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3. ACKNOWLEDGEMENT
We wish to express our sincere thanks to
Prof. Mr. SANJAY MANOCHA, FACULTY- BHARATI
VIDYAPEETH UNIVERSITY’S INSTITUTE OF
MANAGEMENT AND RESEARCH for giving us the
opportunity to work on the marketing plan of a company.
This has given us the insight of how the various
theoretical concepts are applied in an organization. I got
the opportunity to do a challenging project in MARUTI
UDYOG LIMITED. The project is the important part of our
study and gives us a real practical exposure to the
corporate world.
I also thank to Dr. Sachin S. Vernekar, Director,
BHARATI VIDYAPEETH UNIVERSITY INSTITUTE OF
MANAGEMENT & RESEARCH for giving me chance to
get such an experience and giving me chance to get an
industrial experience.
3
4. INDEX
S.No. Topics Page No.
1. Introduction 5
1.1 Indian Automobile Industry 5
1.2 History 5
1.3 Overview 6
2. An Introduction to Maruti Udyog Ltd. 14
2.1 Products of Maruti Suzuki 16
2.2 Competitors of Maruti Udyog Ltd. 18
3. Competitors of Maruti Suzuki Swift 20
4. Marketing Mix 21
5. Swot Analysis 25
6. Research Methodology 37
6.1. Objectives of the Study 40
6.2. Data Collection Tools 41
6.3. Limitations 42
7. Analysis 43
8. Conclusions & Recommendations 47
9. Annexure 48
9.1. Bibliology 48
4
5. 9.2. Questionnaire 49
INTRODUCTION
INDIAN AUTOMOBILE INDUSTRY
One of the major global automotive industries in the coming years. A number of
domestic companies produce automobiles in India and the growing presence of
multinational investment, too, has led to an increase in overall growth. Following the
economic reforms of 1991 the Indian automotive industry has demonstrated
sustained growth as a result of increased competitiveness and relaxed restrictions.
The monthly sales of passenger cars in India exceed 100,000 units
History
In 1953, the government of India and the Indian private sector initiated
manufacturing processes to help develop the automobile industry, which had
emerged by the 1940s in a nascent form. Between 1970 to the economic
liberalization of 1991, the automobile industry continued to grow at a slow pace due
to the many government restrictions. A number of Indian manufactures appeared
between 1970-1980. Japanese manufacturers entered the Indian market ultimately
leading to the establishment of Maruti Udyog. A number of foreign firms initiated
joint ventures with Indian companies.
Timeline of Indian automobile industry:
• 1897 First Person to own a car in India - Mr. Foster of M/s Crompton
Greaves Company, Mumbai
• 1901 First Indian to own a car in India - Jamshedji Tata
• 1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata
5
6. • 1905 Fiat Motors
• 1911 First Taxi in India
• 1924 Formation of traffic police
• 1928 Chevrolet Motors
• 1942 Hindustan Motors
• 1944 Premier Auto Limited
• 1945 Tata Motors
• 1947 Mahindra Motors
• 1948 Ashok Motors
• 1948 Standard Motors
• 1974 Sipani Motors
• 1981 Maruti Udyog
• 1994 Rover Motors
• 1994 Mercedes Benz
• 1994 Opel
• 1995 Ford Motors
• 1995 Honda SIEL
• 1995 Reva Electric Car Company
• 1995 Daewoo Motors
• 1996 Hyundai Motors
• 1997 Toyota Kirloskar Motors
• 1997 Fiat Motors (Re-Entry)
• 1998 San Motors
• 1998 Mitsubishi Motors
• 2001 Skoda Auto
• 2003 Chevrolet Motors (Re-Entry)
Following the economic reforms of 1991, the automobile section underwent
delicensing and opened up for 100 percent Foreign Direct Investment. A surge in
economic growth rate and purchasing power led to growth in the Indian automobile
industry, which grew at a rate of 17% on an average since the economic reforms of
1991. The industry provided employment to a total of 13.1 million people as of
2006-07, which includes direct and indirect employment. The export sector grew at a
rate of 30% per year during early 21st century. However, the overall contribution of
automobile industry in India to the world remains low as of 2007. Increased
presence of multiple automobile manufacturers has led to market competitiveness
and availability of options at competitive costs. India was one of the largest
manufacturers of tractors in the world in 2005-06, when it produced 2,93,000/- units.
India is also largely self-sufficient in tyre production, which it also exports to over
60 other countries. India produced 65 million tyres in 2005-06.
Overview
6
7. Pran Tiku (2008)—on the subject of automobile industry in India—holds:
India’s car market has emerged as one of the fastest growing in the world. The number
of cars sold domestically is projected to double by 2010, and domestic production is
skyrocketing as foreign makers are setting up their own production plants in India. The
government’s 10-year plan aims to create a $145 billion auto industry by 2016.
According to McKinsey, the auto sector’s drive to lower costs will push outsourcing.
The auto sector could be worth $375 billion by 2015, up from $65 billion in 2002.
McKinsey thinks India could capture $25 billion of this amount. Out of 400 Indian
suppliers, 80 percent have the ISO 9000 certificate—the international standard for
quality management.
The production of automobiles in India is largely
aimed at local consumers. Several Indian
manufacturers also export a diverse variety of
auto components. Tiku (2008) predicts a sale of
4.2 million four wheeler automobiles in India by
2015. Indian passenger vehicle exports are also
expected to rise from 170,000 in 2006 to 500,000
in 2010. Indian automobile companies
The following are some of the notable Indian automobile manufacturers:
Company Description Product
Ashok
Leyland
Ashok Leyland is a commercial
vehicle manufacturing company
based in Chennai, India. In 1948,
Ashok Motors was set up in what
was then Madras, for the assembly
of Austin Cars. The Company's
name changed soon with equity
participation by British Leyland and
Ashok Leyland commenced
manufacture of commercial
vehicles in 1955. Ashok Leyland
has six manufacturing plants: a
plant at Ennore near Chennai, two
plants at Hosur (called Hosur I and
Hosur II, along with a press shop),
18 seater to 82 seater double-
decker buses, 7.5 tonne to 49 tonne
in haulage vehicles, special
application vehicles, and diesel
engines for industrial, marine and
genset applications.
