Prathap Project Report
-
Upload
maruthi-prasad -
Category
Documents
-
view
74 -
download
5
Transcript of Prathap Project Report
INTRODUCTION
CUSTOMER SATISFACTION:-
Satisfaction is a function of the difference between perceived performance and
expectations. Companies seeking to win in today’s markets must track their customer’s
expectations perceived to company’s performance and the customer satisfaction.
While assisting the satisfaction level a company must conclude that it can get a full
picture of customer satisfaction and dissatisfaction by simply running a complaint and
suggestions systems. As some times customer may feel that their complaints are minor.
Therefore companies instead of using complaints level as a measure of customer
satisfaction obtaining a direct measure of customer satisfaction by conducting periodic
surveys would provide more appropriate measures. The questionnaire can be made to a
random sample of their recent customers to find out how they feel about various companies
performance .They can also solicit buyers view on the competitors performance .So the
respondents can be asked a list out of problems they have had with the offer and to list out
improvements they could suggest. Companies could also ask the respondents to rate various
elements of the offer in terms of the importance of each element & how will the company
perform each element.
CUSTOMER RELATIONS:-
We will complete our discussion of customer decision making with brief
consideration relationship marketing. Many firms have established relationship marketing
programs to faster usage loyalty & a commitment to their companies’ products and services.
In this way relationship marketing is aimed at creating strong lasting relationship with core
group of customers. The emphasis is on developing long term bounds with customers by
making them feel good about how the company interacts with them & by giving them some
kind of personal connecting to the business.
1
Ultimately it is to advantage to develop long term relationships with existing
customers because it is easier and less expensive to make an additional sale to an existing
customer than to make a new sale to a new customer. However, the effort involved for the
firm in developing and maintaining a customer relationship must be weighed against the
expected long term benefits.
Marketers must determine the life time value of a customer to ensure that the costs
of obtaining, servicing and communicating with the cost exceed the potential profits.
“Customer Satisfaction Survey for Maruti Suzuki Alto”
In this world of competition any organization cannot avoid Customers. It has become a
necessity for an organization for its survival in any industry so that customer
satisfaction plays important role in each an every product life cycle. Customer
satisfaction survey for Maruti Suzuki is the project conducted for Varun motors pvt.
Ltd in city of Hyderabad.
Today Companies are facing toughest competition ever. The intense competition
makes the companies to take the necessary steps.
To retain their existing customer as well as attract new once. In the environment
of advancement of the technology the companies are trying hard to keep the pace with
latest development.
This survey will help the company to know the customers satisfaction level and
feedback of customers at the product in Amravati. It will also help company to know
about the competitors. This will help company to know about wants and expectation of
customers.
The company can also know if there are any problems faced by the customers in
that region. This survey has conducted a geographical area in Hyderabad.
2
Industry ProfileIndia's love affair with the automobile is famously embodied in the 1920's Rolls
Royce collections of the erstwhile maharajas. The growing middle class aspires for the
automobile for its convenience and as a status symbol. Upper middle class and wealthy car
owners employ full-time chauffeurs to navigate the aggressive and seemingly lawless
traffic patterns of most cities. The construction of expressways such as the Mumbai-Pune
expressway has opened up new touring opportunities. The expected launch of a Formula
One circuit in New Delhi is expected to spark public enthusiasm for a motor sporting
industry.
The automobile industry has changed the way people live and work. The earliest of
modern cars was manufactured in the year 1895. Shortly the first appearance of the car
followed in India. As the century turned, three cars were imported in Mumbai (India).
Within decade there were total of 1025 cars in the city.
The Automotive industry in India is one of the largest in the world and one of the fastest
growing globally. India manufactures over 11 million 2 and 4-wheeled vehicles and exports
about 1.5 million every year. It is the world's second largest manufacturer of motorcycles, with
annual sales exceeding 8.5 million in 2009. India's passenger car and commercial vehicle
manufacturing industry is the seventh largest in the world, with an annual production of more
than 2.6 million units in 2009. In 2009, India emerged as Asia's fourth largest exporter of
passenger cars, behind Japan, South Korea and Thailand.
As of 2009, India is home to 40 million passenger vehicles and more than 2.6 million cars
were sold in India in 2009 (an increase of 26%), making the country the second fastest growing
automobile market in the world. According to the Society of Indian Automobile Manufacturers,
annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9
million by 2020. By 2050, the country is expected to top the world in car volumes with
approximately 611 million vehicles on the nation's roads.
3
A chunk of India's car manufacturing industry is based in and around the city of Chennai,
also known as the "Detroit of India". with the Indian city accounting for 60 per cent of the
country's automotive exports. Gurgaon and Manesar near New Delhi are hubs where all of the
Maruti Suzuki cars in India are manufactured. The Chakan corridor near Pune, Maharashtra is
another vehicular production hub with General Motors, Volkswagen/ Skoda, Mahindra and
Mahindra in the process of setting up or already set up facilities. Halol in Gujarat, Aurangabad in
Maharashtra, Kolkatta in West Bengal are some of the other automotive manufacturing regions
around the country.
History
Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions.
Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and
Mahindra, expanded their domestic and international operations. India's robust economic growth
led to the further expansion of its domestic automobile market which has attracted significant
India-specific investment by multinational automobile manufacturers. In February 2009, monthly
sales of passenger cars in India exceeded 100,000 units and has since grown rapidly to a record
monthly high of 182,992 units in October 2009. From 2003 to 2010, car sales in India have
progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car in 2009
(whereas this figure reaches 80% in Switzerland for example) this progression is unlikely to stop
in the coming decade. Congestion of Indian roads, more than market demand, will likely be the
limiting factor.
The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly.
Embryonic automotive industry emerged in India in the 1940s. Following the independence, in
1947, the Government of India and the private sector launched efforts to create an automotive
component manufacturing industry to supply to the automobile industry. However, the growth
was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which
hampered the Indian private sector. After 1970, the automotive industry started to grow, but the
growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major
4
luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment
of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies.
In the 1980s, a number of Japanese manufacturers launched joint-ventures for building
motorcycles and light commercial-vehicles. It was at this time that the Indian government chose
Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in
1991 and the gradual weakening of the license raj, a number of Indian and multi-national car
companies launched operations. Since then, automotive component and automobile
manufacturing growth has accelerated to meet domestic and export demands.
Supply Chain of Automobile Industry
5
Supply Chain of Indian Automobile Industry:
The supply chain of automotive industry in India is very similar to the supply chain of the
automotive industry in Europe and America. The orders of the industry arise from the bottom of
the supply chain i. e., from the consumers and goes through the automakers and climbs up until
the third tier suppliers. However the products, as channelled in every traditional automotive
industry, flow from the top of the supply chain to reach the consumers. Automakers in India are
the key to the supply chain and are responsible for the products and innovation in the industry.
The description and the role of each of the contributors to the supply chain are discussed below.
Third Tier Suppliers: These companies provide basic products like rubber, glass, steel,
plastic and aluminium to the second tier suppliers.
Second Tier Suppliers: These companies design vehicle systems or bodies for First Tier
Suppliers and OEMs. They work on designs provided by the first tier suppliers or OEMs. They
also provide engineering resources for detailed designs. Some of their services may include
welding, fabrication, shearing, bending etc.
First Tier Suppliers: These companies provide major systems directly to assemblers. These
companies have global coverage, in order to follow their customers to various locations around
the world. They design and innovate in order to provide “black-box” solutions for the
requirements of their customers. Black-box solutions are solutions created by suppliers using
their own technology to meet the performance and interface requirements set by assemblers.
First tier suppliers are responsible not only for the assembly of parts into complete units
like dashboard, breaks-axel-suspension, seats, or cockpit but also for the management of second-
tier suppliers.
6
Automakers/Vehicle Manufacturers/Original Equipment Manufacturers
(OEMs): After researching consumers’ wants and needs, automakers begin designing models
which are tailored to consumers’ demands. The design process normally takes five years. These
companies have manufacturing units where engines are manufactured and parts supplied by first
tier suppliers and second tier suppliers are assembled. Automakers are the key to the supply
chain of the automotive industry. Examples of these companies are Tata Motors, Maruti Suzuki,
Toyota, and Honda. Innovation, design capability and branding are the main focus of these
companies.
Dealers: Once the vehicles are ready they are shipped to the regional branch and from there, to
the authorised dealers of the companies. The dealers then sell the vehicles to the end customers.
