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A SUMMER TRAINING REPORT
ON
MARKETING STRATEGY AND DEAL BETWEEN TRUE
VALUE AND OLD CAR'S OF MARUTI SUZUKI (PVT)
LIMITED
Submitted in partial fulfillment of requirement of
MASTER OF BUSINESS ADMINISTRATION (MBA)
SUBMITTED TO: SUBMITTED BY:
JASJOT KAUR BINDRA TANVIR SINGH
2014MGB1100
MBA B (3RD)
SESSION:2014-2016
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ACKNOWLEDGEMENT
It is in particular that I am acknowledging my sincere feeling towards my mentors who
graciously gave me their time and expertise.
They have provided me with the valuable guidance, sustained efforts and friendly approach.
It would have been difficult to achieve the results in such a short span of time without their help.
its my duty to record my gratitude towards the Internal project supervisor Mr. ARVINDER SINGH
LADDI . who devoted her precious time to interact, guide and gave me the right approach to
accomplish the task and also helped me to enhance my knowledge and understanding of the project.
The findings of the study show that businessman and professionals comprise the majority of the
used car customer segment. Further, the respondents indicated an overall satisfaction towards the
pre-purchase, purchase and post –purchase procedure involved in the buying of pre-owned car from
Maruti True Value dealers.
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DECLARATION
I hereby declare that the following documented project report titled “ MARKETING
STRATEGY AND DEAL BETWEEN TRUE VALUE AND OLD CAR'S OF MARUTI SUZUKI
(PVT) LIMITED .” is an original and authentic work done by me for the partial fulfillment of
Bachelors of Business Administration degree program . It is my own work conducted under the
supervision of Mr. ARVINDER SINGH LADDI ( TEAM LEADER) , MARUTI SUZUKI ,
HOSHIARPUR AUTOMOBILES.
I hereby certify that all the Endeavour put in the fulfillment of the task are genuine and
original to the best of my knowledge & I have not submitted it earlier elsewhere.
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INDEX
CHAPTER 1
INTRODUCTION
INTRODUCTION OF MARUTI SUZUKI INDIA............................................................ 1-12
INRTODUCTION OF AUTOMOBILE INDUSTRY IN INDIA....................................... 13
INRTODUCTION OF MARUTI SUZUKI HOSHIARPUR AUTOMOBILES................. 14
MARUTI TRUE VALUE.................................................................................................... 15-19
CHAPTER 2
OBJECTIVE........................................................................................................................ 20
CHAPTER 3
SWOT ANALYSIS MARUTI SUZUKI............................................................................. 21-23
CHAPTER 4
RESEARCH METHODOLOGY......................................................................................... 24-27
CHAPTER 5
DATA ANALYSIS.............................................................................................................. 28-44
CHAPTER 6
OBSERVATION.................................................................................................................. 45-48
CONCLUSION............................................................................................................. 49
RECOMENDATION............................................................................................................... 50
CHAPTER 7
QUESTIONNAIRE SAMPLE.................................................................................................. 51
BIBLIOGRAPHY............................................................................................................... 52
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CHAPTER 1
INTRODUCTION
INTRODUCTION TO MARUTI SUZUKI INDIA
Maruti Suzuki India Limited formerly known as Maruti Udyog Limited, is an
automobile manufacturer in India. It is a subsidiary of Japanese automobile and motorcycle
manufacturer Suzuki. As of November 2012, it had a market share of 37% of the Indian passenger
car markets. Maruti Suzuki manufactures and sells a complete range of cars from the entry level
Maruti 800 (discontinued), Alto, to the hatchback Ritz, Celerio, A-Star, Swift, Wagon R, Zen and
sedans DZire, Ciaz, Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose vehicle Suzuki
Ertiga and Sports Utility vehicle Grand Vitara.
The company's headquarters are at No 1, Nelson Mandela Road, New Delhi. In February 2012, the
company sold its ten millionth vehicle in India.
History
Maruti Udyog Limited was established in February 1981, though the actual production
commenced only in 1983. It started with Maruti 800, based on the Suzuki Alto key car which at the
time was the only modern car available in India. Its only competitors were Hindustan Ambassador
and Premier Padmini. Originally, 74% of the company was owned by the Indian government, and
26% by Suzuki of Japan. As of May 2007, the government of India sold its complete share to Indian
financial institutions and no longer has any stake in Maruti Udyog.
Sales and service network
As of 31 March 2014 Maruti Suzuki has 933 dealerships across 666 towns and cities in all
states and union territories of India. It has 3,060 service stations (inclusive of dealer workshops and
Maruti Authorized Service Stations) in 1,454 towns and cities throughout India. It has 30 Express
Service Stations on 30 National Highways across 1,436 cities in India.
Service is a major revenue generator of the company. Most of the service stations are
managed on franchise basis, where Maruti Suzuki trains the local staff. Other automobile
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companies have not been able to match this benchmark set by Maruti Suzuki. The Express Service
stations help many stranded vehicles on the highways by sending across their repair man to the
vehicle.
Maruti Insurance
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help
of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The
service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors
Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited
This service started as a benefit or value addition to customers and was able to ramp up
easily. By December 2005 they were able to sell more than two million insurance policies since its
inception.
Maruti Finance
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January
2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti
and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in
securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak
Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic
partners in car finance. Again the company entered into a strategic partnership with SBI in March
2003 Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-
Maruti Finance is currently available in 166 cities across India.
Maruti True Value
Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used
Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help
of this service in India. As of 31 March 2010 there are 342 outlets.
Maruti Accessories
Many of the auto component companies other than Maruti Suzuki started to offer
components and accessories that were compatible. This caused a serious threat and loss of revenue
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to Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine
Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps,
stereo systems, seat covers and other car care products. These products are sold through dealer
outlets and authorized service stations throughout India.
Maruti Driving School
As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving
School in Delhi. Later the services were extended to other cities of India as well. These schools are
modeled on international standards, where learners go through classroom and practical sessions.
Many international practices like road behavior and attitudes are also taught in these schools.
Before driving actual vehicles participants are trained on simulators.
A the launch ceremony for the school Jagdish Khattar stated "We are very concerned about
mounting deaths on Indian roads. These can be brought down if government, industry and the
voluntary sector work together in an integrated manner. But we felt that Maruti should first do
something in this regard and hence this initiative of Maruti Driving Schools."
LOGOS OF MARUTI SUZUKI AUTOMOBILES
OLD MARUTI SUZUKI LOGO
NEW MARUTI SUZUKI LOGO
MARUTI INSURACE LOGO
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MARUTI SUZUKI ACCESSORIES LOGO
MARUTI DRIVING SCHOOL LOGO
TRUE VALUE LOGO
SERVICE MARUTI LOGO
VEHICLE LOGO
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MARUTI SUZUKI MODELS PREFRED BYCUSTOMERSAND
CONSUMERS
Maruti Alto
Maruti Alto is one of the bestselling car in India. It has included different new features in it
like clear lens headlamps, sparkling tail
lamps, dynamic front grill and bumper, stylish
fabric, rotary control for AC etc. Other
features that are really important for the
comfort and safety of the passenger are
electronic power steering, excellent services
back up, convenient cup holders, high rigid
monocoque frame made of high tensile steel,
front and rear seat belts, booster assisted brakes etc. Its better mileage and low engine friction make
this car most fuel efficient car in A2 segment (petrol).
It has three variants:
 Maruti Alto
 Maruti Alto Lx
 Maruti Alto Lxi
Maruti Alto
It has new features like front bumper,dynamic front grill, S mark, clear lens headlamps,
clear lens tail lamps etc.
Maruti Alto Lx
Along with the features that are present in Alto, there are many additional new features like
rotary control for AC, integrated rear seat head restraints etc.
Maruti Alto Lxi
Along with all the features that are present in Alto LX and Alto, another distinctive extra
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feature included in this model is electronic power steering.
Maruti Omni
Maruti Omni can accompany anybody during the lazy holidays. Its seating capacity can
accommodate a group of people going for picnic or outing. Stylish, smart and sporty looks of newly
launched Maruti Omni is very comfortable. Its reclining and sliding front seat, enough leg space
and ample headroom make it more spacious.
Its sleek sliding door and new side body graphics are
giving new taste to the car lovers. Apart from this,
smart new steering wheel, clear lens headlamps and
head lamp leveling device are lining up to market this
car properly.
With 37 bhp @ 500rpm and torque of 6.32 kgm @ 3000 rpm, this car is running strong over the
years. MPFI engine fulfills all the Bharat III emission norms.
The features that make this car safe and secure are like side impact door beams, thermoplastic
bumpers, booster assisted disc brakes, secured seat belts, laminated glass winshield etc.
Turning radius of 4.1 m, Omni solves the purpose of narrow lane driving, keen turning and small
space parking.
 5 seater Maruti Omni
 8 seater Maruti Omni
 LPG Maruti Omni
5 seater Maruti Omni
5 seater Maruti Omni has capacity to arrange seating for five. In 5 seater Maruti Omni
behind the front seats there is an arrangement for 3 seats in a row one after another.
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8 seater Maruti Omni
8 seater Maruti Omni is with the accommodation facility for eight. In 8 seater Maruti Omni
behind the front’s seats there is a seating arrangement for two long seats to accommodate six more
occupants. Those both rear seats are arranged face to face which give scope to gossip with each
other while going for family picnic or friendly freak out.
LPG Maruti Omni
LPG Maruti Omni is the most cost saving new car of the Maruti Omni.
Its 5 seater accommodation arrangement with LPG kit ( Vialle, Netherlands) fitted by the factory
keeps it noticeable to the buyers. It has capacity of 62.1 ltr LPG cylinder / reserve fuel tank (petrol,
5 ltr). It runs with the power of 27bhp@ 4500rpm.
Maruti Zen Estilo
Zen Estilo is Maruti's latest launch pad in the automobile sector. Estilo, Spanish word for
"style", radiates both Japanese simplicity and
European sophistication & is made perfectly suitable
for Indian roads. The car is much more roomier than
Zen & its plush & sleek interiors impart a more
royal touch to its persona. Sporting a much larger
engine of 1061 cc., the car's elevated size offers
extra boot space. Best feature boasts of its superior
air conditioning which eases the task of beating the
sultry summers.
With a capacity of 64 bhp. & a low-end torque of 84 nm (i.e. 3500 rpm), the new model
ensures the Indian market with a smooth & comfortable drive.
The car exhibiting fine upholstery matched up with its' color theme has an immense stamina
to sweep away the customer with its' elan appearance. Other salient characteristics include: Modern
design, Two tone color design, Redesign seats.
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Other Features
Maruti Zen Estilo has a series of other plus points which makes is an instant hit among Indian
buyers. They are:
* spacious
* Handy driver's side airbag
* Rear defogger, tachometer & ABS
* Electronic power steering
* Black bumpers
* Hatchbacks
* Dual tone theme
There are three variants found in this car:-
 Maruti Zen Estilo Lx
 Maruti Zen Estilo Lxi
 Maruti Zen Estilo Vxi
Maruti Zen Estilo Lx
This model has certain specific points such as no body colored side or back door handles, outside
door mirrors, accessory socket. Though, it has rear door child lock & steering lock.
Maruti Zen Estilo Lxi
This variant of Estilo is almost the same like its other model LX. It has body colored bumpers &
back door handles. Though, it is fully air conditioned like others & has numerous other qualities.
