KAPIL KUMAR SINGH do Declare that the Research Report entitled“SERVICE QUALITY AND CONSUMER SATISFACTION FORMARUTI SERVICE CENTER IN NOIDA” Being submitted to theU.P. TECHNICAL UNIVERSITY for the partial fulfillment of therequirement for the degree of Master of Business Administration is myown endeavors band it has not been submitted earlier to any institution /university for any degree. Place: -Date: - (KAPIL KUMARSINGH) 3
  4. 4. ACKNOWLEDGEMENT During the entire covering of research project work I havereceived endless help from my all teachers who encouraging mefor developing ideas and supporting me in each and every stepfor completing the whole project. I am greatly thankful to my research project guide A.Sharma for assigning an innovative project that developed afeeling of fully practical work. In fact no project could be completed without meaningfulsuggestions and guidance of A. Sharma who helped me duringmy task and shared his precious time with me. I grateful Thanks to my respected teachers Mr. Randhir Azad. I owe my humble gratitude to all those treasures of knowledgethat are equally responsible for the successful completion of this task. (Kapil Kumar Singh) 4
  5. 5. INDEX Introduction Objectives of the Study Company Profile o Milestones o Awards o ISO 9001:2000 certificate Maruti Products Research Methodology Market Research o Customer Satisfaction o Market Segmentation o Positioning o Suppliers o Advertising & Communication o Values & Vision Maruti Authorized Service Network o Wider Area Coverage o Better service quality 5
  6. 6.  Survey o SWOT Analysis o SCM Strategies Recommendation Limitation of Study Findings & Interpretation Summary & Conclusion Bibliography Questionnaire 6
  7. 7. INTRODUCTION India is one of the most important emerging car economiesin the world today. Premier Automobile Ltd. (PAL) earned thedistinction of manufacturing the first car in the country.Hindustan Motors (HM), which started as a manufacturer ofauto components graduated to manufacture cars in 1949.Thanks to the Licence Raj which restricted foreign competitorsto enter the Indian car market, Indian roads were ruled byAmbassador Car from Hindustan Motors and the Fiat fromPremier Auto Ltd. for many of the initial years. The control imposed on car makers related to productioncapacity and distribution. The GOI control even extended tofixation of prices for cars and dealer commissions. The threedecades of the passenger car industry in India up to the early1980s, proved to be the dark ages for the consumer, as hischoice throughout this period was limited to two modelsAmbassador and Padmini. It was only in 1981, after the entry ofMaruti Udyog, that the car makers were given a free hand to fixthe prices of cars, thus, effectively abolishing all controls relatingto the pricing of the end product. 7
  8. 8. In the early 80s, a series of liberal policy changes wereannounced marking another turning point for the automobileindustry. The very face of the industry was changed for ever in1983 with the entry of public sector Maruti Udyog in a jointventure with the Suzuki Corporation of Japan. Maruti Udyog Ltd introduced Maruti 800 in 1983providing a complete face lift to the Indian car industry. The carwas launched as a "Peoples car" with a price tag of Rs 40,000.This changed the industrys profile dramatically. Maruti 800 waswell accepted by middle income families in the country. Manycompanies have entered the car manufacturing sector, to tap themiddle and premium end of car industry. The new entrants areDaewoo (Matiz), Tata (Indica) and Hyundai (Santro) in upperend of economy car market. GM, Ford, Peugeot, Mitsubishi,Honda and Fiat has entered the mid-sized car segment andMercedes-Benz is in the premium end of market. 8
  9. 9. OBJECTIVE OF THE STUDY• To know the current and future standing of the Maruti Udyog Ltd.• To know the visions and values of the company.• To calculate the market of different brands of Maruti.• To find out the main factor affecting the buying behavior or buying decision of the consumers.• To know the effectiveness of advertisement of Maruti cars in buying decision of the customer.• To know the position and segments in which the whole market is divided.• To know the level of consumer satisfaction and the factors affects it.• To know the level of service quality for maruti service center. 9
  10. 10. COMPANY PROFILE Maruti Udyog Limited (MUL) was established in Feb 1981through an Act of Parliament, to meet the growing demand of apersonal mode of transport caused by the lack of an efficientpublic transport system. Suzuki Motor Company was chosen from seven prospectivepartners worldwide. This was due not only to their undisputedleadership in small cars but also to their commitment to activelybring to Maruti Udyog Limited contemporary technology andJapanese management practices (which had catapulted Japanover USA to the status of the top auto manufacturing country inthe world). A license and a Joint Venture agreement was signedbetween Government of India and Suzuki Motor Company (nowSuzuki Motor Corporation of Japan) in Oct 1982.The objectives of MUL then were: • Modernization of the Indian Automobile Industry. • Production of fuel-efficient vehicles to conserve scarce resources. • Production of large number of motor vehicles which was necessary for economic growth. • SMC and MUL have drawn up an investment plan of Rs 9000 crore in India upto 2010. 10
  11. 11. Vision "The Leader in the Indian Automobile Industry,Creating Customer Delight and Shareholders Wealth; Apride of India"Core Values  Customer Obsession  Fast, Flexible and First Mover  Innovation and Creativity  Networking and Partnership  Openness and LearningTechnological Advantage We have introduced the superior 16 * 4 Hypertech enginesacross the entire Maruti Suzuki range. This new technologyharnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine delivery. Thismeans every Maruti Suzuki owner gets the ideal combination ofpower and performance from his car. Our other innovation has been the introduction ofElectronic Power Steering (EPS) in select models. This results inbetter and greater maneuverability. In other words, our carshave become even more pleasurable to drive. 11
  12. 12. Production/R & D Spread over a sprawling 297 acres with 3 fully-integratedproduction facilities, the Maruti Udyog Plant has already rolledout over 6.3 million vehicles. In fact, on an average, two vehiclesroll out of the factory every minute. And it takes on an average,just 14 hours to make a car. More importantly, with anincredible range of 11 models available in 50 variants, theres aMaruti Suzuki made here to fit every car-buyers budget, anddream. SMC and MUL have drawn up an investment plan of Rs9000 corer in India up to 2010.Production Milestones • 1st vehicle produced, December 1983 • 1,00,000 vehicles produced by August, 1986 • 5,00,000 vehicles produced by June, 1990 • 10,00,000 vehicles produced by March, 1994 • 15,00,000 vehicles produced by April, 1996 • 20,00,000 vehicles produced by October, 1997 • 25,00,000 vehicles produced by March, 1999 • 30,00,000 vehicles produced by June, 2000 • 35,00,000 vehicles produced by December 2001 • 40,00,000 vehicles produced by April, 2003 • 45,00,000 vehicles produced by April, 2004 • 50,00,000 vehicles produced by April, 2005 12
  13. 13. Milestones2005  The fiftieth lakh car rolls out in April, 2005  Growth in overall sales by 15.8%2004  New (non A/C) variant of Alto  Alto becomes Indias new best selling car  LPG variant of Omni Cargo  Versa 5-seater, a new variant  Baleno LXi, a new variant  Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago2003  New Suzuki Grand Vitara XL-7  Redesigned and all-new Zen  New upgraded WagonR  Enters into partnership with State Bank of India  Production of 4 millionth vehicle. Listed on BSE and NSE after a public issue oversubscribed 10 times2002  WagonR Pride  Esteem Diesel. All other variants upgraded  Maruti Insurance. Two new subsidiaries started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited  Alto Spin LXi, with electronic power steering  Special edition of Maruti 800, India’s first colour- coordinated car  Maruti True value in Mumbai  Maruti Finance in Mumbai with 10 finance companies  Suzuki Motor Corporation (SMC) increases its stake in Maruti to 54.2 percent2001  Zen LXi  Maruti True Value launched in Bangalore and Delhi  Maruti Versa, India’s first luxury MPV 13
