MARUTI SUZUKI INDIA1

8/14/2019 MARUTI SUZUKI INDIA1

1/14

MARUTI SUZUKI INDIA-WINNING THROUGH DESIGNING AND DELIVERINGSUPERIOR CUSTOMER VALUE

Abstract

The relationship between designing and customer value is one of planning and executing.

Design is the planning that lays the basis for the making of every object or system. "Todesign" refers to the process of originating and developing a plan for a product, structure,system, or component with intention. "A design" is used for either the final plan or theresult of implementing that plan in the form of the final product of a design process.

A customer value proposition consists of the sum total of benefits which a vendor promises that a customer will receive in return for the customer's associated payment.Winning through Excellent Customer Service is the only sure formula for winning moreand more customers than competition. Good customer services help the companies inattracting and Keeping many loyal and committed customers for life.

Today, Maruti Suzuki is the largest automobile manufacturer in South Asia . It is largelycredited for having brought in an automobile revolution to India. Maruti Suzuki has beenthe leader of the Indian car market for over two decades. Cars More than half the carssold in India are Maruti Suzuki cars.

Maruti Suzuki is one of the companies in India which has unparalleled sales and servicenetwork. Customer delight has always been the first priority for Maruti.In regards to this

priority, the company always keeps the door of past and future open for its customers sothat they can cherish the past and rejoice the upcoming. The company has laid itssuccessful business on a prosperous design and development capability.
http://en.wikipedia.org/wiki/Planninghttp://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Vendorhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Vendorhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Planning


2/14

INTRODUCTION MARUTI SUZUKI AS A CASE STUDY

In these competitive times the challenge is to keep inventing newer ways of doing things to keepthe customers in your fold. Over the last few years, the company strengthened the existing

practices and experimented with many new initiatives by way of kaizens (continuous

improvements) to delight its customers.

In this paper, Maruti Suzuki India limited a publicly listed automaker in India is the largestautomobile manufacturer in South Asia headquartered in Delhi . It was the first company in Indiato mass-produce and sell more than a million cars. It is largely credited for having brought in anautomobile revolution to India.

According to Global Business

Vision

The leader in Indian Automobile Industry, creating customer delight and shareholders wealth;A pride of India

Mission

Maruti Suzuki strive to undertake new service programs to meet unsaid needs of customers andretain its competitive edge by offering high quality products.

An Overview

Type Public ( BSE MARUTI , NSE MARUTI )

Founded 1981 (as Maruti Udyog Limited)

Headquarters Delhi , India

Industry Automotive

Revenue US$4.8 billion (2009)

Employees 6,903

Parent Suzuki Motor Corporation

Reason for choosing This Company
http://en.wikipedia.org/wiki/Automakerhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/price_finder/stockreach.asp?scripcd=532500http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nse-india.com/marketinfo/equities/quotesearch.jsp?companyname=MARUTI&series=EQ&submit1=Go&flag=0http://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Automotivehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Suzuki_Motor_Corporationhttp://en.wikipedia.org/wiki/Automakerhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/price_finder/stockreach.asp?scripcd=532500http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nse-india.com/marketinfo/equities/quotesearch.jsp?companyname=MARUTI&series=EQ&submit1=Go&flag=0http://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Automotivehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Suzuki_Motor_Corporation


3/14

Maruti Suzuki is into the car business since past 25 years. The silver jubilee of the car manufacturer has reaped sweet, tasty and relishing fruits of success both in the domestic as wellas international car market.

Maruti Suzuki has a firm belief that the success of car industry is completely based on fulfilling

the demands of excellence in diverse areas including good products, robust sales, supportnetwork, and acumen for logistics and inventory. Increasingly, the company has laid itssuccessful business on a prosperous design and development capability.

Since its inception in the country, Maruti Suzuki India has nurture its supplier base, dealer network and even the customer base to reach the height it is rejoicing today. The company hasalways maintained a disciplined team of skilled and talented professionals. Apart from this, thecompany has always been successful in meeting the changing demands of the changinggeneration. It has just turned out to be perfect in all operations and endeavors.