Maruti Zen Estilo Vxi
Estilo Vxi bosts of almost all the benefits, thus, fitting easily in the ultra modern automobile
category. The model has an electrical adjustable ORVM, side door handles, outside door mirrors &
a host of other plus points. Though, certain features are optional in it which are:
* SRS airbag (driver side)
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Maruti Swift
Competing with the other cars of Maruti,
Maruti Swift is gradually making its position in the
world of mid-sized family car. Maruti Swift has
come up with the special technical specifications
of 16 valve 4-cylinder, 1300 cc engine generating
power of solid 87bhp @ 6000 rpm. Maruti swift is
equipped with various safety features and well
advanced equipments.
There are four variants in this car:
 Swift LXi
 Swift VXi
 Swift ZXi
 Swift Diesel'Ldi'
 Swift Diesel 'Vdi'
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 leveling 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
colored A & B pillars, 12v accessory socket in center 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
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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
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,
colored outside door mirror cowls, colored 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.
Maruti Swift Diesel
Before making a buying decision for a car, comfort is always the first priority that we
usually look for. Make no compromises with your comforts, as 'Maruti Swift Diesel' incorporates
the best comfort features which any swanky car does have these days.
There are two variants this car:
 Maruti Swift Diesel'Ldi'
 Maruti Swift Diesel 'Vdi'
Maruti Swift Diesel'Ldi'
Right from power steering to antenna and manual air conditioning to heater, you would get
maximum comfort level with this 'Ldi' model. As far as safety and security is concerned, it comes
with child lock (rear door), side impact beams and the icats. In addition to this, it has cabin light in
three positions, sports-type spherical shift knob, sun visors on both sides, 3 assist grips and lots
more inside the car.
Maruti Swift Diesel 'Vdi'
Apart from all those features mentioned with the Ldi, you can get front and rear electric
windows and central door locking in the comfort segment. On the other hand, the Vanity mirrors,
day/night rearview mirror, head restraints (rear seat) and 12V accessory socket in central console
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are also some of the extra features which are found inside the car. he additional external features
include colored door mirror cowls and handles, front fog lamps and 165/80 R14 steel wheels with
cap (tubeless)
Maruti Wagon R
Wagon R with its 1061cc low friction engine does not only run, but always fly high with its
super power of 64bhp@6200rpm and faster acceleration. Its smooth pick up has made this car more
popular than other cars in this category.
Its on board computer of 16 bit capacity always keeps an eyes on the performance of the
engine. Its engine configuration of 4 valves per cylinder capacity keeps its fuel consumption lower
than other cars. Its Dual Distribution less Digital Ignition (DDLI) gives better start and ideal power
distribution. At the same time its mileage of 14.15 kmpl and other features make it more reliable car
to the buyer.
There are four variants in this car:-
 Wagon R Lx
 Wagon R Lxi
 Wagon R Vxi
 Wagon R Ax
 Wagon R Duo
Wagon R Lx
It is well equipped with chrome plated grille, clear headlamps and tail lamps, right outside
rear view mirror, front wiper (2 speed + intermittent), new plush upholstery, air conditioner with
heater, full flat front seat, remote fuel lid opener, new headlamp leveling device etc.
Wagon R Lxi
Along with the features that are present in WagonR LXi, few exclusive features present in
this model are central door locking (all 5 doors), electronic power steering, roof rails, newly added
body colored bumpers, right outside rear view mirrors etc.
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Wagon R Vxi
Apart from the features that are present in WagonR LXi ,few exclusive special features are
only available in this model like side molding, front power window, rear defogger, full wheel
covers, boot lamp, day/ night rear view mirror, electronic tachometer, “Key Not Removed” warning
buzzer, “Lights On” warning buzzer, vanity mirror, newly added accessory socket, two tone leather
steering wheel cover; newly added anti lock braking system (ABS), dual SRS airbags, key less
entry etc.
Wagon R AX
Along with the common features that are present in other models, this model contains
special features like right and left outside rear view mirror, new added roof rails etc.
Wagon R Duo
This extremely dynamic and vibrant variant of WagonR is flooded with all the latest
technologies and features not only externally but internally too. As the name itself suggests, it has
been designed to run on both petrol as well as the CNG mode whichever ways you want it to be.
The car has got some latest modifications such as 3 spoke steering, matching door trim fabric and
much more. It has been stuffed with some highly safety features such as intelligent computerized
anti theft system (iCATS), dual SRS air bags that minimizes the force of impact on passengers
during jerks, and crumple zone. Apart from Maruti Suzuki, for my researches I have to study some
other company through secondary resource .these are as follow . . .
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INTRODUCTION OF AUTOMOBILE INDUSTRY IN INDIA
The automobile industry has been growing by leaps and bounds. With the crazy for new
models on the rise, the car manufacturing companies are vying with one another in terms of
upgrading the existing models with added features and introduction of new models, but all these
vehicles are always projected as rich man’s property, which the average salaried middle-class man
cannot afford. At this juncture, the Manufacturer Certified Pre-owned (MCP) Programs are
designed to give buyers the chance to purchase a used car with complete confidence by offering
some or all of the benefits like comprehensive vehicle inspection, extended warranties, strict
qualification guidelines, roadside assistance etc.
The automobile industry has been growing by leaps and bounds. With the crazy for new
models on the rise, the car manufacturing companies are vying with one another in terms of
upgrading the existing models with added features and introduction of new models, but all these
vehicles are always projected as rich man’s property, which the average salaried middle-class man
cannot afford. At this juncture, the Manufacturer Certified Pre-owned (MCP) Programs are
designed to give buyers the chance to purchase a used car with complete confidence by offering
some or all of the benefits like comprehensive vehicle inspection, extended warranties, strict
qualification guidelines, roadside assistance etc.
INDIAN AUTOMOBILE INDUSTRY
The automotive industry is one of the largest industries worldwide and in India as well. The
automotive sector is a vital sector for any developed economy. It drives upstream industries like
steel, iron, aluminum, rubber, plastics, glass and electronics, and downstream industries like
advertising and marketing, transport and insurance.
The automotive industry can be divided into five sectors:-
1) Passenger Cars
2) Multi- Utility Vehicles (MUVs)
3) Two- and Three- Vehicles
4) Light Commercial Vehicles (LCVs) / Medium and Heavy Commercial Vehicles (MHCVs)
5) Tractors
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INTRODUCTION OF MARUTI SUZUKI HOSHIARPUR AUTOMOBILES
Hoshiarpur automobiles is one of the best business partners of maruti suzuki family was
established in the year 2001 by S.AJVINDER SINGH. S AJVINDERSINGH being bkessed with
requisite caliber and vision always had the inspiration of becoming icon of busisness.
S.GURPREET SINGH has taken over the reign of hoshiarpur atomobiles oct 2012. A young
intelligent, confident, bright, talented and having a charimatic personality presnts him a very
dignified manner he is versatile and dynamic CEO and under whose able leadership, hoshiarpur
automobiles has achieved a tremendous result and remarkable progress in all spheres.
The inauguration of laying foundation stone of hoshiarpur automobile showroom at singriwala was
inaugurated by hon'able Sant Satnam Singh Ji , on 2nd march 2001.
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The following table presents a comparative view of the extent of motorization in India
vis-à-vis certain other countries in the world
MARUTI TRUE VALUE
Taking advantage of the present market scenario, Maruti Udyog Limited, established in
February 1981, stepped into action to cater to the vehicular needs of the people belonging to the
lower middle class. The company has come out with as innovative idea “Maruti True Value”, to tap
the potential middle class segment. Under this program, the buyer can either exchange his old
model car belonging to any brand for a used one or for a brand new Maruti vehicle, or he can
purchase any used Maruti car. Definitely this is not a second hand car showroom, but a pre-owned
car showroom. The prime objective of the company is to retain its customers and to bring in more
customers into its fold. Under the Maruti True Value services, Maruti cars which are less than 10
years old or ones which have done up to 1,00,000 km and have changed up to two previous
ownerships are accepted for purchase from the customer.
Then, designated engineers from Maruti, whose are present at the True Value outlets
conduct a standard 120-point check of the vehicle brought to the outlet. The documents of the seller
are also checked for any irregularities. MUL has trained its staff at the select dealer outlet to handle
Country Passenger Cars in Use
per Thousand Persons
Two-Wheelers in Use
per Thousand Persons
DevelopedCountries
U.S.A 478 14
United Kingdom 373 12
Japan 395 115
Germany 508 36
Emerging Economies
China 3 8
Indonesia 14 62
Philippines 10 14
South Korea 167 59
India 5 27
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its pre-owned cars business. Cashing in on the reliability of the brand name,, the company provides
a higher resale value for the Maruti vehicles. Maruti True Value customers enjoy all the advantage
of dealing directly with India’s most trusted car company. The company assures a customer of
providing quality, reliability, transparency and convenience, all under one roof. Its strong network
of 172 showrooms across the nation provides a very convenient option very close to a customer.
COMPETITIORS OF MTV:
Many automobile companies are in used car business, which are giving competition to MTV.
Some of those companies are listed below:
1) Hyundai advantage
2) Tata assured
3) Ford assured
4) Mahindra first choice
5) Toyota you trust
6) Honda auto terrace
KEY DEMAND DRIVERS
Traditionally, disposable income was perceived as the key factor driving passenger car
demand. But over time, other factors that are known to have an impact on demand have emerged.
These include the need for greater mobility, non- availability of public transport services,
availability of cheap finance, development of the used-car market, introduction of new
technologically superior models, increasing levels of urbanization and changing consumer profiles.
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ANALYSIS OF MARUTI TRUE VALUE
Strengths of MTV:-
1) Leader in Certified Pre-owned car market
2) Benefit due to association of Maruti brand
3) Extensive dealer network
4) MTV has become vital link for sale of New car through various offer
Weakness of MTV: -
1) Lack of training of DSE (Dealer Sales Executive)
2) Communication gap in rural area like Faridabad, where dealer are far behind to penetrate that
market despite the fact of that area has high income level people.
3) Conflict between New car showroom „s GM and True Value Outlet‟s GM
4) Lack of advertisement of Maruti True Value brand
5) Space limitation at True Value Outlets due to which dealers are unable to show case their
product
Opportunity of MTV:-
1) Big market : Domestic & Abroad
2) Economic growth is sound and promising in future
3) Increasing income of middle class segment, which are potential customer group
4) Increase of excise duty on CKD cars, which would be in result of hike in car prices. Due to
which demand of used cars would increase.
Treats of MTV:-
1) Aggressive selling strategy of Hyundai advantage (competitor of MTV)
2) Hike of fuel prices due to which people are preferring public transport
3) Close competition from two wheeler segment
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LIMITATIONS
This research is primarily based on the primary data from the users. This study has
successfully examined the major factors responsible for deal fail in MTV outlet based on
respondents‟ perception on various factors; future research may include examining the factors
importance. Future research may also consider the impact of other demographic variable.
Limitations of the Study Time Constraint:
The time period given for the preparation does lack some estimation as the progress of the
report is dependent on the appointment so given by the professionals and the customers to be
surveyed. Moreover being a MBA student regular assignment, projects, studies are part and parcel
of life hence to chalk out time for extra activities become a bit difficult, but still I am trying hard to
come up with this constrained and to give my 100%.
Possibility of Sampling Error:
The sample though selected through simple random basis but still there is a possibility that
the sample may suffer through judgmental error or any other error. The sample selected for study
may give wrong information or sample selected may not be right for study. Though proper and
sufficient steps have been taken to control these errors but still there is some possibility that the
survey report may not reflect the true feelings of the respondents.