7
8. and the assembly plants at Alwar
and Bhandara.
Force Motors
Ltd
Force Motors, formerly Bajaj
Tempo, is a Pune-based
manufacturer of a number of
commercial vehicles
Gas-cylinder carrier, copied from
3-wheel Vidal & Sohn Tempo-
Werke (German) Hanseat;
Matador, a version of Hanomag
van and light-truck (1.5 tonne
payload); Tempo-traveller, Indian
version of Daimler-Benz T-1
transporters; Man-Force Trucks,
licensed version of MAN AG
trucks; and UV's copied from
Daimler-Benz.
Hindustan
Motors
Hindustan Motors is one of the
oldest Indian car manufacturers in
India. It is perhaps best known for
the Ambassador which has
remained virtually unchanged for
about 30 years. It is still very
popular as a taxi and is widely used
by Indian politicians.
Trekker (discontinued), Land
master (discontinued), Contessa
(discontinued)—5th generation
Vauxhall Victor, and the
Ambassador—a version of the
1950s Morris Oxford.
Mahindra &
Mahindra
Limited
The automotive section of
Mahindra started off when a first
batch of seventy five Utility
Vehicles (UVs) was imported in
CKD condition from Willys in
1947. It presently manufactures
Jeeps along with agricultural
equipment and light trucks.
Armada (discontinued), Voyager
(discontinued), Bolero.
Commander, CL, MaXX, Scorpio,
and Mahindra and Mahindra
Classic.
Maruti
Suzuki
Maruti Suzuki (formerly Maruti
Udyog) was formed as a
partnership between the
Government of India and Suzuki of
Japan. It brought India its first
"affordable" car, the Maruti 800. It
is the biggest car manufacturer in
India and especially dominant in
the small car sector. Then it brought
out the Maruti 1000, made by
Maruti Udyog was the first ever
800, Omni, Alto, Gypsy, Swift,
SX4, WagonR, Versa, Zen Estilo,
Grand Vitara, and Swift Dzire.
8
9. contemporary sedan-type car
launched in India. The car (which
Suzuki sold in other countries as the
Cultus/Swift/Geo Metro with a 1.3
L or 1.6 L engine) was introduced
in October, 1990. Sold at Rs.3.81
lakh, it was back then the costliest
car released in the Indian market.
Then the company replaced it with
Esteem and from those days on a
line of Suzuki cars rolled out in the
Indian market.
Premier
Automobiles
Walchand Hirachand started
Premier Automobiles Ltd. (PAL) in
1942. They assembled De Soto and
Plymouth cars in 1946 in
association with Chrysler from the
United States. They also
manufactured the Premier Padmini
which was a version of the Fiat
1100.
Padmini (discontinued), 118 NE
(discontinued), and Premier Sigma.
REVA
REVA Electric Car Co. is the
producer of the Reva (G-Wiz), an
electric car intended for use as a
City car. More REVAs have been
produced than any other currently
selling electric car and sales are
increasing. It is currently the
world's leading electric car
manufacturing company.
REVA (G-Wiz).
Tata Motors
Tata Motors, formerly known as
TELCO, is the largest automobile
manufacturer in India and
commands more than 70% of the
commercial vehicle market in India
and has also increased its share of
passenger vehicle market. It was
responsible for developing India's
first indigenous vehicle, the Indica.
It has proved to be a success in the
market after initial quality
problems. The company also
Indica, Indigo, Indigo Marina,
Safari, Sumo, TL, and Tata Nano.
9
10. exports the car to many countries.
Tata owns major stake in Jaguar
and Range Rover.
In addition to Bangalore-based Reva, which currently is the only company actually
selling EVs today, electric cars made in India includes:
• Mahindra & Mahindra: Four-seat model by 2010.
• Tata: 2008-2009 (Also possibly an air car).
• Ajanta Group: clockmaker with plans for low-cost EV.
• Tara: Low-cost EV less than a Tata Nano.
• Hero Electric: 2013 Electric car.
Multi-national companies in India
Company Description Product
Audi
In January 2008, Audi started
production with the Audi A4 and
A6 at its factory in Aurangabad in
the state of Maharashtra.
A4, A6, A8, R8, Q7, and TT.
BMW
BMW is a manufacturer of sport
sedans. BMW enjoys good brand
recognition in India. It has set up a
plant in Chennai, Tamil Nadu, to
manufacture cars locally
exclusively for the local market
with no plans for export. It set up
the plant to circumvent high import
duties.
3 Series, 5 Series, 6 Series, 7 Series,
X3, and X5.
Fiat
The Fiat Uno was one of the first
products to be introduced. The Fiat
Palio was later introduced and was
initially a success with its style and
ride comfort coupled with solid
build but has slowly lost its sheen
due to low fuel efficiency. Other
models were introduced such as the
Palio Weekend and Siena. Fiat tried
Uno (discontinued), Palio, Palio Stile,
Siena (discontinued), Siena Weekend
(discontinued), Petra (discontinued),
Adventure, Fiat Bravo—sold in
collaboration with Tata Motors, Fiat
500—sold in collaboration with Tata
Motors, and Fiat Linea—sold in
collaboration with Tata Motors.