Customer delight has always been the first priority for Maruti. In regards to this priority, the

company always keeps the door of past and future open for its customers so that they can cherishthe past and rejoice the upcoming. Over the last few years, Maruti Suzuki strengthened theexisting practices and experimented with many new initiatives by way of kaizens (continuousimprovements) to delight its customers.

Product Portfolio
http://www.carazoo.com/newcars/make/Maruti_Suzukihttp://www.carazoo.com/newcars/make/Maruti_Suzuki


4/14

800 ALTO ZEN-ESTILO WAGONR

SWIFT A-STAR SWIFT GRANDVITARA

GYPSY VERSA OMNI


5/14

Manufactured Locally

800 (Launched 1983)

Omni (Launched 1984)

Gypsy (Launched 1985)

WagonR (Launched 2001)

Alto (Launched 2000)

Swift (Launched 2005)

Estilo (Launched 2006)

SX4 (Launched 2007)

Swift DZire (Launched 2008)
http://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Suzuki_Alto#Maruti_Altohttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Suzuki_MR_Wagon#First_generationhttp://en.wikipedia.org/wiki/Maruti_Suzuki_SX4http://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Suzuki_Alto#Maruti_Altohttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Suzuki_MR_Wagon#First_generationhttp://en.wikipedia.org/wiki/Maruti_Suzuki_SX4http://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZire


6/14

A-star (Launched 2008)

Ritz (Launched 2009)

Eeco ( Launched 2010)

Imported

Grand Vitara (Launched 2007)

Manufacturing Facilities

Maruti Suzuki has two state-of-the-art manufacturing facilities in India. Both manufacturingfacilities have a combined production capacity of 1,000,000 vehicles annually.

Gurgaon Manufacturing Facility

The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and isspread over 300 acres. All three plants have an installed capacity of 350,000 vehicles anually but productivity improvements have enabled it to manufacture 700,000 vehicles annually. TheGurgaon facilities also manufacture 240,000 K-Series engines annually. The entire facility isequipped with more than 150 robots, out of which 71 have been developed in-house. TheGurgaon Facilities manufactures the 800, Alto , WagonR, Estilo, Omni and Gypsy.

Manesar Manufacturing Facility

The Manesar Manufacturing Plant was inaugurated in February 2007 and is spread over 600acres. Initially it had a production capacity of 100,000 vehicles annually but this was increased to

300,000 vehicles annually in October 2008. The Manesar Plant produces the A-star , Swift , Swift DZire and SX4 .

Sales and Service Network

Maruti Suzuki is one of the companies in India which has unparalleled sales and service network.As of 2009 it currently has 681 dealerships across 454 cities. To ensure the vehicles sold by themare serviced properly, Maruti Suzuki has 779 dealer workshops, 1,945 Maruti Authorized
http://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/w/index.php?title=Maruti_Suzuki_Eeco&action=edit&redlink=1http://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swifthttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Suzuki_SX4http://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/w/index.php?title=Maruti_Suzuki_Eeco&action=edit&redlink=1http://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swifthttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Suzuki_SX4


7/14

Service Stations and 30 Express Service Stations on 30 National Highways across 1,314 cities inIndia. Most of the service stations are managed on franchise basis, where Maruti Suzuki trainsthe local staff.

Other automobile companies have not been able to match this benchmark set by Maruti Suzuki.

The Express Service stations help many stranded vehicles on the highways by sending acrosstheir repair man to the vehicle.

