maruti
Content
A STUDY OF MARKETING MIX OF MARUTI SUZUKI
Submitted in Partial fulfilment for the Award of the Degree Of Bachelor in Business Administration 2009-2012
Under the Guidance of:
Submitted by :
Sanampreet Sharma
Manish Shandilya Shandilya
Lecturer (MAIMS)
BBA 3 B (2S)
rd
13361101709
Maharaja Agrasen Institute Of Management Studies
Affiliated to Guru Gobind Singh Indraprastha University PSP Area, Plot No. 1, Sector 22, Rohini 110086 110086 1
Students Declaration
This is to certify that I have completed this Project titled
Marketing Mix of
Maruti Suzuki under the guidance of Sanampreet Sharma in partial
fulfilment of the requirement for the award of degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work and I have not submitted it earlier elsewhere.
Date:
Signature:
Place: Delhi
Name: Manish Shandilya University Roll No. : 13361101709
2
Students Declaration
This is to certify that I have completed this Project titled
Marketing Mix of
Maruti Suzuki under the guidance of Sanampreet Sharma in partial
fulfilment of the requirement for the award of degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work and I have not submitted it earlier elsewhere.
Date:
Signature:
Place: Delhi
Name: Manish Shandilya University Roll No. : 13361101709
2
Certificate from Institute Guide
This is to certify that summer project titled academic work done by
Marketing Mix of Maruti Suzuki is an
Manish Shandilya submitted in the partial fulfilment of the
requirement for the award of the degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies , Delhi, under my guidance and direction. To the best of my knowledge and belief the data and information presented by him in the Project has not been submitted earlier.
Signature :
Name of Faculty: Sanampreet Sharma
Designation: Lecturer
3
ACKNOWLEDGEMENT
I owe my sincere thanks and gratitude to Mrs.Sanampreet Sharma ( Project guide) who inspired me by her able guidance and was a constant guiding light during the course of project study.The support and knowledge provided by her has been a great value addition for me and will go a long way in building a promising career. First of all I would like to thankMr.N.K.Kakkar thankMr.N.K.Kakkar ( Hon.Director General , MAIMS ) who gave me this golden opportunity opportunity to learn something new about project writing. rd
I would also like to thank Miss SmitaTejwani {course {course coordinator coordinator , BBA 3 b (2s) } who cooperated with me and gave me valuable suggestions during the entire project. Last but not the least I would like l ike to thank my friends and family members who supported me and gave me valueable suggestions in this project.
Manish Shandilya rd
BBA 3 B (2S) Roll no. :- 9348 Enrollment No.:- 13361101709 13361101709
4
INDEX
Student Declaration Certificate from the Guide Acknowledgement
Table of Content
Page no.
Chapter 1 About the Company
1.1 Introduction 1.2 History
8 10
1.3 Company Profile 1.3.1 Stock exchange 1.3.2 Vision Mission and Core values 1.3.3 Board of Directors 1.3.4 Milestones 1.3.5 Awards 1.4 Organisation Structure 1.4.1 Organisation structure 1.4.2 Production process 1.4.3 Recruitment and Selection 1.4.4 Training and Devlopment 1.4.5 Appraisal and Reward 1.4.6 International Business 1.5 Financial Structure 1.5.1 Capital Structure 1.5.2 Balance Sheet 1.5.3 Profit and loss A/c
11 11 13 14 17 21 22 23 25 26 27 29 30 31
Chapter 2 Research Methodology
2.1
Meaning of Research
33
2.2
Objectives Research
33 5
2.3
Significance of Research
33
2.4
Research Methodology
34
2.5
Data Collection Source
34
2.6
Limitations
35
Chapter 3 Marketing Mix
3.1
Meaning
37
3.2
Brand
37
3.3
Products
38
3.4
Price
56
3.5
Place
57
3.6
Promotion
57
3.7
Market Segmentation
58
3.8
Market Positioning
59
3.9
Other Strategies
59
Chapter 4 Findings and analysis
73
Chapter 5 Conclusion
84
Chapter 6 Recommendations
86
Bibliography
88
6
Chapter: - 1 ABOUT THE COMPANY
7
1.1 Introduction
Maruti Suzuki is India’s number one leading automobile manufacturer and the market leader in the car segment both in terms of volume of vehicle and revenue earned. Until recently 18.28% of the company was owned by the Indian government and 54.2% by the Suzuki of Japan. The Indian Govt. held an initial public offering of 25% of the company in June 2003. As of 10 May 2007 government of India sold its complete share to Indian financial Institution. With this govt. Of India has no longer stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production was started in 1983 with the Maruti 800 based on the Suzuki Alto Kei Car which at that time was the only modern car available in India. Its only competitor was Hindustan Motor’s Ambassador and the Premier Padmini were both around 25 yea rs out of date at that point.Through 2004 , Maruti Suzuki had produced over 5 Million vehicles. Maruti Suzuki are sold in India and various several other countries depending upon export orders. Models similar to Maruti Suzuki ( but not manufactured by Maruti udyog) are sold by Suzuki Motors corporation and manufactured in Pakistan and other south Asian countries. The company anually exports more than 50,000 cars and has an extremely large domestic market in India selling over 7,30,000 cars anually. Maruti 800 till 2004 was the India’s largest selling compact car ever since it was launched in 1983. More than a Million unit of this car have been sold worldwide so far. Currently Maruti Suzuki Alto tops the sales chart and Maruti Suzuki Swift is the largest selling car in A2 segment.Due to large number of Maruti 800’s 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 in India, Hindu’s lord Hanuman is known as “Maruti” was associated with Maruti 800 model.
Manufacturing Facilities Its manufacturing facilities are located at two facilities, “Gurgoan” and “Manesar” south of Delhi. Maruti Suzuki’s Gurgoan facility has an installed capacity of 3,50,000 units per annum. The Manesar facility launched in February 2007 comprises a vehicle assembly plant with a capacity of 1,00,000 units per year and a Diesel Engine plant with an annual capacity 8
of 1,00,000 engines and transimission. Manesar and Gurgoan facility have a combined capacity to produce over 7,00,000 units annually.More than a half of the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of Suzuki Motors Corporation of Japan which owns 54.2 percent of Maruti Suzuki. The rest is owned by the Public and Finance Institution.It was listed on the Bombay ( now Mumbai) stock exchange in India. During 2007-08 Maruti Suzuki sold 7,64,842 cars of which 53,024 are exported in all. Over Six Million Maruti Suzuki cars on Indian roads since the first car was rolled out on 14 December 1983.
Products Offered Maruti Suzuki offers 15 models and they are, Maruti 800, Alto, Wagon R, Zen Estilo, A Star, Ritz, Swift, Swift Dzire, SX4, Omni, Eeco, Gypsy and Grand Vitara.Out of these models Grand Vitara is imported from Japan a completely built unit (CBU). Swift, Swift Dzire , A Star and SX4 are manufactured in Manesar and the remaining models such as Maruti 800, Alto, Wagon R, Zen Estilo, Ritz, Omni , Eecoetc are manufactured at Gurgoan Plant.
Human Resources Nearly 75,000 people are employed directly by the Maruti Suzuki and its Partner. It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J.D. Power Asia Pacific.
1.2 History
9
Around 1970, Sanjay Gandhi, Political advisor and younger son to then Prime minister of India, Indira Gandhi , envisioned the manufacture of an indigenous , cost – effective , low maintenance compact car for the Indian middle class. Indira Gandhi’s cabinet passed a uninamous resolution for the devlopment and production of “people’s car”. Sanjay Gandhi’s company was christened Maruti Limited. The name of the car was choosen as “Maruti”, after the name of a hindu deity named Marut. At that time Hindustan Motor’s Ambassador was the cheif car and the company had came out with a new enterant , the Premium Padmini which was slowly gaining a part of the market share dominated by the Ambassador. For the next ten years the Indian car market had stagnated at a volume of of 30,000 to 40,000 cars for the decade ending 1983. Sanjay Gandhi
was awarded the exclusive contract and licence to design, devlop and
manufacture the “People’s car.This exclusive right of production generated some criticism in certain quaters, which was directly targeted at Indira Gandhi . Over the next few years the company was sidelined due to the Bangladesh Liberation war and the emergency. In the early days under the powerful patronage of Sanjay Gandhi, the company was provided with free land , tax breaks , and funds. Till the end of 1970’s the company had not started the production and a prototype test model was met with criticism and skepticism.The company went into liquidation in 1977. The media perceived it to be another area of growing corruption. Unfortunately Maruti started to fly only after the death of Sanjay Gandhi, when Suzuki joined the Govt. Of India as a joint venture parteners with 50% share. After the death of Sanjay Gandhi, Indira Gandhi decided that the project should not be allowed to die. Maruti entered into collaboration with Suzuki Motors . The collaboration heralded a resolution in the Indian car industry by the production of “Maruti 800”. The car went into sale on December 14,1983. It created record by taking 13 months to go from design to rolling out car from a production line. By the year 1994 the company had sold upto 1,96,820 cars, mostly by selling its cheif product the “Maruti 800”. By March 1994, it produced one million vehicle , becoming the first Indian company to cross this milestone. It reaches the 2 million mark in October 1997, and rolled out its 4
th
million vehicle an ALTO
(LX) on April 19, 2003. Maruti Udyog Ltd. is the premium car company in India. Maruti Udyog Limited (MUL) was established in February 1981 through an act of parliament. The Company entered into 10
collaboration with Suzuki Motors of Japan to manufacture cars.The main objectives behind formation of Maruti Udyog Limited was to meet the growing demand of a personal mode of transport caused by the lack of an efficient Public Transport System. Today Maruti Udyog Limited is garneshing share of automobile market in India. It has completely revolutionised the Indian car market and has brought out numerous model to cater to every section of society. These ranges from Economy cars to Luxury cars to Super SUV’s.
1.3 Company’s Profile
Around 1970, Sanjay Gandhi, political advisor and younger son to the then Prime minister of India, Indira Gandhi, envisioned the manufacture of an indigenous, cost effective, low maintenance compact car for the Indian middle class. Indira Gandhi’s cabinet passed an uninamous resolution for the development and production of “Peoples car”. Sanjay Gandhi’s company was christened Maruti Limited. The name of the car was was chosen as Maruti, after a hindu deity named Marut. Unfortunately Sanjay Gandhi died without fulfilling his dream. After this death , Indira Gandhi decided that the project should not be allowed to die. Maruti entered into collaboration with the Suzuki Motors of Japan. The collaboration heralded a resolution in the Indian car industry by producing Maruti 800. The car went into sale on 14 December 1983. And from 1980’s to till day today Maruti’s have dominated the Indian Automob ile industry as well as automobile market.
1.3.1 Stock Exchange on which company is listed Maruti Suzuki is listed on Bombay stock exchange now Mumbai. It is also listed on NYSE ( New York Stock Exchange) as well as stock exchange of Japan.
1.3.2 Vision, Mission and Core values of Maruti Suzuki 11
Vision:Vision of any company is those values on which company works. As the Maruti Udyog Limited (MUL) is started by governmental initiatives it tends to be more consumer oriented and hence cost- effective, but on the other hand Suzuki’s participation ensures not only need of profit, but the need of maximum profit. The only way of Nora’s dilemma of selecting principles for the company’s working vision was to maximize profit and sales and hence Maruti Udyog Limited (MUL) declared its vision as:“The leader in the Indian Automobile Industry, creating Customer Delight one and shareholder’s wealth two eventually become pride of India. Customer Delight One is making sure that Performance, after sales service and customer are best and beyond expectations, shareholder’s wealth two is the prime concern for running business smoothly. Maruti Udyog Limited (MUL) knows this and understands “Customer Is King” , he can change the future of any company hence goes company’s brand line : COUNT ON US!