10
11. re-branding of the Fiat Siena to Fiat
Petra without much success. It
roped in Sachin Tendulkar as one of
its brand ambassadors. Even
Michael Schumacher appeared in an
ad for the Palio. It has entered now
into an alliance with Tata Motors to
jointly manufacture cars at its plant
in Ranjangaon, near Pune. The
facility will enable the two
companies to make about 200,000
cars per annum, and also house an
engine manufacturing unit with a
capacity of 250,000 units per
annum. The alliance will also see
Tata Motors use Fiat's diesel
technology—the 1.3 litre multijet
diesel engine—for its own vehicles.
The two companies also have a
distribution and service partnership.
Ford
Motors
Ford entered India in collaboration
with Mahindra & Mahindra in 1995
with a plant in Tamil Nadu. The
first model was the Escort.
Escort (discontinued), Ikon, Mondeo
(discontinued), Endeavour, Fusion,
and Fiesta.
General
Motors
Chevrolet has been a recognized
brand in India for several decades.
The model line-up consists of
vehicles from cheaper sister brands
like Daewoo. General Motors
initially entered India with the Opel
brand, but the Opel brand was
dropped in March 2006 because
sales were at an all time low due to
high prices and General Motors
wanted to focus more on their
Chevrolet brand. Since the
Chevrolet brand was introduced in
India, there have been no new Opel
products. GM's Indian operations
were originally a JV between
Hindustan Motors and GM, with
most of GM's vehicles assembled at
Hindustan's plant in Halol, Gujarat.
Since then, GM India is now wholly
Tavera—rebadged Isuzu Panther,
Forester (discontinued)—rebadged
First Generation Subaru Forester,
Aveo—second Generation Daewoo
Kalos sedan, Aveo UV-A—first
Generation Daewoo Kalos hatchback,
Optra—rebadged Daewoo Lacetti,
SRV—rebadged Daewoo Lacetti,
Spark—formerly Daewoo Matiz in
India, and Captiva—recent launch in
India.
11
12. owned by GM.
Honda
Honda Siel Cars entered India in
1995. It sells 4 cars in India—the
City, Civic, Accord, and CR-V. The
manufacturing plant of Honda Siel
is located in Greater Noida. The
model of Accord sold in India is the
2003 model. The most inexpensive
car from Honda—The City. The
most expensive—The Honda
Accord V6.
Accord, City, Civic, and CR-V.
Hyundai
When Hyundai entered India, the
brand was virtually unknown in the
Indian market. But now Hyundai
has good market because of its
models like SANTRO, Accent etc.
Santo—second generation Hyundai
Atos, Accent—second generation
Hyundai Accent sedan, Sonata—sold
as the Sonata Embera, Verna—third
generation Hyundai Accent sedan,
Getz—sold as the Getz Prime, Elantra
—3rd generation Hyundai Elantra
sedan, Terracan (discontinued),
Tucson, i10—brand new small car,
global launch in India in 2007, and
i20.
Renault-
Nissan
-
Logan (in partnership with Mahindra
and Mahindra).
Mercedes-
Benz
Mercedes-Benz has had to cater to
the ever gowning luxury segment in
India, especially after the arrival of
the other luxury German
manufacturers. Now, Mercedes-
Benz cars are launched in India
soon after the worldwide launch
and homologation as opposed to
earlier, when Mercedes-Benz had
monopolized the niche Indian
market. In 2007 they launched the
SLK-Class and CLS-Class.
C-Class, E-Class, S-Class, ML-Class,
SL-Class, CL-Class, SLK-Class,
CLK-Class, GL-Class, and CLS-
Class.
Mitsubishi
Motors
- Lancer - Sixth Generation Mitsubishi
Lancer, Cedia—seventh generation
12
13. Mitsubishi Lancer, Pajero—second
generation Mitsubishi Pajero,
Montero—third generation Mitsubishi
Pajero, and Outlander.
Škoda
Škoda Auto is an important car
manufacturer of India. It recently
launched the Laura; the Octavia still
continues to exist. Škoda also offers
the Superb in India but it's not too
popular.
Octavia, Superb, Laura, and Fabia.
Toyota
Toyota Kirloskar sells 4 car models
in India. It stopped producing the
Toyota Qualis to make way for the
Toyota Innova, which was launched
in India in 2005. The most
expensive car from Toyota is the
Land Cruiser Prado.
Qualis (discontinued)—3rd
generation
Toyota Kijang, Camry—7th
generation Toyota Camry (the latest
generation Camry), Corolla—9th
generation Toyota Corolla, Innova,
and Land Cruiser Prado VX—latest
generation Toyota Land Cruiser
(PRADO).
13
14. INTRODUCTION OF MARUTI
UDYOG LIMITED
Maruti Udyog Limited
Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan,
has been the leader of the Indian car market for about two decades. Its
manufacturing plant, located some 25 km south of New Delhi in Gurgaon,
has an installed capacity of 3,50,000 units per annum, with a capability to
produce about half a million vehicles.
The company has a portfolio of 11 brands, including Maruti 800, Omni,
premium small car Zen, international brands Alto and WagonR, off-roader
Gypsy, mid size Esteem, luxury car Baleno, the MPV, Versa, Swift and
Luxury SUV Grand Vitara XL7.
In recent years, Maruti has made major strides towards its goal of becoming
Suzuki Motor Corporation's R and D hub for Asia. It has introduced
upgraded versions of WagonR, Zen and Esteem, completely designed and
styled in-house.
Maruti's contribution as the engine of growth of the Indian auto industry,
indeed its impact on the lifestyle and psyche of an entire generation of
14
15. Indian middle class, is widely acknowledged. Its emotional connect with the
customer continues
Maruti tops customer satisfaction again for sixth year in a row according to
the J.D. Power Asia Pacific 2005 India Customer Satisfaction Index (CSI)
Study.
The company has also ranked highest in India Sales Satisfaction Study.