  14. 14.  Alto Spin LXi, with electronic power steering  Alto Vxi  Customer information centers launched in Hyderabad, Bangalore and Chennai  Launch of versa2000  First car company in India to launch a Call Center  New Alto  Altura, a luxury estate car  IDTR (Institute of Driving Training and Research) launched jointly with the Delhi government to promote safe driving habits1999  Maruti 800 EX ( 796cc, hatchback car)  Zen LX (993cc, hatchback car)  Zen VXi (993cc, hatchback car with power steering)  Omni XL (796cc, MUV, high roof)  Baleno (1600cc, 3 Box Car)  Wagon R  Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives1998  Maruti launches website as part of CRM initiatives  Zen D (1527 cc diesel, hatchback car)  Zen VX & Zen VX Automatic  New (Omni & Omni E) (796cc, MUV)  Launch of website as part of CRM initiatives1997  1998 Esteem (1299cc, 3 box car) LX, VX and AX  New Maruti 800 (796cc,hatchback Car) Standard and Deluxe  Produced the 2 millionth vehicle since the commencement of production1996  Gypsy (E) (970cc, 4WD 8 seater)  Omni (E) (796cc, MUV, 8 seater)  Gypsy King (1298cc, 4WD, off road vehicle)  Zen Automatic (993cc, hatchback car)  Esteem 1.3L (1298 cc, 3 box Car)AX 14
  15. 15.  Launch of 24-hour emergency on-road vehicle service1995  Esteem 1.3L (1298 cc, 3 box car)VX  With the launch of second plant, installed capacity reached 200,000 units1994  Esteem1.3L (1298cc, 3 box car)LX  Produced the 1 millionth vehicle since the commencement of production1993  Zen(993cc, hatchback Car), which was later exported in Europe and elsewhere as the Alto1992  SMC increases its stake in Maruti to 50 percent1991  Reaches cumulative indigenisation of 65 percent for all vehicles produced1990  Maruti 1,000(970cc, 3 box), India’s first contemporary sedan1988  Installed capacity increased to 1,00,000 units1987  Exported first lot of 500 cars to Hungary1986  Maruti 800 (New Model-796cc, hatchback Car)  Produced 1,00,000 vehicles (cumulative production)1985  Launch of Maruti Gypsy (970cc, 4WD off-road vehicle)1984  Omni, a 796cc MUV  Installed capacity reached 40,000 units1983  Maruti 800, a 796 cc hatchback, India’s first affordable car.  Production was started under JVA1982  License and JV agreement signed between Maruti Udyog Ltd. and SMC of Japan1981  Maruti Udyog Ltd was incorporated under the provisions of the Indian Companies Act, 1956 15
  16. 16. 16
  17. 17. Awards2005  Number one in JD Power SSI for the second consecutive year.  Number one in JD Power CSI for the sixth time in a row - the only car to win.  it so many times.  M800, WagonR and Swift topped their segments in the TNS Total.  Customer Satisfaction Study.  Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the 2nd time in a row, Esteem number one in its segment for the 3rd year in a row, Swift number one in the premium compact segment.  WagonR and Esteem top their segments in the JD Power APEAL study  TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05  Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC (2nd time in a row)-Feb 05  First Indian car manufacturer to reach 5 million vehicles sales  Business World ranks Maruti among top five most respected companies in India-Oct 04  Maruti ranked among top ten (Rank7) greenest companies  in India by Business Today - Sep 04 17
  18. 18. 2004  Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R)  No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)  Business World ranked us among the countrys five most respected companies  Business World ranked us the countrys most respected automobile company  Voted Manufacturer of the year by CNBC  Voted one of Indias Greenest Companies by Business Today-AC Nielson ORG-MARG2003  Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003"  J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem  Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003.  MUL tops in J D Power CSI (2001) for 4th time in a row2001  MUL tops in J D Power CSI (2001) for 2nd time in a row: another international first 18
  19. 19. 2000  Maruti bags JD Power CSI - 1st rank; unique achievement by market leader anywhere in the world1999  MSM launched as model workshop in India; achieves highest CSI rating.  Central Board of Excise & Customs awards Maruti with "Samman Patra", for contribution to exchequer and being an ideal tax assessee1998  CIIs Business Excellence Award1996  Maruti wins INSSAN award for "Excellence in Suggestion Scheme"  Awarded the Star Trading House status by Ministry of Commerce1994-95  Engineering Exports Promotion Councils award for export performance1994  Best Canteen award among Haryana Industries as part of employee welfare 19
  20. 20. 1992-93  Engineering Exports Promotion Councils award for export performance1991-92  Engineering Exports Promotion Councils award for export performance 20
  21. 21. ISO 9001:2000At Maruti, our approach to quality is in keeping with theJapanese practice--"build it into the product". Techniciansthemselves inspect the quality of work. Supervisors educate andinstruct technicians to continually improve productivity andquality. The movement of quality indicators is reviewed in weeklymeetings by the top management.In 2001, Maruti Udyog Ltd became one of the firstautomobile companies anywhere in the world to get an ISO9000:2000 certification. AV Belgium, global auditors forInternational Organization for Standardization(ISO), certifiedMaruti after a four day long audit, covering varied parameterslike Customer Focused organization, Leadership, Involvement ofpeople, Process approach, System approach to Management,Continual improvement, etc.In May 1995, Maruti got ISO 9002 certification. The audit forthis covered quality assurance in production, installation,marketing and sales as well as after sales services. We were alsoone of the first companies in the world to pioneer ISO 9000certification for our dealers. In October 1993, MUL passed the Conformity OfProduction (COP) Audit, which is based on a European Union Directive. This authenticated our quality systemsand testing facilities for export to Europe. The emphasis on total quality has meant that today it is ina position to guide vendors and dealers in establishing andconsolidating their individual quality systems. This commitmentto quality has ensured a consistently satisfying product andworld-class sales and after-sales services. 21
  22. 22. Employee Quality Measures Kaizen is based on the concept of making incrementalimprovements in its products. It incorporates a series ofcontinuous small and simple improvements, which aim atinvolving employees at all levels. The Suggestion Scheme is based on the same principle.Under this scheme, employees are encouraged to makesuggestions for improvement in any area of our operation. Over50,000 suggestions are received from employees every year. Maruti has won the First place in "Excellence inSuggestion Scheme Contest 2003", which is the 6thconsecutive award won in as many years. This contest isorganized by Indian National Suggestion Schemes Association(INSSAN). Since 1998 Maruti has won this award 10 times. "Quality Circles" are groups of five to eight members from aparticular work area who work as a team to identify prioritiesand solve work related problems in the area. It believe that it is this unwavering commitment to qualitythat will lead to the further growth of the organization ascompetition increases 22