Mission:Mission is the statement of any organisation’s purpose , what is want to accomplish in the larger environment and its goal which are specific , realistic, and motivating. Missions are described over Visions and Visions demand certain objectives. The main Objectives / Mission of Maruti Udyog Limited are:1. Modernisation of Indian Automobile Industry. 2. Developing cars faster and selling for less. 3. Production of fuel- efficient vehicles to conserve scarce resources. 4. Production of large number of motor vehicles which are necessary for the Economic Growth. 5. Market penetration, Market developments, similar product development and diversification. 6. Parter relation management, value chain, value delivery networks.
Core Values :12
Customer Obsession
Fast, Flexible and First Mover
Innovation and Creativity
Networking and Partnership
Openness and Learning
1.3.3 Company Board Of Directors
Mr.Shinzo Nakanishi
Managing Director (M.D) and Chief Executive Officer (C.E.O)
Mr. R.C. Bhargava
Chairman
Mr.Maninder Singh Banga
Director
Mr.AmalGanguli
Director
Mr.D.S.Brar
Director
Mr. Keiichi Asai
Director
Mr. Osamu Suzuki
Director
Mr.ShujiOishi
Director
Ms.PallaviShroff
Director
Mr. Kenichi Ayukawa
Director
Mr. Tsuneo Ohashi
Director and Management Executive Officer
13
1.3.4 MILESTONES 2005
2004
The fiftieth lakh car rolls out in April, 2005
Growth in overall sales by 15.8%
New (non A/C) variant of Alto
Alto becomes India's new best-selling car
LPG variant of 'Omni Cargo'
Versa 5-seater, a new variant
Baleno LXi, a new variant
Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago
2003
New Suzuki Grand Vitara XL-7
Redesigned and all-new Zen
New upgraded WagonR
Enters into partnership with State Bank of India
Production of 4 millionth vehicles. Listed on BSE and NSE after a public issue oversubscribed 10 times
2002
WagonR Pride
Esteem Diesel. All other variants upgraded
Maruti Insurance. Two new subsidiaries started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited
Alto Spin LXi, with electronic power steering
Special edition of Maruti 800, India’s first colour-coordinated car
Maruti True value in Mumbai
Maruti Finance in Mumbai with 10 finance companies
Suzuki Motor Corporation (SMC) increases its stake in Maruti to 14
54.2 percent 2001
Zen LXi
Maruti True Value launched in Bangalore and Delhi
Maruti Versa, India’s first luxury MPV
Alto Spin LXi, with electronic power steering
Alto VXi
Customer information centers launched in Hyderabad, Bangalore and Chennai
2000
Launch of versa
First car company in India to launch a Call Center
New Alto
Altura, a luxury estate car
IDTR (Institute of Driving Training and Research) launched jointly with the Delhi government to promote safe driving habits
1999
Maruti 800 EX ( 796cc, hatchback car)
Zen LX (993cc, hatchback car)
Zen VXi (993cc, hatchback car with power steering)
Omni XL ( 796cc, MUV, high roof)
Baleno (1600cc, 3 Box Car)
Wagon R
Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives
1998
Maruti launches website as part of CRM initiatives
Zen D (1527 cc diesel, hatchback car)
Zen VX & Zen VX Automatic
15
1997
New (Omni & Omni E) (796cc, MUV)
Launch of website as part of CRM initiatives
1998 Esteem (1299cc, 3 box car) LX, VX and AX
New Maruti 800 (796cc,hatchback Car) Standard and Deluxe
Produced the 2 millionth vehicle since the commencement of production
1996
1995
Gypsy (E) (970cc, 4WD 8 seater)
Omni (E) (796cc, MUV, 8 seater)
Gypsy King (1298cc, 4WD, off road vehicle)
Zen Automatic (993cc, hatchback car)
Esteem 1.3L (1298 cc, 3 box Car)AX
Launch of 24-hour emergency on-road vehicle service
Esteem 1.3L (1298 cc, 3 box car)VX
With the launch of second plant, installed capacity reached 200,000 units
1994
Esteem1.3L (1298cc, 3 box car)LX
Produced the 1 millionth vehicle since the commencement of production
1993
Zen (993cc, hatchback Car), which was later exported in Europe and elsewhere as the Alto
1992
SMC increases its stake in Maruti to 50 percent
1991
Reaches cumulative indigenisation of 65 percent for all vehicles produced
1990
Maruti 1000(970cc, 3 box), India’s first contemporary sedan
1988
Installed capacity increased to 100,000 units
16
1987
Exported first lot of 500 cars to Hungary
1986
Maruti 800 ( New Model-796cc, hatchback Car)
Produced 100,000 vehicles (cumulative production)
1985
Launch of Maruti Gypsy (970cc, 4WD off-road vehicle)
1984
Omni, a 796cc MUV
Installed capacity reached 40,000 units
Maruti 800, a 796 cc hatchback, India’s first affordable car.
Production was started under JVA
License and JV agreement signed between Maruti Udyog Ltd. and
1983
1982
SMC of Japan
1.3.5 AWARDS 2005
Number one in JD Power SSI for the second consecutive year Number one in JD Power CSI for the sixth time in a row - the only car to win it so many times M800, WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the 2nd time in a row, Esteem number one in it s segment for
17
the 3rd year in a row, Swift number one in the premium compact segment WagonR and Esteem top their segments in the JD Power APEAL study TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05 Maruti bagged the "Manufacturer of the year" award from AutocarCNBC ( 2nd time in a row)-Feb 05 First Indian car manufacturer to reach 5 million vehicles sales Business World ranks Maruti among top five most respected companies in India-Oct 04 Maruti ranked among top ten (Rank7) greenest companies in India by Business Today - Sep '04
2004
Maruti Suzuki was No. 1 in Customer atisfaction, No. 1 in Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R) No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto) Business World ranked us among the country's five most respected companies Business World ranked us the country's most respected automobile company Voted Manufacturer of the year by CNBC
18
Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG
2003
Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003" J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003. MUL tops in J D Power CSI (2001) for 4th time in a row
2001
MUL tops in J D Power CSI (2001) for 2nd time in a row: another international first
2000
Maruti bags JD Power CSI - 1st rank; unique achievement by market leader anywhere in the world
1999
MSM launched as model workshop in India; achieves highest CSI rating. Central
Board
of
Excise
&
Customs
awards
Maruti
with
"SammanPatra", for contribution to exchequer and being an ideal tax assessee
19
1998
CII's Business Excellence Award
1996
Maruti wins INSSAN award for "Excellence in Suggestion Scheme" Awarded the Star Trading House status by Ministry of Commerce
1994-95
Engineering Exports Promotion Council's award for export performance
1994
Best Canteen award among Haryana Industries as part of employee welfare
1992-93
Engineering Exports Promotion Council's award for export performance.
1.4 ORGANISATION STRUCTURE
Maruti Udyog Limited has a flat organisation structure with a maximum of three levels. The Organisation Structure of Maruti Udyog Limited is follows:-
20
MANAGING DIRECTOR
Manufacturing
Financial
General
Director
Controller
Manager
DGMs/AGMs
DGMs/AGMs
DGMs /AGMs
Managers / AM
Managers /AM
Managers / AM
Engineers and Sr. Executives
Jr. Executives
Sr. Executives
Jr. Executives
21
Sr. Executives
Jr. Executives
1.4.2 THE PRODUCTION PROCESS AT MARUTI
STEEL COILS
BLANKING
PRESSING
WELDING
PAINTING
FROM
FROM ASSEMBLY
VENDOR
VEHICLE
FROM
INSPECTION
VENDOR
VENDOR
TEST RUN
SUPPLY & DISPATCH
22
1.4.3 Recruitment and Selection Process Of Maruti Suzuki
Meaning of recruitment
It is a process of searching the potential candidate and offers him or her the job. It is positive in nature in the Indian context. Process of identifying and hiring best qualified candidate for a job vacancy in a most timely and cost effective manner.
Meaning of Selection
It is the process of searching the potential candidate. It is negative in nature in the Indian context but positive in U.S context.
Steps involved in the Selection Process
Selection process consists a series of steps and at each stage facts may come into light that may lead to rejection of the application of the applicants. It is a series of successive hurdles or barriers which an applicant must have to cross.
A) Preliminary Interview
(Screening Applications) :- Initial screening is done to
weed out totally undesirable or unqualified candidate at the outset. It is essentially a sorting process in which prospective candidate are given necessary information about the nature of the job and the organisation at the same time, the necessary information is also elicited from the candidate about their education, skills, experience, salary expected and the like . It helps to determine whether it is worthwhile for a candidate to fill up the application form.
B) Application Form :- Application form is a traditional and widely used device for
collecting information about the candidate. It should provide all the information
23
relevant to selection, where refeErence for caste, religion, birth place, may be avoided as it may be regarded an evidence of description.
C) Selection Test :-
Psychological test are being increasingly used in employee
selection where a test may evolve some aspects of an individual’s attitude , behaviour and performance. performance. Tests are useful useful when the number of applicants applicants is large as at the best it reveals that the th e candidate who scores above the predetermined cutoff points are likely to be more successful than those scoring below the cut off points.
D) Employee Interview:- Interview is an essential element of selection and no selection
procedure is complete without one or more personal interview, where the information collected through application letter or application forms and test can be crossed checked in the interview.
E) Medical Examination :- Applicants who have crossed the above stage are sent for
the physical medical examination either to the company’s physician or to a medical officer approved for the purpose . Such examination serves the following purpose :-
1) It determines whether the candidate is physically fit to perform the job where those who are physically unfit are rejected. 2) It prevents the employement of people suffering from f rom contagious diseases. 3) It identifies candidate who are are otherwise suitable but requires specific job due to physical handicaps and allergies.
F) Reference Checks :- The applicants are asked to mention in his application form, the
names and address of two or more persons who knows him very well. These may be their previous employer , heads of educational institution or public figures. These people are requested to give their opinion about the candidate without incurring any liabilities.
G) Final Approval :-In most of the t he Organisations, selection process is carried out by the
Human resource department, where the decision of the departments are 24
recommendatory. recommendatory. The candidate shortlisted by the department are finally approved approved by the executive of the concerned department or the unit.
H) Employment :- Employment is offered in the form of an appointment letter
mentioning the post, the rank, the salary, grade, the date by which the candidate should join and other terms and condition in briefs.
I) Induction :-The process of receiving employee when they begin work introducing
thm to the company and to their colleagues and informing them of the activities, customes and traditions of the company is called “ induction”.
J) Follow ups :- All selection should be validated by follow ups, it is a stage where
employee is asked how he or she feels about progress to the date and the worker’s immediate supervisor is asked for comments which is compared with the notes taken at the time of selection.