The company's quality systems and practices have been rated as a
"benchmark for the automotive industry world-wide" by A V Belgium,
global auditors for International Organisation for Standardisation. In
keeping with its leadership position, Maruti supports safe driving and traffic
management through mass media messages and a state-of-the art driving
training and research institute that it manages for the Delhi Government.
The company's service businesses including sale and purchase of pre owned
cars (TrueValue), lease and fleet management service for corporates (N2N),
Maruti Insurance and Maruti Finance are now fully operational. These
initiatives, besides providing total mobility solutions to customers in a
convenient and transparent manner, have helped improve economic
viability of The company's dealerships.
The company is listed on Bombay Stock Exchange and National Stock
Exchange.
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.
Production / R & D
Spread over a sprawling 297 acres with 3 fully-integrated production
facilities, the Maruti Udyog Plant has already rolled out over 4.3 million
vehicles. In fact, on an average, two vehicles roll out of the factory every
minute. And it takes on an average, just 14 hours to make a car. More
importantly, with an incredible range of 11 models available in 50 variants,
there's a Maruti Suzuki made here to fit every car-buyer's budget. And
dream.
15
16. OTHER PRODUCTS OF
MARUTI SUZUKI
MODEL TYPE
Maruti 800
• Maruti 800 STD BS III
• Maruti 800 AC BS III
Small
Omni
• 5 seater Maruti Omni
• 8 seater Maruti Omni
• LPG Maruti Omni
Small
Maruti Alto
• Alto
• Alto Lx
• Alto Lxi
Small
Maruti Zen
• Maruti Zen Lx
• Maruti Zen Lxi
• Maruti Zen Vxi
Mid-Size
Wagon R Mid-Size
16
20. COMPETITORS OF MARUTI SUZUKI
SWIFT
1. HYUNDAI SANTRO 1.1 CRDI:
When Hyundai launch the Santro’s replacement in
2007, it will come with the surprise addition of a 1.1 litre common rail diesel.
Likely to be the cheapest car on sale powered by a CRDi engine, this motor is
the new Accent’s CRDi unit less one cylinder. Incredibly powerful for its
size, this 1,120cc engine produces a whopping 75bhp. Unconfirmed reports
talk of overall figures, city and highway combined, in excess of 20 kilometres
a litre.
2. HYUNDAI GETZ 1.5 CRDI:
Not as attractive as the Swift, but more practical, with greater rear seat
comfort and more useable space, Hyundai’s diesel assault continues up the
range with its large hatch. The Getz will share its motors with the new
Accent/ Verna. Hyundai sell the Getz powered by a detuned version of the
new Accent motor in the European continent, and it’s likely to be the case
here as well. Producing 87bhp as against 108bhp, using two versions of the
same engine will help Hyundai get a handle on costs. The diesel Getz also
qualifies for excise sops, meeting both length and engine capacity criteria.
3. TATA INDICA 1.3 MULTIJET:
20
21. By the time the larger new Indica is out, the Tata-Fiat tie-up will be going
full throttle. Tata will borrow engines from Fiat with, you guessed it, the 1.3
litre Multijet being the engine of choice. Thoroughly localised, cheaply
assembled and very capable, it will give the new Indica/ Indigo family a
huge leap forward as far as overall ability is concerned.
MARKETING MIX
4P’s OF MARUTI SUZUKI SWIFT
PRODUCT
PRICE
PROMOTION
PLACE
PRODUCT
Features:
The all-new Maruti Suzuki Swift is fully loaded with a range of exciting new
features. It's a perfect complement to your evolved tastes and lifestyle. And the
best way to take your driving pleasure to a brand-new high.
European Styling. Japanese Engineering. Dream-Like Handling.
21
22. The new Swift is a generation different from Suzuki design. Styled with a clear
sense of muscularity, its one-and-a-half box, aggressive form makes for a look of
stability, a sense that it is packed with energy and ready to deliver a dynamic
drive.
Its solid look is complemented by an equally rooted road presence and class-
defining ride quality. New chassis systems allow for the front suspension lower
arms, steering, and gearbox and rear engine mounting to be attached to a
suspension frame. You get lower road noise and a greater feeling of stability as
you sail over our roads with feather-touch ease.
There are three variants of Maruti Suzuki Swift:
Swift LXi
Swift VXi
Swift ZXi
SWIFT LXI:
3 assist grips, 3 spoke urethane steering wheel, antenna, cabin light (3
position), console box (lower), cup holders (front 2, rear1), front door trim
pockets, green tinted glass window, halogen headlamps, headlamp levelling
device, heater and manual Air conditioning, OVRM (internally adjusted),
rear fog lamps, wind screen wiper 2 speed plus 1 speed intermittent, tailgate
opener key type, trip meter (digital display), sun visors (both sides), brake
assist , child lock (rear door), high mounted stop lamp, power steering, rear
seat belts etc. are the features available in this model.
Swift VXi
Apart from the features found in other model, striking features of this model
are black coloured A & B pillars, 12v accessory socket in centre console, day
and night rear view mirror, door ajar warming lamp, driver's seatbelt
warning lamp, tachometer, driver's seat belt warning lamp, vanity mirrors
(sun visor co-driver side), rear seat head restraints, fabric accented door
trims, central door locking (4 door), front and rear electronic windows, front
fog lamps, light off/ key reminder, manual air-conditioning, key not
removed warning buzzer, etc.
Swift ZXi
22
23. Special features that have made this model more market friendly are rear
window demister, rear parcel shelf, rear window wiper, room lamp and
luggage room, keyless entry, dual front airbags, coloured outside door
mirror cowls, coloured outside door handles, 12v accessory socket in
luggage room, driver seat height adjuster, central door locking (5 doors), seat
belts 3-point ELR with shoulder adjusters, seat belts front 3-point ELR with
pretensioning, tailgate opener electromagnetic type etc.