  23. 23. WHAT’S NEWMaruti Leads March with Stellar Performance Your favourite car company, Maruti Udyog Limited hasclosed the financial year 2005-06 with an annual sale of6,72,122 units, the highest ever since the company beganoperations 20 years ago. This annual sale figure includes exportsof 71175 units, the highest ever since Maruti began exportingcars in 1988, a growth of 59% over 2004-05. Marutis annualsale in 2005-06 represents a growth of 30 per cent over 2004-05.During March 2006, the company sold 52700 units, including8282 exports. This is the highest ever sale in the domesticmarket in a month by Maruti. This is also the highest ever exportin a month by the company. The record sale performance was a fitting end to aneventful year during which the companys Public Issue wasoversubscribed 10 times and became a landmark for the Indianstock markets and the Governments Divestment programme. During the year, Maruti earned further customerappreciation, being ranked FIRST in J D Power CustomerSatisfaction Survey for a record fourth year in a row. The companys WagonR, Zen and Esteem models toppedtheir categories in the J D Power Initial Quality Study 2005.Quality improvements along the chain, notably by the companyscomponent suppliers, contributed to this achievement. Besides, WagonR was ranked FIRST in its category inTotal Customer Satisfaction Survey conducted by NFOAutomotive. 23
  24. 24. The year also saw Maruti make major strides towards itsgoal of becoming Suzuki Motor Corporations R and D hub forAsia outside Japan. It introduced upgraded versions of WagonRand Zen, the latter completely designed and styled inhouse. Indias most popular car, Maruti 800, strengthened itsleadership with a 17 per cent growth even as Marutispartnership with State Bank of India and its Associate Banksenabled it to reach car finance to smaller towns and cities acrossthe country. During the year, Maruti consolidated its leadership in theA 2 (premium compact) segment, with Alto growing by over 130per cent and finishing as the countrys fastest growing A2Segment model for the year. With the launch of Grand Vitara XL-7 during the year,Maruti marked its entry into the top-end Luxury SUV segment ofthe Indian car market. The record sales performance was ably supported byMarutis dealerships. During the year, the company ended itsrelationship with several non-performing dealerships andenhanced it with the good performers. The new car sales networkgrew from 243 outlets to 280, with coverage expanding from 160cities to 182. The dealerships also participated in the expansion ofMarutis new businesses, including Maruti Insurance, MarutiFinance, Maruti True Value (Pre Owned cars) and N2N(Corporate Lease and Fleet Management Services). Theseservices made Maruti vehicles even more attractive forcustomers. “Marutis service network, known for its size andquality, expanded to a landmark 1000 cities and townsduring the year”. 24
  25. 25. The Maruti-managed Institute of Driving Training andResearch in Delhi made major contribution to safe drivinq whichwas widely recoqnised. notably by the Honble Delhi High Court. 25
  26. 26. MARUTI PRODUCTSMaruti Vitara The Grand Vitara ishandsome and a verycapable off-road vehicle, itis above average at this endof the market with goodquality fabrics and plastics.It is equipped with anergonomic dashboard and is superbly backlit with great heatingcontrols. The car has excellent headroom and rear legroom.However, front passenger foot well has limited legroom. Theheadrests are difficult to adjust, especially to get them at thecorrect height for our heads or necks. It is also difficult to adjustdriver’s seat with the door shut. Dont get me wrong the SuzukiGrand Vitara has true off road performance, car-like ease todrive and is excellent value for money. It would go where many aso-called four-wheel drive would falter without lacking comfort orrefinement. The Grand Vitara comes with a security consciousintegrated radio single slot CD player, which is capable and veryeasy to use. This machine is a joy to drive and an excellentalternative to the family car. 26
  27. 27. Maruti Wagon R The 1061cc MPFIlow friction engine deliversan awesome64bhp@6200rpm powerfor smoother pick-up andfaster acceleration thanother car engines in thiscategory. A 16 bit on-board computer with diagnostic capabilitymonitors engine performance continuously. It checks thecondition 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 betterfuel economy than other cars. As per Autocar (May04) WagonRgives a mileage of 14.15 kmpl as against 13.3 kmpl by SantroXing. This has been made possible due to the superior WagonRengine. Dual Distributor-less Digital Ignition (DDLI) means aninstant, hassle-free start every time and more efficient powerdistribution. A flat torque curve ensures quick pick-up at highergears and lower rpm. You wont need to change the gears often.Its not just performance, WagonR also has numerous innovativefeatures. 27
  28. 28. accordingly, including a new engine. Wagon R is Japan’s topselling model, and it is to be seen if it’s success can be emulatedin India.Maruti Alto The hottest little thingis really a hot cake amongthe car lovers. Just get insideand try this cool car. You willdefinitely fall in love with it.Finally your fantasy compactcar is now a reality. Its unique features make it distinct from the other cars.The electronic tachometer helps improve unmatched fuelefficiency. It is also equipped with a remote controlled fuel lidand trunk opener. A digital trip meter indicated the miles youhave enjoyed riding on this cool car.It is a highly safe car to drive on Indian roads. High tensile steelside door beams guard against front, rear and side collisionimpact. It has room for almost everything making it a real familycar. Put all you want into a low roomy luggage compartment. Italso has more boot space than other cars.Its seductive lines and stylish curves complement the muscularlook. Two pressed lines on either side give it a distinct characterand an unique halogen head lamp make it a beauty. The coolinteriors of the car include a powerful AC, which is ideal forIndias climate. 28
  29. 29. Maruti Esteem Looked at against other carsin the Indian market in the mid-size segment, the Esteem seems abit ordinary. For one, it definitelyneeds a new look as it is thereplica of the earlier Maruti 1000introduced in the mid-eighties. The Maruti 1000 was withdrawnas it was an extremely underpowered vehicle, and no one candeny that the Esteem has a great engine under its hood. The fact remains, though, that the design has been aroundfor close to two decades and a new look could do wonders for thecar. This is because the Esteems main asset is its engine, whichleaves no doubt in anyones mind that the Japanese make thebest petrol motors on this planet. The all-aluminium engine withits hollow camshaft, which cuts down rotational inertia, isextremely light and responsive. The Esteem typifies Suzukis expertise in using the four-valve-per cylinder, multi-point fuel-injection combination tocreate a power machine. The mid-size Esteem can reach 100kmph speed from standstill in just 11.4 seconds — quicker thanthe Lancer and the Astra. The power-to-weight ratio of the Esteem is also the mostfavourable for a mid-size car. The power steering in the variantsis quick and direct with a certain degree of feel. This is a boon intight city driving conditions. The gearbox is slick and shifting areal joy. 29
  30. 30. The Esteem is available in a large number of variants. NewEuro 2 variants of the Esteem LX, VX and AX are the biggestattraction now. As for the diesel variants there is the Esteem Diand the base Esteem D version. Then there is the Esteem Vxiand the Esteem LX Euro 1 version. The Euro 2 versions are a definite upgrade on the earlierversions as they come with 85 bhp against the earlier weaker 57bhp variants. Among the two diesel variants, the Di is the top-of-the-line version with power steering, windows, rear defogger andhalogen lamps, to name a few features. The Vxi version and the Euro 2, VX and AX come wellequipped with power steering and power everything. But the VXIversion is a step ahead as it has a rear defogger, a laminatedwindshield and a number of extra add-on features such asprotective mouldings on the side.Maruti Baleno The Baleno has the looksand feel of a winner. This wasMaruti Udyogs first D-segmentcar launched in India tocompete with the MitsubishiLancer and the Honda City.This is also Suzukis biggest passenger car and in Japan andother markets. The Baleno is called the Cultus in Japan. The Baleno is probably the best-equipped car in the markettoday. It is available in two variants — one the base version andthe top-end Baleno Altura. Both are identical in almost every 30