1.4.4 Training and Devlopment Programs of Maruti Suzuki Suzuki
TRAINING & DEVELOPMENT
Annual Training Plan - All Levels
Training customised to meet Organisational Objectives
Topics selected based on Vision, Values & Departmental Managers
Competency Mapping to identify Individual Training Needs
Technical Technical Training on latest Technologies abroad at SMC, Japan
STRONG FOCUS ON TRAINING INITIATIVES
-
Build a Learning Organisation
-
Continuous Value Additions to Professional Skills
-
Customised Training
-
Training to the personnel of Business Partners
25
Feedback of Company-wide
Overseas training Training held in co-ordination with SMC, Japan and AOTS (Assoc. for Overseas Tech. Scholarship)(covered Scholarship)(covered 1600 employees under the various schemes)
6 months SMC Training for Technicians - OJT in SMC, Japan (2 batches/yr of 50 each)
9 months Javada Training for Press, Tool & Die Specialists - Design & Maintenance
AOTS Managerial Training (4-10weeks) for Manager & above - Managerial Best Practices
AOTS Technical Training (3.5 to 6 months) for Supervisors & above - Technological Knowhow
R & D Training (2 yrs.) - Research on new Technologies Technologies
1.4.5 APPRAISAL & REWARD
Appraisal
New Appraisal System based on KRAs & Targets
Review of Targets at regular Intervals
People Development Development an important i mportant KRA
Reward
Promotions based on Performance
Productivity & Profit-linked Incentive Schemes
Training including Long-term SMC Japan Trg.
Highest paid workforce in the Industry, if not the Country
LEADERSHIP
Vision, Value & Team Building Workshops for Top Management
CFT (Cross Functional Teams) of Managers for Major M ajor Thrust Areas
Managers sent to Joint Ventures to upgrade their practices to MUL standards
26
1.4.6 INTERNATIONAL BUSINESS
In August, 2003 Maruti crossed a milestone of exporting 300,000 vehicles since its first export in 1986. Europe is the largest destination of Maruti’s exports and coincidentally after the first commercial shipment of 480 units to Hungary in 1987, the 300,00 mark was crossed by the shipment of 571 units to the same country. The top ten destinations of the cumulative exports have been Netherlands, Italy, Germany, Chile, U.K., Hungary, Nepal, Greece, France and Poland in that order. The Alto, which meets the Euro-3 norms, has been very popular in Europe where a landmark 200,000 vehicle were exported till March 2003. Even in the highly developed and competitive markets of Netherlands, UK, Germany, France and Italy Maruti vehicles have made a mark. Though the main market for the Maruti vehicles is Europe, where it is selling over 70% of its exported quantity, it is exporting in over 70 countries. Maruti has entered some unconventional markets like Angola, Benin, Djibouti, Ethiopia, Morocco, Uganda, Chile, Costa Rica and El Salvador. The Middle-East region has also opened up and is showing good potential for growth. Some markets in this region where Maruti is, are Saudi Arabia, Kuwait, Bahrain, Qatar and UAE. The markets outside of Europe that have large quantities, in the current year, are Algeria, Saudi Arabia, Srilanka and Bangladesh. Maruti exported more than 51,000 vehicles in 200809 which was 59% higher than last year. In the financial year 2008-09 Maruti exports contributed to more than 10% of total Maruti sales.
27
Continent wise export of Maruti Udyog
Sales
Limited Since ince tion
Asia Africa America Europe Oceania
Graph 1.1
Graph showing the Continent wise export of Maruti Udyog Limited Since Inception. Description :Asia
12%
Africa
7%
America
9%
Europe
70%
Oceania
2%
Refrence :- Official website of Maruti Suzuki (www.marutisuzuki.com)
28
1.5 Financial Structure of Maruti Suzuki
1.5.1 Capital structure The capital structure of Maruti Udyog limited are as follows :-
From Year
2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1993
Authorized Capital
Issued Capital
Paid Up Shares (Nos)
Paid Up Face Value
2010
Equity Share
372.00
144.46
288910060
5
144.46
2009
Equity Share
372.00
144.46
288910060
5
144.46
2008
Equity Share
372.00
144.46
288910060
5
144.46
2007
Equity Share
372.00
144.46
288910060
5
144.46
2006
Equity Share
155.00
144.46
288910060
5
144.46
2005
Equity Share
155.00
144.46
288910060
5
144.46
2004
Equity Share
155.00
144.46
288910060
5
144.46
2003
Equity Share
155.00
144.46
288910060
5
144.46
2002
Equity Share
135.00
132.29
13229162
100
132.29
2001
Equity Share
135.00
132.29
13229162
100
132.29
2000
Equity Share
135.00
132.29
13229162
100
132.29
1999
Equity Share
135.00
132.29
13229162
100
132.29
To Year
Class Of Share
Table 1.1 Showing the capital Structure of Maruti Suzuki From 2006 to 2010 Refrence :- Official website of Maruti Suzuki ( www.marutisuzuki.com) 29
Paid Up Capital
1.5.2 BALANCE SHEET OF MARUTI UDYOG LIMITED For the financial year 2006-10
Balance sheet Mar ' 10
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Sources of funds (in lakhs) Owner's fund
Equity share capital
144.50
144.50
144.50
144.50
144.50
Share application money
-
-
-
-
-
Preference share capital
-
-
-
-
-
11,690.60
9,200.40
8,270.90
6,709.40
5,308.10
26.50
0.10
0.10
63.50
71.70
794.90
698.80
900.10
567.30
-
12,656.50 10,043.80
9,315.60
7,484.70
5,524.30
10,406.70
8,720.60
7,285.30
6,146.80
4,954.60
-
-
-
-
-
Less : accumulated depreciation
5,382.00
4,649.80
3,988.80
3,487.10
3,259.40
Net block
5,024.70
4,070.80
3,296.50
2,659.70
1,695.20
387.60
861.30
736.30
238.90
92.00
7,176.60
3,173.30
5,180.70
3,409.20
2,051.20
Current assets, loans & advances
3,856.00
5,570.00
3,190.50
3,956.00
3,870.70
Less : current liabilities & provisions
3,788.40
3,631.60
3,088.40
2,779.10
2,184.80
Reserves & surplus Loan funds ( in lakhs)
Secured loans Unsecured loans Total Uses of funds (in lakhs) Fixed assets
Gross block Less : revaluation reserve
Capital work-in-progress Investments Net current assets (in lakhs)
30
Mar ' 10
Total net current assets
67.60
1,938.40
102.10
1,176.90
1,685.90
-
-
-
-
-
12,656.50 10,043.80
9,315.60
7,484.70
5,524.30
Miscellaneous expenses not written Total
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Notes:
Book value of unquoted investments
11.10
3,162.20
5,169.60
3,398.10
2,040.10
Market value of quoted investments
215.10
108.70
219.50
270.40
289.80
Contingent liabilities
3,657.20
1,901.70
2,734.20
2,094.60
1,289.70
Number of equity sharesoutstanding (Lacs)
2889.10
2889.10
2889.10
2889.10
2889.10
Table :- 1.2 showing Balance Sheet of Maruti Suzuki for the year 2006 to 2010 Refrence :- Official wesite of Maruti Suzuki (www.marutisuzuki.com)
1.5.3 PROFIT AND LOSS ACCOUNT The Profit and Loss account of Maruti Suzuki for the year 2006 to 2010 is as follows :Profit loss account Mar 10
Mar 09
Mar 08
Mar 07
Mar 06
Income
Operating income
29,317.70 20,729.40 18,066.80 14,806.40 12,197.90
31
Mar 10
Mar 09
Mar 08
Mar 07
Mar 06
Expenses
Material consumed
22,435.40 16,339.80 13,622.00 11,063.70 9,223.70
Manufacturing expenses
1,278.20 909.70
670.60
489.80
359.60
Personnel expenses
545.60
471.10
356.20
288.40
228.70
Selling expenses
916.00
738.20
560.20
499.90
356.00
Adminstrative expenses
404.60
389.20
326.30
274.50
170.60
Expenses capitalised
-
-22.30
-19.80
-14.30
-6.70
Cost of sales
25,579.80 18,825.70 15,515.50 12,602.00 10,331.90
Operating profit
3,737.90 1,903.70 2,551.30 2,204.40 1,866.00
Other recurring income
617.70
Adjusted PBDIT
4,355.60 2,451.30 3,007.40 2,565.50 2,134.10
Financial expenses
33.50
51.00
59.60
37.60
20.40
Depreciation
825.00
706.50
568.20
271.40
285.40
Other write offs
-
-
-
-
-
Adjusted PBT
3,497.10 1,693.80 2,379.60 2,256.50 1,828.30
Tax charges
1,094.90 457.10
Adjusted PAT
2,402.20 1,236.70 1,616.30 1,551.20 1,267.40
Non recurring items
44.30
Other non cash adjustments 51.10 Reported net profit
547.60
456.10
763.30
361.10
705.30
268.10
560.90
-55.90
37.90
-23.00
-83.70
37.90
76.60
33.40
5.40
2,497.60 1,218.70 1,730.80 1,561.60 1,189.10
Earnigs before appropriation 10,501.80 8,244.40 7,368.10 5,947.10 4,631.20 Equity dividend
173.30
101.10
144.50
130.00
101.10
Preference dividend
-
-
-
-
-
Dividend tax
28.80
17.20
24.80
21.90
14.20
Retained earnings
10,299.70 8,126.10 7,198.80 5,795.20 4,515.90
Table :- 1.3 Showing Profit and loss account of Maruti Suzuki Refrence :- Official website of Maruti Suzuki (www.marutisuzuki.com)
32
Chapter :- 2 Research Methodology
33
2.1 Meaning of Research
Redman and Mory define research as a “systemized effort to gain new knowledge.” Some people consider research as a movement, a movement from the known to the unknown. Research is an academic activity and as such the term should be used in a technical sense. According to Clifford Woody, research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.
2.2 Objectives of Research The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has it’s own specific purpose. The main objectives of this research was to :1. To study about Maruti Suzuki i.e. when it was established , why it was established and by whom it was established, financial structure, Organisational structure etc. 2. To study about the marketing mix and the strategies adopted by Maruti Suzuki in order to cater the needs of the people and also to face tough competition in the market since after the Globalisation of the Indian economy many competitors have grown and tries to undermine the monopoly created by Maruti Suzuki. 3. To study the strategies adopted by Maruti Suzuki due to which they are able to dominate the Indian Automobile Sector since last three decades.
34
2.3 Significance of Research
“All process is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry and inquiry leads to invention.” Is a famous Hudson Maxim in context of which the significance of research can well be understood. Increased amounts of research make progress possible. Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization. The role of research in several fields of applied economics, whether related to business or to the economy as a whole, has greatly increased in modern times. The increasing complex nature of business and government has focused attention on the use of research in solving operational problems. Research, as an aid to economic policy, has gained added importance, both for government and business
2.4 Research Methodology Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or techniques but also the methodology.
2.5 Data Collection Source Information for this project was collected primarly through secondary sources.The data collected from the secondary sources are called as Secondary data. Secondary Data:Any data, which have been gathered earlier for some other purpose, are
secondary data in the hands of researcher. Those data collected first hand, either by the
35
researcher or by someone else, especially for the purpose of the study is known as primary data. The data collected for this project has been taken from the secondary source.
Sources of secondary data are :
Internet
Magazines
Publications
Newspapers
Brouchers
2.6 LIMITATIONS
The biggest limitation of this project was time , due to lack of time the necessary data were collected from the secondary sources..
Due to tough competition in the market the companies are not willing to disclose their strategies adopted to face the competition so sufficient information were not collected and the information collected are not 100% accurate.