Issues and Problems

On February, 24, 2010, Maruti Suzuki India, announced recalling of 100,000 A-Star hatchbacksto fix a fuel leakage problem. The company will replace the gaskets for all 100,000 A-Star cars

SWOT Analysis of Maruti Suzuki

Strengths

Bigger name in the marketTrust of peopleEstablished distribution and after sales serviceUnderstanding of Indian marketAbility to Design product with differentiate featuresBrand imageExperience in knowhow in technologyLow maintenance cost of vehicle

Weaknesses

Lack of experience in foreign marketComparatively new in diesel car People Resistant to upper segment modelHeavy import tariff on fully built imported modelExports are not goodGlobal image is not big

Opportunities

Increased purchasing power of Indian middle class category

Government subsidyTax benefitProspective buyers in two wheeler segmentGreat opportunities to grow with Swift and SX4 allover Introduction of more diesel models. The diesel car market is growing.Opportunities to grow by entering into bigger car marketsAlready a market leader o great opportunity to be the king of the market in every stage of

industry.
http://en.wikipedia.org/wiki/National_Highway_(India)http://en.wikipedia.org/wiki/National_Highway_(India)


8/14

Threats

Foreign companies entering into market; so a bigger threat from MNCs.To the market share as many bigger names are comingCompetition from second hand cars and Tata Nano

Threat from Chinese ManufacturesThere is hardly any diesel modelRs 1 lakh to 1.5 lakh car

Key Initiatives by Maruti Suzuki

Car pickup & delivery facility for women car owners

Vehicle pickup and delivery before and after service has a strong impact on customer satisfaction.

Setting up "Express Service Bays" & "2 - Technician Bays"

The company set out to delight its customers by offering them faster car service by introducingnew concepts such as Express Service Bays & 2- Technicians Bays.

Mega Camps

Activities undertaken during a mega camp include complimentary car wash, AC & Pollution

checkups, oil and fuel top ups and wheel alignment.

Service at Door Step through Maruti Mobile Support

Maruti Mobile Support is a first of its kind initiative and is expected not only to help thecompany reach out customers in metro cities but also as a mean to reach semi urban /ruralareas where setting up of new workshop may not be viable.

Car Safety device: Immobilizer

Following feedback that the company's cars were more prone to theft owing to their resale value,

the company worked on an anti-theft immobilizer or "I-Cats;" system for all its new cars.

Complete car needs

The company's effort of providing all car-related needs -- from learning to drive a car at MarutiDriving Schools to car insurance, extended warranty and eventually exchanging theexisting car for a new one under one roof at dealerships also enhances customer satisfaction.


9/14

Services Offered

Service is a major revenue generator of the company.

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. Theservice was set up the company with the inception of two subsidiaries Maruti InsuranceDistributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited .

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 andMaruti Countrywide with Citi Group and GE Countrywide respectively to assist its client insecuring 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 inMarch 2003 . Since March 2003, Maruti has sold over 12,000 vehicles through SBI-MarutiFinance. SBI-Maruti Finance is currently available in 166 cities across India.

Maruti TrueValue

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 thehelp of this service in India. As of 2009 there are 315 Maruti True Value outlets.

N2N Fleet Management

N2N is the short form of End to End Fleet Management and provides lease and fleetmanagement solution to corporates. Their impressive lists of clients who have signed up of thisservice include Gas Authority of India Ltd, DuPont , Reckitt Benckiser , Sona Steering,Doordarshan , Singer India, National Stock Exchange and Transworld. This fleet managementservice includes end-to-end solutions across the vehicle's life, which includes Leasing,Maintenance, Convenience services and Remarketing.

Maruti Genuine Accessories

Many of the auto component companies other than Maruti Suzuki started to offer componentsand accessories that were compatible. This caused a serious threat and loss of revenue to MarutiSuzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessoriesto offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo
http://en.wikipedia.org/wiki/GAILhttp://en.wikipedia.org/wiki/DuPonthttp://en.wikipedia.org/wiki/Reckitt_Benckiserhttp://en.wikipedia.org/wiki/Doordarshanhttp://en.wikipedia.org/wiki/GAILhttp://en.wikipedia.org/wiki/DuPonthttp://en.wikipedia.org/wiki/Reckitt_Benckiserhttp://en.wikipedia.org/wiki/Doordarshan


10/14

systems, seat covers and other car care products. These products are sold through dealer outletsand authorized service stations throughout India.