PRICE
Maruti is expected to take Hyundai heads on with the pricing of their
upcoming Maruti Suzuki Swift car. After launching cars for the masses since
so many years, India’s largest automobile manufacturer is now targeting the
premium segment with their latest model from the Suzuki’s stable. The
analysts predict the pricing of this premium hatchback to start from Rs. 4
lakh.
This price range would practically rip apart Hyundai’s offering in Getz,
which is priced at a much higher tag of Rs. 4.5 lakh. Both the companies are
known for their value based offerings and Maruti with their extensive
service network and brand reputation for making reliable cars should get the
customer’s nod over their competition.
The official pricing however is still not out. However, the company is said to
be studying the prospects of launching the base model at the 4-lakh price
tag. There is another advantage in doing so considering in the capital city of
Delhi NCR road tax on the sub 4 lakh priced cars is comparatively lower at
2%. Cars at a price higher than 4 lakh have to pay a 4% road tax.
Delhi NCR is one of the major targeted markets and it might get the benefit
of this policy. And if they indeed do take the chance of pricing Suzuki Swift
at a considerable lower price than Hyundai Getz, they would quite likely
force the competition to rethink their strategy.
Variant
Non
Metallic
Price
Metallic
Price
Swift LXi 416485 416485
Swift VXi 443924 443924
Swift VXi
(ABS)
464962 464962
PROMOTION
23
24. When Maruti Udyog launched the Swift in May last year, the automotive
industry was agog with expectation that the car had the makings of a real
winner. Three versions were launched with the base variant carrying a retail
tag of Rs 3.85 lakh, ex-showroom, New Delhi, and this aggressive pricing
only reinforced this feeling.
A year later, the company says the Swift is now the most-sold car in the first
year of any car in the history of the Indian automobile industry, having
totted up sales of 61,200 units.
This is higher than what Maruti had initially planned to sell. The car
recorded an estimated 4,000 bookings at the time of its launch, and the initial
output of 200 units a day on a two-shift basis, wasn’t enough to cope with
demand.
In October, the company increased capacity for the Swift which helped cut
down on the waiting time from an estimated three months. The company
currently makes over 300 units every day.
The Swift has made a real impact in the small hatchback segment leaving its
closet rival, the Getz far behind. Between April 2005 and April 2006,
Hyundai sold 16,872 units of the Getz. Maruti is now gearing up for the
diesel version of the Swift which is expected to debut by October. The diesel
version will benefit from the excise sops in this year’s buget, and it remains
to be seen how the models fares in the marketplace.
PLACE
The car manufacturing company, called Maruti Suzuki Automobiles India
Limited, is a joint venture between Maruti Udyog and Suzuki Motor
Corporation holding a 70 per cent and 30 per cent stake respectively.
The Rs.1,524.2 Crore plant has a capacity to roll out 1 lakh cars per year with
a capacity to scale up to 2.5 lakh units per annum. The car manufacturing
plant will begin commercial production by the end of 2006.
The engine and the transmission plant has owned by Suzuki Power train
India Limited in which Suzuki Motor Corporation would hold 51 per cent
stake and Maruti Udyog holding the balance.
The ultimate total plant capacity is three lakh diesel engines. However, the
initial production is 1 lakh diesel engines, 20,000 petrol engines and 1.4 lakh
transmission assemblies.
24
25. SWOT ANALYSIS OF MARUTI UDYOG
LTD.
STRENGTHS
WEAKNESSES
OPPURTUNITIES
THREATS
STRENGTHS
The Quality Advantage
Maruti Suzuki owners experience fewer problems with their vehicles
than any other car manufacturer in India (J.D. Power IQS Study
2004). The Alto was chosen No.1 in the premium compact car
segment and the Esteem in the entry level mid - size car segment
across 9 parameters.
The J.D. Power APEAL Study 2004 proclaimed the Wagon R no. 1 in
the premium compact car segment and the Esteem No.1 in the entry
25
26. level mid - size car segment. This study measures owner in terms of
design, content, layout and performance of vehicles across 8
parameters.
A Buying Experience like No Other
Maruti Suzuki has a sales network of 307 state-of -the-art showrooms
across 189 cities, with a workforce of over 6000 trained sales
personnel to guide our customers in finding the right car. Our high
sales and customer care standards led us to achieve the No.1
nameplate in the J.D. Power SSI Study 2004.
Quality Service across 1036 Cities
In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest
across all 7 parameters: least problems experienced with vehicle
serviced, highest service quality, best in-service experience, best
service delivery, best service advisor experience, most user-friendly
service and best service initiation experience.
92% of Maruti Suzuki owners feel that work gets done right the first
time during service. The J.D. Power CSI study 2004 also reveals that
97% of Maruti Suzuki owners would probably recommend the same
make of vehicle, while 90% owners would probably repurchase the
same make of vehicle.
WEAKNESSES
26
27. OPPURTUNITIES
Leading Growth
As the market leader, MUL led the growth in the passenger car sector
last year. Maruti's sales went up 30% to 4,72,000/- units. This is the
highest annual sale since the company began operations 20 years
ago. Maruti also gained market share, mainly on account of its
performance in the competitive A2 segment where it increased its
share from 40.3% in 2002-03 to 47.7% in 2003-04.
The record sales performance was reflected in the financials. Net
Sales (excluding excise) grew by 31% to Rs 93,456 million. Operating
Profit Margin increased from 0.8 % in 2002-03 to 4.7 % in 2003-04.
Profit After Tax jumped 2700 million to Rs 5421 million.
MUL is committed to motorising India. Towards this end, company's
partnership with State Bank of India and its Associate Banks took
organised finance to small towns to enable people to buy Maruti cars.
27
28. THREATS
THREATS FROM COMPETITORS
Tata Motors Limited
In the 2004 fiscal year, Tata Motors generated revenues of $3,542.2 million
(INR154,935.2 million). The company made a net profit of $185 million
(INR8,103.4 million) in the 2004 fiscal year.