36
Chapter: - 3 Marketing Strategies
3.1 Meaning of Marketing 3.2 Brand 3.3 Products 3.4 Price 3.5 Place 3.6 Promotion 3.7 Market Segmentation , Targeting and Positioning 3.8Market Share 3.9Other strategies adopted by Maruti 3.10Customer satisfaction 37
3.1 Marketing It is the process of directing of directing the flow of goods and services from the producers or the manufacturers to the customers or consumers. It is accountable for planning, organising, directing, coordinating, motivating, and controlling the market activities. According to American Marketing Association, “Marketing is the performance of the business activity that directs the flow of goods and services through producers to consumers to users”. According to Cundiff and Still, “Marketing is the business process by which the products are matched with the market and through transfer of ownership are affected”. Matching the products with the market means determining the needs and requirements of potential customer and supplying them the product which meets their requirements. According to Philip Kotler, “ Marketing is the social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging product of value with others”. According to
William J. Stanton, “Marketing is a total system of interacting business
activities designed to plan, price, promote, and distribute, wants satisfying products to target markets to achieve Organisational objectives”. In general we can say that Marketing includes all those activities carried on to transfer those goods from the manufactures or the producers to the consumers that can satisfy the needs and the requirements of the consumers.
3.2 BRAND Around 1970, Sanjay Gandhi the political advisor and younger son to then Prime minister of India, Indira Gandhi, envisioned the manufacture of an Indigenous, cost effective, low
38
maintenance and compact car for the Indian middle class. Indira Gandhi’s cabinet unanimously passed a resolution for the development and production of “people’s car”. Sanjay Gandhi’s company was christened Maruti Limited. The name was chosen as Maruti after a Hindu deity named “Maruti”. Unfortunately Sanjay Gandhi died without completing his project. After the death of Sanjay Gandhi, Indira Gandhi decided that the project should not be allowed to die. Maruti entered into collaboration with the Suzuki motors of Japan. The collaboration heralded a resolution in the Indian car industry by producing Maruti 800. The car went on sale on December 14, 1983.
3.3 PRODUCT Product mix involves planning, developing, and producing the right types of products and services to be marketed by the firm. It deals with the product range, durability and other qualities. Apart from producing right products, emphasis should also be laid on their branding, packaging, colour and other features. In short product planning and development involves decision about : i) quality of the product, ii) size of the product, iii) design of the product, iv) volume of the production, v) packaging, vi) warranties and after sale service, vii) product testing, viii) product range, etc.
Products Offered by Maruti Suzuki
39
Maruti Suzuki comes with a large number of products i.e cars ranging from economy cars to luxury cars to super SUV’s. The economy cars includes :A) Maruti 800 B) Alto C) Zen Estilo D) Wagon R E) A - Star F) Ritz G) Swift H) Swift Dzire
The Utility Cars of Maruti Suzuki includes :A) Maruti Omni (Van) B) Maruti Eeco C) Maruti Gypsy D) Grand Vitara
The Luxury Cars of Maruti Suzuki includes :A) Maruti Esteem B) Maruti SX4
PRODUCTYEAR IN WHICH LAUNCHED Maruti Suzuki 800
1983
Maruti Suzuki Omni
1984
Maruti Suzuki Gypsy
1985
Maruti Suzuki Alto
2000
40
Maruti Suzuki Wagon R
2002
Maruti Suzuki Swift
2005
Maruti Suzuki SX4
2007
Maruti Suzuki A Star
2008
Maruti Suzuki Swift Dzire
2008
Maruti Suzuki Zen Estilo
2009
Maruti Suzuki Eeco
2010
Maruti 800 Maruti 800 is the most popular entry segment car in India. With the introduction of Maruti 800 in 1980’s Maruti Udyog Limited broke the hegemony of Ambassador and Fiat in the Indian Car market.
Technical Specifications:Dimensions
Length
3335 mm
Width
1440 mm
Height
1405 mm
Unladen Weight
655 Kgs (AC Euro I) , 640 Kgs (AC Euro I) , 665 Kgs ( AC Euro II), 650 Kgs (AC Euro II)
Ground Clearance
170 m
Wheel Base
2175 mm
Power 41
Engine Type
4 Stroke, Water cooled SOHC
Piston Displacement
796 cc
Max. Power
39.5 bhp @ 5500 rpm
Max. Torque
5.7 N m @ 2500 rpm
Fuel System
Carburettor
Transmission and
Manual, 4 Forward (Synchromesh), 1
gear box
reverse
Suspension
Front
McPherson strut and coil spring
Rear
Leaf Spring
Steering
Type
Manual Rack and Pinion
Turning radius
4.4 mts
Brakes
Type
Dual Circuit
Front
Disc
Rear
Drum
Tyres
5.65 – 12 – 4 PR
Capacities
Seating
4 Persons
Fuel Tank
30 Litres
42
Maruti Alto
Maruti Alto is one of the hottest selling compact cars in Indian market. Alto uses Maruti 800’s proven and highly fuel efficient , 3 pot motor with a four valve head and its electronic tachometer results in unmatched fuel efficiency . It is the most fuel efficient car in A2 Segment.
TECHNICAL SPECIFICATIONS :Dimensions
Length
3495 mm
Width
1495 mm
Height
1460 mm
Wheel base
2360 mm
Tread
1290 mm
Min. turning radius
4.6 m
Ground clearance
160 mm
Weight
Alto
725 kgs
Alto LX, LXi
740 Kgs
Gross vehicle weight
1165 Kgs
Engine
43
Swept volume
796 cc
Engine type
FC Engine, 4 valve per cylinder MPFI
No. of cylinder
3
Engine control
32 bit computer
Max. Power
47 bhp @ 6200 rpm
Max. Torque
62 Nm @ 3000 rpm
Transmisson
5 Speed all synchromesh, Manual
Suspension System
Front
McPherson strut with Torsion type coil anti roll bar
Rear
Coil sprint with double action telescopic shock absorbers
Seating Capacity
4 persons
Tyres
145/80 R12
Maruti Omni ( Van)
Maruti Omni is popularly known as Maruti Van. Maruti Omni comes in three variants and they are :- Omni 5- Seater , Omni 8- seater and Omni LPG. Maruti Omni is a perfect family car. It has enough space for our life style needs whether we are going on a picnic, weekend outing or for a game of golf. We can pick our entire luggage without thinking twice. Omni provides ample headroom and legroom to ensure a comfortable and enjoyable journey.
TECHNICAL SPECIFICATIONS :Dimensions 44
Length
3370 mm
Width
1410 mm
Height
1640 mm
Wheelbase
1840 mm
Ground clearance
165 mm
Min turning radius
4.1 m
Weight
Omni
785 Kgs
Omni E
800 Kgs
Engine
Type
4 Stroke cycle, water cooled
No. of cylinders
3
No. of cylinder valves
6
Piston displacement
796 cc
Max. Power
35.0 bhp @ 5000 rpm
Max. Torque
601 NM @ 3000 rpm
Power Transmisson
Type
Manual, 4 forward all synchromesh
Front
Booster assisted disc
Rear
Drum
Brakes
Fuel tank capacity
36 Litres
45
Maruti Eeco EECO was introduced in India by Maruti Suzuki during 2010. This car is essentially an updated Versa, this is an urgent refresh in lines with Maruti Suzuki not being able to come up with a new minivan. EECO comes with 5 seater and 7 seater options. EECO is equipped with advanced Engine Management System for optimizing fuel efficiency and performance. It is branded by the manufacturer as a perfect car for every occasion-a business trip or a picnic with the loved ones[1]. A new minivan from Maruti Suzuki is expected in 2011 to replace the Eeco/Versa and (possibly) the ageing Omni.
Maruti EECO is available in following variants :5 seater, standard 5 seater, AC 7 seater, Standard EECO is powered by Bharath Stage IV compliant engine.
TECHNICAL SPECIFICATIONS :-
Fuel:
Petrol
Engine type:
Aluminium
Fuel distribution:
Multipoint Injection
Power:
73 bhp (54 kW; 74 PS) @ 6000 rpm
Displacement:
1196 cc
Layout:
4 cylinder in-line
Max. Torque:
101 N·m (74 ft·lbf) @ 3000 rpm 46
Valve train:
16 valves / 4 per cylinder
Transmission:
Manual-5 speed
Suspension
Front Suspension:
McPherson strut
Rear Suspension:
3 Link Rigid
Brakes
Front Brakes : Rear Breakes :
Ventilated disc Drum
Tyres:
155 R-13 LT
Tyre type:
Tubeless
ZEN ESTILO
Maruti Zen is a clear leader in the premium compact car segment in India. It has several technology that makes it stand out from other cars in its segment. Maruti Zen comes equipped with 16 x 4 all aluminium hyper tech engines, with its power to weight ratio of 78.4 bhp per tonnes , the highest in its class, the engine also offers optimum fuel economy , excellent pick up and acceleration. The 16- bit Micro processor in Zen delivers ideal combo of speed, power and fuel efficiency. Its electronic power steering ensures effortless maneuverability, more control and a better grip.
47
TECHNICAL SPECIFICATIONS :-
Capacities
Seating Persons
5
Fuel in litres
35
Engine in CC
993
Unladen weight in kgs
765
Laden weight in kgs
1190
Tyres
145 / 80 R 12 (Front
&
rear) PETROL Bharat Stage II
LX
LXi
VXi
All aluminium engine
16 valve, 4 cylinder inline engine
16 bit ECM
Multipoint fuel injection
Maximum
engine
output
in
60@ 6000
engine
torque
in
8@4500
bhp/rpm Maximum kgm/rpm Compression ratio
9.4:1
48
PETROL Bharat Stage III LX
LXi
VXi
All aluminum engine
16 valve, 4 cylinder inline engine
32 bit ECM
Multipoint fuel injection
Maximum
engine
output
in
60 @ 6200
engine
torque
in
8 @ 4500
bhp/rpm Maximum kgm/rpm Compression ratio
9.4:1
DIMENSIONS Overall length
3535mm
Overall width
1495mm
Overall height
1405mm
Wheelbase
2335mm
Ground clearance
165m
WAGON R Wagon R is a hugely successful car which comes in four variants-
Maruti Wagon R LX,
Maruti Wagon R LXi, Maruti Wagon R VXi and Maruti Wagon R AX.Wagon R comes with 1064 cc MPFI low friction engine that delivers an awesome 64 bhp @6200 rpm for smoother pick up and faster acceleration. Dual Distributor less Digital Ignition (DDLI) ensures an
49
instant hassle free start every time and a more efficient power distribution. Wagon R’s tall body , high seats and wide opening doors make it easier to get in and out.
TECHNICAL SPECIFICATIONS :Dimension in MM
Length
3495
Width
1495
Height
1660
Wheelbase
2360
Front track
1295
Rear track
1290
Min. ground clearance
165 m
Weight in Kg
Kerb weight
825(LX,LXi,VXi) 840 (AX)
Gross Weight
1225 (LX,LXi, VXi) 1240(AX)
Engine
Swept volume
1061 cc
Type
FC Engine , 4 Valve per cylinder , MPFI
Fuel distribution
Multipoint injection
Engine control
16 – Bit Electronic Control Module (ECM)
No. of cylinders
04
50
Max. Power
64 bhp @6200 rpm
Max. Torque
84 NM @ 3500 rpm
Power Steering
Type
Electronic Power Steering (EPS)
Transmission
Manual ()- 5 speed , All synchromesh
Suspension
Front
McPherson strut with torsion type roll control device
Rear
Coil spring, gas filled shock absorber with 3 link rigid axle isolated trialing arms.