  31. 31. aspect except that the Altura version is bigger and heavier and isequipped with some standout features like grip assist, which isthere both in the front and the rear, electrically operated A/Clouvre switches, a rear windshield wiper and washer, roof rails,foot rest and luggage hooks. Other features present in both the models include a reardefogger, third brake light, trunk lighting, rear safety belts andthe very useful key-not-removed buzzer. By any standards, thecar is very spacious and here at last is one car that providesample legroom for the rear passengers. The Balenos 1.6-litre engine with 16 valves, multi-point-fuel-injection, a hollow camshaft and distributor-less electronicignition is a gem. It is a SOHC unit where all four valves areoperated via rockers driven by a single camshaft. It gives 94bhpat 6,000 rpm and a torque of 13.4kgm at 3,000rpm. The spirit ofthe car is bottled in a highly responsive and fuel-efficient 1590ccSOHC engine. The Baleno is identical to the Honda City in length andwidth though it is smaller than the Lancer and the Astra. TheBalenos rectangular, meshed grille stands out from thebodywork with its chrome border. The bonnet flows smoothlyaround the grille area and blends into the bumper. The Baleno is suspended on a fully-independent set-up,with MacPherson struts, both front and rear. An anti-roll bar isstandard in the front. The suspension is mounted on a sub-frame, which reduces noise, vibration and harshness levels. The Baleno reaches 0-100 kmph in 11.13 seconds and atop speed of 180 kmph and gives a mileage of 11.1 kmpl in 31
  32. 32. towns and 15.9 kmpl on highways. The Baleno is Marutis firstupper-end model to compete with the Opel Astra, the MitsubishiLancer and the Honda City. The Baleno is Suzukis biggest andmost important passenger car.Maruti 800 The Maruti 800 is the largest-selling car in India — andwith good reason. This car offersthe best value for money amongall Indian cars — combining easeof driving, good fuel economy andreliability. Historically, it has the blessings of the government behindit also. But the cars low-cost structure remains unmatched. Nomanufacturer today, maybe not even Maruti Udyog itself, wouldbe able to make a car like the 800 today, at the same price.Hence, the cost advantage of the indomitable 800 is the reasonbehind its phenomenal success. The Maruti 800, which enabled millions of urban middle-class families to become first-generation owners of a four-wheeler because of its affordable price, has seen severalimprovements over the years — the main reason why it hasstuck around for so long. The latest improvement in the Maruti 800 is theintroduction of a multi-point fuel-injection (MPFI) system tomeet new emission norms. The MPFI system is complemented bya four-valve per-cylinder head and five-speed gearbox giving it alevel of performance very few cars in this segment can match. It 32
  33. 33. is also the most manoeuvrable car around. Its compact, nimbleand the easiest thing to drive in urban surroundings. Parking isalso not a problem for this baby.For those wanting to save on fuel the Maruti 800 is the answer.The increased power hasnt changed its fuel efficiency. It gives ahighway run of 21.9 kmpl, while in the city it gives 13.9 kmpl.Maruti Gypsy The Maruti Gypsy isIndias version of the SuzukiJimny, which was at one timeone of the best-selling four-wheel drives in the world. TheGypsy can go nearly anywhere,though is not as solid aworkhorse as the Mahindra Jeeps. But considering its size and weight, it is tough and cantake a lot of battering. As a personal four-wheel-drive car, it doeswell as it is refined, better finished and is much easier to drivethan any Jeep. And it is also extremely reliable and, to a largeextent, trouble-free. In India it is available in two Euro 2 variants — the HT andthe ST version. The HT version has features like fabricupholstery and a fibre reinforced plastic top, while the STversion has a foldable windscreen and a removable canvas top. Apart from this the two are nearly the same as they bothgive 80 bhp power @ 6000 rpm and come with a 1300cc enginepulled by a torque of 103 Nm @ 4500 rpm. 33
  34. 34. Maruti Omni The Maruti Omni Van isbasically a Japanesecommercial van that has beenconverted with somemodifications into a passengervehicle. This is basically anunderpowered vehicle mainlydue to its excessive weight. It is heavier than a car because its body is notaerodynamic. Also due to its high stance it appears to be slightlyunstable. In high-speed crosswinds, the Omni becomes unstableand shaky because its wheels are small and the centre of gravityhigh. The Omni also has a tendency to pitch and bounce on anuneven terrain. The ride quality is also not up to regularstandards due to the suspension, which appears to be of leafspring lineage. However, manoeuvrability is very good for a carof such dimensions and is far superior to that of the 800. Itsturning cycle, too, is better than the 800s. In terms of space efficiency, the Omni beats the higher-priced breed of small cars. The vehicle can accommodate fivepassengers and stack their luggage easily. The rear sides offergreater comfort with plenty of legroom and door-to-door carpets.The sliding doors help in easy entry and exit when in a crowdedparking lot.Maruti Versa 34
  35. 35. If you are looking out for a station wagon that you candrive to work and also take out yourfamily and friends for a picnic, you cansafely reach out for the Maruti Versa, amini-van with the looks of a car. The Maruti Versa, unlike theOmni, has a fairly well-defined snoutwith a three -groove grille. The bonnet, the headlights, the blackchin spoiler and the bumper with a huge air-intake capacity giveit a sporty look. It is an incredibly light car. Decked in aconventional van layout, the Versas engine is located under thefront seats. Its bonnet houses the radiator and electric fan as well asthe AC condenser and reservoirs for the coolant, washer fluidand brake fluid. The Versa uses disc brakes for the front andalso has a pressure-regulating valve. The side panels are tastefully delineated with snazzygraphics, which extend from the tail lamp to the front door. Thecar employs the proven and ultra reliable 1298cc four-cylinderSOHC of the Esteem. Maruti engineers have taken special careto reduce noise, vibrations and harshness levels to acceptablelimits. They have also made appreciable efforts to improve safetyfeatures in the car, and the monocque construction provides arigid safety cell with side impact bars to protect against frontalimpacts. Firm suspension settings ensure comfort and control. The Versas interiors have a familiar Maruti ring. Theinteriors are tastefully done with brushed aluminium look,though a substantial borrowing has been made from the Maruti 35
  36. 36. family parts bin to bring down costs. With a similar dashboard,steering wheel and instrument panel, there is very littledifference between a Versa, the Alto or a WagonR. But the newSDX version of the Versa has a leather-wrapped steering wheeland metallic finished dashboard. The SDX version is a seven-seater, while the base VersaDX and the middle variant DX2 is an eight-seater. One can slideand recline the front row seats to adjust space between the firstand middle rows. The SDX and DX2 versions of the Versa areequipped with twin air conditioners — one in front and one atthe rear. The rear AC has independent controls and overheadducts. The Versa is probably among the safest cars to drive.Safety features include side-impact absorbing beams, front-impact beams and a steel pipe frame in the rear seat. Heightadjustable head restraints, brake boosters and a collapsiblesteering column are the other safety features. The Versa boasts of a powerful 16-valve, 1298cc enginegenerating 82 bhp at 6000 rpm, and controlled by a 16-bitengine management system. The car also possesses higherpower to weight ratio not present in any other MUV. The Versacan reach 100 kmph from standstill position in just 13.5seconds.Maruti Zen The Zen is based on the1991 Suzuki Cervo Mode, aJapanese-market-only model. 36