Management Biasness:
Maintaining a good image is far hard than making a new image, hence in order to retain its
customers, both existing and future prospects, the management can give wrong information in order
to make a good image in front of me. In order to ensure the accuracy of the data given by the
company the data needs to be cross checked, but still there is possibility that the management can
succeed in presenting the wrong information to me. Dependency on Questionnaire: The main
source of the primary data is expressed in the answers of the questionnaire. The answers of the
questionnaire will be affected greatly by the moods, emotions and attitude of the customers during
the time of the survey. Moreover of the respondent intentionally wants to hide or misrepresent the
data then that could be controlled. For this cross questions are put but still there are chances that the
respondents present wrong information.
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TRENDS IN THE INDIAN PASSENGER CAR INDUSTRY
Indian
Passenger Car
Industry
Manufacturing
Technologies:
Flexible
Manufacturing
Systems
Components:
Tierisation;
Tyres: Radials,
Retreading
Regulatory
framework:
Deregulation;
De licensing;
Removal of QRs;
Introduction of strict
Emission norms
Auto finance:
Better/ cheaper schemes
Distribution Systems:
Changing relationship of
manufacturers with
dealers and suppliers
Materials: Low
weight; Synthetic
Composites
Entry of Foreign
Manufacturers
Product technology:
MPFI; CRDi; diesel
system
Structure of
demand:
Change in industry
segmentation
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CHAPTER 2
OBJECTIVE
The name of my project is “MARKETING STRATEGY AND DEAL BETWEEN TRUE
VALUE AND OLD CAR'S OF MARUTI SUZUKI (PVT) LIMITED” tells about the objective of
the study in a nutshell. Apart from these basic objectives there were other objectives for carrying
out the project.
These are enlisted below:-
1. Competitor analysis
2. Used car Market trend
3. Loop holes in the system’s process
4. New entries in the market
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CHAPTER 3
SWOT ANALYSIS MARUTI SUZUKI
Strengths
 Brand Name
 Large Distribution
Network
 Wide product offering at
different price points
 Cheapest Cars in
corresponding segments
 Encouraging exports
 Awarded many awards
 Economy with technology
Weakness
 Lack of in house R & D
 New model introduction
limited to only cosmetic
changes
 Dominance mainly at
lower level only (Swift)
Opportunity
 Rise of Indian middle
class and small cities
 A booming economy
 Rising exports
Threats
 Many players fighting for
the same cake
 Entry of new players
 Cannibalism
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STRENGTHS
1. Brand Name: Maruti Suzuki has emerged as a strong brand name in recent times. Backed with
the parent company Maruti Suzuki this is recognized as a strong player in worldwide
automotive market, Swift has definitely a value associated with it any individual will like
associatd with.
2. Large Distribution Network: With a strong dealer network of around 3000 dealers al around the
country, Maruti Suzuki has made its presence felt in each and every corner of India.
3. Wide Product offerings at different price points: Maruti Suzuki has launched various models in
various segments and hence has a very good product mix of offerings as different price points.
4. Cheapest cars in respective segments: Maruti Suzuki has always followed an aggressive pricing
policy. As a result it has its cars priced at lowest possible rates in respective segments.
5. Encouraging Exports: Backed by a strong production and a global setup at Gurgaon, Maruti
Suzuki is exporting a lot. An export of worth Rs. 1,325 crores has been achieved in last six
months.
6. Awarded Many Awards: Maruti Suzuki has been awarded with many awards and recognitions
like “The Star Company” amongst unlisted companies by Business Standard this year. Its
various models like Swift has achieved many awards, thereby increasing the brand value of the
company.
7. Economy with technology: Maruti Suzuki’s cars have always seen as a company producing cars
blending economy with technology. Swift’s initiative of putting a 16-bit microprocessor on
board has proved as one of the major reasons for its success and that too for the lowest price in
its segment.
27 | P a g e
WEAKNESSES
1. Lack of in house R & D: Maruti Suzuki do not have a comprehensive R & D department.
2. New model introduction to only cosmetic changes: There is no major design changes incorporated
in Maruti Suzuki products. Only some cosmetic changes have been made.
3. Dominance mainly at lower level: Maruti Suzuki dominance in Indian market is only at its lower
level segments like Swift in B-Segment and Accent n C-Segment. It has to focus on its upper
segment models to strengthen its position in Indian car industry.
OPPORTUNITIES
1. Rise of Indian middle class and small cities: As a phenomenonal growth is seen in recent times
in Indian middle class and the purchasing power of working class individuals. Also a rise in
small cities across the country has given a great opportunity to Maruti Suzuki for achieving a
higher growth rate in coming times.
2. A Booming Economy: Indian economy is growing at a rate of on an average of 7% every year
thereby giving an opportunity of larger sales in each and every segment.
3. Rising exports: With a export of Rs. 1,325 crores in last six months, Maruti Suzuki has a great
opportunity of achieving a export target of Rs. 2,700 crores in this fiscal year.
THREATS
1. Many players fighting for the same cake: There a many major players in the B-Segment and
since the size of market is not expanding rapidly, Maruti Suzuki has a major threat in form of
tough competition.
2. Entry of new players: with coming of Tata Indica and other players planning to come out with
much more models in B-Segment, the competition is just getting hotter.
3. Cannibalism: to some extent the Zen is affecting Swift because of its price. Thus Maruti Suzuki
has to focus more on its positioning strategy of Zen and Swift.
28 | P a g e
CHAPTER 4
RESEARCH METHODOLOGY.
This dissertation work is on Automobile Sector specifically four wheeler market. There are
different companies’ uses their different strategies to grab the market which increases the potential
customer as well as market share. So research methodologies are described below:
Data Sources
Primary Data
Primary data is that kind of data which is collected directly by the investigator himself for
the purpose of the specific study. Primary Data is collected by the investigator through interviews
of company employees, vendors, distributor etc. Data such collected is original in character. The
advantage of this method of collection is the authentic. A questionnaire of about 50 questions was
made and it was given to the dealers to fill it up for our research. The research was a kind of
conclusive research as it helps in the testing of hypothesis. The method of sampling was the
Random method as it is unbiased.
Secondary Data
When an investigator uses the data that has been already collected by others, is called
secondary data. The secondary data could be collected from Journals, Reports, libraries, magazines,
fair & conference and other publications. The advantages of the secondary data can be –It is
economical, both in terms of money and time spent .The researcher of the report also did the same
and collected secondary data from various internet sites like www.google.com, www.airtel.com,
www.hutch.co.in and many more. The researcher of the report also visited various libraries for
collection of the introduction part.
29 | P a g e
MARKET RESEARCH
Market research can be sub divided into three parts.
1. Observation
2. Survey
The brief description of all the methodologies is enlisted below:
1. Observation: - Here I used some of the observations methods.
These are enlisted below briefly: -
A. Communication and conversational analysis :-
Investigation of the patterns in the organization of people's interaction (it would be possible
to use the principle of analyzing a conversation between two travelers, or one traveler and one
transport enquiry office operator in real situations, in order to identify the needs for the traveler in
specific contexts, what are the difficulties encountered, how a system could resolve these
difficulties,...). One of these methods is the language / action approach
which considers the language as a means by which people act. Advantage of this method: it
provides a complete and logical conceptual frame in order to investigate all kinds of conversation.
Disadvantage of this method: many situations are characterized by subtle communication
processes not taken into account by the model. There is also a difficulty in labeling an interaction
and a message especially if they do not fit into the request or promise categories.
B. Participant observation:-
The investigator takes part in the tasks alongside other operators. It may be a useful data
collection approach if skilled performance is such that actions are "semi-automatic" in which case
users may find it difficult to verbalize how they are achieving the task goals. This type of
observation can also be useful if aspects of team performance are being investigated to understand
how the team members are organized and perform their tasks.
30 | P a g e
C. Passive observation :-
At the simplest level passive observation, where the person conducting the observation
quietly observes and records the user activity, can be used to record some details of the processes
which the user undertakes. Passive observation has the advantage that it minimizes the intrusion
which the user experiences. One problem with passive observation is the practical difficulty in
recording sufficient detail of the activity. This can be overcome through the video recording of user
activity which, after transcription into textual form, can provide a highly detailed analysis.
D. Usability Testing :-
Usability testing is a technique to evaluate the ease of use or ease of learning of an
interactive system. During a usability test a real future user uses (a prototype of) the system while
one or more observers look at how this is done. Usability tests are often task-oriented, i.e. the test
user receives a set of predefined tasks to perform. Usability tests often use the think aloud
technique, i.e. the test user is asked to say aloud what he thinks while using the system.
It has 2 types. Obtrusive observation: -
1) Think about what you want to ask before the test
2) Ask open questions
3) Don't blame the test user
4) Don't ask the test user for design solutions
Unobtrusive observation: - Observe: be quiet, watch, understand.
1) Don't explain
2) Don't ask the test user's opinion
3) Don't defend the design
4) Don't apologize
5) Don't suggest Don't contradict the test user nor agree with him/her: stay neutral
2. Survey Method:-
Basically my survey method focused into interview, secondary data collection from the
competitors, vendors and suppliers. The brief description are enlisted below:-
31 | P a g e
Interview :- Interview has been conducted to different clients, suppliers, inter departments. This
entails: -
1) Questioning (face to face)
2) Basic Methods to Get Customer feedback
3) Customer Satisfaction
4) Customer Service
Data Collection :- Secondary data for automobile sector has been collected from Annual
Reports, Journals, Websites, Working Files, Speech, Competitors’ News etc.
INSTRUMENTS USED
1. MS OFFICE
2. WEB SEARCH ENGINE
3. COMPLIANCE REPORT
4. NEWS & PRESS RELEASE
32 | P a g e
CHAPTER 5
DATA ANALYSIS
(1) Are you aware about the present boom in Market?
(i) Yes
(ii) No.
As regard to market boom and the respondents awareness level about this, nearly 82% of the
respondents are aware about the market boom in the present economy, while the rest 18% are not
aware about any market boom. The awareness level is high among the middle and the upper middle
class, and particularly among the business class and the traders. One of the interesting finding of the
study was that many respondents confuse between inflation and market growth. Respondents
belonging to lower middle and middle class confuse whether price rise has anything to do with the
automobile industry scenario.
About the reasons, 65% of the respondents who are aware about the market boom feel that it
reflects the resilience of the Indian economy and reflects a true picture of it. This they attribute to
the persistent increase in Sensex and continuing economic growth rate which is somehow near the
double digit mark. 27% of the respondents who are aware about the market boom feel that this is a
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
yes 82%
no 18%
yes
no
33 | P a g e
temporary situation which is likely to recede. Rest of the respondents could not attribute any
concrete causal relationship for the market boom.