Parts and Accessory: These companies provide products like tires, windshields, and air bags
etc. to automakers and dealers or directly to customers.
Service Providers: Some of the services to the customers include servicing of vehicles,
repairing parts, or financing of vehicles. Many dealers provide these services but, customers can
also choose to go to independent service providers.
Production statistics: The production of automobiles has greatly increased in the last
decade. It passed the 1 million mark during 2003-2004 and has more than doubled since.
7
Production statistics table
YearCar
Production
% Change Commercial % Change Total Vehicles
Prodn.
% Change
2009 2,166,238 17.34 466,456 -4.08 2,632,694 11.40
2008 1,846,051 7.74 486,277 -9.99 2,332,328 3.35
2007 1,713,479 16.33 540,250 -1.20 2,253,999 10.39
2006 1,473,000 16.53 546,808 50.74 2,019,808 19.36
2005 1,264,000 7.27 362, 755 9.00 1,628,755 7.22
2004 1,178,354 29.78 332,803 31.25 1,511,157 23.13
2003 907,968 28.98 253,555 32.86 1,161,523 22.96
2002 703,948 7.55 190,848 19.24 894796 8.96
2001 654,557 26.37 160,054 -43.52 814611 1.62
2000 517,957 -2.85 283,403 -0.58 801360 -2.10
1999 533,149 285,044 818193
Indian automotive companies
Chinkara Motors: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster
Hindustan Motors: Ambassador
ICML: Rhino Rx
Mahindra: Major, Xylo, Scorpio, Bolero, Thar
Premier Automobiles Limited: Sigma, RiO
San Motors: Storm
Tata Motors: Nano, Indica, Indica Vista, Indigo, Indigo Manza, Indigo CS, Sumo, Safari, Xenon, Aria.
Foreign automotive companies in India
8
Vehicles manufactured or assembled in India
BMW India: 1 Series, 3 Series, 5 Series.
Fiat India (in collaboration with Tata Motors): Grande Punto, Linea, Palio Stile.
Ford India: Ford Figo, Ikon, Fiesta, Endeavour.
General Motors India
Chevrolet (CSPIL): Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera.
Honda Siel: Jazz, City, Civic, Accord.
Hyundai Motor India: Santro, i10, i20, Accent, Verna Transform, Sonata Transform.
Mahindra Renault: Logan
Maruti Suzuki: 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni,
Versa, Eeco, Gypsy, Grand Vitara
Mercedes-Benz India: C-Class, E-Class.
Mitsubishi[ (in collaboration with Hindustan Motors): Lancer, Lancer Cedia, Pajero
Nissan Motor India: Micra.
Toyota Kirloskar: Etios, Corolla, Innova, Camry.
Volkswagen India: Polo, Vento, Jetta, Passat.
Audi India: A4, A6, Q5.
Škoda Auto India: Fabia, Octavia, Laura, Superb.
9
Vehicles imported to India
Audi: A8, S4, S6, S8, TT, R8, Q5, Q7.
Bentley: Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur,
Mulsanne.
BMW: 5 Series GT, 6 Series, 7 Series, X1, X3, X5, X6, X6 M, M3, M5, M6 and Z4.
Bugatti: Veyron
Chevrolet: Captiva.
Fiat: 500, Bravo.
General Motors: Hummer H2, Hummer H3.
Honda: Civic Hybrid, CR-V.
Hyundai: Santa Fe.
Jaguar: XF, XJ, XK.
Lamborghini: Gallardo, Murciélago.
Land Rover: Range Rover, Range Rover Sport, Discovery 4, Freelander 2.
Maybach: 57 and 62.
Mercedes-Benz: CL-Class, GL-Class, M-Class, R-Class, CLS-Class, S-Class, SL-Class,
SLK-Class, Viano, SLS.
Mitsubishi: Montero, Outlander, Evo X.
Nissan: Teana, X-Trail, 370Z, GT-R.
Porsche: 911, Boxster, Panamera, Cayman, Cayenne.
Rolls Royce: Ghost, Phantom, Phantom Coupé, Phantom Drophead Coupé.
Škoda: Yeti, Superb.
Suzuki: Grand Vitara.
Toyota: Land Cruiser, Land Cruiser Prado, Fortuner*, Prius.
Volkswagen[: Beetle, Tiguan, Touareg, Phaeton.
Volvo: S60, S80, XC60, XC90.
10
Commercial vehicle manufacturers in India
Indian brands
Force
Hindustan Motors
Premier
Tata
AMW
Joint Venture Brands
Ashok Leyland - originally a JV between Ashok Motors and Leyland Motors, now 51%
owned by Hinduja Group
Mahindra Navistar - a 51:49 JV between Mahindra Group and Navistar International
Swaraj Mazda - originally a JV between Punjab Tractors and Mazda, now 53.5%
owned by Sumitomo Group
Foreign brands
Volvo makes Trucks and Buses in Bangalore, Karnataka
Tatra
MAN - as a JV with Force Motors, makes MAN Trucks in India
Mercedes-Benz sells luxury buses in India
Scania
Iveco
Hino
Isuzu
Piaggio
11
Electric car manufacturers in India
Ajanta Group
Mahindra
Hero Electric
REVA
Tara International
Tata
12
COMPANY PROFILE
Maruti
The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor Corp. was also
added to it Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading four-
wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a majority
stake in the company. It was the first company in India to mass-produce and sell more than a million
cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader
in India and on 17 September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited. The
company's headquarters are in Gurgaon, Haryana (near Delhi).
Profile
The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor Corp. was also
added to it
'To Munsiyari on a Maruti 800', Uttarakhand Himalayas
Maruti Suzuki plant in Gurgaon
13
Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the
car segment, both in terms of volume of vehicles sold and revenue earned. Until recently,
18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan.
The Indian government held an initial public offering of 25% of the company in June 2003. As
of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this,
Govt. of India no longer has stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual production
commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was
the only modern car available in India, its' only competitors- the Hindustan Ambassador and
Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti has
produced over 5 Million vehicles. Marutis are sold in India and various several other countries,
depending upon export orders. Models similar to Marutis (but not manufactured by Maruti
Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries.
The company annually exports more than 50,000 cars and has an extremely large
domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the
India's largest selling compact car ever since it was launched in 1983. More than a million units
of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts and
Maruti Swift is the largest selling in A2 segment.
Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is
commonly used to refer to this compact car model. Till recently the term "Maruti", in popular
Indian culture, was associated to the Maruti 800 model.
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the
leader of the Indian car market for over two decades.
Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of
New Delhi. Maruti’s Gurgaon facility has an installed capacity of 350,000 units per annum. The
Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity
of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines
14
and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over
700,000 units annually.
More than half the cars sold in India are Maruti cars. The company is a subsidiary of
Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the
public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock
Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all,
over six million Maruti cars are on Indian roads since the first car was rolled out on 14 December
1983.
Maruti Suzuki offers 15 models, Maruti 800, Omni,Esteem, Baleno, Alto, Versa, Ritz,
Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara. Swift, Swift
dzire, A star and SX4 are maufactured in Manesar, Grand Vitara is imported from Japan as a
completely built unit (CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon
Plant.
Suzuki Motor Corporation, the parent company, is a global leader in mini and compact
cars for three decades. Suzuki’s technical superiority lies in its ability to pack power and
performance into a compact, lightweight engine that is clean and fuel efficient.
Maruti is clearly an “employer of choice” for automotive engineers and young managers
from across the country. Nearly 75,000 people are employed directly by Maruti and its partners.
The company vouches for customer satisfaction. For its sincere efforts it has been rated
(by customers)first in customer satisfaction among all car makers in India for ten years in a row
in annual survey by J D Power Asia Pacific.
Maruti Suzuki was born as a government company, with Suzuki as a minor partner to
make a people's car for middle class India. Over the years, the product range has widened,
ownership has changed hands and the customer has evolved. What remains unchanged, then and
now, is Maruti’s mission to motorise India.
15
Partner for the joint venture
Suzuki Swift
Pressure started mounting on Indira and Sanjay Gandhi to share the details of the
progress on the Maruti Project. Since country's resources were made available by mother to her
son's pet project. A delegation of Indian technocrats was assigned to hunt a collaborator for the
project. Initial rounds of discussion were held with the giants of the automobile industry in Japan
including Toyota, Nissan and Honda. Suzuki Motor Corporation was at that time a small player
in the four wheeler automobile sector and had major share in the two wheeler segment. Suzuki's
bid was considered negligible.