A-STAR Indian car market leader Maruti Suzuki has launched A-Star in the hatchback car segment in which the company holds ruling position with 55% market share. Maruti has unveiled A Star as a next generation model of its model Alto which is already selling greatly in the segment. Scroll down to know more about the sporty and striking features of all new A Star Car.
TECHNICAL SPECIFICATIONS :Dimension in mm
Length
3500
Width
1600
Height
1490
Wheelbase
2360
Front track
1295 51
Rear track
1290
Min. Ground clearance
170
Min. Turning radius
4.5
Weight In Kgs
Kerb weight
870
Gross Vehicle weight Capacity
Seating capacity
5 persons
Fuel tank capacity
35 litres
Engine
Swept volume
1061 cc
Type
KB series
Fuel distribution
Multipoint injection
Displacement
998 cc
No. of cylinders
03
Max. power
67 bhp @6200 rpm
Max. Torque
90 NM @ 3500 rpm
Steering
Rack and pinion , Power assisted
Transmission
Manual () – 5 Speed , All synchromesh
Suspension system
Front
McPherson strut and coil spring
Rear
Isolated trailing link and coil spring
52
SWIFT Maruti Swift brings a feeling of freshness to the compact car segment . It’s appealing looks , spacious interiors, and a whole a lot of user friendly features at once catch our attention. It comes in three variants :-Maruti Suzuki Swift LXi, Swift VXi, Swift ZXi.
TECHNICAL SPECIFICATIONS :-
Body Type Body Type :-
Hatch back
No. of doors :-
5
Seating Capacity :-
5
Engine
Capacity :-
1298 cc
No. of cylinders :-
4
Bore X stroke :-
74.0 X 75.5
Compression Ratio :-
9.0 :1
Max. Power :-
87 bhp @ 6000 rpm
Max. Torque:-
113 Nm @ 4500 rpm
Fuel distribution :-
Multipoint injection
Transmission
53
Type :-
5 Speed Manualwith synchromeshin all and 1 reverse
Gear ratios :-
1
st
3.545
2
nd
1.904
3
rd
1.208
4
th
0.966
5
th
0.757
Reverse
3.0272
Power Steering
Type :-
Electronic power steering (EPS)
Suspension System
Front:
McPherson Strut with torsion type roll control device
Rear :-
coil spring, gas filled shock absorber with 3 link rigid axle isolated trailing arms
MARUTI GYPSY
It is manufactured in India by Maruti Suzuki. It was introduced in the Indian market in 1985 with the 970 cc F10A Suzuki engine and was an instant hit in the civilian market as well as with law enforcement. It was codenamed MG410 that stood for Maruti Gypsy 4 cylinder 1.0
54
litre engine. Initially, it was only available as a soft-top; but a bolt on hardtop was later introduced to the public after the aftermarket hardtops became extremely popular. In July 1993, Maruti introduced the "widetrack Gypsy" codenamed MG410W replacing the MG410. Both front and rear track of the wheels are increased by 90mm (from 1,210 mm (47.6 in) to 1,300 mm (51.2 in) for front wheels and from 1,220 mm (48.0 in) to 1,310 mm (51.6 in) for rear wheels) and these Gypsys are instantly recognizable by the pronounced painted fender flares.
TECHNICAL SPECIFICATIONS :Dimensions
Length 4,010 mm (157.9 in)
Width 1,540 mm (60.6 in)
Height 1875/1845 mm*
Wheelbase 2,375 mm (93.5 in)
Front Track 1,300 mm (51.2 in)
Rear Track 1,310 mm (51.6 in)
Kerb Weight 985 kg/1, 040 kg*
Gross Vehicle Weight 1585 kg/1,620 kg*
Engine
Type G13BB MPFI 16 Valve Gasoline
Cylinders 4
Displacement 1298 cc
Maximum Power 80 bhp (60 kW; 81 PS) @6000 rpm
Maximum Torque 103 N·m (76 lb·ft) @ 4500 rpm
Transmission Type Five forward (all Synchromesh), One reverse
Transfer gearbox Two-speed
Type constant mesh
Transfer gear ratio High : 1.409; Low : 2.268
Suspension Front and Rear Rear Leaf spring with Double action damper
55
Brakes With Booster
Front Disc
Rear Drum
Tyres F78-15-4 PR 205/70R15
Capacities
Fuel tank 40 L (11 US gal; 9 imp gal)
Engine oil 4 L (1.1 US gal; 0.9 imp gal)
MARUTI SUZUKI SX4
Designed by GiorgettoGiugiaro'sItaldesign studio, the SX4 (an abbreviation of "Sports Xover 4 all seasons ") replaces the Aerio (some markets called Liana). The "SX 4" designation was used by American Motors (AMC) for a sporty liftback model in its all-wheel drive AMC Eagle passenger cars.
Technical Specifications :Dimensions & Weight
Length (mm)
4490
Width (mm)
1735
Height (mm)
1560
Wheelbase (mm)
2500
Kerb Weight (kgs)
1170
56
Seating Capacity
05
Engine
Model Designation
1.6 L 16 V
No. Of Cylinders
04 Inline
Configuration
DOHC
Displacement (cc) Transmission Top Speed (kmph)
1586 5 Manual 175
Suspension
Front
Independent strut
Rear
suspension
gas-filled
McPherson
& anti-roll bar
Semi-independent torsion beam with gas filled shock absorbers
Brakes
Type Disc Front / Rear Brakes
Ventilated Discs/ Drums
Tyres
Type
with
195/65 R15
Wheels
15" Steel
Fuel Tank
50 Litres
Performance Max. Horsepower (ps/rpm)
103 PS @ 5500 rpm
Max. Torque (kg m/rpm)
145 Nm @ 4200 rpm
57
GRAND VITARA
Grand Vitara is meant for the people who want to live life grand size. With 127 KW @ 6000 rpm on call, the 2.7 litres DOHC V6 engine can empower the Grand Vitara to climb up steep terrains; Zip effortlessly down the highway and with plenty of low end torque, the high performance vehicle can take on snowy ramps and muddy tracks with equal ease. Its four wheel drive gives Vitara the power to go places.
Technical Specifications :Dimension in MM
Length
4760
Width
1780
Height
1740
Wheelbase
2800
Front track
1500
Rear track
1500
Min. Ground clearance
183 m
Weight in Kgs
Kerb Weight
1700
Gross Weight
2300
58
Capacity
Seating
7 persons
Fuel tank
66 litres
Engine
Type
H27A V6 type
No. Of cylinders
06
No. of valves
24
Piston displacement
2736 cc
Bore X Stroke
88 X 75
Compression ratio
9.5 : 1
Max. Output
166 bhp @ 6000 rpm
Max. Torque
236 NM @ 4500 rpm
Fuel distribution
Multipoint injection
Max. Speed
183 Km / Hr
Steering
Rack and Pinion
Brakes
Front
Disc
Rear
Drum
Suspension
Front
McPherson strut
Rear
5 – Link rigid with coil spring
Tyres
235 / 60 R 16 Tubeless tyres
59
3.4 PRICES OF MARUTI PRODUCTS
Car market leader Maruti Udyog Limited has announced a marginal increase in price of certain models. .The price increase is due to rise in input costs and freight costs, which increased following the rise in oil prices. In this phase, the company has decided to pass on only a part of the increase in costs to the customers. There is no change in the prices of Swift, Zen, and WagonR (Petrol). Ex-Showroom Prices in Delhi (in Rs) :Models
Prices (Rs.)
Maruti Suzuki 800
1,94,620
Maruti Suzuki Omni
2,09,757
Maruti Suzuki Alto
2,28,982
Maruti Suzuki Eeco
2,84,488
Maruti Suzuki Zen Estilo
3,31,412
Maruti Suzuki Wagon R
3,39,058
Maruti Suzuki A Star
3,63,220
Maruti Suzuki Ritz
4,09,822
Maruti Suzuki Swift
4,27,635
Maruti Suzuki Swift Dzire
4,96,671
Maruti Suzuki Gypsy
5,28,818
Maruti Suzuki SX4
7,08,062 60
Maruti Suzuki Grand Vitara
17,19,226
In Price case
They provide a list of different types of models of cars
They also gives a discount in the range of 20 % to 25 %.
3.5 PLACE
The Place of Maruti cars is in the whole world. Maruti Udyog Limited decides its distribution channel for selling cars like some time or level or sometimes two levels marketing channels. They decide area in which they deal customers. They show the permanent location for selling the cars. They provides many useful inventory they define the transport facility of the company to the market and market to the customers. Many showrooms of MUL are there in our India.
3.6 PROMOTION
Main Promotion of Maruti Suzuki cars is done by the advertising. The advertising is mainly done in the form of different Television channels , different newspapers, holdings etc. Now a days the main promotion is done by the brand Ambassador such as film stars, celebrities, sportsmen etc. and in this case they decide their actual and equired sales force for selling their cars. They also maintain customer relation and they do direct marketing .
3.7 SEGMENTATION
3.7.1 Meaning of segmentation :Market segmentation is the process of dividing a potential market into distinct sub- markets of consumers with common needs and characterstics. Market segmentation is the starting 61
steps in applying the marketing strategies. Once the segmentation takes place , the marketers targets the identified customer groups with proper marketing- mix so as to position the products/ brands/ company as perceived by the target customer.
3.7.2 Objectives of Segmentation :-
The main objective of segmentation is to provide those products to the customer they can :1. Satisfy their basic needs 2. Solve their problem 3.
Make themselves feel good
3.7.3 Segmentation of Market by Maruti Suzuki:-
Maruti Udyog Limited was set up to manufacture low price cars that can be afforded by the Indians but after 1990 that means after the globalisation ( i.e opening of Indian economy for rest of the world) many competitors started in enter the Indian market . Further with the develoment of the Indian economy the income of the peoples of India also increased and people started to afford luxury cars also. They have also catogorised their cars into different segments depending upon the choices of different peoples depending upon their income and other behaviours and these segments are :
Mini hatch back segment or A1 segment :-
Maruti 800
Compact hatchback segment or A2 segment :-
Maruti Alto Zen Estilo Wagon R A – Star Swift
Mid size segment or A3 segment :62
Maruti Esteem SX4
Utility Vehicle or MUV :-
Maruti Eeco Maruti Gypsy Grand Vitara
3.8 Market Positioning
3.8.1 Meaning :Market positioning means placing the potential product in the market that can satisfy the needs and requirements of the target customers.
3.8.2 Positioning of products by Maruti :Management of Maruti’s always tries that their products should be available at the authorised outlets in every city of India. In case of any new product they tries to make it available at every outlets in metropolitian cities and by getting the response of customers they increases the production and extends the availability in urban , semi urban and to the rular areas also.