2. What method do you follow for marketing of your products?
(i) Only Direct sales Method--------------------- 28 percent
(ii) Only Indirect Dealership Method----------------- 18 percent
(iii) Both ---------------------------------------------------- 54 percent
0%
10%
20%
30%
40%
50%
60%
only direct sales method 28%
only indirect sales method 18%
both 54%
only direct sales method
only indirect sales method
both
34 | P a g e
3. Do you think Advertisement is an effective method of selling your automobile products?
(iv) Yes------------------------------------------------- 45 percent
(v) No----------------------------------------------------- 18 percent
(vi) Do not know/ Cannot say-------------------------27 percent
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
yes 45%
no 18%
cant say 27%
yes
no
cant say
35 | P a g e
4. What type of advertising will be helpful in increasing salability of your auto products?
(vii) Product Specific------------------------------------- 34 percent
(viii) Company Specific---------------------------------- 22 percent
(ix) Personality oriented ------------------------------- 17 percent
(x) Do not know / Cannot say ------------------------ 27 percent
0%
5%
10%
15%
20%
25%
30%
35%
product specific 34%
company specific 22%
personality specific 17%
cant say 27%
product specific
company specific
personality specific
cant say
36 | P a g e
5. Do you think that branding helps in the marketing of your automobile products?
(xi) Yes------------------------------------------------- 34 percent
(xii) No----------------------------------------------------- 27 percent
(xiii) Do not know/ Cannot say-------------------------39 percent
0%
5%
10%
15%
20%
25%
30%
35%
40%
yes 34%
no 27%
cant say 39%
yes
no
cant say
37 | P a g e
6. Do you think that auto fairs are effective methods of sale promotion?
(xiv) Yes------------------------------------------------- 55 percent
(xv) No----------------------------------------------------- 12 percent
(xvi) Do not know/ Cannot say-------------------------33 percent
0%
10%
20%
30%
40%
50%
60%
yes 55%
no 12%
cant say 33%
yes
no
cant say
38 | P a g e
7. Do you think that Foreign Direct Investment (FDI ) should be allowed in the auto mobile
sector in India?
(xvii) Yes------------------------------------------------- 34 percent
(xviii) No----------------------------------------------------- 32 percent
(xix) Do not know/ Cannot say-------------------------34 percent
31%
32%
32%
33%
33%
34%
34%
yes 34%
no 32%
cant say 34%
yes
no
cant say
39 | P a g e
8. Do you follow branding of products as a Marketing strategy?
(i) Yes ------------------------------------------------------------------------ 74 percent
(ii) No -------------------------------------------------------------------------- 05 percent
(iii) Do not know/ Can not say --------------------------------------------- 21 percent
0%
10%
20%
30%
40%
50%
60%
70%
80%
yes 74%
no 5%
cant say 21%
yes
no
cant say
40 | P a g e
9. Does branding of products helps to improve the marketing potential of your products?
(i) Yes --------------------------------------------------------------------------- 68 percent
(ii) No --------------------------------------------------------------------------- 12 percent
(iii) Do not know/ Can not say --------------------------------------------- 20 percent
0%
10%
20%
30%
40%
50%
60%
70%
yes 68%
no 12%
cant say 20%
yes
no
cant say
41 | P a g e
10. Future of the automobile industry in India.
(i) The boom will continue --------------------------------------------- 75 percent
(ii) The boom is a temporary economic situation---------------- 12 percent
(iii) Do not know/ Cannot say ------------------------------------------- 13 percent
0%
10%
20%
30%
40%
50%
60%
70%
80%
yes 75%
no 12%
cant say 13%
yes
no
cant say
42 | P a g e
11. Major Weakness of Maruti Suzuki’s Marketing strategy.
 Branding ------------------------------------ 14 per cent
 Publicity ----------------------------------------- 09 percent
 Infrastructure assessment and Development -------------------------------- 77 percent
0%
10%
20%
30%
40%
50%
60%
70%
80%
branding 14%
publicity 9%
infrastructure assessment & development 77%
branding
publicity
infrastructure assessment &
development
43 | P a g e
12. How do the Foreign Automobile Companies affect the prospects of the domestic players in
the Indian market?
(i) 32 percent ------------------------------ have reduced the profit margin of the domestic
players
(ii) 53 percent ---------------------------------- have made the automobile industry more
competitive.
(iii) 07 percent ------------------------------- do not have significant effects on the domestic
players operating in the automobile industry
(iv) 08 percent ------------------------------- do not know / cannot say
0%
10%
20%
30%
40%
50%
60%
reduced the profit margin 32%
made industry more competitive 53%
do not make any significant effect 15%
reduced the profit margin
made industry more competitive
do not make any significant effect
44 | P a g e
13. Maruti Suzuki has a future growth. You opinion
(i) 75 percent -------------------- Maruti Suzuki is gradually spreding its wings and being a
very big company has the capacity to absorb short term losses, hence has a very good
prospect for the future market in India.
(ii) 20 percent ---------------------- Its future is like any other private automobile companies
in India
(iii) 5 percent -------------------- do not know/ cannot say
0%
10%
20%
30%
40%
50%
60%
70%
80%
Maruti is growingand has good future 75%
Maruti is like any other automobile company 20%
cant say 5%
Maruti is growing and has good
future
Maruti is like any other
automobile company
cant say
45 | P a g e
14. Which is the major factor to increase the sale of your products?
(i) Only Brand ----------------------17percent
(ii) Demand-Supply factors ------35 percent
(iii) Only Quality ----------------------- 23 percent
(iv) Other factors ---------25 percent
0%
5%
10%
15%
20%
25%
30%
35%
only brand 17%
demand-supply factor 35%
only quality 23%
others 25%
only brand
demand-supply factor
only quality
others
46 | P a g e
15. Do you think brand extension is necessary for the company? If yes, why?
(i) 78 percent --------------------------------- Yes
(ii) 04 percent -------------------------------- No
(iii) 18 percent -------------------------------- Do not know / Can not say
Those who believe that brand extension is necessary as part of its
marketing strategy holds the view that when a known brand extends into a product
category that involves sophisticated and state-of-the-art technology, consumers face uncertainty
and perceive a financial risk when considering the extension for purchase. The recognition that
brands are a powerful yet underutilized assets is why trademark licensing has become a popular
marketing strategy. Because many brand owners don't have the resources to pursue every viable
business opportunity, they utilize trademark licensing to enter new markets beyond their core
competencies.
0%
10%
20%
30%
40%
50%
60%
70%
80%
yes 78%
no 4%
cant say 18%
yes
no
cant say
47 | P a g e
16. Which are the products of the company that are favourite among the customers? Please
give the reasons as you think.
(i) 55 percent --------------------- Quality based
(ii) 30 percent ---------------------Economical/ Cheap
(iii) 06 percent ---------------------- Branded
(iv) 09 percent ------------------------ Do not know /Can not say
0%
10%
20%
30%
40%
50%
60%
quality based 55%
economical 30%
branded 6%
cant say 9%
quality based
economical
branded
cant say
48 | P a g e
17. Do you see the probability of a separation between Maruti and Suzuki in future?
(i) Yes ------------------------------------------------------------------ 18 percent
(ii) No -------------------------------------------------------------------- 74 percent
(iii) Do not know/ Can not say ------------------------------------------ 08 percent
0%
10%
20%
30%
40%
50%
60%
reduced the profit margin 32%
made industry more competitive 53%
do not make any significant effect 15%
reduced the profit margin
made industry more
competitive
do not make any significant
effect
49 | P a g e
CHAPTER 6
OBSERVATION , CONCLUSION AND RECOMENDATION
EXECUTIVE SUMMERY
Title
The Study of Consumer buying behavior towards small & medium car segment with special
reference to Maruti Suzuki India ltd.
Issue
Consumer behavior is ‘the mental and emotional processes and the observable behavior of
consumers during searching purchasing and post consumption of a product and service. People buy
different products from different brands to satisfy their needs. Consumer purchases are influenced
strongly by cultural, social, personal and psychological characteristic. Although marketers cannot
control such factors, they must give attention to them. Boston Analytics, a customized knowledge
services company, has announced the release of its “Automotive Industry in India” report as a part
of the series of monthly reports that analyze consumer observations and sentiments regarding a
automotive sector. According to this report consumer think about the following aspect while
making decision of purchase a car:
CAR PURCHASING PREFERENCES
Primary factors of preference
Price and fuel efficiency are the primary features that consumers expect today.
There will be an increase in the importance of fuel efficiency in approximately three to five
years from now for consumers.
Sales service, brand image/prestige, and resale value are secondary factors of choice today
and will remain so for the coming three to five years.
Environmental issues have yet to take root in India and do not show signs of becoming a
major factor for coming three to five years.
50 | P a g e
Car size
Affluence and aspiration are growing in parallel—The Indian consumer prefers a mid-size
car.
Our survey reveals that approximately one in two Indian consumers prefer a roomy mid-size
family car.
Indian versus foreign brand
There is evidence of “buy-Indian” mindset across the metros
Approximately three in four respondents prefer an Indian brand over a foreign one recently
launched versus established model
Indian consumers are divided in their preference for recently launched versus established
models of cars.
According to the results of the survey, 58% of respondents nationwide prefer a recently
launched model by a slight plurality.
Color preference
The color pie in the Indian car market shows that White is the most preferred color, closely
followed by Black and Silver
Approximately 29% of respondents preferred White, followed by 27% and 21% of
respondents opting for Black and Silver/Grey respectively
51 | P a g e
HOSHIARPUR MOTORS
52 | P a g e
MARCH MONTH
53 | P a g e
CONCLUSION
Maruti Udyog Ltd., a joint venture between the Government of India and the Suzuki Motor
Corporation of Japan was India’s largest automobile company in 2005. It operated in the passenger
vehicle market and manufactured affordable and fuel efficient cars for the Indian masses. Maruti
800 was its flagship small sized car and was the bestselling car in India since decades. In 2005,
Suzuki launched their global car ‘Swift’ in international markets and later in India. Swift was the
first stylish compact car from the stable of Maruti and was a differentiator from its earlier products.
The launch of Swift had brought Maruti in lime-light and various global international
automobile manufacturers announced their plans to boost their investments in India and launch
competing cars. The competition was expected to intensify to grab the burgeoning customer base.
The Indian car market currently appears to be at a crossroads, where car marketers are attempting to
change customer perceptions of their brands and where specific buying motivations appear to be
replacing generalities.
This meanwhile, is quite unlike the west where buyers consider aesthetics, comfort and
safety, not necessarily in that order, before finalizing a purchase. “It’s smarter to think about
emotions and attitudes, if marketers are to do a better job of marrying what a car offers to the
consumer’s image of the offerings.
The mindset of the Indian consumer is such that he is delighted if he buys a pen a little
cheaper than his neighbor. Things are, however, slowly changing and customers at the upper end of
the market are now ready to pay more for more. I hope that this approach will soon enter the small
car segment, maybe not with the same intensity .
“Success will largely be determined to the extent a company can differentiate itself in terms
of intangibles that go with a car”. Thus, success could well hinge on the best of bundle of services
that a carmaker can provide. Maruti Suzuki grew from zero to the 500,000 mark and the number
One sales spot in India in just five years. Looking at the present scenario it can be said that though
there is lot of competition in the auto world Maruti Suzuki is picking up well.
54 | P a g e
RECOMMENDATIONS
Key attribute components:
 Operational attributes.
 Globalization is yet another opportunity, if followed effectively & promptly.
 Brand Image.
 Customer Specific Details.
 An excellent service & support infrastructure.
 Ability to provide the cutting edge technology at best-value-for-money
 Strong customer relationships
 World Class Quality standards maintained for PPP (People, Processes & Performance). Alliance
with global technology leaders.
 The message should to the customers be sent in these components only to have the maximum
benefit from the advertisement.
 With the fast growing economy the pricing strategy needs to be tackled with care as it can
decide upon long term decisions of the company.
55 | P a g e
CHAPTER 7
QUESTIONNAIRE SAMPLE
1. Any Car model you have in mind ?
Q 2. Which fuel are you interested in ?
Petrol Diesel
Q 3. What is to most priority expectation from the car ?
Mileage Features Power Looks Value of money
Q 4. How many kilometers you drive in a month?
1000 1000 to <= 1500 1500 to <=2000
Q 5. Which color are you interested in ?
Color
Q 6. What is your approximate annual house hold income (rs) ?