In the initial rounds of discussion the giants had their bosses present and in the later
rounds related to the technical discussions executives of these automobile giants were present.
Osamu Suzuki, Chairman and CEO of the company ensured that he was present in all the rounds
of discussion. Osamu in an article writes that it subtly massaged their (Indian delegation) egos
and also convinced them about the sincerity of Suzuki's bid. In the initial days Suzuki took all
steps to ensure the government about its sincerity on the project. Suzuki in return received a lot
of help from the government in such matters as import clearances for manufacturing equipment
(against the wishes of the Indian machine tool industry then and its own socialistic ideology),
land purchase at government prices for setting up the factory Gurgaon and reduced or removal of
excise tariffs. This helped Suzuki conscientiously nurse Maruti through its infancy to become
one of its flagship ventures.
16
Joint venture related issues
Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-Star, Suzuki's
fifth global car model, was designed and is made only in India. Besides being Suzuki's largest
subsidiary in terms of car sales, Maruti Suzuki is also Suzuki's leading research and development
arm outside Japan
Relationship between the Government of India, under the United Front (India) coalition
and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian
media till Suzuki Motor Corporation gained the controlling stake. This highly profitable joint
venture that had a near monopolistic trade in the Indian automobile market and the nature of the
partnership built up till then was the underlying reason for most issues. The success of the joint
venture led Suzuki to increase its equity from 26% to 40% in 1987, and further to 50% in 1992.
In 1982 both the venture partners had entered into an agreement to nominate their candidate for
the post of Managing Director and every Managing Director will have a tenure of five years
Initially R.C.Bhargava, was the managing director of the company since the inception of
the joint venture. Till today he is regarded as instrumental for the success of Maruti Udyog.
Joining in 1982 he held several key positions in the company before heading the company as
Managing Director. Currently he is on the Board of Directors. After completing his five year
tenure, Mr. Bhargava later assumed the office of Part-Time Chairman. The Government
nominated Mr. S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr.
Bhaskarudu had joined Maruti in 1983 after spending 21 years in the Public sector undertaking
Bharat Heavy Electricals Limited as General Manager. Later in 1987 he was promoted as Chief
17
General Manager, 1988 as Director, Productions and Projects, 1989 Director, Materials and in
1993 as Joint Managing Director.
The Suzuki Motor corporation didn't attend the Annual General Meeting of the Board
with the reason of it being called on a short notice. Later Suzuki Motor Corporation went on
record to state that Mr. Bhaskarudu was "incompetent" and wanted someone else. However, the
Ministry of Industries, Government of India refuted the charges. Media stated from the Maruti
sources that Bhaskarudu was interested to indigenise most of components for the models
including gear boxes especially for Maruti 800. Suzuki also felt that Bhaskarudu was a proxy for
the Government and would not let it increase its stake in the venture. If Maruti would have been
able to indigenise gear boxes then Maruti would have been able to manufacture all the models
without the technical assistance from Suzuki. Till today the issue of localization of gear boxes is
highlighted in the press.
The relation strained when Suzuki Motor Corporation moved to Delhi High Court to
bring a stay order against the appointment of Mr. Bhaskarudu. The issue was resolved in an out-
of-court settlement and both the parties agreed that R S S L N Bhaskarudu would serve up to 31
December 1999, and from 1 January 2000, Jagdish Khattar, Executive Director of Maruti Udyog
Limited would assume charges as the Managing Director. Many politicians believed, and had
stated in parliament that the Suzuki Motor Corporation is unwilling to localize manufacturing
and reduce imports. This remains true, even today the gear boxes are still imported from Japan
and are assembled at the Gurgaon facility.
Industrial relations
For most of its history, Maruti Udyog had relatively few problems with its labour force.
Its emphasis of a Japanese work culture and the modern manufacturing process, first instituted in
Japan in the 1970s, was accepted by the workforce of the company without any difficulty. But
with the change in management in 1997, when it became predominantly government controlled
for a while, and the conflict between the United Front Government and Suzuki may have been
the cause of unrest among employees. A major row broke out in September 2000 when
employees of Maruti Udyog Ltd (MUL) went on an indefinite strike, demanding among other
18
things, revision of the incentive scheme offered and implementation of a pension scheme.
Employees struck work for six hours in October 2000, irked over the suspension of nine
employees, going on a six-hour tools-down strike at its Gurgaon plant, demanding revision of the
incentive-linked pay and threatened to fast to death if the suspended employees were not
reinstated. About this time, the NDA government, following a disinvestments policy, proposed to
sell part of its stake in Maruti in a public offering. The Staff union opposed this sell-off plan on
the grounds that the company will lose a major business advantage of being subsidised by the
Government.
The standoff with the management continued to December with a proposal by the
management to end the two-month long agitation rejected with a demand for reinstatement of 92
dismissed workers, with four MUL employees going on a fast-unto-death. In December the
company's shareholders met in New Delhi in an AGM that lasted 30 minutes. At the same time
around 1500 plant workers from the MUL's Gurgaon facility were agitating outside the
company's corporate office demanding commencement of production linked incentives, a better
pension scheme and other benefits. The management has refused to pass on the benefits citing
increased competition and lower margins.
Services offered
Current sales of automobiles
1. Maruti 800: Launched - 1983
2. Maruti Omni: Launched - 1984
3. Maruti Gypsy: Launched - 1985
4. Maruti Alto: Launched - 2000
5. Maruti Wagon-R: Launched - 2001
6. Maruti Grand Vitara Launched - 2004
7. Maruti Suzuki Swift: Launched - 2005
8. Maruti Swift Dzire: Launched - 2008
9. Maruti Suzuki A-STAR: Launched - 2008
10. Maruti Suzuki Ritz: Launched - 2009
11. Maruti Suzuki Zen Estilo: Re-launched - 2009
12. Maruti Suzuki SX4: Re-launched - 2009
19
Obsolete Car Models
Maruti Esteem
Maruti Baleno
Maruti Versa
Authorized service stations
Maruti is one of the companies in India which has unparalleled service network. To
ensure the vehicles sold by them are serviced properly, Maruti has 2628 listed Authorized
service stations and 30 Express Service Stations on 30 highways across India.
Service is a major revenue generator of the company. Most of the service stations are
managed on franchise basis, where Maruti trains the local staff. Other automobile companies
have not been able to match this benchmark set by Maruti. 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 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.
20
Maruti Finance
To promote its bottom line growth, Maruti launched Maruti Finance in January 2002.
Prior to the start of this service Maruti 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 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
2003Since 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 Finance marks the coming together of the biggest players in the car finance business.
They are the benchmarks in quality and efficiency. Combined with Maruti volumes and
networked dealerships, this will enable Maruti Finance to offer superior service and competitive
rates in the marketplace".
— Jagdish Khattar, Managing director of Maruti Udyog Limited in a press conference
announcing the launch of Maruti Finance on 7 January 2002
Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti
Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti
vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas
Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of
Citibank N.A. Citi Finance India Limited holds 74% of the stake and Maruti Udyog holds the
remaining 26%. GE Capital, HDFC and Maruti Udyog Limited came together in 1995 to form
Maruti Countrywide. Maruti claims that its finance program offers most competitive interest
rates to its customers, which are lower by 0.25% to 0.5% from the market rates.maruti is the best
car in the world
21
Maruti TrueValue
Main Article: Maruti True Value
Maruti True service offered by Maruti Udyog to its customers. It is a market place for used
Maruti Vehicles. One can buy, sell or exchange used Maruti vehicles with the help of this service
in India.
N2N Fleet Management
N2N is the short form of End to End Fleet Management and provides lease and fleet
management solution to corporates. Its impressive list of clients who have signed up of this
service include Gas Authority of India Ltd, DuPont, Reckitt Beckoner, Sonar Steering,
Doordarshan, Singer India, National Stock Exchange and Transworld. This fleet management
service include end-to-end solutions across the vehicle's life, which includes Leasing,
Maintenance, Convenience services and Remarketing.
Accessories
India's Corps of Military Police personnel patrolling the Wagah border crossing in the Punjab in
a Maruti Gypsy.
Many of the auto component companies other than Maruti Udyog started to offer components
and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti.
Maruti 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.