3.9 Other Strategies adopted by Maruti Suzuki
3.9.1 After Sale service :As on date there are 342 Maruti dealer workshops and 1,545 Maruti Authorised Service Stations, or MASSs, covering 898 cities in India. In addition, 24-hour mobile service is offered in 38 cities under the brand “Maruti On-road Service”. They intend to extend this service to an additional 25 cities over the next three years. As a benchmark for dealers with 63
respect to service quality and infrastructure facilities, they have launched service stations under the brand “Maruti Service Masters, or MSMs, in three locations in India. They have service stations on 30 highways in India under the brand “Express Service Sta tions”. To promote sales of their spare parts and the availability of high quality, reliable spare parts for their products, they sell spares under th e brand name “Maruti Genuine Parts”, or MGP. These are distributed through their dealer network and through authorised sellers of their spare parts, to whom they refer as stockists. Many of their MASSs are at remote locations where they do not have dealers. In order to increase the penetration, in terms of sales volumes, of their products in these remote areas, they are exploring opportunities to integrate some of the MASSs into the sales process in order to increase sales of their cars and related products and services such as spares and accessories, insurance and financing.
3.9.2 Genuine Accessories They have also entered the business of marketing car accessories under the brand name “Maruti Genuine Accessories”, or MGA, through their dealership network. They seek to provide customers with the opportunity to customize their vehicles with accessories such as music systems, security systems, car-care products and utility products.
3.9.3 Warranty and Extended Warranty Program They offer a two-year warranty on all their vehicles at the time of sale. Their dealers are required to address any claim made by a customer, in accordance with practices and procedures prescribed by them, under the provisions of the warranty in force at that time. The dealers subsequently claim the warranty cost from them. They analyse warranty claims from dealers and either claim the cost from vendors, in the case of defective components, or bear the cost ourselves, in the case of manufacturing defects. They offer an extended paid-warranty program marketed under the brand, “Forever Yours” for the third and fourth year after purchase. They have entered into arrangements with insurance companies to cover the costs of warranties offered under this program. The extended warranty program is intended to maintain the dealer’s contact with the customer and increase the revenue generated from sale of spares, accessories and automobile-related services. An effort is made during the period of the extended warranty to encourage the
64
customer to exchange his existing Maruti car for a new Maruti car, or upgrade to a new Maruti car.
3.9.4 New business Initiatives As the largest manufacturer and leader in the small car segment, they continually seek new ways to utilize their vast car parc, range of products and extensive sales and service network to expand the size of the passenger car market in India. They have recently launched new initiatives to develop the market for automobile insurance, automobile finance, leasing and fleet management, and pre-owned cars. They aim to provide customers with a “one-stop shop” for automobiles and automobile-related products and services, and build on their wide customer base and extensive sales and service network to make available to their customers a wide range of Maruti-branded services at different stages of ownership, which they refer to as the “360 degree customer experience”. AtithiDevoBhava: One-stop shop
Inspired by the spirit of India. AtithiDevoBhava, in Sanskirit, means “a guest is like God”. It captures the Indian tradition of honouring guests. It's also the inspiration for the welcome you’ll receive at a Maruti Suzuki dealership, and the caring relationship they share with those who drive their cars. At Maruti Suzuki, you will find all your car related needs met under one roof. Whether it is easy finance, insurance, fleet management. services, exchange Maruti Suzuki is set to provide a single window solution for all your car related needs. That’s why they have Maruti True Value, the best place to buy and sell reliable used cars . Maruti finance an agglomeration of the biggest finance companies in India brought together by Maruti Suzukitoensurethat the dream car is within everyone’s reach. Similarly Maruti Finance brings together some of the biggest names in the car insurance industryto provide insurance solution to every type of the car consumer.
3.9.5 Maruti Insurance :It was launched in 2002. Maruti Suzuki provides vehicles insurance to its customers with the help of National Insurance Company , Bajaj Allianz , New India Assurance and Royal Sundaram. The service was set up by the company with the inception of two subsidiaries Maruti Insurance Distributors Pvt. Ltd. and Maruti Insurance Brokers Pvt. Ltd. The services started as a benefit or value addition to the customers and was able to ramp up easily. By
65
December 2005
they were to sell more than two Million Insurance policies since its
inception.
3.9.6 Maruti Finance :To promote the bottom line growth Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Country wide with City Group and GE countrywide respectively to assist its clients in securing loans. Maruti Suzuki tied up with ABN Amro Bank , HDFC Bank , ICICI Limited , Kotak Mahindra , Standard Chartered and Sundaram to start this venture including its strategic partnership with SBI in March 2003. Since March 2003, Maruti had sold over 12,000 vehicles through SBI – Maruti Finance. SBI – Maruti Finance is currently available in 166 cities across India.
“ Maruti Finance marks with coming together of the biggest players in the car finance business. They are the benchmark in quality and efficiency. Combined with Maruti volumes and networked dealership , this will enable Maruti Finance to offer superior services and competitive rates in the Market place”. -
JagdishKhatter, Managing Director of Maruti Udyog Limited
Citycorp Maruti Finance Limited is a joint venture between Citicorp
Finance India
and Maruti Udyog Limited. Its primary business started by the company is “hire – purchase” financing of Maruti Suzuki Vehicles . Citi
Finance India limited is a wholly
owned
subsidiary of City Bank Overseas Investment Corporation Delaware which inturn is a 100% wholly owned subsidiary of City Bank N.A. City Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%. GE Capital , HDFC and Maruti Suzuki together came in 1995 to form Maruti Countrywide. Maruti Claims that its finance program
66
offers most competitive interest rates to its customers which are lower by 0.25% to 0.5% from the market rates.
3.9.7 Maruti True Value :Maruti True service offered by Maruti Suzuki to its customers. It is a market place for the used Maruti Suzuki Vehicles. One can buy ,sell or exchange used Maruti Suzuki Vehicles with the help of this service in India. As of 2009 there are 315 Maruti True Value Outlets.
3.9.8 Maruti Driving school :As a part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving school in Delhi. Later the service extended to other cities of India as well. These schools are modelled on international standards, where the learners go through the classroom session and practical sessions. Many standards facilities like road behaviour and attitude are taught in these schools. Before driving actual vehicles participants are trained on stimulators.
67
3.10 MARKET SHARE
Graph 3.1 Showing Market Share of Maruti Suzuki Refrence :- Official website of Maruti Suzuki (www.marutisuzuki.com)
68
2008- 2009 Market Share Segment A2
Sales
Maruti Tata Hyundai
Chart 3.1 Showing Market Share in A2 Segment Description Maruti
59%
Tata
20%
Hyundai
21%
Refrence :- Auto India (Automobile Magzine), March 2010
69
2008 – 2009 Market share Segment A3
Sales
Tata Ford GM Honda Maruti Hyundai Others
Chart 3.2 Showing Market Share in A3 Segment Description Tata
20%
Ford
14%
GM
6%
Honda
20%
Maruti
17%
Hyundai
16%
Others
7%
Refrence :- Auto India (Automobile Magzine), March2010
70
2008 -2009 Market Share Passenger Car
Sales
Hyundai Maruti Tata Honda Ford GM Toyota Others
Chart 3.3 Showing Market Share of passenger cars Description Hyundai
17%
Maruti
55%
Tata
16%
Honda
4%
GM
3%
Toyota
10%
Others
3%
Refrence :- Auto India ( Automobile Magzine), March 2010
71
MARUTI ALL INDIA SALES – 3 YEARS TREND
Segment
2006-07
A1 (Mini - Hatchback)
167,561
17% 116,262
A2 (Compact - Hatchback)
176,132
47% 271,280
A3 (Mid Size) A4/A5/A6 (Exec./Prem./Luxury) C (Van Type)
Growth 2007-08 Growth 2008-09 Growth
-31%
89,223
-23%
54% 335,136
24%
14,173
28%
29,637
109%
31,939
8%
NA
NA
NA
NA
NA
NA
59,526
15%
65,019
9%
66,366
2%
Passenger Cars - MUL
417,392
28% 482,198
16% 522,664
8%
Passenger Cars - Total Industry
758,123
26% 885,029
17% 948,669
7%
MUV (Utility Vehicles)
3,555
12%
46%
5,204
4,374
-16%
Passenger Vehicles - MUL
420,947
28% 487,402
16% 527,038
8%
Passenger Vehicles - Total Industry
901,150
24% 1,050,24 6
17% 1,129,31 6
8%
Table 3.1 Showing Sales of Maruti cars in the year 2006 to 2009 Reference : Autocar ( Automobile Magzine) , March 2010
72
COMPETITION MODELS
Segment
Maruti
Competition
A1 (Mini - Hatchback)
M800
A2 (Compact - Hatchback)
Zen, WagonR, Alto, Swift
Hyundai - Santro& Getz; Tata Indica&Palio; GM - Spark & Beat
A3 (Mid Size)
Esteem, SX4
Hyundai - Accent; Tata - Indigo & Petra; Honda - City; GM - Corsa, Optra, &Aveo; Ford - Ikon, Fusion, & Fiesta
A4/A5/A6 (Exec./Prem./Luxury)
Hyundai - Elantra& Sonata; Honda Accord; GM - Vectra; Ford - Mondeo; Skoda - Octavia & Superb; Toyota Corolla & Camry; Daimler Chrysler C,E, & S Class;
C (Van Type)
Omni, Versa
MUV (Utility Vehicles)
Gypsy, Grand Vitara
73
Mitsubishi - Pajero; Hyundai - Terracan& Tucson; Ford - Endeavor; Toyota - Prado &Innova and Fortuner; Nissan - X Trail; Honda - CRV; GM - Forrester &Tavera; Tata - Sumo & Safari; Mahindra - Jeeps, Bolero, Scprpio and Xylo.
3.11 Customer Satisfaction By Maruti Suzuki Now a day’s Customer satisfaction is the main aim or objectives of all the business organisations. With the Globalisation and Liberalisation (i.e. opening of Indian market ) the competition has increased to a great extent. All the Indian companies or the business organisations have to match their products with the International standard level in order to remain in the market. A marketer can remain in the mind of the customers only if he is able to satisfy the needs and requirements of the potential customers (i.e. when customers get value for their money). In such situations Maruti Suzuki took an initiative to satisfy its customer in the following ways. 3.11.1 Customer Service:-
The CRM Program allows Maruti Suzuki to acquire customers, service the customers, increase the value of customers to the company, and retain good customers and to determine which customer can be retained or given a higher level of service. A good CRM program can improve customer service in several ways. Provides Product Information, product use, information and technical
assistance on
websites that are accessible 24 hours a day and 7 days a week Identifies how each individual customer defines quality and then designs service strategies for each customer based on these individual requirements and expectations. Provides a fast mechanism for managing and scheduling follow up sales call to assess post purchase cognitive dissonance, repurchase, probabilities repurchase times and repurchase times. Provides a mechanism to track all points of contact between customer and the company and do it in an integrated way so that all sources and the types of contact are included and all the user of the system see the same view of the customer (reduces confusion).m It also helps to identify problems quickly before they occur. Provides a user friendly mechanism for registering customer
complaints (complaints
that are not registering with the company cannot be resolved and are a major source of customer dissatisfaction).
74
Provides a fast mechanism for handling problems and complaints (complaints that are resolved quickly increased customer satisfaction). Provides a fast mechanism for correcting services deficiencies (correcting the problem before other customer experience the same dissatisfaction). Uses internet cookies to track customer interest and personalize product offerings accordingly. Use internet to engage in collaborative customization or real time customization. Provides a fast mechanism for managing, scheduling, maintenance, repair and ongoing support (improve efficiency and effectiveness). The CRM can be integrated into other cross functional systems and thereby provides accounting and production information to customers when they want it.