<=3 lac 3 lac to 6 lacs 6 lac to 10 lac
Q 7. What will be you mode of payment?
Cash Self Finance Company finance
Q 8. Who will be the driver of car ?
Male (husband) Female (wife) Driver
Q 9. Which car you already have ?
Q 10. By when, are you expending to finalize your new car ?
<=15 days (hot) 16 to 30 days (warm) <=30 days (cold)
Customer detail :-
Name
Approximate Age :-
< 30 30-40 40-50 50 above
Address
Phone number :- Date .........................................
Mobile Landline Nil
56 | P a g e
BIBLIOGRAPHY
 Marketing Management by Phillip Kotler
 www.google.com
 www.wikipidea.com
 www.marutisuzuki.com

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Marketing Strategy and Deal Between True Value and Old Cars of Maruti Suzuki

  • 1. 1 | P a g e A SUMMER TRAINING REPORT ON MARKETING STRATEGY AND DEAL BETWEEN TRUE VALUE AND OLD CAR'S OF MARUTI SUZUKI (PVT) LIMITED Submitted in partial fulfillment of requirement of MASTER OF BUSINESS ADMINISTRATION (MBA) SUBMITTED TO: SUBMITTED BY: JASJOT KAUR BINDRA TANVIR SINGH 2014MGB1100 MBA B (3RD) SESSION:2014-2016
  • 2. 2 | P a g e ACKNOWLEDGEMENT It is in particular that I am acknowledging my sincere feeling towards my mentors who graciously gave me their time and expertise. They have provided me with the valuable guidance, sustained efforts and friendly approach. It would have been difficult to achieve the results in such a short span of time without their help. its my duty to record my gratitude towards the Internal project supervisor Mr. ARVINDER SINGH LADDI . who devoted her precious time to interact, guide and gave me the right approach to accomplish the task and also helped me to enhance my knowledge and understanding of the project. The findings of the study show that businessman and professionals comprise the majority of the used car customer segment. Further, the respondents indicated an overall satisfaction towards the pre-purchase, purchase and post –purchase procedure involved in the buying of pre-owned car from Maruti True Value dealers.
  • 3. 3 | P a g e DECLARATION I hereby declare that the following documented project report titled “ MARKETING STRATEGY AND DEAL BETWEEN TRUE VALUE AND OLD CAR'S OF MARUTI SUZUKI (PVT) LIMITED .” is an original and authentic work done by me for the partial fulfillment of Bachelors of Business Administration degree program . It is my own work conducted under the supervision of Mr. ARVINDER SINGH LADDI ( TEAM LEADER) , MARUTI SUZUKI , HOSHIARPUR AUTOMOBILES. I hereby certify that all the Endeavour put in the fulfillment of the task are genuine and original to the best of my knowledge & I have not submitted it earlier elsewhere.
  • 4. 4 | P a g e INDEX CHAPTER 1 INTRODUCTION INTRODUCTION OF MARUTI SUZUKI INDIA............................................................ 1-12 INRTODUCTION OF AUTOMOBILE INDUSTRY IN INDIA....................................... 13 INRTODUCTION OF MARUTI SUZUKI HOSHIARPUR AUTOMOBILES................. 14 MARUTI TRUE VALUE.................................................................................................... 15-19 CHAPTER 2 OBJECTIVE........................................................................................................................ 20 CHAPTER 3 SWOT ANALYSIS MARUTI SUZUKI............................................................................. 21-23 CHAPTER 4 RESEARCH METHODOLOGY......................................................................................... 24-27 CHAPTER 5 DATA ANALYSIS.............................................................................................................. 28-44 CHAPTER 6 OBSERVATION.................................................................................................................. 45-48 CONCLUSION............................................................................................................. 49 RECOMENDATION............................................................................................................... 50 CHAPTER 7 QUESTIONNAIRE SAMPLE.................................................................................................. 51 BIBLIOGRAPHY............................................................................................................... 52
  • 5. 5 | P a g e CHAPTER 1 INTRODUCTION INTRODUCTION TO MARUTI SUZUKI INDIA Maruti Suzuki India Limited formerly known as Maruti Udyog Limited, is an automobile manufacturer in India. It is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki. As of November 2012, it had a market share of 37% of the Indian passenger car markets. Maruti Suzuki manufactures and sells a complete range of cars from the entry level Maruti 800 (discontinued), Alto, to the hatchback Ritz, Celerio, A-Star, Swift, Wagon R, Zen and sedans DZire, Ciaz, Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitara. The company's headquarters are at No 1, Nelson Mandela Road, New Delhi. In February 2012, the company sold its ten millionth vehicle in India. History Maruti Udyog Limited was established in February 1981, though the actual production commenced only in 1983. It started with Maruti 800, based on the Suzuki Alto key car which at the time was the only modern car available in India. Its only competitors were Hindustan Ambassador and Premier Padmini. Originally, 74% of the company was owned by the Indian government, and 26% by Suzuki of Japan. As of May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog. Sales and service network As of 31 March 2014 Maruti Suzuki has 933 dealerships across 666 towns and cities in all states and union territories of India. It has 3,060 service stations (inclusive of dealer workshops and Maruti Authorized Service Stations) in 1,454 towns and cities throughout India. It has 30 Express Service Stations on 30 National Highways across 1,436 cities in India. Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti Suzuki trains the local staff. Other automobile
  • 6. 6 | P a g e companies have not been able to match this benchmark set by Maruti Suzuki. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle. Maruti Insurance Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited This service started as a benefit or value addition to customers and was able to ramp up easily. By December 2005 they were able to sell more than two million insurance policies since its inception. Maruti Finance To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003 Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI- Maruti Finance is currently available in 166 cities across India. Maruti True Value Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this service in India. As of 31 March 2010 there are 342 outlets. Maruti Accessories Many of the auto component companies other than Maruti Suzuki started to offer components and accessories that were compatible. This caused a serious threat and loss of revenue
  • 7. 7 | P a g e to Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers and other car care products. These products are sold through dealer outlets and authorized service stations throughout India. Maruti Driving School As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School in Delhi. Later the services were extended to other cities of India as well. These schools are modeled on international standards, where learners go through classroom and practical sessions. Many international practices like road behavior and attitudes are also taught in these schools. Before driving actual vehicles participants are trained on simulators. A the launch ceremony for the school Jagdish Khattar stated "We are very concerned about mounting deaths on Indian roads. These can be brought down if government, industry and the voluntary sector work together in an integrated manner. But we felt that Maruti should first do something in this regard and hence this initiative of Maruti Driving Schools." LOGOS OF MARUTI SUZUKI AUTOMOBILES OLD MARUTI SUZUKI LOGO NEW MARUTI SUZUKI LOGO MARUTI INSURACE LOGO
  • 8. 8 | P a g e MARUTI SUZUKI ACCESSORIES LOGO MARUTI DRIVING SCHOOL LOGO TRUE VALUE LOGO SERVICE MARUTI LOGO VEHICLE LOGO
  • 9. 9 | P a g e MARUTI SUZUKI MODELS PREFRED BYCUSTOMERSAND CONSUMERS Maruti Alto Maruti Alto is one of the bestselling car in India. It has included different new features in it like clear lens headlamps, sparkling tail lamps, dynamic front grill and bumper, stylish fabric, rotary control for AC etc. Other features that are really important for the comfort and safety of the passenger are electronic power steering, excellent services back up, convenient cup holders, high rigid monocoque frame made of high tensile steel, front and rear seat belts, booster assisted brakes etc. Its better mileage and low engine friction make this car most fuel efficient car in A2 segment (petrol). It has three variants:  Maruti Alto  Maruti Alto Lx  Maruti Alto Lxi Maruti Alto It has new features like front bumper,dynamic front grill, S mark, clear lens headlamps, clear lens tail lamps etc. Maruti Alto Lx Along with the features that are present in Alto, there are many additional new features like rotary control for AC, integrated rear seat head restraints etc. Maruti Alto Lxi Along with all the features that are present in Alto LX and Alto, another distinctive extra
  • 10. 10 | P a g e feature included in this model is electronic power steering. Maruti Omni Maruti Omni can accompany anybody during the lazy holidays. Its seating capacity can accommodate a group of people going for picnic or outing. Stylish, smart and sporty looks of newly launched Maruti Omni is very comfortable. Its reclining and sliding front seat, enough leg space and ample headroom make it more spacious. Its sleek sliding door and new side body graphics are giving new taste to the car lovers. Apart from this, smart new steering wheel, clear lens headlamps and head lamp leveling device are lining up to market this car properly. With 37 bhp @ 500rpm and torque of 6.32 kgm @ 3000 rpm, this car is running strong over the years. MPFI engine fulfills all the Bharat III emission norms. The features that make this car safe and secure are like side impact door beams, thermoplastic bumpers, booster assisted disc brakes, secured seat belts, laminated glass winshield etc. Turning radius of 4.1 m, Omni solves the purpose of narrow lane driving, keen turning and small space parking.  5 seater Maruti Omni  8 seater Maruti Omni  LPG Maruti Omni 5 seater Maruti Omni 5 seater Maruti Omni has capacity to arrange seating for five. In 5 seater Maruti Omni behind the front seats there is an arrangement for 3 seats in a row one after another.
  • 11. 11 | P a g e 8 seater Maruti Omni 8 seater Maruti Omni is with the accommodation facility for eight. In 8 seater Maruti Omni behind the front’s seats there is a seating arrangement for two long seats to accommodate six more occupants. Those both rear seats are arranged face to face which give scope to gossip with each other while going for family picnic or friendly freak out. LPG Maruti Omni LPG Maruti Omni is the most cost saving new car of the Maruti Omni. Its 5 seater accommodation arrangement with LPG kit ( Vialle, Netherlands) fitted by the factory keeps it noticeable to the buyers. It has capacity of 62.1 ltr LPG cylinder / reserve fuel tank (petrol, 5 ltr). It runs with the power of 27bhp@ 4500rpm. Maruti Zen Estilo Zen Estilo is Maruti's latest launch pad in the automobile sector. Estilo, Spanish word for "style", radiates both Japanese simplicity and European sophistication & is made perfectly suitable for Indian roads. The car is much more roomier than Zen & its plush & sleek interiors impart a more royal touch to its persona. Sporting a much larger engine of 1061 cc., the car's elevated size offers extra boot space. Best feature boasts of its superior air conditioning which eases the task of beating the sultry summers. With a capacity of 64 bhp. & a low-end torque of 84 nm (i.e. 3500 rpm), the new model ensures the Indian market with a smooth & comfortable drive. The car exhibiting fine upholstery matched up with its' color theme has an immense stamina to sweep away the customer with its' elan appearance. Other salient characteristics include: Modern design, Two tone color design, Redesign seats.