22
Maruti Driving School
A Maruti Driving School in Chennai
As part of its corporate social responsibility Maruti Udyog launched the Maruti Driving School
in Delhi. Later the services were extended to other cities of India as well. These schools are
modelled on international standards, where learners go through classroom and practical sessions.
Many international practices like road behaviour and attitudes are also taught in these schools.
Before driving actual vehicles participants are trained on simulators.
"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."
— Jagdish Khattar, at the launch ceremony of Maruti Driving School, Bangalore
23
Exports
Maruti Suzuki has helped India emerge as the fourth largest exporter of automobiles in Asia.
Shown here is Maruti Gypsy in Malta.
Maruti Exports Limited is the subsidiary of Maruti Udyog Limited with its major focus
on exports and it does not operate in the domestic Indian market. The first commercial
consignment of 480 cars were sent to Hungary. By sending a consignment of 571 cars to the
same country Maruti crossed the benchmark of 300,000 cars. Since its inception export was one
of the aspects government was keen to encourage. Every political party expected Maruti to earn
foreign currency.
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.
24
VARUN MOTORS PROFILE
MR.V.Prabhu Kishore founded the “Varun Group” in 1992 at Vishakhapatnam by
establishing Bajaj Auto Dealership from a monthly sale of 200 two & three wheelers initially, it
has reached to a monthly sales volume of 2500units.As of now, approximately 1, 50,000 two &
three wheelers are delivered by Varun Motors.
The “Varun Group” took Maruti Udyog Ltd., dealership in 1996 out of sheer merit with
one of India’s largest and most modern automobile showrooms measuring 18000 sft. As of now,
it has sold close to 25,000 cars. On account of Varun Motors Ltd, good work at Vizag Maruti
Udyog Ltd., awarded Hyderabad sales & service outlet to Varun Maruti Ltd.
VARUN MOTORS LTD is the number no dealer in sales and service for Maruti Udyog
Ltd in the state of Andhra Pradesh. As on 31st March 2006, VARUN MOTORS LTD., sold 7744
vehicles in the state and serviced.
“Varun Group” is also involved in hire purchase and finance with its associate firms,
Varun Finance, Varun Leasing & Lakshmi Finance, actively involved in hire purchase and
financial activities to the tune of 850 lakhs.
“Varun Group” is also in construction of residential and commercial Complexes in
Hyderabad, Banglore, Visakhapatnam and Vijayawada. So far 5.0 lakh sft. of residential and
office accommodation has been successfully built and handed over to the buyers by associated
Companies viz., Varsha Builders pvt.ltd., Continental Builders.
As of now the “Varun Group” is engaged in such diverse business as dealership of
Vehicles, Hire purchase, Construction, transportation and mobile phones. It has over 2000
employees in its pay roll with an annual turnover of Rs.600crores with outlets in Hyderabad,
Visakhapatnam and Vijayawada. It is targeting to achieve a turnover of Rs.650crores for the
current year making it one of the fastest growing Companies in the state.
As recognition for our committed customer service we got the ISO 9002 certification.
The objectives of the company in established are:
a) To carry n the business of selling and servicing in all kind of cars related to Maruti
Udyaog.
b) To carry on business of selling spares and accessories of all description and types.
c) To carry on business of buying used cars and selling them.
25
INFRASTRUCTURE:
HYDERABAD: Showroom is situated in the prime locality of Begumpet main road with a 3500
sft. Of built up space. Workshops are located in Begumpet and Balanagar prime locations.
Begumpet workshop is newly renovated machanics. Balanagar workshop is a state of art
construction with a space of 3600 sft.built up area in 3 levels. It is situated just 6kms.away form
showroom having MUL trained mechanics and equipped with modern equipments.
VISAKHAPATNAM: Show room is situated in the prime locality of Siripuram with a 17000 sft
space. It is one of the biggest showrooms in Maruti dealerships across the country.
Workshops are located one in Siripuram with 1700 sft. And another in Gajuwaka admeasuring
2500sft. and equipped with Mul trained mechanics and most modern equipments.
Awards
All India MGA off take 2002-03 rank-4th by All India dealer’s conference, Kuala
Lumpur.
Best performance Balance Score Card 2002-03 Cat: 2nd runner-ups.
Best performance Balance (Zen, Wagon R & Alto) 2002-03.
Out of 4 major wheeler car showrooms Varun Motors stands in the 1st position in selling
Maruti cars, Varun Motors has to maintain this position.
The Varun Motors has framed new strategies to gain all the potential customers.
Varun Motors has made a marketing team to target the middle class and above middle
class people as customers for the compact car segment.
SERVICES OFFERED
The following products are offered by Maruti Suzuki:-
1. Maruti 800: Launched 1983. Largest selling car in India, until 2004. Cheapest car in
India. 3 Face-Lifts.(P)
2. Maruti Omni: Launched 1984. 2 Face-Lifts.(P)
3. Maruti Gypsy: Launched 1985.(P)
4. Maruti Wagon-R:Launched 1999, 2 Face-Lifts.(P)
26
5. Maruti Alto: Launched 2000. Currently the largest selling car in India. 1 Face-Lift.
({{Tooltip|P|Petrol
6. Maruti Versa (2003-) (P)
7. Maruti Zen Estilo(2005-) (P)
8. Maruti Suzuki Swift 1 very small face-lift(2006- ) (P & D)
9. Maruti Suzuki SX4 (May 2007- ) (P & D)
10. Maruti Grand Vitara Sports Utility Vehicle Launched in (July 2007- ). Imported(P)
11. Maruti DZiRE Sedan Version of swift launched in (March 2008- ) (P)
12. Suzuki Splash launched in 2008
13. Suzuki A-Star launched in 2008
14. Maruti Omni Face-Lift in 2009
Upcoming models in 2008
1. New Mini-SUV in 2010 Likely to be a four-door Jimny.
2. New Luxury Sed010an in 2 Likely to be a production version of the Kizashi.
Future Maruti Suzuki Plans
1. New Swift in 2011
2. New Alto
27
(Price wise product segmentation by Maruti Suzuki)
28
GENERAL DESCRIPTION OF MODELS
MARUTI 800
Maruti 800 is a city car manufactured by Maruti Udyog in India .It
used to be the largest selling car in India until the Maruti Alto
recently took that title. It is also exported to a number of countries in
southeastern Asia including Bangladesh and Sri Lanka, and to some
South American markets (as Chile, sold as Suzuki Maruti), and was available in selected
European markets between 1988 and 1992, sold as the Suzuki Maruti. In Morocco it is currently
sold as Suzuki Maruti (as of March 2008). The car comes in different versions including one
with air conditioning and one without. It was launched in December 1984 with almost 100%
imported components.
MARUTI OMNI
The Maruti Omni is a microvan manufactured by Indian automaker Maruti
Udyog Limited. The first version of Maruti Omni had the same 796 cc
engine as the Maruti 800 city car. This was the second vehicle to be
launched by Maruti, one year after the 800, in 1984. Later version of the
Omni includes the
Omni (E), released in 1996, 796 cc engine, 8 seater capacity vehicle
Omni XL - 1999, same engine, modified with a higher roof.
Omni Cargo LPG - 2004, created to answer the growing popularity of this car being
used as an inter-city cargo vehicle.
Omni LPG - 2003, same 796 cc engine, added with a factory fitted LPG Kit, authorised by the
Indian RTOs (Regional Transport Offices). This makes it the most economic 4 wheeler in India,
as far as the driving costs are concerned.
29
MARUTI GYPSY
The Maruti Gypsy is a four wheel drive SUV based on
the Suzuki SJ long wheel base. Produced in India, it is
also a common sight in Chile and Kenya. Within Europe,
it is most often found in Malta and Hungary. In contrast
to the Suzuki, the Maruti is available with 4 seats and a sizeable trunk. The Maruti Gypsy is
available as a "soft top", "hard top " and as an "ambulance car". In India, it is widely used by the
police and defense forces. In civilian use, the Gypsy is a popular choice as a low-cost SUV and is
a common sight at rally events.
MARUTI WAGON-R
The Maruti Wagon-R is a made for
India version of Suzuki Wagon R. The
Wagon-R was born out of Japanese kei-
jido-sha restrictions which dictated a
limited length and engine size. This
boxy, tall-boy design has now completed five years of presence on Indian roads. Now the car has
found a market for itself, especially among young Indian urban professionals who don't mind its
boxy slab-sided looks, but value its Maruti lineage. The car is currently among India's top five
best-selling cars.