3.11.2 Improving Customer Relationships :-
CRM programs are also able to improve customer relationship. Proponents say this is so because:CRM Technology can track customer interests, needs and buying habits as they progress their life cycles and tailors the marketing efforts accordingly. This way customers get exactly want they want as t hey change. The technology can track customer products use as the product progresses through its life cycle and tailors the service accordingly. These way Customers get what they need as the product ages. In Industrial markets, the technology can be used to micro- segment the buying centre and helps co – ordinate the conflicting and changing purchase criteria of its members. When any of the technology driven improvement in customer service (mentioned above) contribute to long term satisfaction they can ensure repeat purchases, improve customer relationship, increase customer loyalty, decreases customer turnover, decreases marketing costs (associated with customer acquisition and customer training), increases sales revenue and thereby increases profit margins. 75
Repeat purchase however comes from customer satisfaction which inturn comes from deeper understandings of each customer, their individual business challenges rather than a “one size fits all” approach. CRM software enables sales people to achieve this one on one approach to selling and can automate some elements of it via tailorable marketing communication. However all of these elements are facilitated by or for humans to achieve. CRM is therefore a companywide attitude as much as software solution.
76
Tata Ford Mahindra Renault Chervolet Toyota Honda Skoda Mahindra Hyundai Mitsubishi Maruti 660
680
700
720
740
760
780
800
Graph 3.2 Showing Customer Satisfaction Index Ranking Refrence :- Autodrive ( Automobile Magzine), June 2010
77
820
840
Chapter :-4
Findings And Analysis
78
After the study of the project , we have got several information and real facts about Maruti Suzuki :
It was the idea of Sanjay Gandhi, son of Indian Prime Minister Indira Gandhi to provide cheap and low maintenance cars to Indiansand for this purpose Maruti limited was established but after his death Maruti limited went into collaboration with the Suzuki Motors of Japan.
Maruti Suzuki focuses on overall segment of market and the strategied adopted by Marutis are very appealing and interacting for the customers.
Initially it focused on providing cheap cars to the customers but after Globalisation of the Indian economy (1990s) many foreign companies started to enter the Indian market then to stand in the market Maruti Suzuki also started to manufacture luxury cars also.
Along with manufacturing of cars Maruti also started another operations li ke :- Maruti finance, Maruti Insurance, Maruti genuine parts, After sale service, Maruti True value, Maruti Driving school etc..
Some other findings about Maruti Suzuki A Buying Experience Like No Other
Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D. Power SSI Study 2004. Quality Service Across 1036 Cities
In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience. 92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably 79
recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle. One Stop Shop
At Maruti Suzuki, you will find all your car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all your car related needs.
The Low Cost Maintenance Advantage
The acquisition cost is unfortunately
not only the cost
Although a car may be afforded to buy , it may not
we face buying a car.
necessarily be afforded to
maintain as some of its regularly used spare partsmay be priced quite steeply. Not so in the case of Maruti Suzuki. It is in the economy segment thatb the affordability of spares is most competitive and it is here where Maruti Suzuki shines. The recent auto car survey conducted in August 2004 bears testimony to this fact. In the Maruti Suzuki Stable, the Omni has the lowest aggregate cost of the spares followed by the Maruti 800. The Maruti 800 has the cheapest spares of any Indian car. In the lower Mid Size segment as well price consciousness is very high , Where the cars have to be not only affordable on purchase price but alsoneed to combine quality and have comfortable interiors. In this segment the Maruti Suzuki Versa had scored particularly well with the lowest cost of spares in the segment. In the upper Mid Size Segment the Maruti Suzuki Baleno had the segment lowest price on a majority of spares.
Lowest Cost of Ownership To be really happy with the car one owns, it should be easy on the pocket to buy and to runwhich is why the cost of ownership is so important. And here again, a Maruti Suzuki is a clear winner, as shown by the recent J.D.Power CSI study 2004. It is clear that a Maruti Suzuki delights you even when you run it for years. The 6 highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni. They are proud to have the lowest cost of operation / km (among petrol vehicles) - the top 5 models are all Maruti Suzuki models: Maruti 800, Alto, Zen, Omni and Wagon R. 80
SWOT ANALYSIS SWOT Analysis is the analysis of a company. SWOT analysis stands for Strengths , Weakness, Opportunities and threats. With the help of this analysis we can get the information about a company’s strengths and weaknesses and also about the opportunities and threats that a company is going to face or facing. After getting the knowledge about the weakpoints and threats from the external environment the management tries to overcome the weaknesses and the threats.
SWOT analysis of Maruti Suzuki are as follows :-
STRENGTHS :-
1. Brand Image 2. Reliable and cheap 3. Established brand in the Indian marke. 4. Great service and nationwide penetration 5. Experience in the Indian market 6. Very old player in the Indian market 7.
First major player
8. Established distribution and after sales network WEAKNESSES :-
1. Diseconomies of scale 2. No Online presence 3. Not diversified
81
OPPORTUNITIES
:-
1. Acquisition 2. Innovation 3. Online 4. Product and service expansion 5. Takeovers THREATS :-
1. Competition 2. Cheaper technology 3. External changes ( Government policies, taxes, etc) 4. Lower cost competitors and cheap imports 5. Price war 6. Product substitution
82
Chapter :- 5
Conclusion
83
Conclusion
This chapter concludes the study by highlighting the key findings of the study and some recommendations for Maruti Suzuki for future. The aim of the study is to critically analyse Maruti’s marketing strategies in India and to examine the effect on its sales . For this purpose secondary sources were used to collect information about the Marketing Strategies of Maruti Suzuki. The conclusion that can be drawn are :1. The main driver of the sales of Maruti cars in India are the Product features. 2.
The marketing strategies though aggressive and very customer specific are not prime force towards the sales.
3. The prices of Maruti cars are competitive but they are not the pri ce leaders. 4.
However much information on the distribution network can not be gathered.
84
Chapter : 6
Recommendations
85
Recommendations
There is need for Maruti Suzuki to differentiate itself from past . This can be done by becoming more customer friendly to the Indian as well as Asian market.
Due to the opening of the Indian market that means globalisation and due to entry of many competitors in the Indian automobile market Maruti should project itself more aggressively to the low end, means market with its low range ( but high quality ) products.
Maruti was established to provide low cast cars to the Indians so it should carry on its objectives but it should also focus on the customer satisfaction by providing them quality products at low cost.
Maruti have developed a brand name and the customer have a high brand preference. There is need to incash on this by continuing to launch good quality products.
86
BIBLIOGRAPHY
Books :
Kotler, Philip Principles of Marketing Management, prentice hall India, 2003
Chhabra, T.N Marketing Management,DhanpatRai and co., 2010
Kothari, C.R Research methodology, Vikas Publishing house, 1997
Magzines :
Overdrive
Autocar
Autodrive
Websites :
www.marutisuzuki.com
www.surfindia.com
www.carwale.com
www.driveinside.com
www.carindia.com
87
88
Submitted in Partial fulfilment for the Award of the Degree Of Bachelor in Business Administration 2009-2012
Under the Guidance of:
Submitted by :
Sanampreet Sharma
Manish Shandilya Shandilya
Lecturer (MAIMS)
BBA 3 B (2S)
rd
13361101709
Maharaja Agrasen Institute Of Management Studies
Affiliated to Guru Gobind Singh Indraprastha University PSP Area, Plot No. 1, Sector 22, Rohini 110086 110086 1
Students Declaration
This is to certify that I have completed this Project titled
Marketing Mix of
Maruti Suzuki under the guidance of Sanampreet Sharma in partial
fulfilment of the requirement for the award of degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work and I have not submitted it earlier elsewhere.
Date:
Signature:
Place: Delhi
Name: Manish Shandilya University Roll No. : 13361101709
2
Students Declaration
This is to certify that I have completed this Project titled
Marketing Mix of
Maruti Suzuki under the guidance of Sanampreet Sharma in partial
fulfilment of the requirement for the award of degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work and I have not submitted it earlier elsewhere.
Date:
Signature:
Place: Delhi
Name: Manish Shandilya University Roll No. : 13361101709
2
Certificate from Institute Guide
This is to certify that summer project titled academic work done by
Marketing Mix of Maruti Suzuki is an
Manish Shandilya submitted in the partial fulfilment of the
requirement for the award of the degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies , Delhi, under my guidance and direction. To the best of my knowledge and belief the data and information presented by him in the Project has not been submitted earlier.
Signature :
Name of Faculty: Sanampreet Sharma
Designation: Lecturer
3
ACKNOWLEDGEMENT
I owe my sincere thanks and gratitude to Mrs.Sanampreet Sharma ( Project guide) who inspired me by her able guidance and was a constant guiding light during the course of project study.The support and knowledge provided by her has been a great value addition for me and will go a long way in building a promising career. First of all I would like to thankMr.N.K.Kakkar thankMr.N.K.Kakkar ( Hon.Director General , MAIMS ) who gave me this golden opportunity opportunity to learn something new about project writing. rd
I would also like to thank Miss SmitaTejwani {course {course coordinator coordinator , BBA 3 b (2s) } who cooperated with me and gave me valuable suggestions during the entire project. Last but not the least I would like l ike to thank my friends and family members who supported me and gave me valueable suggestions in this project.
Manish Shandilya rd
BBA 3 B (2S) Roll no. :- 9348 Enrollment No.:- 13361101709 13361101709
4
INDEX
Student Declaration Certificate from the Guide Acknowledgement
Table of Content
Page no.
Chapter 1 About the Company
1.1 Introduction 1.2 History
8 10
1.3 Company Profile 1.3.1 Stock exchange 1.3.2 Vision Mission and Core values 1.3.3 Board of Directors 1.3.4 Milestones 1.3.5 Awards 1.4 Organisation Structure 1.4.1 Organisation structure 1.4.2 Production process 1.4.3 Recruitment and Selection 1.4.4 Training and Devlopment 1.4.5 Appraisal and Reward 1.4.6 International Business 1.5 Financial Structure 1.5.1 Capital Structure 1.5.2 Balance Sheet 1.5.3 Profit and loss A/c
11 11 13 14 17 21 22 23 25 26 27 29 30 31
Chapter 2 Research Methodology
2.1
Meaning of Research
33
2.2
Objectives Research
33 5
2.3
Significance of Research
33
2.4
Research Methodology
34
2.5
Data Collection Source
34
2.6
Limitations
35
Chapter 3 Marketing Mix
3.1
Meaning
37
3.2
Brand
37
3.3
Products
38
3.4
Price
56
3.5
Place
57
3.6
Promotion
57
3.7
Market Segmentation
58
3.8
Market Positioning
59
3.9
Other Strategies
59
Chapter 4 Findings and analysis
73
Chapter 5 Conclusion
84
Chapter 6 Recommendations
86
Bibliography
88
6
Chapter: - 1 ABOUT THE COMPANY
7
1.1 Introduction
Maruti Suzuki is India’s number one leading automobile manufacturer and the market leader in the car segment both in terms of volume of vehicle and revenue earned. Until recently 18.28% of the company was owned by the Indian government and 54.2% by the Suzuki of Japan. The Indian Govt. held an initial public offering of 25% of the company in June 2003. As of 10 May 2007 government of India sold its complete share to Indian financial Institution. With this govt. Of India has no longer stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production was started in 1983 with the Maruti 800 based on the Suzuki Alto Kei Car which at that time was the only modern car available in India. Its only competitor was Hindustan Motor’s Ambassador and the Premier Padmini were both around 25 yea rs out of date at that point.Through 2004 , Maruti Suzuki had produced over 5 Million vehicles. Maruti Suzuki are sold in India and various several other countries depending upon export orders. Models similar to Maruti Suzuki ( but not manufactured by Maruti udyog) are sold by Suzuki Motors corporation and manufactured in Pakistan and other south Asian countries. The company anually exports more than 50,000 cars and has an extremely large domestic market in India selling over 7,30,000 cars anually. Maruti 800 till 2004 was the India’s largest selling compact car ever since it was launched in 1983. More than a Million unit of this car have been sold worldwide so far. Currently Maruti Suzuki Alto tops the sales chart and Maruti Suzuki Swift is the largest selling car in A2 segment.Due to large number of Maruti 800’s 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 in India, Hindu’s lord Hanuman is known as “Maruti” was associated with Maruti 800 model.