  • 12. 12 | P a g e Other Features Maruti Zen Estilo has a series of other plus points which makes is an instant hit among Indian buyers. They are: * spacious * Handy driver's side airbag * Rear defogger, tachometer & ABS * Electronic power steering * Black bumpers * Hatchbacks * Dual tone theme There are three variants found in this car:-  Maruti Zen Estilo Lx  Maruti Zen Estilo Lxi  Maruti Zen Estilo Vxi Maruti Zen Estilo Lx This model has certain specific points such as no body colored side or back door handles, outside door mirrors, accessory socket. Though, it has rear door child lock & steering lock. Maruti Zen Estilo Lxi This variant of Estilo is almost the same like its other model LX. It has body colored bumpers & back door handles. Though, it is fully air conditioned like others & has numerous other qualities. Maruti Zen Estilo Vxi Estilo Vxi bosts of almost all the benefits, thus, fitting easily in the ultra modern automobile category. The model has an electrical adjustable ORVM, side door handles, outside door mirrors & a host of other plus points. Though, certain features are optional in it which are: * SRS airbag (driver side)
  • 13. 13 | P a g e Maruti Swift Competing with the other cars of Maruti, Maruti Swift is gradually making its position in the world of mid-sized family car. Maruti Swift has come up with the special technical specifications of 16 valve 4-cylinder, 1300 cc engine generating power of solid 87bhp @ 6000 rpm. Maruti swift is equipped with various safety features and well advanced equipments. There are four variants in this car:  Swift LXi  Swift VXi  Swift ZXi  Swift Diesel'Ldi'  Swift Diesel 'Vdi' 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 leveling 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 colored A & B pillars, 12v accessory socket in center 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
  • 14. 14 | P a g e 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 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, colored outside door mirror cowls, colored 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. Maruti Swift Diesel Before making a buying decision for a car, comfort is always the first priority that we usually look for. Make no compromises with your comforts, as 'Maruti Swift Diesel' incorporates the best comfort features which any swanky car does have these days. There are two variants this car:  Maruti Swift Diesel'Ldi'  Maruti Swift Diesel 'Vdi' Maruti Swift Diesel'Ldi' Right from power steering to antenna and manual air conditioning to heater, you would get maximum comfort level with this 'Ldi' model. As far as safety and security is concerned, it comes with child lock (rear door), side impact beams and the icats. In addition to this, it has cabin light in three positions, sports-type spherical shift knob, sun visors on both sides, 3 assist grips and lots more inside the car. Maruti Swift Diesel 'Vdi' Apart from all those features mentioned with the Ldi, you can get front and rear electric windows and central door locking in the comfort segment. On the other hand, the Vanity mirrors, day/night rearview mirror, head restraints (rear seat) and 12V accessory socket in central console
  • 15. 15 | P a g e are also some of the extra features which are found inside the car. he additional external features include colored door mirror cowls and handles, front fog lamps and 165/80 R14 steel wheels with cap (tubeless) Maruti Wagon R Wagon R with its 1061cc low friction engine does not only run, but always fly high with its super power of 64bhp@6200rpm and faster acceleration. Its smooth pick up has made this car more popular than other cars in this category. Its on board computer of 16 bit capacity always keeps an eyes on the performance of the engine. Its engine configuration of 4 valves per cylinder capacity keeps its fuel consumption lower than other cars. Its Dual Distribution less Digital Ignition (DDLI) gives better start and ideal power distribution. At the same time its mileage of 14.15 kmpl and other features make it more reliable car to the buyer. There are four variants in this car:-  Wagon R Lx  Wagon R Lxi  Wagon R Vxi  Wagon R Ax  Wagon R Duo Wagon R Lx It is well equipped with chrome plated grille, clear headlamps and tail lamps, right outside rear view mirror, front wiper (2 speed + intermittent), new plush upholstery, air conditioner with heater, full flat front seat, remote fuel lid opener, new headlamp leveling device etc. Wagon R Lxi Along with the features that are present in WagonR LXi, few exclusive features present in this model are central door locking (all 5 doors), electronic power steering, roof rails, newly added body colored bumpers, right outside rear view mirrors etc.
  • 16. 16 | P a g e Wagon R Vxi Apart from the features that are present in WagonR LXi ,few exclusive special features are only available in this model like side molding, front power window, rear defogger, full wheel covers, boot lamp, day/ night rear view mirror, electronic tachometer, “Key Not Removed” warning buzzer, “Lights On” warning buzzer, vanity mirror, newly added accessory socket, two tone leather steering wheel cover; newly added anti lock braking system (ABS), dual SRS airbags, key less entry etc. Wagon R AX Along with the common features that are present in other models, this model contains special features like right and left outside rear view mirror, new added roof rails etc. Wagon R Duo This extremely dynamic and vibrant variant of WagonR is flooded with all the latest technologies and features not only externally but internally too. As the name itself suggests, it has been designed to run on both petrol as well as the CNG mode whichever ways you want it to be. The car has got some latest modifications such as 3 spoke steering, matching door trim fabric and much more. It has been stuffed with some highly safety features such as intelligent computerized anti theft system (iCATS), dual SRS air bags that minimizes the force of impact on passengers during jerks, and crumple zone. Apart from Maruti Suzuki, for my researches I have to study some other company through secondary resource .these are as follow . . .
  • 17. 17 | P a g e INTRODUCTION OF AUTOMOBILE INDUSTRY IN INDIA The automobile industry has been growing by leaps and bounds. With the crazy for new models on the rise, the car manufacturing companies are vying with one another in terms of upgrading the existing models with added features and introduction of new models, but all these vehicles are always projected as rich man’s property, which the average salaried middle-class man cannot afford. At this juncture, the Manufacturer Certified Pre-owned (MCP) Programs are designed to give buyers the chance to purchase a used car with complete confidence by offering some or all of the benefits like comprehensive vehicle inspection, extended warranties, strict qualification guidelines, roadside assistance etc. The automobile industry has been growing by leaps and bounds. With the crazy for new models on the rise, the car manufacturing companies are vying with one another in terms of upgrading the existing models with added features and introduction of new models, but all these vehicles are always projected as rich man’s property, which the average salaried middle-class man cannot afford. At this juncture, the Manufacturer Certified Pre-owned (MCP) Programs are designed to give buyers the chance to purchase a used car with complete confidence by offering some or all of the benefits like comprehensive vehicle inspection, extended warranties, strict qualification guidelines, roadside assistance etc. INDIAN AUTOMOBILE INDUSTRY The automotive industry is one of the largest industries worldwide and in India as well. The automotive sector is a vital sector for any developed economy. It drives upstream industries like steel, iron, aluminum, rubber, plastics, glass and electronics, and downstream industries like advertising and marketing, transport and insurance. The automotive industry can be divided into five sectors:- 1) Passenger Cars 2) Multi- Utility Vehicles (MUVs) 3) Two- and Three- Vehicles 4) Light Commercial Vehicles (LCVs) / Medium and Heavy Commercial Vehicles (MHCVs) 5) Tractors
  • 18. 18 | P a g e INTRODUCTION OF MARUTI SUZUKI HOSHIARPUR AUTOMOBILES Hoshiarpur automobiles is one of the best business partners of maruti suzuki family was established in the year 2001 by S.AJVINDER SINGH. S AJVINDERSINGH being bkessed with requisite caliber and vision always had the inspiration of becoming icon of busisness. S.GURPREET SINGH has taken over the reign of hoshiarpur atomobiles oct 2012. A young intelligent, confident, bright, talented and having a charimatic personality presnts him a very dignified manner he is versatile and dynamic CEO and under whose able leadership, hoshiarpur automobiles has achieved a tremendous result and remarkable progress in all spheres. The inauguration of laying foundation stone of hoshiarpur automobile showroom at singriwala was inaugurated by hon'able Sant Satnam Singh Ji , on 2nd march 2001.
  • 19. 19 | P a g e The following table presents a comparative view of the extent of motorization in India vis-à-vis certain other countries in the world MARUTI TRUE VALUE Taking advantage of the present market scenario, Maruti Udyog Limited, established in February 1981, stepped into action to cater to the vehicular needs of the people belonging to the lower middle class. The company has come out with as innovative idea “Maruti True Value”, to tap the potential middle class segment. Under this program, the buyer can either exchange his old model car belonging to any brand for a used one or for a brand new Maruti vehicle, or he can purchase any used Maruti car. Definitely this is not a second hand car showroom, but a pre-owned car showroom. The prime objective of the company is to retain its customers and to bring in more customers into its fold. Under the Maruti True Value services, Maruti cars which are less than 10 years old or ones which have done up to 1,00,000 km and have changed up to two previous ownerships are accepted for purchase from the customer. Then, designated engineers from Maruti, whose are present at the True Value outlets conduct a standard 120-point check of the vehicle brought to the outlet. The documents of the seller are also checked for any irregularities. MUL has trained its staff at the select dealer outlet to handle Country Passenger Cars in Use per Thousand Persons Two-Wheelers in Use per Thousand Persons DevelopedCountries U.S.A 478 14 United Kingdom 373 12 Japan 395 115 Germany 508 36 Emerging Economies China 3 8 Indonesia 14 62 Philippines 10 14 South Korea 167 59 India 5 27
  • 20. 20 | P a g e its pre-owned cars business. Cashing in on the reliability of the brand name,, the company provides a higher resale value for the Maruti vehicles. Maruti True Value customers enjoy all the advantage of dealing directly with India’s most trusted car company. The company assures a customer of providing quality, reliability, transparency and convenience, all under one roof. Its strong network of 172 showrooms across the nation provides a very convenient option very close to a customer. COMPETITIORS OF MTV: Many automobile companies are in used car business, which are giving competition to MTV. Some of those companies are listed below: 1) Hyundai advantage 2) Tata assured 3) Ford assured 4) Mahindra first choice 5) Toyota you trust 6) Honda auto terrace KEY DEMAND DRIVERS Traditionally, disposable income was perceived as the key factor driving passenger car demand. But over time, other factors that are known to have an impact on demand have emerged. These include the need for greater mobility, non- availability of public transport services, availability of cheap finance, development of the used-car market, introduction of new technologically superior models, increasing levels of urbanization and changing consumer profiles.
  • 21. 21 | P a g e ANALYSIS OF MARUTI TRUE VALUE Strengths of MTV:- 1) Leader in Certified Pre-owned car market 2) Benefit due to association of Maruti brand 3) Extensive dealer network 4) MTV has become vital link for sale of New car through various offer Weakness of MTV: - 1) Lack of training of DSE (Dealer Sales Executive) 2) Communication gap in rural area like Faridabad, where dealer are far behind to penetrate that market despite the fact of that area has high income level people. 3) Conflict between New car showroom „s GM and True Value Outlet‟s GM 4) Lack of advertisement of Maruti True Value brand 5) Space limitation at True Value Outlets due to which dealers are unable to show case their product Opportunity of MTV:- 1) Big market : Domestic & Abroad 2) Economic growth is sound and promising in future 3) Increasing income of middle class segment, which are potential customer group 4) Increase of excise duty on CKD cars, which would be in result of hike in car prices. Due to which demand of used cars would increase. Treats of MTV:- 1) Aggressive selling strategy of Hyundai advantage (competitor of MTV) 2) Hike of fuel prices due to which people are preferring public transport 3) Close competition from two wheeler segment
  • 22. 22 | P a g e LIMITATIONS This research is primarily based on the primary data from the users. This study has successfully examined the major factors responsible for deal fail in MTV outlet based on respondents‟ perception on various factors; future research may include examining the factors importance. Future research may also consider the impact of other demographic variable. Limitations of the Study Time Constraint: The time period given for the preparation does lack some estimation as the progress of the report is dependent on the appointment so given by the professionals and the customers to be surveyed. Moreover being a MBA student regular assignment, projects, studies are part and parcel of life hence to chalk out time for extra activities become a bit difficult, but still I am trying hard to come up with this constrained and to give my 100%. Possibility of Sampling Error: The sample though selected through simple random basis but still there is a possibility that the sample may suffer through judgmental error or any other error. The sample selected for study may give wrong information or sample selected may not be right for study. Though proper and sufficient steps have been taken to control these errors but still there is some possibility that the survey report may not reflect the true feelings of the respondents. Management Biasness: Maintaining a good image is far hard than making a new image, hence in order to retain its customers, both existing and future prospects, the management can give wrong information in order to make a good image in front of me. In order to ensure the accuracy of the data given by the company the data needs to be cross checked, but still there is possibility that the management can succeed in presenting the wrong information to me. Dependency on Questionnaire: The main source of the primary data is expressed in the answers of the questionnaire. The answers of the questionnaire will be affected greatly by the moods, emotions and attitude of the customers during the time of the survey. Moreover of the respondent intentionally wants to hide or misrepresent the data then that could be controlled. For this cross questions are put but still there are chances that the respondents present wrong information.