  37. 37. The Maruti Zen was the first car by Maruti designed for theworldwide market, with India being the only production hub.The cars design and specifications are contemporary with worldstandards. In essence, the Zen, (sold as Suzuki Alto abroad) whichlooks like an extremely well-fed Maruti 800, drives like a dream.It offers more than adequate performance and is delightful tohandle. The Zen was also the first Indian car to win accoladesabroad, being voted the best car in its category in Belgium andthe Netherlands in 1997 in addition to being the top car in theUK in terms of operating costs in the same year. Zen was the first car to have all-aluminium engine,electronic distributor pump, electric fuel pump in the fuel tank,suction resonator and a dash panel of sandwich construction.Starting from the 993cc engine, developing 50bhp in carburettedform and 58.5bhp in fuel-injected form, most of the power of theZen comes in at the higher reaches of the power band. The five-speed ultra-slick gearbox in the Zen continues tobe one of best boxes in an Indian car. A collapsible steeringcolumn is another safety feature present in all the variants ofthe car. The Zen is available in four variants — the LX, VX, VXiand D. A deluxe model has also just been launched; it boasts ofcentral wood finish console and suede leather upholstery. Accessories in the car include, music system, sun visorson both sides, front and rear assist grip, fabric upholstery,power window and power steering is available in the VX and Vxivariants. 37
  38. 38. Safety features in all the variants include: energyabsorbing collapsible steering column, side-impact door beamsin front and rear, child-proof locks on rear doors, rearwindshield wiper and washer, central locking and protectivemouldings on side.Maruti SwiftMaruti Udyog, flush withbookings for the new Swift, willramp up its production from 200to 250-260 units per day,starting 19 June. The plant will be shut for a week prior to thatfor annual maintenance work. Launched on May 25 in New Delhi, the Swift has also beenlaunched in several other cities since then, including Mumbai,Ahmedabad, Hyderabad and Chennai. With an estimated 20,000bookings, the car is booked for the coming three months or so.Meanwhile, the company has already announced an increase inprices for the car, marking the end of introductory pricingwhich Marutis MD, Jagdish Khattar had alluded to at thelaunch. As a result, all bookings effective 9 June will be made atthe new retail tags. While the base model LXis price has beenincreased by Rs 8,000, those of the VXi and ZXi have been raisedby Rs 10,000 each. Maruti has said the prices are for freshbookings and will not impact the estimated 20,000 bookingsalready received. 38
  39. 39. The increases in retail price tags, barely two weeks afterthe launch, will bring the Swifts price closer to that of its closestcompetitor, the Hyundai Getz, prices of which start at around Rs4.5 lakh. Sources said that while Maruti had indicated thatprices would change, the timing has come as a bit of a surprise,as one would have expected the introductory pricing to be inforce for at least a month. According to other sources, Marutihad not expected so many bookings, and the company wouldntmind the little extra breathing space if some potential customerscancelled their bookings. Marutis sales in the first two months of this fiscal havebeen down by about four percent, at an estimated 80,476 unitsas against 84,050 units in the year-earlier period. Exports havealso fallen by 61 percent in this period. The companys volume inthe domestic A2 segment grew by 23 percent which is inclusiveof 2,981 units of the Swift, dispatched during May 2005. In theA3 segment, Marutis sales grew 48 percent during the monthcompared to sales in the year-earlier period. The company has laid the foundation stone of its new plantat Manesar. The new plant will involve an investment of over Rs3,200 crore, of which Rs 1,500 crore will be spent to build a newcar assembly plant and Rs 1,748 crore for a diesel enginemanufacturing facility for local consumption and exports. Maruti 800 Days Are Numbered If……………. 1. The used or second-hand car market in India is likely to become more organized in future. The car dealers will themselves deal with used cars. It is expected that a used second 39
  40. 40. hand Indica, Santo, Astra or Cielo will be priced close to a new Maruti 800. This could put a question mark on the prevalent assumption that a large number of current two- wheeler users in India will graduate to a Maruti 800 in future with higher incomes.2. An analysis of the world car market shows that no car company in the world, with the expectation of the Japanese, has a car in its range, which is directly comparable to the Maruti 800. Contrary to popular belief, the Ford Fiesta, Opel Corsa and the VW Golf would compete with Maruti Esteem or Maruti Zen, and not with Maruti 800. All these cars, though small by Western standards, are high-power cars which would be priced in India in the luxury range. Given that only 30% of the market is estimated for cars above 1000cc and with so many companies already in the Indian market, the industry seems to be heading for a shake out. The firms that would be able to design and properly implement sound marketing strategies are likely to be the winners.3. The easy financing schemes are also posing threat to the Maruti because customers can directly graduate to SEGMENT B without having first time purchase at Maruti 800. Since car purchase is India is a one time decision and people will prefer to have one investment that will differ not very highly for better features.4. Diesel engine cars are also posing a big threat due to their fuel cost differential since in India people do give a lot of emphasis on fuel efficiency and price do play an important role in this category. Huge success of INDICA in the sub 40
  41. 41. urban and rural areas is just an Indicator of the future soMaruti 800 beware India is slipping out of your hands. 41
  42. 42. Research Methodology The type decision and specification of a work or taste is asimportant as its target and achievement. The study of aimed to provide the comparative accountregarding the Total models of Maruti cars in the market. I foundout the position and condition of selected models and variousthings. For this project survey, I made the questionnaire andcollected data from the journals, internet, and magazines.Research: Research can also be defined as scientific and systematicsearch to time information for specific topic.Problem Identification: Define the problem chosen for investigation such as-: (a) Analysis of after sales- services (b) Analysis the level of customer – satisfaction. (c) Market share of different brands etc.Research design “Research design is the basic framework which providesguidelines for data collection and data analysis” the researcherespecially pin point that to carryout research properly. 1) How the data would be collected. 2) Which instrument for data collection would be used? 3) What sampling plan would be used? 42
  43. 43. The data collection methods are basically of these types-observation, experimentation and survey. I used the surveymethod of data collection because in the Market Researchmethod I can gather a wide range of valuable information on overbehavior of consumer for product.Sources of information: through Primary & secondary Data.Primary data: Primary data is that which data collect in new byprimary sources. • Questionnaire I used the survey method frank questionnaire with generalface-to-face interaction of consumers.Secondary data: these data already exist in the companiesmagazines.I collect the secondary data from:- • Magazines • Journals • Internet • Annual ReportsSample size: Sampling plan is to decide the population forstudy. My total sampling for research is 100 for different areas ofAgra. 43