30
MARUTI ALTO
The Maruti Alto is a city car manufactured by Maruti
Udyog in India. It is the best-selling car in India. It is
India's largest selling car and has recently crossed the 1
million production figure.It is exported to a number of
countries including Bangladesh and Sri Lanka, and to
Chile. Alto has crossed the 150,000 export target. The
popularity of the Alto has increased over the past few years, mainly due to the reduction in
prices. This reduction in prices has mainly come in due to the reduction in excise duty over time.
It has now become the first choice of young car buyers intending to upgrade from a 2 wheeler.
Some of its appeal is from stylish looks, attractive features, and impressive fuel economy at very
affordable prices compared to the other cars in the Indian market.
MARUTI
VERSA
The Maruti Versa is a micro van produced by
Maruti Udyog Limited and sold in India since
October 2001. The Versa is a clone of the now
discontinued Suzuki Carry. It is the second van
released by Maruti Udyog since the Maruti Omni was released in 1984. There are two basic
versions of this car in production; the two 8-seater DX/DX2 versions, and the 5-seater STD
version. The DX2 version of the Versa is equipped with twin air conditioners for front and rear.
31
MARUTI SUZUKI SWIFT
The MARUTI Suzuki Swift is name plate
marketed by Suzuki carried by vehicles of three
distinct derivations:
Generations I, II, III: a super mini that
began as an export nameplate of the
Japanese domestic market of suzuki .
Generation IV: the current JDM, Europe and Oceana generation, a significant departure
from the previous models, marketed solely under the nameplate "Swift". (this article)
Canadian Swift+: the current Canada-only generation marketed under the Suzuki swift.
Currently this varient is hot seller in India in the mini car segment.
MARUTI
SUZUKI SX4
In an attempt to strengthen its position in the of Sedan
cars market, Maruti Udyog Ltd. has launched its premium
model bearing name SX4. After Maruti Suzuki Swift,
SX4 is the second international model being launched in
India. Suzuki SX4, is an A3 segment sedan car, with a
perfect combination of style, performance, safety and
comfort. There are two versions of Suzuki SX4: Vxi and Zxi that gets power from latest and
efficient 1.6-litre M-Series engine delivering impressive 102 BHP of power. Having the price tag
of between Rs. 6-6.5 Lacs, Maruti Suzuki SX4 will provide tough competition to its rivalry
models like Ford Fiesta, Hyundai Verna, Honda City, and Indigo XL.
32
MARUTI SUZUKI DZIRE
Maruti Swift Dzire is the new entry level sedan
from Indian automaker Maruti Suzuki. Launched
on March 26 2008, Maruti DZiRE is based on the
popular Maruti Swift platform. The DZire
replaces Maruti Suzuki’s popular entry level
sedan, Maruti Suzuki Esteem, production of which was discontinued in late 2007. Maruti Suzuki
has introduced DZire only in the Indian market. The car is pitted against the other entry level
sedans in the Indian market, such as the Mahindra Renault Logan and the Tata Indigo.
MARUTI SUZUKI ESTEEM
Sophisticated big structured Maruti Suzuki
esteem is one of the old car of the Maruti Udyog
group. To run this huge car its engine is made of
lightweight all-aluminum. This contemporary
engine has capacity of 65 bhp at 6000 rpm.
According to *Mileage (Auto India, Nov 2005),
Esteem holds the topmost position on mileage among the other category of cars including the
small cars. The Esteem was introduced in the global market in 1995 as Suzuki's first attempt in
the compact segment, at the time dominated by European cars such as the Volkswagen
Bora/Jetta and Opel Astra, and Japanese models such as the Nissan Sunny / Sentra and Toyota
Corolla. As a North American replacement for the Suzuki Swift sedan (the 3-door hatchback
remained after it was redesigned in 1995), it was built on a slightly stretched Suzuki Cultus
platform for improved cabin room, but otherwise sharing most of internal components with the
smaller model — and marketed as a distinct model.
33
MARUTI SUZUKI BALENO
The Baleno has the looks and feel of a winner. This was
Maruti Udyog's first D-segment car launched in India to
compete with the Mitsubishi Lancer and the Honda City.
This is also Suzuki's biggest passenger car and in Japan and
other markets. The Baleno is called the Cultus in Japan.
Suzuki restyled the Baleno in 1999. The car was given a new
front end, with a rounder grille and new headlights, and the engine lineup was expanded.
MARUTI SUZUKI GRAND VITARA
The Suzuki Grand Vitara is a compact SUV,
namely a long-wheelbase version of the
Vitara, produced by the Japanese automaker
Suzuki since 1999. It was face lifted in 2002
and 2004, and redesigned in 2006. A
rebadged version was sold in North America
by General Motors as the Chevrolet Tracker.
The Tracker is sold in Latin America, but
Mexico, as Chevrolet Grand Vitara. In
Mexico, Grand Vitara and Tracker are different vehicles, sold by Suzuki and Chevrolet
respectively The 2006 model has had a structural redesign with a new ladder-boxed chassis
integrated into a unibody construction. In India, it is sold as a Maruti.
34
MARUTI SUZUKI ZEN-ESTILO
Estilo has got Wagon R's engine and chassis and Suzuki
MR Wagon's shape. Whatever remains is taken from Zen,
well does anything remain actually? This is the mixture of
zen and wagon -R. 'Zen Estilo'. In essence it’s stylish
Wagon R, Japan's MR Wagon, combination of the two or
anything but Zen. It seems Maruti wants to exploit Zen brand-image hence named this car after
Zen. With this model MSL has given its B segment a new variant by which it may compete with
the models of other company.
MARUTHI ALTO K10
Maruti Suzuki today launched another version of
Brand Alto, equipped with a K-series, 998 cc engine.
This version, called 'Alto-K10', comes with improved
suspension, new cable-type transmission, superior
brake system and more knee-room for rear seat
passengers. On the occasion of Alto-K10 launch, Mr.
Shinzo Nakanishi, Managing Director and CEO,
Maruti Suzuki India, said “The Alto's package of
performance, fuel efficiency and attractive cost of ownership have together made it India's most
popular car. The Alto-K10 will take this forward. There are a growing number of first time
buyers who seek more power, performance and attitude in their car, without having to stretch all
the way to buy a higher segment car. The Alto-K10 is meant for them”.
35
AWARDS FOR COMPANY
Awards for 2010
Ritz got following awards
Car of the year 2010.
Compact car of the year of 2010.
Premium Hatch back of the year 2010.
Awards for 2009
Ritz got following awards
Most appealing premium compact car India appeal study 2009.
Best premium compact car initial quality, India quality study 2009.
J.D. ASIA PACIFIC REPORT
Maruti Suzuki Ranks Highest in Automotive Customer Satisfaction in India
for a Ninth Consecutive Year.
SINGAPORE: 21 October 2008 — For a ninth consecutive year, Maruti Suzuki ranks
highest in customer satisfaction with authorized dealer service in India, according to the
J.D. Power Asia Pacific 2008 India Customer Service Index (CSI) Study SM released on
21 October 2008.
36
The study, now in its 12th year, measures satisfaction among vehicle owners who
visited their authorized dealership service center for maintenance or repair work during
the first 12 to 18 months of ownership, which typically represents the warranty period.
Overall satisfaction is determined by examining seven measures (listed in
order of importance):
problems experienced; service quality; user-friendly service; service advisor; service
initiation; service delivery; and in-service experience.
Maruti Suzuki achieves an overall CSI score of 820 on a 1,000-point scale. Overall
customer satisfaction with dealer service for the industry improves slightly in 2008—up
by 3 points since 2007, with six of the 11 ranked brands demonstrating gains. While
ranking below the industry average, Tata and Mahindra emerge as the most improved
brands, respectively, particularly in the areas of service initiation, quality of service
advisors and in-service experience.
“Maruti Suzuki has effectively implemented simple procedures that improve
satisfaction with the value of work performed and perceptions of the fairness and honesty
of the dealer, such as greeting service customers quickly upon arrival and fully explaining
charges and repairs,” said Mohit Arora, senior director at J.D. Power Asia Pacific,
Singapore. “Instituting these low-effort, yet high-impact practices helps to foster trust
among customers, which is critical to building loyalty for future service and sales
opportunities.”
The study finds that the proportion of vehicles brought in and serviced within the
same day has increased to 55 percent this year from 49 percent in 2007. Quick completion
of service is a key source of customer delight, particularly for customers who visit the
dealer for routine maintenance.