  • 23. 23 | P a g e TRENDS IN THE INDIAN PASSENGER CAR INDUSTRY Indian Passenger Car Industry Manufacturing Technologies: Flexible Manufacturing Systems Components: Tierisation; Tyres: Radials, Retreading Regulatory framework: Deregulation; De licensing; Removal of QRs; Introduction of strict Emission norms Auto finance: Better/ cheaper schemes Distribution Systems: Changing relationship of manufacturers with dealers and suppliers Materials: Low weight; Synthetic Composites Entry of Foreign Manufacturers Product technology: MPFI; CRDi; diesel system Structure of demand: Change in industry segmentation
  • 24. 24 | P a g e CHAPTER 2 OBJECTIVE The name of my project is “MARKETING STRATEGY AND DEAL BETWEEN TRUE VALUE AND OLD CAR'S OF MARUTI SUZUKI (PVT) LIMITED” tells about the objective of the study in a nutshell. Apart from these basic objectives there were other objectives for carrying out the project. These are enlisted below:- 1. Competitor analysis 2. Used car Market trend 3. Loop holes in the system’s process 4. New entries in the market
  • 25. 25 | P a g e CHAPTER 3 SWOT ANALYSIS MARUTI SUZUKI Strengths  Brand Name  Large Distribution Network  Wide product offering at different price points  Cheapest Cars in corresponding segments  Encouraging exports  Awarded many awards  Economy with technology Weakness  Lack of in house R & D  New model introduction limited to only cosmetic changes  Dominance mainly at lower level only (Swift) Opportunity  Rise of Indian middle class and small cities  A booming economy  Rising exports Threats  Many players fighting for the same cake  Entry of new players  Cannibalism
  • 26. 26 | P a g e STRENGTHS 1. Brand Name: Maruti Suzuki has emerged as a strong brand name in recent times. Backed with the parent company Maruti Suzuki this is recognized as a strong player in worldwide automotive market, Swift has definitely a value associated with it any individual will like associatd with. 2. Large Distribution Network: With a strong dealer network of around 3000 dealers al around the country, Maruti Suzuki has made its presence felt in each and every corner of India. 3. Wide Product offerings at different price points: Maruti Suzuki has launched various models in various segments and hence has a very good product mix of offerings as different price points. 4. Cheapest cars in respective segments: Maruti Suzuki has always followed an aggressive pricing policy. As a result it has its cars priced at lowest possible rates in respective segments. 5. Encouraging Exports: Backed by a strong production and a global setup at Gurgaon, Maruti Suzuki is exporting a lot. An export of worth Rs. 1,325 crores has been achieved in last six months. 6. Awarded Many Awards: Maruti Suzuki has been awarded with many awards and recognitions like “The Star Company” amongst unlisted companies by Business Standard this year. Its various models like Swift has achieved many awards, thereby increasing the brand value of the company. 7. Economy with technology: Maruti Suzuki’s cars have always seen as a company producing cars blending economy with technology. Swift’s initiative of putting a 16-bit microprocessor on board has proved as one of the major reasons for its success and that too for the lowest price in its segment.
  • 27. 27 | P a g e WEAKNESSES 1. Lack of in house R & D: Maruti Suzuki do not have a comprehensive R & D department. 2. New model introduction to only cosmetic changes: There is no major design changes incorporated in Maruti Suzuki products. Only some cosmetic changes have been made. 3. Dominance mainly at lower level: Maruti Suzuki dominance in Indian market is only at its lower level segments like Swift in B-Segment and Accent n C-Segment. It has to focus on its upper segment models to strengthen its position in Indian car industry. OPPORTUNITIES 1. Rise of Indian middle class and small cities: As a phenomenonal growth is seen in recent times in Indian middle class and the purchasing power of working class individuals. Also a rise in small cities across the country has given a great opportunity to Maruti Suzuki for achieving a higher growth rate in coming times. 2. A Booming Economy: Indian economy is growing at a rate of on an average of 7% every year thereby giving an opportunity of larger sales in each and every segment. 3. Rising exports: With a export of Rs. 1,325 crores in last six months, Maruti Suzuki has a great opportunity of achieving a export target of Rs. 2,700 crores in this fiscal year. THREATS 1. Many players fighting for the same cake: There a many major players in the B-Segment and since the size of market is not expanding rapidly, Maruti Suzuki has a major threat in form of tough competition. 2. Entry of new players: with coming of Tata Indica and other players planning to come out with much more models in B-Segment, the competition is just getting hotter. 3. Cannibalism: to some extent the Zen is affecting Swift because of its price. Thus Maruti Suzuki has to focus more on its positioning strategy of Zen and Swift.
  • 28. 28 | P a g e CHAPTER 4 RESEARCH METHODOLOGY. This dissertation work is on Automobile Sector specifically four wheeler market. There are different companies’ uses their different strategies to grab the market which increases the potential customer as well as market share. So research methodologies are described below: Data Sources Primary Data Primary data is that kind of data which is collected directly by the investigator himself for the purpose of the specific study. Primary Data is collected by the investigator through interviews of company employees, vendors, distributor etc. Data such collected is original in character. The advantage of this method of collection is the authentic. A questionnaire of about 50 questions was made and it was given to the dealers to fill it up for our research. The research was a kind of conclusive research as it helps in the testing of hypothesis. The method of sampling was the Random method as it is unbiased. Secondary Data When an investigator uses the data that has been already collected by others, is called secondary data. The secondary data could be collected from Journals, Reports, libraries, magazines, fair & conference and other publications. The advantages of the secondary data can be –It is economical, both in terms of money and time spent .The researcher of the report also did the same and collected secondary data from various internet sites like www.google.com, www.airtel.com, www.hutch.co.in and many more. The researcher of the report also visited various libraries for collection of the introduction part.
  • 29. 29 | P a g e MARKET RESEARCH Market research can be sub divided into three parts. 1. Observation 2. Survey The brief description of all the methodologies is enlisted below: 1. Observation: - Here I used some of the observations methods. These are enlisted below briefly: - A. Communication and conversational analysis :- Investigation of the patterns in the organization of people's interaction (it would be possible to use the principle of analyzing a conversation between two travelers, or one traveler and one transport enquiry office operator in real situations, in order to identify the needs for the traveler in specific contexts, what are the difficulties encountered, how a system could resolve these difficulties,...). One of these methods is the language / action approach which considers the language as a means by which people act. Advantage of this method: it provides a complete and logical conceptual frame in order to investigate all kinds of conversation. Disadvantage of this method: many situations are characterized by subtle communication processes not taken into account by the model. There is also a difficulty in labeling an interaction and a message especially if they do not fit into the request or promise categories. B. Participant observation:- The investigator takes part in the tasks alongside other operators. It may be a useful data collection approach if skilled performance is such that actions are "semi-automatic" in which case users may find it difficult to verbalize how they are achieving the task goals. This type of observation can also be useful if aspects of team performance are being investigated to understand how the team members are organized and perform their tasks.
  • 30. 30 | P a g e C. Passive observation :- At the simplest level passive observation, where the person conducting the observation quietly observes and records the user activity, can be used to record some details of the processes which the user undertakes. Passive observation has the advantage that it minimizes the intrusion which the user experiences. One problem with passive observation is the practical difficulty in recording sufficient detail of the activity. This can be overcome through the video recording of user activity which, after transcription into textual form, can provide a highly detailed analysis. D. Usability Testing :- Usability testing is a technique to evaluate the ease of use or ease of learning of an interactive system. During a usability test a real future user uses (a prototype of) the system while one or more observers look at how this is done. Usability tests are often task-oriented, i.e. the test user receives a set of predefined tasks to perform. Usability tests often use the think aloud technique, i.e. the test user is asked to say aloud what he thinks while using the system. It has 2 types. Obtrusive observation: - 1) Think about what you want to ask before the test 2) Ask open questions 3) Don't blame the test user 4) Don't ask the test user for design solutions Unobtrusive observation: - Observe: be quiet, watch, understand. 1) Don't explain 2) Don't ask the test user's opinion 3) Don't defend the design 4) Don't apologize 5) Don't suggest Don't contradict the test user nor agree with him/her: stay neutral 2. Survey Method:- Basically my survey method focused into interview, secondary data collection from the competitors, vendors and suppliers. The brief description are enlisted below:-
  • 31. 31 | P a g e Interview :- Interview has been conducted to different clients, suppliers, inter departments. This entails: - 1) Questioning (face to face) 2) Basic Methods to Get Customer feedback 3) Customer Satisfaction 4) Customer Service Data Collection :- Secondary data for automobile sector has been collected from Annual Reports, Journals, Websites, Working Files, Speech, Competitors’ News etc. INSTRUMENTS USED 1. MS OFFICE 2. WEB SEARCH ENGINE 3. COMPLIANCE REPORT 4. NEWS & PRESS RELEASE
  • 32. 32 | P a g e CHAPTER 5 DATA ANALYSIS (1) Are you aware about the present boom in Market? (i) Yes (ii) No. As regard to market boom and the respondents awareness level about this, nearly 82% of the respondents are aware about the market boom in the present economy, while the rest 18% are not aware about any market boom. The awareness level is high among the middle and the upper middle class, and particularly among the business class and the traders. One of the interesting finding of the study was that many respondents confuse between inflation and market growth. Respondents belonging to lower middle and middle class confuse whether price rise has anything to do with the automobile industry scenario. About the reasons, 65% of the respondents who are aware about the market boom feel that it reflects the resilience of the Indian economy and reflects a true picture of it. This they attribute to the persistent increase in Sensex and continuing economic growth rate which is somehow near the double digit mark. 27% of the respondents who are aware about the market boom feel that this is a 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% yes 82% no 18% yes no
  • 33. 33 | P a g e temporary situation which is likely to recede. Rest of the respondents could not attribute any concrete causal relationship for the market boom. 2. What method do you follow for marketing of your products? (i) Only Direct sales Method--------------------- 28 percent (ii) Only Indirect Dealership Method----------------- 18 percent (iii) Both ---------------------------------------------------- 54 percent 0% 10% 20% 30% 40% 50% 60% only direct sales method 28% only indirect sales method 18% both 54% only direct sales method only indirect sales method both
  • 34. 34 | P a g e 3. Do you think Advertisement is an effective method of selling your automobile products? (iv) Yes------------------------------------------------- 45 percent (v) No----------------------------------------------------- 18 percent (vi) Do not know/ Cannot say-------------------------27 percent 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% yes 45% no 18% cant say 27% yes no cant say
  • 35. 35 | P a g e 4. What type of advertising will be helpful in increasing salability of your auto products? (vii) Product Specific------------------------------------- 34 percent (viii) Company Specific---------------------------------- 22 percent (ix) Personality oriented ------------------------------- 17 percent (x) Do not know / Cannot say ------------------------ 27 percent 0% 5% 10% 15% 20% 25% 30% 35% product specific 34% company specific 22% personality specific 17% cant say 27% product specific company specific personality specific cant say