General Motors Corporation
For the fiscal year ended December 2004, GM generated revenues of $193,517
million, an increase of 4.3% from the previous year. The company reported a
net income of $2,805 million for fiscal 2004, down 26.6% from the previous
year.
PRODUCT LIFE CYCLE
28
29. Introduction:
As a new product much time will be spent by the organisation to create
awareness of it presence amongst its target market. Profits are negative or
low because of this reason.
Growth:
If consumers clearly feel that this product will benefit them in some ways
and they accept it, the organisation will see a period of rapid sales growth.
Maruti Suzuki Swift stands on Growth Stage. As the sales of Maruti Suzuki
Swift is high as compare to Hyundai Getz then the consumer will buy
Maruti Suzuki Swift by providing them with great benefits in future and
they will accept it.
Cash Cows:
High Market Share / Low Market Growth
29
30. Here, you’re well-established, so it’s easy to get attention and exploit new
opportunities. However it’s only worth expending a certain amount of effort,
because the market isn’t growing and your opportunities are limited.
Maruti Suzuki Swift stands on Cash Cows where they have established their
brand in the market. Of which they can exploit new opportunities. They
have opportunities to expand their product more in the market. As they
have expanded globally in the global market.
NEW MODEL OF SWIFT
Swift Dzire - is that the name of the
Maruti Swift sedan which will
replace the Esteem?
Maruti Suzuki Dzire, the replacement for old warhorse Maruti Esteem is on
cards. Maruti is expected to unveil the Suzuki Dzire at the Auto Expo in New
Delhi.
30
31. Basically, the Suzuki Dzire will be the sedan version of the hugely successful
Suzuki Swift. Maruti has been planning for a while to bring in a 3-box version
of the Swift, and the Dzire may be the answer.
Though the Dzire will be essentially the Maruti Suzuki Swift in a sedan
avatar, the company is planning modifications in the headlamps, front grille
and bumper design to make the car not look like a Swift with a tail. Unlike the
Suzuki Swift which is made in several countries, Maruti Suzuki plans to build
the Suzuki Dzire only in India. The Dzire may be exported to several
countries.
Maruti Suzuki has been phasing out older 3-box models and bringing in new
global products to replace them. The Maruti Suzuki Baleno was the first to go
out, to be replaced by the Maruti Suzuki SX4. The next in line seems to be
the Maruti Esteem, one of the longest selling cars from the Maruti stable.
The car, which initially made a feeble appearance as the Maruti 1000, went
in for a complete overhaul and reappeared as the Maruti Esteem. With minor
cosmetic changes, Maruti has been successfully selling the sedan for 14
years now.
The Suzuki Dzire is likely to offer both petrol and diesel options, in 1.3 litre
engines. The car is likely to come with ABS, power steering, fog lamps and
automatic climate control systems.
Maruti Suzuki has launched the Swift Dzire, its seventh model in three years.
Priced in the introductory range of Rs.4.49 lakh to Rs.6.7 lakh (ex-
showroom, Delhi), the Maruti Suzuki Swift Dzire has both diesel and petrol
variants, powered by 1.3-litre engines. While the petrol variant will cost
between Rs.4.49 lakh and Rs.5.9 lakh, the diesel version will carry a price
tag of Rs.5.39-6.7 lakh.
31
32. Complete with an integrated stereo, steering-mounted audio controls,
automatic climate control, power windows and dual airbags, The Swift Dzire
looks like a terrific buy - for now. This is because the Maruti Suzuki Swift
Dzire may prove to be costly for buyers who opt to wait for a bit before
buying the Swift Dzire. Rising input costs, especially that of steel and
petroleum products, are putting pressure on the margins and it is expected
that Maruti Suzuki might hike the price of the Swift Dzire.
The Dzire is an India-only model as far as we know. It appeals to the Indian
preference for seans over hatchbacks. At the current price, the Dzire will
take on the various Tata Indigos, the Mahindra Logan, Ford Fiesta -
appropriately enough. After all, it is a car that would replace the ageing
Maruti Esteem.
There are many who have expressed reservations about the looks of the
Swift Dzire though. It looks a bit odd, definitely, from certain angles. Not that
it is going to matter to an Indian buyer.
Maruti Suzuki expects that with growing incomes and better lifestyles, many
households would want to upgrade to a sedan. Maruti maintains that the
Swift DZire is an entry-level sedan offering style, features and performance
at an attractive price.
Meanwhile, Maruti Suzuki plans to launch its Maruti A-Star in October 2008.
The Maruti A-Star is expected to join Maruti Suzuki’s existing products
WagonR and Zen Estilo. Maruti also plans to export the A-Star model to the
European market as well.
32
33. Showrooms of Maruti in Delhi;
• Allianz Automobiles:
Kamal Cinema Building, Safdarjung Enclave,
New Delhi
Telephone: 91-11-26104693, 26183785
E-Mail: aalianz@satyam.net.in
• Apra Auto India Private Limited:
K-804/2 Mahipalpur, Vasant Kunj Road, New Delhi.
Telephones: 91-11-42390000, 41009900
Fax: 91-11-52390088
E-Mail: apravk@apraauto.net
• Bagga Link Motors Private Limited:
395, Patparganj Industrial Area, New Delhi.
33
34. Telephones: 91-11-22169111, 22169555, and 22169222
Fax: 91-11-22141133
E-Mail: bim@del2.vsnl.net.in
• Competent Automobiles Company Limited:
48, Ring Road, Lajpat Nagar IV, New Delhi.
Telephone: 91-11-26917814 Fax: 91-11-26830306
E-Mail: cacllp@mnatraonline.com
• Competent Automobiles Company Limited:
14, Competent House, Middle Circle, Connaught Place, New Delhi.