“Quick service turnaround induces a feeling of convenience and comfort for
customers, especially as life styles become more fast paced,” said Arora. “Dealers that
37
provide expedient service not only delight their customers but also benefit from greater
dealership profitability as a result of high levels of asset utilization.”
The study also finds that customer-reported costs of operation for petrol-powered
vehicles have risen by seven percent since 2007, primarily due to rising fuel costs. In
contrast, owners of diesel-powered vehicles report a minimal increase in operating costs in
2008, compared with 2007. The overall cost of vehicle operation is an aggregation of three
components: fuel; repair and maintenance; and tire expenses.
“Consumers in India have traditionally exhibited higher sensitivity to the costs of
vehicle operation, compared with consumers in other international markets,” said Arora.
“In India, customer intent to recommend a model or repurchase a make is strongly
influenced by satisfaction with vehicle operating costs.”
The study finds that overall advocacy rates have declined, with 77 percent of
owners in 2008 reporting that they “definitely would” recommend their vehicle make,
compared with 82 percent in 2007. Customer loyalty rates have remained stable from
2007, with 64 percent of owners in 2008 saying they “definitely would” repurchase their
vehicle make, compared with 63 percent in 2007. However, the study also finds that rates
of advocacy and loyalty are much higher among highly satisfied customers (those with
satisfaction scores averaging above 867) than among customers with lower levels of
satisfaction. Approximately 94 percent of highly satisfied customers say they “definitely
would” recommend their vehicle make, and 84 percent report they “definitely would”
repurchase their vehicle make. In contrast, among customers with the lowest levels of
satisfaction (averaging below 709), only 55 percent of customers “definitely would”
recommend, and only 43 percent report that they “definitely would” repurchase their
current vehicle make The 2008 India Customer Satisfaction Index (CSI) study is based on
responses from more than 5,594 owners of nearly 41 different vehicle models.
The study was fielded from May to August 2008 and includes customers who
purchased their vehicles between November 2006 and August 2007.
The company takes great pride in sharing that customers have rated Maruti Suzuki
first once again in Customer Satisfaction Survey conducted by independent body,
J.D.Power Asia Pacific. It is 9th time in a row.
38
The award mirrors the company's commitment towards "Customer Obsession"
The company vouches for customer satisfaction. For its sincere efforts it has
been rated (by customers) first in customer satisfaction among all car makers in India
for nine years in a row in annual survey by J D Power Asia Pacific.
KEY INITIATIVES FOR SATISFYING CUSTOMERS
Car pickup & delivery facility for women car owners
Quote Unquote: "The study finds that vehicle pickup and delivery before and after
service has a strong impact on customer satisfaction. In particular, customers who say that
their vehicle was picked up from their doorstep before service and delivered to the same
point after service are notably more delighted with their after-sales service experience,
compared with customers who do not receive this service...."
Car Safety device: Immobilizer
The company used technology to meet customer needs and even delight them.
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.
39
Setting up "Express Service Bays" & "2 - Technician Bays"
As the name suggests the company set out to delight its customers by offering
them faster car service by introducing new concepts such as Express Service Bays & 2-
Technicians Bays. These are done for customers who are hard pressed for time.
Both the initiatives undertaken in this direction have helped improve customer
interface and also helped increase the productivity and capacity of existing workshops.
Mega Camps
The company aggressively conducts 'Mega Camps' throughout the country round
the year.
Activities undertaken during a mega camp include complimentary car wash, AC &
Pollution check up, oil and fuel top ups, wheel alignments etc.
Apart from mega camps workshop camps like A/C checkup camps, PUC and
general check-up camps, Locality camps , Pre monsoon camps etc are also regularly
conducted as part of customer connect initiatives.
Service at your Door Step through Maruti Mobile Support
Another unique initiative is the door step service facility through Maruti Mobile
Support. Maruti Mobile Support is a first of it's kind initiative and is expected not only to
help the company reach out customers in metro cities but also as a mean to reach semi
urban /rural areas where setting up of new workshop may not be viable.
Complete Car Needs
The company's effort of providing all car-related needs -- from learning to drive a
car at Maruti Driving Schools to car insurance, extended warranty and eventually
exchanging the existing car for a new one -- under one roof at dealerships also enhances
customer satisfaction.
40
41
42
43
Maruti Suzuki has been ranked no.1 in the 2010 JD Power India Customer Service
Index study for an eleventh consecutive year followed by Fiat at the second place, ahead of
Honda, Toyota, Hyundai to emerge as the most improved brand this year.
44
STATEMENT OF THE PROBLEM
The purpose of conducting this research is to get the actual idea about the
experiences of customers and their satisfaction level with Maruti Suzuki. What types of
problem they face after purchasing the vehicles. The purpose of conducting this research is
also to find out expectations of customers for Maruti Suzuki. Users were selected and then
the analysis was formed regarding the people’s beliefs, satisfaction and expectations about
the Maruti Suzuki.
This was basically the problem that was discovered to conduct this project i.e.
“Customer satisfaction survey for Maruti Suzuki.”
NEED FOR THE STUDY
Maruti Suzuki is a no.1 and largest sellers in small cars segments in India. This kind of
products are very easy to purchase and drive, based on Indian economic situation and
environments.
Maruti Suzuki provided many service centers across India so, they want to know about
their customer’s satisfaction on their products.
Customer satisfaction is a function of perceived performance and expectation. Feelings of
satisfaction arise when customers compare their perceptions of the performance of a product or
service to their desires and expectations. If the perceived performance equals or exceeds a
consumer’s expectations, then the consumer is satisfied.
But if perceived performance falls short of his or her expectations, then the consumer is
dissatisfied, Decisions to defect or to defect or to patronize the products of a firm are dependent
on a number of factors such as service, customer relationship, quality and over all service
satisfaction.
Satisfactory after-sales service is important as the customer approaches the service station
in case of any problem or damage. The service station has to provide quality service and original
compared to other service stations.
45
The cost should be low and appearance of the car also good. If the servicefalls short of
expectations the consumer will be disappointed otherwise he is satisfied.
The company’s success has to be driven by customer centric policies and teamwork to
achieve progress and productivity.
The philosophy of Maruthi udyog emphasizing the “pursuit of excellence” in designing
and manufacturing, technologically and qualitatively superior products and increasing economic
value for its stake holders.
It takes care of its customer through value based competitive pricing and good after
service.
The company focuses on providing “value for money” through its pricing strategies and
after-sales service.
46
OBJECTIVES OF THE STUDY
Primary objectives:-
1. Conduct customer satisfaction survey for Maruti Suzuki Alto.
2. To find out customer expectations from Maruti Suzuki Alto.
3. To study the factors those satisfy and delight the customer.
Secondary objectives:-
1. To find out problem faced by customers.
2. To understand the customers requirement from the Maruti Suzuki.
3. To know customer opinion about Maruti Suzuki’s alto vehicles.
47
SCOPE OF STUDY
The customer is always right. This is incontrovertible. Customer belongs at the
heart of every business because without them there is no business. Without their money,
there is no exchange. Therefore, for any company, the customer is the starting point that
influence very move.
Marketing is based on this logic. It is process by which a company finds out what
its customers want and need, and then delivery it in a way that that makes as much profit
as possible.
Because marketing focuses on customers, the heart of every business and sources of
all income, it follows logically that marketing as a mere function of business to be
performed intermittently.
By focusing on different customers, a marketing orientation gives a company an
edge over those who focus more on different products, selling and the production.
Marketing opportunity arise when customer wants and need arise. There is no point in
trying to sell something for which there is no demand. The production process must be
informed by customer demand. Customer will not often buy just because it is exist.
Customers are satisfied when offered what are needs. In practice, they are not all that easy
to please. Marketing is also about predicting what customer will want and need in the
future. It is native have to think that customers needs and want remain constant, adopting
the customer-centered approach to a business will involve change
As psychiatrists have noted, change is always stressful but often necessary. Wants
and needs change along with markets, product, and cultures.
The SLEPT FACTOR (social, legal, economical, political, and technological) can
affect the behavior of customers, the market they form, and the ways in which a company
48
can respond. To stay ahead of competition, a change in outlook must occur. Innovation
should be encouraged.
Marketing has been conceptualized and accepted as an activity directed at
satisfying need and wants through exchange process. The “Marketing Concept” is
essentially the satisfaction of the customer needs through integrated marketing with the
intend to satisfy the customers while earning the profit. The basic idea is that a satisfied
customer will likely to repurchase, leading to increase sales and share for the firm.