Maruti Driving School

As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving Schoolin Delhi. Later the services were extended to other cities of India as well. These schools aremodeled 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.

Maruti Exports Limited

Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and itdoes not operate in the domestic Indian market. The first commercial consignment of 480 carswas sent to Hungary . By sending a consignment of 571 cars to the same country Maruti Suzuki

crossed the benchmark of 300,000 cars. Since its inception export was one of the aspectsgovernment was keen to encourage.

Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Sri Lanka, Uganda, Chile,Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti Exports.

CUSTOMER SATISFACTION

Maruti Suzuki continues to top the list of Indian auto companies in customer service, even in theface of increasing competition. This is for the tenth consecutive year that Maruti has topped thelist, with a score of 824 on 1000. Honda Siel comes second with 791 points, and Mahindra &Mahindra is third with 757 points. The average score is 785. The Study used five main factors todetermine the result - service quality, vehicle pickup, service advisor, service facility and serviceinitiation.
http://en.wikipedia.org/wiki/Hungaryhttp://en.wikipedia.org/wiki/Hungary


11/14

(Source: JD Power Asia Pacific 2009 India Customer Service Index (CSI) Study)

Way ahead for Maruti Suzuki

Small is Beautiful

Maruti Suzuki has a firm belief that the future of Indian car industry belongs to small cars. Therising fuel prices, high input costs and congested city roads is paving way for small, light-weightand fuel efficient cars. Even the government is supporting the introduction of small cars with


12/14

favourable policies. Exuding companys confidence on growth of small cars, Maruti Suzuki aimsto roll out more numbers of small cars for the Indian sub-continent.

Leap for R&D

India is believed to be Suzukis largest overseas operation. This makes the company moreinvolved with scaling up the R&D capabilities in India. The top most Maruti engineers havealready made vital and impressive contributions in the Maruti Suzuki Swift, new Maruti SuzukiWagonR, facelifts of Marui Suzuki Alto and the new Maruti Suzuki Omni.

At present, the company is greatly involved with the development of small and fuel-efficient car engines. In future, the company has high plans to increase the engine development work in Indiaalong with other R&D operations.

Fuel efficient engines

Future definitely calls for more numbers of small cars and Maruti Suzuki is ready to hit thefuture with big bang. The company also aims at reducing the carbon dioxide emissions. With thisaim the company plans to design cars that are fuel efficient and lower on CO2 emissions. It alsohas plans to develop hybrid, electrical, and multi-fuel engines that help maintain ecological

balance.

Re-Enter Europe

Maruti Suzuki also plans to re-enter European market with a global car that is fuel-efficient andlower on CO2 emissions. This new car christened as Maruti Suzuki A-Star will be launched inEurope with the brand Suzuki Alto.

The same car will be introduced as A-Star in the domestic car market to enhance the presence inthe growing compact car segment. The company has also made a huge investment to set up adedicated car terminal at Mundra port aimed at scaling up its car exports.

Additionally, in 2009, Maruti has already announced to launch another world strategic car model, Maruti Suzuki Splash.

Investment

For its Indian operations, Maruti Suzuki plans to invest Rs 9,000 Crore by 2010. The company

has also made huge investment in the plant situated at Manesar, a plant that is almost ready toreach its peak production level of 300,000 units. Soon, the company will also commenceoperations at the new engine facility located at Gurgaon.

Maruti Suzuki claims that it has a good network of internal resources to finance the companysoperations, expansion plans as well as capital investments.

Conclusion:
http://www.carazoo.com/smallcarshttp://www.carazoo.com/smallcars


13/14


14/14

MARUTI SUZUKI INDIA1

Documents

Transcript of MARUTI SUZUKI INDIA1