Telephones: 91-11-23355285/86/87, 23354572/73/74, 23328009
E-Mail: competent@del6.vsnl.net.in
• Competent Automobiles Company Limited:
19, Shivaji Marg, New Delhi.
Telephones: 91-11-25925261, 25925329, and 25930611
E-Mail: competent@del6.vsnl.net.in
• Competent Automobiles Company Limited:
3, Gazipur, Delhi( East), Delhi.
Telephones: 91-11-22446551, 22217774, and 22446552
Fax: 91-11-22446553
E-Mail: competent@del6.vsnl.net.in
• D D Motors:
100, Mayapuri Phase II, New Delhi.
Telephone: 91-11-41845000, 28116502, and 28115403
Fax: 91-11-28113505
E-Mail: ddinfo@ddmotors.net
• DDMotors:
5, Wazirpur Industrial Area,
Near Wazirpur Bus Depot, New Delhi.
Telephone: 91-11-27153999, 41843000
Fax: 91-11-27151466
E-Mail: ddnorth@bod.net.in
• D D Motors Private Limited:
F 1/9, Okhla Industrial Area, Phase 1, New Delhi.
Telephone; 91-11-40523000
E-Mail: dd.south@ddmotors.net
• Fair Deal Cars Private Limited:
485-A, Jhilmil, Main G.T.Road, Shahdara, New Delhi
34
35. Telephone: 91-11-22119626/27
Mobile: 9910894050
E-Mail: fairdealcars@rediffmail.com
• Gautam Motors Private Limited:
E-46/14, Okhla Industrial Area, Phase-II, Main Kalkaji Road, New
Delhi Telephone: 91-11-41613879, 28613880, 28613879
Fax: 91-11-26921189
E-Mail: gautam_sh@eth.net
• Krish Automotors Private Limited:
Mam Ram Majesty Mall, Plot Number 2, Road Number 43, Guru
Harkishan Marg, Pitampura, New Delhi
Telephone: 91-11-32435050
E-Mail: krishautomotors@yahoo.co.iN
• Marketing Times Automobiles Private Limited:
A-1, Chirag Enclave, New Delhi
Telephone: 91-11-26292629
E-Mail: Maruti@marketing-times.com
• Marketing Times Automobiles Private Limited:
Vishal Cinema Complex, Vishal Enclave, Rajouri Garden, New Delhi
Telephone: 91-11-25112222
E-Mail: vishal@marketing-times.com
• Maruti Service Master:
F-39, Okhla Industrial Area, Phase-2, New Delhi
Telephone: 91-11-41612194, 41612195
• Pasco Automobiles:
A-1, Udyog Nagar, New Rohtak Road, Peeragarhi, New Delhi
Telephone: 91-11-25963535
E-Mail: pasco@vsnl.net
• Rana Motors Private Limited:
Rikhi House A 2/7, Safdarjung Enclave Opposite Bhikaji Cama Place,
New Delhi.
Telephone: 91-11-26712222 (10 Lines)
Fax: 91-11-26711320
E-Mail: ranamotors@vsnl.in
• Rana Motors Private Limited:
Tis Hazari Metro Station, Boulevard Road, New Delhi.
35
37. Research Methodology:
Research methodology is considered as the nerve of the project. Without
a proper well-organized research plan, it is impossible to complete the
project and reach to any conclusion. The project was based on the
survey plan. The main objective of survey was to collect appropriate
data, which work as a base for drawing conclusion and getting result.
Therefore, research methodology is the way to systematically solve the
research problem. Research methodology not only talks of the methods
but also logic behind the methods used in the context of a research study
and it explains why a particular method has been used in the preference
of the other methods
Research design:
Research design is important primarily because of the increased
complexity in the market as well as marketing approaches available to
the researchers. In fact, it is the key to the evolution of successful
marketing strategies and programmers. It is an important tool to study
buyer’s behaviour, consumption pattern, brand loyalty, and focus market
changes. A research design specifies the methods and procedures for
conducting a particular study. According to Kerlinger, “Research Design
is a plan, conceptual structure, and strategy of investigation conceived as
to obtain answers to research questions and to control variance.
Type of Research is:
• Descriptive Research
37
38. The type of research adopted for study is descriptive. Descriptive studies
are undertaken in many circumstances when the researches is interested
to know the characteristic of certain group such as age, sex, education
level, occupation or income. A descriptive study may be necessary in
cases when a researcher is interested in knowing the proportion of
people in a given population who have in particular manner, making
projections of a certain thing, or determining the relationship between
two or more variables. The objective of such study is to answer the
“who, what, when, where and how” of the subject under investigation.
There is a general feeling that descriptive studies are factual and very
simple. This is not necessarily true. Descriptive study can be complex,
demanding a high degree of scientific skill on part of the researcher.
Descriptive studies are well structured. An exploratory study needs to be
flexible in its approach, but a descriptive study in contrast tends to be
rigid and its approach cannot be changed every now and then. It is
therefore necessary, the researcher give sufficient thought to framing
research.
Questions and deciding the types of data to be collected and the
procedure to be used in this purpose. Descriptive studies can be divided
into two broad categories: Cross Sectional and Longitudinal Sectional. A
cross sectional study is concerned with a sample of elements from a
given population. Thus, it may deal with household, dealers, retail
stores, or other entities. Data on a number of characteristics from sample
elements are collected and analyzed. Cross sectional studies are of two
types: Field study and Survey. Although the distinction between them is
not clear- cut, there are some practical differences, which need different
techniques and skills. Field studies are ex-post-factor scientific inquiries
that aim at finding the relations and interrelations among variables in a
38
39. real setting. Such studies are done in live situations like communities,
schools, factories, and organizations.
Another type of cross sectional study is survey result, which has been
taken by me. A major strength of survey research is its wide scope.