  44. 44. Customer SatisfactionThe Quality Advantage Maruti Suzuki owners experience fewer problems with theirvehicles than any other car manufacturer in India (J.D. PowerIQS Study 2005). The M800 was chosen No.1 in the premiumcompact car segment and the Esteem and Swift in the entry levelmid - size car segment across 9 parameters. The J.D. Power APEAL Study 2005 proclaimed the WagonR no. 1 in the premium compact car segment and the EsteemNo.1 in the entry level mid - size car segment. This studymeasures owner in terms of design, content, layout andperformance of vehicles across 8 parameters.A Buying Experience like No Other Maruti Suzuki has a sales network of 307 state-of -the-artshowrooms across 189 cities, with a workforce of over 6000trained sales personnel to guide our customers in finding theright car. Our high sales and customer care standards led us toachieve the No.1 nameplate in the J.D. Power SSI Study 2005.Quality Service across 1036 Cities In the J.D. Power CSI Study 2005, Maruti Suzuki scoredthe highest across all 7 parameters: least problems experiencedwith vehicle serviced, highest service quality, best in-serviceexperience, best service delivery, best service advisor experience,most user-friendly service and best service initiation experience. 44
  45. 45. 92% of Maruti Suzuki owners feel that work gets done rightthe first time during service. The J.D. Power CSI study 2005 alsoreveals that 97% of Maruti Suzuki owners would probablyrecommend the same make of vehicle, while 90% owners wouldprobably repurchase the same make of vehicle.One Stop Shop At Maruti Suzuki, you will find all your car related needsmet under one roof. Whether it is easy finance, insurance, fleetmanagement services, exchange- Maruti Suzuki is set to providea single-window solution for all your car related needs.The Low Cost Maintenance Advantage The acquisition cost is unfortunately not the only cost youface when buying a car. Although a car may be affordable to buy,it may not necessarily be affordable to maintain, as some of itsregularly used spare parts may be priced quite steeply. Not so inthe case of a Maruit Suzuki. It is in the economy segment thatthe affordability of spares is most competitive, and it is herewhere Maruti Suzuki shines.Lowest Cost of Ownership The highest satisfaction ratings with regard to cost ofownership among all models are all Maruti Suzuki vehicles: Zen,Wagon R, Esteem, Maruti 800, Alto and Omni.We are proud to have the lowest cost of operation/km (amongpetrol vehicles) - the top 6 models are all Maruti Suzuki models:Maruti 800, Alto, Swift ,Zen, Omni and Wagon R. 45
  46. 46. Marketing Research Marketing managers often commission formal marketingstudies of specific problems & opportunities. They may request amarket survey a product preference that a sales forecast byregion or an advertising evaluation. Marketing research is the systematic design, collectionanalysis and reporting of data and findings relevant to a specificmarketing situation facing company. Marketing research as a systematic gathering recordingand analyzing of data about problems relating to marketing ofgoods and service. Generally, in India, accuracy and reliability is lacking inmost marketing research investigation. Let us take the exampleof advertising media like newspaper, TV. Etc., givingadvertisements. Without a clear methodology and objectives(research design), the researcher cannot adopt a particular trackfor conducting research. Zaltman & Burger (1975) define marketing research as thefield which involves the diagnosis of information needs and theselection of relevant interrelated variables about which valid andreliable information is gathered, recorded and analyzed. The nature of marketing research can better be understoodif we explain it from seven points of view, viz. 46
  47. 47. 1. As an economic resource2. As a system of authority3. As an activity of marketing management4. As team effort5. As an art or science6. As a profession7. As an interdisciplinary A wide range of research activities is covered by the mktg.Research. For our convenience, we can put these activities in toseven categories viz.1. Product and service research.2. Market research.3. Promotion research4. Distribution research5. Pricing research6. Corporate responsibilities research7. Miscellaneous research Business executives are becoming increasingly dependentupon marketing research. The increasing importance ofmarketing research is based on the following three trends: -1. Shift from the local to national and international market.2. Transition from consumer needs to consumer wants.3. Shift from price competition to non-price competition. 47
  48. 48. MARKET SEGMENTATION The Indian automobile market is still in its evolutionary orearly growth stage. Therefore, no fixed or widely acceptedmethod of segmenting the market has evolved as yet.Segmentation has mostly been done on product types or priceranges. There has hardly been any kind of segmentation onpsychographic or behavioral parameters as seen in developed carmarkets. The segmentation provided in this paper is based on anunderstanding of the current state of the industry. Thesesegments are quite different from the segments known in the US,European or Japanese markets. The following segments basedon price and type of car has been identified:Segment A: Economy segment, comprising cars priced less than RS250,000 and in this category Maruti 800, Maruti Omni andAlto are major players with Maruti 800 as undisputed marketleader.Segment B: Mid-size segment, comprising cars in the RS 250,000 andRs. 450,000 price bracket, e.g., Maruti Zen, Maruti Alto, Swift,Tata Indica, Matiz, Hyundai Santro and Fiat Palio are majorplayers.Segment C: Premium segment, comprising cars priced at higher thanRs. 450,000-1,000,000 e.g., Maruti Esteem, Tata Sierra, 48
  49. 49. Peugeot 309, Opel Astra, Cielo, Ford Escort, MitsubishiLancer.Segment D: Luxury segment, comprising cars priced at higherthan RS. 10,00,000 e.g., Mercedes-Benz, BMW, and Audi.POSITIONING Since the Indian car market is in a state of flux, thepositioning of most companies in the consumers mind appearsto be confused. However, the companies have developed image-based positioning strategies for their brands.Some of them are•Maruti: Small Complete Car with Value for money concept.•General Motors Opel (GM) – German engineering•Daewoo - Family car•Honda - superior engine performance.•Peugeot - sound-free diesel engine•Ford - smooth drive•Indica - more car per carSUPPLIERThere are about 6,350 small and large componentmanufacturers in India, out of which about 350 are in theorganized sector and are registered with the AutomotiveComponents Manufacturers Association. There is a sizeablereplacement market for parts and components, but this marketis heavily dominated by manufacturers who sell unbrandedproducts at very low prices. 49
  50. 50. ADVERTISING & COMMUNICATION Advertising in the Indian passenger car industry hardlyexisted till the onset of competition. Today however, the industryis one of the highest spenders on advertising among consumerdurables. Advertising has been concentrated to the print media.The company also recognizes that effective PR exercises would bea critical component of its marketing efforts in future.Recognizing this now companies are focusing on lot ofcompetitive advertising in which the features essential or newvalue adds are compared extensively. Maruti is on its drive forthe big time LEADERSHIP FACT advertisement campaignworking on ten core strengths of Maruti. This campaign hasbeen extensively launched through out India with Print Media. 50
  51. 51. VISION AND VALUESVISION “The leader in the Indian Automobile Industry,creating customer delight and shareholders’ wealth; A prideof India.”VALUES• CUSTOMER OBSESSION• FAST, FLEXIBLE & FAST MOVER• INNOVATION AND CREATIVITY• NETWORKING AND PARTNERSHIP• OPENNESS AND LEARNINGHR VISION Lead and Facilitate continuous change towardsorganizational excellence; create a learning and vibrantorganization with high sense of pride amongst its members.CULTURE BUILDING INITIATIVES SINCE INCEPTIONJapanese Management philosophy of Team Spirit•Common uniform•Open office•Common Canteen•Open Office – Easy accessibility, Speedy•Communication and decision making•Morning Meetings•Morning Exercises 51
  52. 52. TRAINING & DEVELOPMENT• Annual Training Plan - All Levels• Topics selected based on Vision, Values & Departmental Feedback of Company-wide Managers• Technical Training on latest Technologies abroad at SMC, Japan 52