  • 36. 36 | P a g e 5. Do you think that branding helps in the marketing of your automobile products? (xi) Yes------------------------------------------------- 34 percent (xii) No----------------------------------------------------- 27 percent (xiii) Do not know/ Cannot say-------------------------39 percent 0% 5% 10% 15% 20% 25% 30% 35% 40% yes 34% no 27% cant say 39% yes no cant say
  • 37. 37 | P a g e 6. Do you think that auto fairs are effective methods of sale promotion? (xiv) Yes------------------------------------------------- 55 percent (xv) No----------------------------------------------------- 12 percent (xvi) Do not know/ Cannot say-------------------------33 percent 0% 10% 20% 30% 40% 50% 60% yes 55% no 12% cant say 33% yes no cant say
  • 38. 38 | P a g e 7. Do you think that Foreign Direct Investment (FDI ) should be allowed in the auto mobile sector in India? (xvii) Yes------------------------------------------------- 34 percent (xviii) No----------------------------------------------------- 32 percent (xix) Do not know/ Cannot say-------------------------34 percent 31% 32% 32% 33% 33% 34% 34% yes 34% no 32% cant say 34% yes no cant say
  • 39. 39 | P a g e 8. Do you follow branding of products as a Marketing strategy? (i) Yes ------------------------------------------------------------------------ 74 percent (ii) No -------------------------------------------------------------------------- 05 percent (iii) Do not know/ Can not say --------------------------------------------- 21 percent 0% 10% 20% 30% 40% 50% 60% 70% 80% yes 74% no 5% cant say 21% yes no cant say
  • 40. 40 | P a g e 9. Does branding of products helps to improve the marketing potential of your products? (i) Yes --------------------------------------------------------------------------- 68 percent (ii) No --------------------------------------------------------------------------- 12 percent (iii) Do not know/ Can not say --------------------------------------------- 20 percent 0% 10% 20% 30% 40% 50% 60% 70% yes 68% no 12% cant say 20% yes no cant say
  • 41. 41 | P a g e 10. Future of the automobile industry in India. (i) The boom will continue --------------------------------------------- 75 percent (ii) The boom is a temporary economic situation---------------- 12 percent (iii) Do not know/ Cannot say ------------------------------------------- 13 percent 0% 10% 20% 30% 40% 50% 60% 70% 80% yes 75% no 12% cant say 13% yes no cant say
  • 42. 42 | P a g e 11. Major Weakness of Maruti Suzuki’s Marketing strategy.  Branding ------------------------------------ 14 per cent  Publicity ----------------------------------------- 09 percent  Infrastructure assessment and Development -------------------------------- 77 percent 0% 10% 20% 30% 40% 50% 60% 70% 80% branding 14% publicity 9% infrastructure assessment & development 77% branding publicity infrastructure assessment & development
  • 43. 43 | P a g e 12. How do the Foreign Automobile Companies affect the prospects of the domestic players in the Indian market? (i) 32 percent ------------------------------ have reduced the profit margin of the domestic players (ii) 53 percent ---------------------------------- have made the automobile industry more competitive. (iii) 07 percent ------------------------------- do not have significant effects on the domestic players operating in the automobile industry (iv) 08 percent ------------------------------- do not know / cannot say 0% 10% 20% 30% 40% 50% 60% reduced the profit margin 32% made industry more competitive 53% do not make any significant effect 15% reduced the profit margin made industry more competitive do not make any significant effect
  • 44. 44 | P a g e 13. Maruti Suzuki has a future growth. You opinion (i) 75 percent -------------------- Maruti Suzuki is gradually spreding its wings and being a very big company has the capacity to absorb short term losses, hence has a very good prospect for the future market in India. (ii) 20 percent ---------------------- Its future is like any other private automobile companies in India (iii) 5 percent -------------------- do not know/ cannot say 0% 10% 20% 30% 40% 50% 60% 70% 80% Maruti is growingand has good future 75% Maruti is like any other automobile company 20% cant say 5% Maruti is growing and has good future Maruti is like any other automobile company cant say
  • 45. 45 | P a g e 14. Which is the major factor to increase the sale of your products? (i) Only Brand ----------------------17percent (ii) Demand-Supply factors ------35 percent (iii) Only Quality ----------------------- 23 percent (iv) Other factors ---------25 percent 0% 5% 10% 15% 20% 25% 30% 35% only brand 17% demand-supply factor 35% only quality 23% others 25% only brand demand-supply factor only quality others
  • 46. 46 | P a g e 15. Do you think brand extension is necessary for the company? If yes, why? (i) 78 percent --------------------------------- Yes (ii) 04 percent -------------------------------- No (iii) 18 percent -------------------------------- Do not know / Can not say Those who believe that brand extension is necessary as part of its marketing strategy holds the view that when a known brand extends into a product category that involves sophisticated and state-of-the-art technology, consumers face uncertainty and perceive a financial risk when considering the extension for purchase. The recognition that brands are a powerful yet underutilized assets is why trademark licensing has become a popular marketing strategy. Because many brand owners don't have the resources to pursue every viable business opportunity, they utilize trademark licensing to enter new markets beyond their core competencies. 0% 10% 20% 30% 40% 50% 60% 70% 80% yes 78% no 4% cant say 18% yes no cant say
  • 47. 47 | P a g e 16. Which are the products of the company that are favourite among the customers? Please give the reasons as you think. (i) 55 percent --------------------- Quality based (ii) 30 percent ---------------------Economical/ Cheap (iii) 06 percent ---------------------- Branded (iv) 09 percent ------------------------ Do not know /Can not say 0% 10% 20% 30% 40% 50% 60% quality based 55% economical 30% branded 6% cant say 9% quality based economical branded cant say
  • 48. 48 | P a g e 17. Do you see the probability of a separation between Maruti and Suzuki in future? (i) Yes ------------------------------------------------------------------ 18 percent (ii) No -------------------------------------------------------------------- 74 percent (iii) Do not know/ Can not say ------------------------------------------ 08 percent 0% 10% 20% 30% 40% 50% 60% reduced the profit margin 32% made industry more competitive 53% do not make any significant effect 15% reduced the profit margin made industry more competitive do not make any significant effect
  • 49. 49 | P a g e CHAPTER 6 OBSERVATION , CONCLUSION AND RECOMENDATION EXECUTIVE SUMMERY Title The Study of Consumer buying behavior towards small & medium car segment with special reference to Maruti Suzuki India ltd. Issue Consumer behavior is ‘the mental and emotional processes and the observable behavior of consumers during searching purchasing and post consumption of a product and service. People buy different products from different brands to satisfy their needs. Consumer purchases are influenced strongly by cultural, social, personal and psychological characteristic. Although marketers cannot control such factors, they must give attention to them. Boston Analytics, a customized knowledge services company, has announced the release of its “Automotive Industry in India” report as a part of the series of monthly reports that analyze consumer observations and sentiments regarding a automotive sector. According to this report consumer think about the following aspect while making decision of purchase a car: CAR PURCHASING PREFERENCES Primary factors of preference Price and fuel efficiency are the primary features that consumers expect today. There will be an increase in the importance of fuel efficiency in approximately three to five years from now for consumers. Sales service, brand image/prestige, and resale value are secondary factors of choice today and will remain so for the coming three to five years. Environmental issues have yet to take root in India and do not show signs of becoming a major factor for coming three to five years.
  • 50. 50 | P a g e Car size Affluence and aspiration are growing in parallel—The Indian consumer prefers a mid-size car. Our survey reveals that approximately one in two Indian consumers prefer a roomy mid-size family car. Indian versus foreign brand There is evidence of “buy-Indian” mindset across the metros Approximately three in four respondents prefer an Indian brand over a foreign one recently launched versus established model Indian consumers are divided in their preference for recently launched versus established models of cars. According to the results of the survey, 58% of respondents nationwide prefer a recently launched model by a slight plurality. Color preference The color pie in the Indian car market shows that White is the most preferred color, closely followed by Black and Silver Approximately 29% of respondents preferred White, followed by 27% and 21% of respondents opting for Black and Silver/Grey respectively
  • 51. 51 | P a g e HOSHIARPUR MOTORS
  • 52. 52 | P a g e MARCH MONTH
  • 53. 53 | P a g e CONCLUSION Maruti Udyog Ltd., a joint venture between the Government of India and the Suzuki Motor Corporation of Japan was India’s largest automobile company in 2005. It operated in the passenger vehicle market and manufactured affordable and fuel efficient cars for the Indian masses. Maruti 800 was its flagship small sized car and was the bestselling car in India since decades. In 2005, Suzuki launched their global car ‘Swift’ in international markets and later in India. Swift was the first stylish compact car from the stable of Maruti and was a differentiator from its earlier products. The launch of Swift had brought Maruti in lime-light and various global international automobile manufacturers announced their plans to boost their investments in India and launch competing cars. The competition was expected to intensify to grab the burgeoning customer base. The Indian car market currently appears to be at a crossroads, where car marketers are attempting to change customer perceptions of their brands and where specific buying motivations appear to be replacing generalities. This meanwhile, is quite unlike the west where buyers consider aesthetics, comfort and safety, not necessarily in that order, before finalizing a purchase. “It’s smarter to think about emotions and attitudes, if marketers are to do a better job of marrying what a car offers to the consumer’s image of the offerings. The mindset of the Indian consumer is such that he is delighted if he buys a pen a little cheaper than his neighbor. Things are, however, slowly changing and customers at the upper end of the market are now ready to pay more for more. I hope that this approach will soon enter the small car segment, maybe not with the same intensity . “Success will largely be determined to the extent a company can differentiate itself in terms of intangibles that go with a car”. Thus, success could well hinge on the best of bundle of services that a carmaker can provide. Maruti Suzuki grew from zero to the 500,000 mark and the number One sales spot in India in just five years. Looking at the present scenario it can be said that though there is lot of competition in the auto world Maruti Suzuki is picking up well.
  • 54. 54 | P a g e RECOMMENDATIONS Key attribute components:  Operational attributes.  Globalization is yet another opportunity, if followed effectively & promptly.  Brand Image.  Customer Specific Details.  An excellent service & support infrastructure.  Ability to provide the cutting edge technology at best-value-for-money  Strong customer relationships  World Class Quality standards maintained for PPP (People, Processes & Performance). Alliance with global technology leaders.  The message should to the customers be sent in these components only to have the maximum benefit from the advertisement.  With the fast growing economy the pricing strategy needs to be tackled with care as it can decide upon long term decisions of the company.
  • 55. 55 | P a g e CHAPTER 7 QUESTIONNAIRE SAMPLE 1. Any Car model you have in mind ? Q 2. Which fuel are you interested in ? Petrol Diesel Q 3. What is to most priority expectation from the car ? Mileage Features Power Looks Value of money Q 4. How many kilometers you drive in a month? 1000 1000 to <= 1500 1500 to <=2000 Q 5. Which color are you interested in ? Color Q 6. What is your approximate annual house hold income (rs) ? <=3 lac 3 lac to 6 lacs 6 lac to 10 lac Q 7. What will be you mode of payment? Cash Self Finance Company finance Q 8. Who will be the driver of car ? Male (husband) Female (wife) Driver Q 9. Which car you already have ? Q 10. By when, are you expending to finalize your new car ? <=15 days (hot) 16 to 30 days (warm) <=30 days (cold) Customer detail :- Name Approximate Age :- < 30 30-40 40-50 50 above Address Phone number :- Date ......................................... Mobile Landline Nil
  • 56. 56 | P a g e BIBLIOGRAPHY  Marketing Management by Phillip Kotler  www.google.com  www.wikipidea.com  www.marutisuzuki.com