Integrated marketing activities amied at producing customer satisfaction include what
have been referred to as 4 P’s of marketing, namely product, promotion, price & place.
Generally marketing is conceder as the Primary functional area in the firm that works to
satisfy the firm’s customers. It is true that customer satisfaction is the result of total
marketing efforts, industry has generally failed to recognized the importance of customer
as provided by physical distribution to the customer satisfaction and has not effectively
integrated customer service with the other component of marketing mix.
Customer’s expectations:
Customer is defined as anyone who receives that which is produced by the
individual or organization that has value. Customer’s expectations are continuously
increasing. Brand loyalty is a thing of past. Customer seek out products and producers that
are best able to satisfy there requirements. A product does not need to be rated highest by
the customer on all dimensions, only those they think are important.
Customer perceived value:
Customer perceived value is difference between the prospective customer’s
evaluation of all the cost of an offering and the perceived alternatives. Total customer
value is perceived monetary value of the bundle of economics, functional and
psychological benefits customer expect from the given marketing offering.
Delivering high customer value the key to generating high customer loyalty is to deliver
high customer value. According to Michel Lanning, a company must design a
competitively superior value deliver system.
49
Customer satisfaction:
Satisfaction is the person’s feelings of pleasure or disappointment resulting from
comparing a product’s perceived in relation to his or her expectations. In general, if
performance of the products matches the expectations, the customer is said to be satisfied.
Customer satisfaction, a business term, is a measure of how products and services supplied
by a company meet or surpass customer expectations. In a competitive marketplace where
business complete for customers, customer satisfaction is seen as a key differentiator and
increasingly has become a key element of business strategy. If performance exceeds
expectations, the customer is said to be highly satisfied or delighted. If the performance
falls short of expectations, the customer is said to be dissatisfied.
Measuring customer satisfaction:
Organizations are increasingly interesting in retaining existing customers while
targeting non-customers measuring customer satisfaction provides an indication of how
successful the organization is at providing products and/or services to the marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation
of the state of satisfaction will vary from person to person and product/service to
product/service.
The state of satisfaction depends on a number of both psychological and physical
variables which correlate with satisfaction can also vary depending on other options the
customer may have and other products against which the customer can compare the
organization’s products. Importance to measure customer satisfaction:
While is it is critical to be in sync with the overall business objectives of the organization,
it is also critical to be in tune with information requirements of users, and the value they
find in services provided by the info center. In order to be perceived as integral assets to
their organizations, most information professionals are concerned with expanding their
activities, and serving more customers better.
Building on a loyal customer or user base is the best and easiest way to grow your
business. Just as companies find it costs approximately five times more to acquire new
customers than it costs to keep a customer, Info Centers will find it most cost effective to
50
grow by building on the services now provided to loyal, committed customers. To
continue earning that customer loyalty, information professionals must keep tabs on the
satisfaction levels and perceptions of value held by Info Center users.
Strategies to develop the new business should always be balanced by strategies to
retain existing business and ensure ongoing satisfaction of existing customers. There is an
also real bottom- line reason for measuring customer satisfaction.
Positive results from customer satisfactions studies will make a strong statement in
support of continued funding for Info Center activities.
Tools for measuring Customer Satisfaction
Complaint and Suggestion Systems:
A customer-centered organization makes it easy for customers to register
suggestions and complaints. Companies also using web sites and e-mail for quick, two-
way communication.
Customer Satisfaction Survey:
Responsive companies measure customer satisfaction directly by conducting
periodic surveys.
Ghost Shopping:
Companies can hire people to pose as potential buyers to report on strong and weak
points experienced in buying the company’s and competitor’s products.
These shoppers can even test the company’s sales personnel handle various situations.
Lost Customer Analysis:
Companies should contact customers who have stopped buying or who have
switched to another supplier to learn why this happened.
Focus Groups:
Focus groups can be held on an informal or formal basis. On an informal basis,
consider having a group of users meet for coffee or lunch to discuss their satisfaction with
services being evaluated. On a more formal basis, a facilitator with experience in leading
51
focus groups can work with personnel to plan questions and activities to elicit perception
of value and satisfaction from participants.
Customer Satisfaction Survey:
Study show that although customers are dissatisfied with one out of every four
purchases, less than five percent of dissatisfied customers will complain. Most customers
will buy less or switch to other supplier. Complaint levels are thus not good measure of
customer satisfactions responsive companies measure customers.
Satisfaction directly by conducting periodic survey. They send questionnaire or
make telephonic calls to a random sample of recent customers. They also solicit buyer’s
views on there competitor performance.
While collecting customer satisfaction data, it is also useful to asked additional
questions to measure re purchase intention; this will normally be high if his customer
satisfaction is high. It is also useful to measure likely hood or willingness to recommend
the company and brand to others. A high positive word-of-mouth score indicates that the
company is producing high customer satisfaction.
Customer satisfaction helps company in knowing the wants, needs and expectation
of customers. It also helps to collect feedback about products. This will assist company in
new product development.
52
LIMITATIONS OF STUDY
Though the research was conducted properly, the probability of errors & biases
kept is minimum; still some errors occurred because of certain limitation.
These are as follows:-
a) A very short span of time for research.
b) Sample size is 100
c) Study is restricted to only Hyderabad city.
53
RESEARCH METHODOLOGY
RESEARCH DESIGN
Research methodology is a process to systematically solve the research problem. It
may be understood as a science of studying how research is done scientifically. Why a
research study has been undertaken, how the research problem has been defined. In what
way and why the hypothesis has been formulated, what data have been collected and
particular method has been adopted. Why particular technique of analyzing data has been
used and a host of similar other questions are usually answered when we talk of research
methodology concerning a research problem or study.
A research design serves as a bridge between what has been established (the
research objectives) and what is to be done, in the conduct of the study. In this project
research done is of conclusive nature. Conclusive research provides information that help
in making a rational decision.
Descriptive design was choose to measure the satisfaction level of customers on the
basis of different parameters such as quality, price, features, technology, after sale
services etc.
This design ensured complete clarity and accuracy. It also ensured minimum bias in
collection of data and reduced the errors in data interpretation. Statistical method was
followed in this research because the data was of descriptive nature and it also enabled
accurate generalizations.
54
SOURCES OF DATA
Primary data:
Primary data are those which are collected a fresh and for the first time, and thus
happen to be original in character. It was collected through questionnaire and personal
interviews.
Secondary data:
The secondary data are those which have already been collected by someone else
and which have already been through the statistical process. The data were collected in the
form of company profile and produce profile from the web sites and news paper. Some of
the books were referred for theoretical concepts.
RESEARCH TOOLS:
Structured questionnaire is used to collect the data from the respondents.
SAMPLING PLAN
Simple random sampling
SAMPLE SIZE
100 Customers
55
1) Annual Income of the respondent?
2 to 3 3 to 5 5 to 8 8 above0
5
10
15
20
25
30
35
40
45
50
55
60
Respondents
Annulal Income in lacks
Respondents
Interpretation:
From the above chart it is observed that the highest buyers among the consumers income
group comes under Rs. 300000 to Rs. 500000 and lowest buyers income group comes under
above Rs.800000.
56
Annual income in lacks Respondents
2 to 3 32
3 to 5 48
5 to 8 18
8 above 2
100
2. Age of the respondent?
Age in years Respondents
<25 5
25 to 34 46
35 to 44 31
>45 18
100
5
4631
18
Respondents
<2525 to 3435 to 44>45
Interpretation:
From the above chart it is observed that the highest buyers among the consumers age
group comes under 25 to 34 years and lowest consumers age group comes under<25 years.
57
3. From how many years you are using this model?
Years Respondent
0 to 2 32
2 to 4 46
4 to 6 18
6 to 8 4
100
0 to 2 2 to 4 4 to 6 6 to 80
5
10
15
20
25
30
35
40
45
50
Years
Respondent
Res
pon-
dent
s
Interpretation:
From the above chart it is observed that the highest buyers among the consumers are
using this model comes under 2 to 4 years and lowest consumers are using this model comes
under 6 to 8 years.
58
4. Preference for choosing this particular model?
Preference Respondents
Comfort 16
Mileage 38
Features 8
Performance 6
Looks 4
Price 28
100
16
388
64
28
Respondents
ComfortMileageFeaturesPerformanceLooksPrice
Interpretation:
From the above chart it is observed that the 38% of the consumers gave preference to
mileage,28% of consumers preference is price.