  53. 53. Maruti Dealer Network Maruti dealer network is one of its greatest strengths and it score over many manufacturers due to this strength only. It also form part of its communication strategy by giving advertisement related it its service centre coverage. “Maruti service station Hai Kya” This network give it a give advantageover companies like FIAT that are ailing from poor service centrecoverage and has to bear huge losses due to lost sales. Thecompany has set up a committee of directors to negotiate withthe 375-odd vendors on a regular basis in order to reduce costsand improve productivity, both within and outside the company.The latest Leadership Fact campaign launched by the Marutias part of promotion strategy (copies attached at the end ofreport) is also laying a lot of stress upon the servicedependability of Maruti supply chain and its service network. 53
  56. 56. Better Service QualityYour Maruti is an automotive marvel and the pride of millions ofowners. Every component is specially designed to deliverunmatched Performance, safety & Comfort. Be it Maruti GenuineParts or any part. But no part, no matter how stringentlyengineered, is designed to last forever. So should the need forreplacement ever arise, beware of spurious spares.These cheap imitations lead to expensive consequences, both toprevious lives and machine. Frequently burden your pocket withsleep fuel and maintenance bills. Reduce your prized possessionto a piece of junk. You bought stallion. Why get saddled with amule?You are guaranteed outstanding performance with MarutiGenuine Parts. Performance that comes from genuine parts, madeto the standards of the originals fitted in every new Maruti. Theseare authenticated by Suzuki Motor Corporation & Maruti UdyogLtd. Moreover, MPFI vehicles which give you better performancerequire even better care, especially in terms of usage of MarutiGenuine Parts.There are two type of service process 1. Directly 2. External 56
  57. 57. Post service follow up process After 3 days After 6 days handle by Till 60 days theinformation given by customer care information given to service adviser executive the customerIf Satisfied, thank you letter is to be send Dissatisfied register handle by c.c.m follow up pick up or on spot repairing Customer docket file *Customer complaint *Vehicle history *Job card copy *Letter communication *Customer complaint report *Satisfaction note 57
  60. 60. 60
  61. 61. MARUTI SERVICE QUALITY STANDARD Maruti Honda Genral Motor Fort 61
  62. 62. Format-3CUSTOMER SATISFACTION CARD PROCESSThank You for getting your car servicedat out workshop. We would lie to knowhow we performed. Please spare a few moments to give us your valuablefeedback on the following as it will help us in improving our services.Please put a tick mark(√ ) in the appropriate box. Excellent Good Average Unacceptable1. Delivery of vehicle on time.2. Availability of spare part for the service.3. How much time is taken to repair the vehicle by our.4. Behaviors of staff during servicing of vehicle.5. Ability of staff to understand problem with vehicle.6. Work done at delivery and details of expenses.7. Getup of vehicle and its clearness8. Mode of payment.9. All the necessary repairs done.10. What kind of feedback is asked form u after service.11. Facility of service and maintenance.12. After service whether the information has beencollected form you.13. What did they informed you after service.14. Rule of service change.15. Please described the whole mode of the servicecenter work.As per your satisfaction would you like to suggest any one about our workshop for theservice. Yes No Maybe Never 62
  63. 63. CUSTOMER SATISFACTION SURVEY 120 100 80 60 40 20 0 Maruti General Honda Ford Tata MotorIn customer satisfaction Maruti Udyog Ltd. is No. 1 from last 7 yrs.Their current customer satisfaction index is 96.4%. they were tryinghard to raise customer satisfaction index up to 100%. 63
  64. 64. SURVEY One of the most common and widely used primary datacollection methods is survey. With use of survey, we can gather awide range of valuable information on overt behavior of theconsumer, viz, attitudes motive, and opinions. The earlier twomethods (observation and experiment) are not capable to yieldsuch information. The primary data, using any of these threeabove mentioned method can be collected from any populationcomprised any type of respondent group like customers,middlemen, competitors, salesmen, company employees, etc. Surveys are best suited for descriptive research.Companies undertake survey to learn about the people’sknowledge, belief, preferences, and satisfaction and to measurethere magnitudes in the general population. 64
  65. 65. MARUTI SWOT ANALYSISSTRENGTH•Early mover Advantage•Established supply chains and dealer networks.•Strong brand names•Good reputation among customers•Cost advantages from Economies of scale.•Muscle power in government policies.•Wider service network.•Better service quality.WEAKNESS•Lack of in house R&D spending.•Reactive in launching new models•Cost advantage in Maruti 800 segment going down.•No presence in diesel engine segment which is gives postpurchase fuel economy.•Disinvestment policy ambiguity is playing on future strategies. 65
  66. 66. THREAT•Shifts in consumer tastes away from the firms products.•Emergence of substitute new models by competitors.•Disinvestment process getting slower and decreasing efficiency.•Maruti 800 sales going down which is star performer of company tillnow.•Government decreasing custom duties on second hand and importedcars.•Tata Indica and Hyundai getting hold in medium size segment. OPPORTUNITY • New car can be launched. • Battery Cars with low price. • Disinvestment and Suzuki gaining full control. • Diesel variants of new cars. • Huge installed capacity can be used for exports from India. • Rural customers can be graduated from scooter to entry level Maruti 800. • Rising middle class income. • Financing options • Second hand car sales market • Auto parts market 66
  67. 67. SCM STRATEGIESSCM strategies:It encompasses all processes from `Mother earth to point ofsale. Seamless flow of material and information is the key forsupply chain. This helps in reducing inventory which in turnleads to low costs and increases flexibility, improving price-valueofferings. This resulted in reducing the indigenous inventorylevel at MUL to 2.9 days in1998-99 from nine days in1995-96.Material handling and storage:This is being effectively managed by using recyclable packagingwith plastic bins and metal trolleys. This has done away the jobof unpacking the supplies at the factory unit. It also aidsdecentralized unloading near the assembly line and uses gravityconveyors using no electric power or manpower.Extended enterprise:MUL developed a long-term relationship with the vendors bylooking at them as extended enterprises. It trusted its vendors tothe extent of asking them to do self-inspection of parts suppliedby them and by not going in for a second quality check at thefactory point. This has resulted in minimizing duplication ofwork and thus avoiding performance of non-value addingactivities.Vendor selection:Much attention has been paid by MUL in the selection of itsvendors as most of them have been identified as OEMs avoidingTier-I category. This has led to an effective percolation of all SCMpractices across the organisation.Modularization: 67
  68. 68. This has been the key area of focus for MUL. It encouragedproximity warehousing by locating most vendors near by thefactory unit at Gurgaon. Modularization of vendors has helpedMUL in addressing the specific problems of a particular set ofvendors.Material transportation:This is the most tangible form of logistic cost and this has beenachieved by a milk-run system. This unique method of poolingsupplies of various vendors of one area in a truck has resulted ina drastic cut in this cost. MUL identified the vendors located in aparticular area, classified their production pattern and achievedtransportation of supplies from them at one go.Delight customers:By providing better price-value offering. This can be achieved byre-engineering and re-configuring processes that reduce costs. AtMaruti, this has been successfully achieved by adhering tokaizen principles diligently.E-solution:The maker of the little car that marked the beginning of a newrevolution in the auto sector, this homegrown system wasextended to its sales and dealer network through an email-basedordering system with about 250 outlets. For instance, if a dealerhas to place an order, he generates it in his own machine withall the specifications (e.g. color, model etc) and sends it throughan email to Maruti. The system there automatically checks theorder, classifies it accordingly and sends it to the respectivedatabase. 68