Detail information can be obtained from a sample of large population
.Besides; it is economical as more information can be collected per unit
of cost. In addition, it is obvious that a sample survey needs less time
than a census inquiry. Descriptive research includes survey and fact
finding enquiries of different kinds of the major purpose. Descriptive
research is description of the state of affairs, as it exists at present. The
main characteristic of this method is that the researcher has no control
over the variables; he can only report what has happened or what is
happening. The methods of research utilized in descriptive research are
survey methods of all kinds including comparative and co relational
methods. The reason for using such needs to be flexile in its approach,
but a descriptive study in contrast tends to be rigid and its approach
cannot be changed ever now and then.
39
40. OBJECTIVES OF THE STUDY
1. To find out the market share of Maruti Suzuki swift
2. To study competitors of Maruti Suzuki swift
3. To study the marketing strategies of Maruti Suzuki swift
4. To study the strength, weakness, opportunity, and threats (swot -
- analysis) of swift.
5. To study the customer satisfaction regarding Maruti Suzuki cars
6. To study the comparison of swift and swift dzire.
40
41. Data collection tools:
After the research problem, we have to identify and select
which type of data is to research. At this stage; we have to
organize a field survey to collect the data. One of the important tools for conducting
market research is the availability of necessary and useful data.
Primary data: For primary data collection, we have to plan the following four
important aspects.
Sampling
Research Instrument
Secondary Data - The Company’s profile, journals and various literature
studies are important sources of secondary data.
Data analysis and interpretation
1. Questionnaires
2. Pie chart and Bar chart
Questionnaires:
This is the most popular tool for the data collection. A questionnaire contains
question that the researcher wishes to ask his respondents which is always guided by
the objective of the survey.
Pie chart:
This is very useful diagram to represent data, which are divided into a number of
categories. This diagram consists of a circle of divided into a number of sectors,
which are proportional to the values they represent. The total value is represented by
41
42. the full create. The diagram bar chart can make comparison among the various
components or between a part and a whole of data.
Bar chart:
This is another way of representing data graphically. As the name implies, it consist
of a number of whispered bar, which originate from a common base line and are
equal widths. The lengths of the bards are proportional to the value they represent.
LIMITATIONS:-
Every study has certain limitations. In my study, also there were certain limitations,
which I could not able to solve.
1. The research was conducted in a very small area.
2. My research work period witness the biggest ups and downs in product sale
of only one brand, which affected the perception of the customer. This was
biggest drawback of my study.
3. Time factor was also important for me.
4. I had only found the upper-middle class family to fill up the questionnaire,
but generally, an average middle class family was required for the study.
5. The sample size is also very small which represent my research on consumer
behaviour.
42
43. ANALYSIS:-
Q1. Have you ever purchased any car of Maruti Suzuki?
Yes
No
0
10
20
30
40
50
60
Yes
No
Q.2 While purchasing car which feature influence you?
43
44. Price
Product feature
Brand
Service
Durability
Q3. From where you prefer buying a second hand car?
Through advertisement
Dealers
Showroom
0
5
10
15
20
25
30
35
40
THROUGH ADVERTISEMENT
DEALERS
SHOWROOMS
44
25%
20%
30%
10%
15% Price
Product Feature
Brand
Service
Durability
45. 55%
10%
5%
30% Attractive Price
Service
Demonstration
Offers
Q.4.You prefer to buy from the same as you have mentioned in Q.3
because of following reasons
Attractive Price
Service
Demonstrations
Offers
Q.5.Which Car of Maruti of do you have?
SWIFT
SWIFT DZIRE
ESTEEM
MARUTI800
ALTO
0
10
20
30
40
50
SWIFT
DZIRE
ESTEEM
MARUTI800
ALTO
45
46. 15%
35%
45%
5%
1-3 years
3-5 years
5-10 years
More than 10
years
Q.6. How frequently you change your cars?
1-3 years
3-5 years
5-10 years
More than 10 years
Q.7. Which bank do u prefer for financing the car?
HDFC
ICICI
AXIS BANK
PUNJAB NATIONAL BANK
0
10
20
30
40
50
HDFC
ICICI
AXIS
PNB
46
47. Conclusion and recommendations
a) Maruti should improve it’s after sale service because its hits
badly car market share.
b) More detailed customaries service is to be provided.
c) Show room demonstration should be given at frequent time
interval and feed back should be considered positively.
d) The company should look into the matter of person hiring
for in showroom demonstration. A big showroom should
have at least 5 such kind of person.
e) As there is a bottle neck competition between Hyundai and
Maruti, it is necessary to take measure steps to overcome
the area of downfall in Maruti with respect to Hyundai.
f) The marketing managers should make better relations with
dealers and reputation of the company.
47
48. g) Customer considers quality as their first preference, so the
company should give more stress on this.
h) The product is well aware and it is on top of mind of
customer. So company should always improve services and
update their technology.
ANNEXURE
BIBLIOLOGY
www.marutisuzuki.com
www.managementparadise.com
www.carwale.com
Autocar Magazine
48
49. QUESTIONNAIRE
Q1. Have you ever purchased any car of Maruti Suzuki?
Yes
No
Q.2 While purchasing car which feature influence you?
Price
Product feature
Brand
Service
49
50. Durability
Q3. From where you prefer buying a second hand car?
Through advertisement
Dealers
Showroom
Q.4.You prefer to buy from the same as you have mentioned in Q.3
because of following reasons
Attractive Price
Service
Demonstrations
Offers
Q.5.Which Car of Maruti of do you have?
SWIFT
SWIFT DZIRE
50
51. ESTEEM
MARUTI800
ALTO
Q.6. How frequently you change your cars?
1-3 years
3-5 years
5-10 years
More than 10 years
Q.7. Which bank do u prefer for financing the car?
HDFC
ICICI
AXIS BANK
PUNJAB NATIONAL BANK
51