59
5. Are you satisfied with this model?
Satisfaction Respondents
Yes 90
No 10
100
Yes No0
102030405060708090
Satisfaction
Respondents
Res
pond
ents
Interpretation:
From the above chart it is observed that 90% of the customers are satisfied with the
model.
60
6. What was the source of information for the purchase of this model?
Source Respondents
Family 26
Friends 44
Media 20
Mechanic 7
Dealer 3
100
Family Friends Media Mechanic Dealer
0
5
10
15
20
25
30
35
40
45
Respondents
Res
pon-
dent
s
Interpretation:
From the above chart it is observed that 44% of the customers are ready to purchase this
model through the friends, 26% of the consumers are ready to purchasing this model through the
family, 20% of the consumers are purchasing through the media.
7. What is the pre sale experience for purchasing this car?
61
Excellent Good Average Below Average0
10
20
30
40
50
60
Respondents
Res
pond
ents
Interpretation:
From the above chart it is observed that 60% of the customers pre sales experience is
excellent, 29% of the customers are feeling good.
62
Pre sales experience Respondents
Excellent 60
Good 29
Average 11
Below Average 0
100
8. What is the post sale experience?
Post sale experience Respondents
Excellent 46
Good 42
Average 10
Below Average 2
100
46
42
10
2
Respondents
ExcellentGood AverageBelow Average
Interpretation:
From the above chart it is observed that 46% of the customers opinion about the post
sales experience is excellent, 42% of the customers are feeling good.
9. How will you maruti alto on the basis of value for money?
63
Value for money Respondents
Above expectation 21
Below expectation 7
As per expectation 72
100
Above ex
pectati
on
Below ex
pectati
on
As per
expect
ation
0
10
20
30
40
50
60
70
80
Respondents
Res
pond
ents
Interpretation:
From the above chart it is observed that 72% of the customers opinion on the basis of
value for money is as per expectation, 21 % of the customers opinion on the basis of value for
money is above expectation.
64
10. Do you find easy availability of spare parts?
Availability of spares Respondents
Yes 92
No 8
100
92
8
Respondents
Yes No
Interpretation:
From the above chart It is observed that,92% of the customers are saying that spare parts
availability are easy, just 8% of customers are struggling to find the spares.
65
11. Would you like to repurchase another model of maruti?
Repurchase Respondents
Yes 76
No 24
100
Yes No0
10
20
30
40
50
60
70
80
Respondents
Res
pond
ents
Interpretation:
From the above chart it is observed that, 76% of the customers are ready to
repurchase the Maruti’s car, 24% are not ready to purchase the car.
66
12. Would you like to recommend the maruti car to your friends/relatives?
Recommend Respondents
Yes 73
No 27
100
Yes No0
10
20
30
40
50
60
70
80
Respondents
Res
pond
ents
Interpretation:
It is observed that, 73% of the customers are ready to recommend the car to the
friends and relative, 27% are not ready to recommend the car to the friends and relatives.
67
13. In which sector do you think/feel maruti should improve?
Which sector should
improve Respondents
Price 8
Quality 35
Service 31
Others 26
100
Price Quality Service Others0
5
10
15
20
25
30
35
Respondents
Res
pond
ents
Interpretation:
From the above chart it is observed that 35% of the customers are of opinion that Maruti
should improve in quality, 26% of the customers are of opinion that Maruti should improve in
others like features.
68
14. How do you rate overall service of maruti?
Overall Service of Maruti Respondents
Excellent 54
Good 36
Average 8
Below Average 2
100
54
36
8
2
Excellent Good Average Below Average
Respondents
Interpretation:
From the above chart it is observed that 54% of the customers opinion that the overall
service of the maruti is excellent, 36% of the customers are saying good.
Findings
69
It is observed that
1. The prospective segment is from the business and self employed class.
2. The company should concentrate on the age group 26-34.
3. Maruti should continue to maintain the standard of the service.
4. It is observed that, 72% of the respondent are of opinion that vehicles are as per
expectation, and 7% are saying its below expectation.
5. Company should improve its post sales service.
6. The customer highest priority is for the mileage.
7. Maruti Suzuki needs to improve its awareness about Add-on-Services like any time
Maruti, MEW etc.
8. Customers are highly satisfied with the service which helps in customer retention
9. It is observed that, 35% of the customers are of opinion that Maruti should improve in
quality, and 31% of the opinion that Maruti should improve in Service.
10. Customers are highly satisfied which help in customer retention.
11. Company has created goodwill among the customers which will help them to
recommend car to friends and relatives.
CONCLUSION
70
It has been observed that most customers are satisfied with pre sales services
similarly most of these customers are dissatisfied with the post sales service which is the
matter of concern for the company.
Maruti Suzuki needs to improve some parts of products specifically the interiors.
High customer satisfaction level helps the company to retain its existing customer as well
as generate new customer through word to mouth publicity.
According to this survey it is observed that most of the customers are satisfied with
the mileage. Most of the customers are saying maruti need to improve the quality system
and most of the customers wants innovative features.
Customer satisfaction index is a good tool to make improvements in the products
and services of the company. And therefore should utilize carefully & kept as confidential
as possible.
SUGGESTIONS
71
After conducting the survey and knowing the market, I realized that:
1 The company should keep in mind the needs of young generation.
2 Company should improve the promotion strategy of product.
3. It will be beneficial for the company to make the warehouse near to the
showroom and there should be roof facility, adequate security facility in
the warehouse.
4. The Company should know its customers satisfaction level continually through
periodic surveys.
5. Company should improve/upgrades its employee’s product knowledge,
market situation, and its competitor’s knowledge by giving proper training
to employee.
6. Company should upgrade or innovate its new product.
7. The Company should not only concentrate on the customer satisfaction but
also the company led to monitor their competitor’s performance in their
areas of operations.
8. The Company should make changes according to the other competitors &
according to the customer’s expectations.
QUESTIONNAIRE
Dear Sir/Madam
72
I, B.Prathap kumar pursuing MBA II year in J.B Institute of engineering and technology,
doing a project titled “Customer Satisfaction with reference to Maruti Suzuki Alto At
VARUN MOTORS PVT. LTD.”, seek your cooperation in the completion of my project work
by responding to the following questions. I request your honest response to the questionnaire. I
assure you that data will be kept confidential and used only for the academic purpose.
Name: - Address: -
Occupation:- Contact No:-
Age of Respondent
a) <25 b) 25-34
c) 35-44 d) 45 & above
Annual Income
a) 2-3 lack b) 3-5 lack
c) 5-8 lack d) 8 and above
1. From how many years you are using this model?
a) 0-2 years b) 2-4 years
c) 4-6 years d) 6-8 years
2. Preference for choosing this particular model?
a) Comfort b) Mileage
c) Feature d) Performance
e) Looks f) Price
3. Are you satisfied with this model?
a) Yes b) No
4. What was the source of information for the purchase of this model?
a. Family b. Friends c. Media d. Mechanics e. Dealers
5. What is the Pre-sales experience for purchasing this car?
a) Excellent b) Good c) Average d) Below Average
6. What is your Post-sales experience?
73
a) Excellent b) Good
c) Average d) Below Average
7. Are you satisfied with the features of Maruti?
a) Comfort……. /5 b) Mileage……. /5
c) Feature ……. /5 d) Safety……. /5
e) Looks ……. /5 f) Price……. /5
8. How will you rate Maruti on the basis of Value for Money?
a) Above Expectation b) Below Expectation c) As per Expectation
9. Do you find easy availability of spare parts?
a) Yes b) No
10. Would you like to re purchase another model of Maruti car?
a) Yes b) No
11. Would you like to recommend the Maruti car to your friends/relatives?
a) Yes b) No
12. In which sector do you think/feel Maruti should improve?
a) Price b) Quality c) Service d) Others
13. How do you rate overall service of Maruti?
a) Excellent b) Good c) Average d) Below Average
BIBLIOGRAPHY
74
Websites:
1. www.marutidyog.com
2. www.cyber steering.com
3. www.autocarindia.com
4. www.bsmotoring.com
5. www.india car.com
Books:
1. Marketing Management by Philip Kotler, the millennium edition, Pearson publications
2. Research Methodology-C.R. Kothari.2nd edition, New Age Publication.
75