  69. 69. RECOMMENDATION1. Baleno which has been ranked first should launch some upper grade variants of this car because it is not being widely endorsed by upper income group.2. Esteem and Baleno should taken corrective measures for technological up gradation, to improve their performance such as- fuel efficiency, low maintenance and quality standard up to customer expectation.3. Non personal tools have an impact in buying criteria of the customer where luxury car market as whole should take correct measure to improve their advertisements so that they may seem nubile, bairy and fun crazy to influence the decision process of buyers.4. M800 and Omni are required to take some steps to improve their looks.5. Discount scheme has no effect in buying decision in case of Alto and Esteem hence they should make their discount scheme attractive survey and customer.6. Maruti should broaden their sales services, network and spare parts availability because it is prime criterion of buying process.7. Baleno although has been ranked no 1 car it as luxury car, has unsuccessful to rated customer mind and perception as far as lack of the car are concerned, hence it should take measures to give its size and shape new look. 69
  70. 70. LIMITATION OF THE STUDY1. The educational & awareness level of the respondents with respect to the questionnaires is low. Hence they respond one question in affirmative, but same interrelated question has been responded in negative.2. The sample – plan is too small to give the research a wide coverage with reference to their opinion.3. Sample–plan is Noida specific. Hence it may show imbalances of urban elite perceptions.4. The respondent include those people who has car (but not a specifically a luxury car) and hence, their opinion could be based with the lower income group.5. The respondents are not interested to reveal their income level. Causing a hurdle in finding out the price as a buying decision. 70
  71. 71. FINDING & INTERPRETATION1. When I surveyed the consumer, then I found that people below 1,00,000 income group is preferred 32.50% Maruti800, 3.84% Omni and 02.66% Maruti Zen. Esteem is not preferred by the below income group.2. 1,00,000-3,00,000 income group preferred 25.84% MZen, 40.52% WagonR and 11.52% Alto. in the above 300000 income group preferred 3.84%baleno, 50.84% Swift, 11.52% WagonR and 7.68% MZen.3. Newspaper are most affective advertisement mode. The baleno got 26.88%, city 15.36%, safari 11.52% and Siena 3.84%. In the TV section, only city got 7.68%. in the magazine effectiveness the baleno got 3.84%, city in nil, safari 15.36% and siena 11.52%. only safari got the 3.84 of the survey report mode of advertisement.4. In the rate of effectiveness of different sale promotional activities, in the warranty section, baleno has 11.52%, city 3.84%, safari 7.68% and 3.84%. in price scheme section,5. 68% baleno, 3.84%, city, 3.84%safari and 11.52% Siena. In guarantee section11.52 % baleno, 7.68% city, 15.36 % safari and 3.84% Siena. In discount scheme section safari and city got the response. The percentage is 3.84% city, 3.84% safari.6. The most satisfying after sale services is Maruti baleno , after this safari than the city and Siena7. In the suggestion of other section, I found out that the Maruti baleno take the lead to his competitors.8. On the basis of these finding we concluded that the baleno got the first ranking among its competitors. The reasons behind that the baleno is the Maruti’s product, after sales services 71
  72. 72. are more satisfying, easy availability of spare parts, price and looks.9. The most satisfying better services quality provided in Maruti service centers. 72
  73. 73. SUMMARY AND CONCLUSION After analyzing the questionnaire and studying the factsavailable in the magazines. I can conclude that there is nocontroversy to tell that Maruti Udyog Ltd is still the undisputedking in cars market to have a market share of 55%. But thetimes are now coming, consumers perceptions are also changingat a great pace. In the market share of 56% of Maruti, there is a greatcontribution of Suzuki, when Maruti have no strong competitor.But trends have changed now. After coming of Honda and Tata, people have a good choicedue to changing needs and demands of general people. Theybring new concept in cars regularly. It provides good quality invarious aspects.Age Factor: As being the oldest company Maruti have 56%market share in cars, but if we consider the age factor we findthat other companies improved their position in four wheelermarket.Class : Maruti have a good market share in lower income group.Because, the people of this income group have no choiceMaruti800, Maruti Zen, and Alto are the popular brand in thissegment. Because the four wheeler is a success while the higherincome group is considers four wheeler is a necessary thing tothese people but it also maintain their nature. The highest income group’s need is different. Small carsare not a necessity to them. These people prefer, generally costly,good things according to there prestige. 73
  74. 74. After sales service: We all know that the productive and endorsements of thefour wheeler is quite high, so it is difficult to maintain theirquality of after sale services thus it becomes much moreimportant for the company to have a step head of its competitorby providing better after sales services. This can help thecompany to increase it sales and also to make a customersbrand loyalty. In four wheeler market after sales services works as aadvertising tool. 74
  75. 75. BIBLIOGRAPHY In order to prepare my research project report, I have gonethrough these books & magazines: • Philip Kotler : Marketing Management • Ramanuj Mazoomdar : Product Management in India • A&M • News Papers • Business Today. • • • • 75
  76. 76. QUESTIONAIRENAME:-……………………………………………………………..ADDRESS:-………………………………………………………….CONTECT NO…………………………………………………….Q - 1:- Do you have a four wheeler? (A) YES [ ] (B) NO [ ]Q – 2:- If yes, which company do you have? (A) Maruti [ ] (B) Tata [ ] (C) Hyundai [ ] [D] Honda [ ]Q – 3:- Specify the print media which influenced you most inbuying it? (A) NEWSPAPER [ ] (B) TV ADS & MOVIES [ ] (C) OTHERS [ ]Q – 4:- Which features of four wheeler affected your buyingdecision? (A) LOOKS/STYLE [ ] (B) MAINTENANCE/MILAGE [ ] (C) PICKUP/POWER [ ] (D) RE-SALE VALUE [ ] (E) PRICE [ ] (F) AFTER SALES SERVICE [ ] 76
  77. 77. Q –5:- To which income group you belong? (A) BELOW Rs. 1, 00,000 [ ] (B) Rs. 1,00,000- 3,00,000 [ ] (C) Rs. 3,00,000- 700,000 [ ] (E) Rs. 700,000 - ABOVE [ ]Q –6:- Are you satisfied with the price of your four wheeler? (A) YES [ ] (B) NO [ ]Q –7:- Are you satisfied with its performance? (A) FULLY SATISFIED [ ] (B) PARTIALLY SATISFIED [ ] (C) UNSATISFIED [ ]Q –8:- Are you satisfied with its after sales services? (A) YES [ ] (B) NO [ ]Q –9:- How will your rank your car features? Please use thefollowing rating scale. (A) MILAGE [ ] (B)POWER/PICKUP [ ] (C)PERFORMANCE [ ] (D)LOOKS/STYLE [ ] (E) MONEY VALUE [ ] (F) GOOD WILL [ ] 77
  78. 78. Q -10:- What major problems (Demerits) do you face with yourcar? (A) LOOKS/STYLE [ ] (B) HEADLIGHTS [ ] (C) HORN [ ] (D) SEAT [ ] (E) BREAKING [ ] (F) SUSPENSION [ ]Q –11:- Will you advice other to buy a particular brand of fourwheeler? (A) YES [ ] (B) NO [ ]Q –12:- Are you willing to buy another brand four wheeler? (A) YES [ ] (B) NO [ ]Q –13:-Are you satisfied with its services quality? (A) YES [ ] (B) NO [ ]Q –14:-Lastly, do you need any improvement in your car? Please give your suggestion.…………………………………………………………………………….……………………………………………………………………………. 78