Manufacturing Facilities Its manufacturing facilities are located at two facilities, “Gurgoan” and “Manesar” south of Delhi. Maruti Suzuki’s Gurgoan facility has an installed capacity of 3,50,000 units per annum. The Manesar facility launched in February 2007 comprises a vehicle assembly plant with a capacity of 1,00,000 units per year and a Diesel Engine plant with an annual capacity 8
of 1,00,000 engines and transimission. Manesar and Gurgoan facility have a combined capacity to produce over 7,00,000 units annually.More than a half of the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of Suzuki Motors Corporation of Japan which owns 54.2 percent of Maruti Suzuki. The rest is owned by the Public and Finance Institution.It was listed on the Bombay ( now Mumbai) stock exchange in India. During 2007-08 Maruti Suzuki sold 7,64,842 cars of which 53,024 are exported in all. Over Six Million Maruti Suzuki cars on Indian roads since the first car was rolled out on 14 December 1983.
Products Offered Maruti Suzuki offers 15 models and they are, Maruti 800, Alto, Wagon R, Zen Estilo, A Star, Ritz, Swift, Swift Dzire, SX4, Omni, Eeco, Gypsy and Grand Vitara.Out of these models Grand Vitara is imported from Japan a completely built unit (CBU). Swift, Swift Dzire , A Star and SX4 are manufactured in Manesar and the remaining models such as Maruti 800, Alto, Wagon R, Zen Estilo, Ritz, Omni , Eecoetc are manufactured at Gurgoan Plant.
Human Resources Nearly 75,000 people are employed directly by the Maruti Suzuki and its Partner. It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J.D. Power Asia Pacific.
1.2 History
9
Around 1970, Sanjay Gandhi, Political advisor and younger son to then Prime minister of India, Indira Gandhi , envisioned the manufacture of an indigenous , cost – effective , low maintenance compact car for the Indian middle class. Indira Gandhi’s cabinet passed a uninamous resolution for the devlopment and production of “people’s car”. Sanjay Gandhi’s company was christened Maruti Limited. The name of the car was choosen as “Maruti”, after the name of a hindu deity named Marut. At that time Hindustan Motor’s Ambassador was the cheif car and the company had came out with a new enterant , the Premium Padmini which was slowly gaining a part of the market share dominated by the Ambassador. For the next ten years the Indian car market had stagnated at a volume of of 30,000 to 40,000 cars for the decade ending 1983. Sanjay Gandhi
was awarded the exclusive contract and licence to design, devlop and
manufacture the “People’s car.This exclusive right of production generated some criticism in certain quaters, which was directly targeted at Indira Gandhi . Over the next few years the company was sidelined due to the Bangladesh Liberation war and the emergency. In the early days under the powerful patronage of Sanjay Gandhi, the company was provided with free land , tax breaks , and funds. Till the end of 1970’s the company had not started the production and a prototype test model was met with criticism and skepticism.The company went into liquidation in 1977. The media perceived it to be another area of growing corruption. Unfortunately Maruti started to fly only after the death of Sanjay Gandhi, when Suzuki joined the Govt. Of India as a joint venture parteners with 50% share. After the death of Sanjay Gandhi, Indira Gandhi decided that the project should not be allowed to die. Maruti entered into collaboration with Suzuki Motors . The collaboration heralded a resolution in the Indian car industry by the production of “Maruti 800”. The car went into sale on December 14,1983. It created record by taking 13 months to go from design to rolling out car from a production line. By the year 1994 the company had sold upto 1,96,820 cars, mostly by selling its cheif product the “Maruti 800”. By March 1994, it produced one million vehicle , becoming the first Indian company to cross this milestone. It reaches the 2 million mark in October 1997, and rolled out its 4
th
million vehicle an ALTO
(LX) on April 19, 2003. Maruti Udyog Ltd. is the premium car company in India. Maruti Udyog Limited (MUL) was established in February 1981 through an act of parliament. The Company entered into 10
collaboration with Suzuki Motors of Japan to manufacture cars.The main objectives behind formation of Maruti Udyog Limited was to meet the growing demand of a personal mode of transport caused by the lack of an efficient Public Transport System. Today Maruti Udyog Limited is garneshing share of automobile market in India. It has completely revolutionised the Indian car market and has brought out numerous model to cater to every section of society. These ranges from Economy cars to Luxury cars to Super SUV’s.
1.3 Company’s Profile
Around 1970, Sanjay Gandhi, political advisor and younger son to the then Prime minister of India, Indira Gandhi, envisioned the manufacture of an indigenous, cost effective, low maintenance compact car for the Indian middle class. Indira Gandhi’s cabinet passed an uninamous resolution for the development and production of “Peoples car”. Sanjay Gandhi’s company was christened Maruti Limited. The name of the car was was chosen as Maruti, after a hindu deity named Marut. Unfortunately Sanjay Gandhi died without fulfilling his dream. After this death , Indira Gandhi decided that the project should not be allowed to die. Maruti entered into collaboration with the Suzuki Motors of Japan. The collaboration heralded a resolution in the Indian car industry by producing Maruti 800. The car went into sale on 14 December 1983. And from 1980’s to till day today Maruti’s have dominated the Indian Automob ile industry as well as automobile market.
1.3.1 Stock Exchange on which company is listed Maruti Suzuki is listed on Bombay stock exchange now Mumbai. It is also listed on NYSE ( New York Stock Exchange) as well as stock exchange of Japan.
1.3.2 Vision, Mission and Core values of Maruti Suzuki 11
Vision:Vision of any company is those values on which company works. As the Maruti Udyog Limited (MUL) is started by governmental initiatives it tends to be more consumer oriented and hence cost- effective, but on the other hand Suzuki’s participation ensures not only need of profit, but the need of maximum profit. The only way of Nora’s dilemma of selecting principles for the company’s working vision was to maximize profit and sales and hence Maruti Udyog Limited (MUL) declared its vision as:“The leader in the Indian Automobile Industry, creating Customer Delight one and shareholder’s wealth two eventually become pride of India. Customer Delight One is making sure that Performance, after sales service and customer are best and beyond expectations, shareholder’s wealth two is the prime concern for running business smoothly. Maruti Udyog Limited (MUL) knows this and understands “Customer Is King” , he can change the future of any company hence goes company’s brand line : COUNT ON US!
Mission:Mission is the statement of any organisation’s purpose , what is want to accomplish in the larger environment and its goal which are specific , realistic, and motivating. Missions are described over Visions and Visions demand certain objectives. The main Objectives / Mission of Maruti Udyog Limited are:1. Modernisation of Indian Automobile Industry. 2. Developing cars faster and selling for less. 3. Production of fuel- efficient vehicles to conserve scarce resources. 4. Production of large number of motor vehicles which are necessary for the Economic Growth. 5. Market penetration, Market developments, similar product development and diversification. 6. Parter relation management, value chain, value delivery networks.
Core Values :12
Customer Obsession
Fast, Flexible and First Mover
Innovation and Creativity
Networking and Partnership
Openness and Learning
1.3.3 Company Board Of Directors
Mr.Shinzo Nakanishi
Managing Director (M.D) and Chief Executive Officer (C.E.O)
Mr. R.C. Bhargava
Chairman
Mr.Maninder Singh Banga
Director
Mr.AmalGanguli
Director
Mr.D.S.Brar
Director
Mr. Keiichi Asai
Director
Mr. Osamu Suzuki
Director
Mr.ShujiOishi
Director
Ms.PallaviShroff
Director
Mr. Kenichi Ayukawa
Director
Mr. Tsuneo Ohashi
Director and Management Executive Officer
13
1.3.4 MILESTONES 2005
2004
The fiftieth lakh car rolls out in April, 2005
Growth in overall sales by 15.8%
New (non A/C) variant of Alto
Alto becomes India's new best-selling car
LPG variant of 'Omni Cargo'
Versa 5-seater, a new variant
Baleno LXi, a new variant
Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago
2003
New Suzuki Grand Vitara XL-7
Redesigned and all-new Zen
New upgraded WagonR
Enters into partnership with State Bank of India
Production of 4 millionth vehicles. Listed on BSE and NSE after a public issue oversubscribed 10 times
2002
WagonR Pride
Esteem Diesel. All other variants upgraded
Maruti Insurance. Two new subsidiaries started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited
Alto Spin LXi, with electronic power steering
Special edition of Maruti 800, India’s first colour-coordinated car
Maruti True value in Mumbai
Maruti Finance in Mumbai with 10 finance companies
Suzuki Motor Corporation (SMC) increases its stake in Maruti to 14
54.2 percent 2001
Zen LXi
Maruti True Value launched in Bangalore and Delhi
Maruti Versa, India’s first luxury MPV
Alto Spin LXi, with electronic power steering
Alto VXi
Customer information centers launched in Hyderabad, Bangalore and Chennai
2000
Launch of versa
First car company in India to launch a Call Center
New Alto
Altura, a luxury estate car
IDTR (Institute of Driving Training and Research) launched jointly with the Delhi government to promote safe driving habits
1999
Maruti 800 EX ( 796cc, hatchback car)
Zen LX (993cc, hatchback car)
Zen VXi (993cc, hatchback car with power steering)
Omni XL ( 796cc, MUV, high roof)
Baleno (1600cc, 3 Box Car)
Wagon R
Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives
1998
Maruti launches website as part of CRM initiatives
Zen D (1527 cc diesel, hatchback car)
Zen VX & Zen VX Automatic
15
1997
New (Omni & Omni E) (796cc, MUV)
Launch of website as part of CRM initiatives
1998 Esteem (1299cc, 3 box car) LX, VX and AX
New Maruti 800 (796cc,hatchback Car) Standard and Deluxe
Produced the 2 millionth vehicle since the commencement of production
1996
1995
Gypsy (E) (970cc, 4WD 8 seater)
Omni (E) (796cc, MUV, 8 seater)
Gypsy King (1298cc, 4WD, off road vehicle)
Zen Automatic (993cc, hatchback car)
Esteem 1.3L (1298 cc, 3 box Car)AX
Launch of 24-hour emergency on-road vehicle service
Esteem 1.3L (1298 cc, 3 box car)VX
With the launch of second plant, installed capacity reached 200,000 units
1994
Esteem1.3L (1298cc, 3 box car)LX
Produced the 1 millionth vehicle since the commencement of production
1993
Zen (993cc, hatchback Car), which was later exported in Europe and elsewhere as the Alto
1992
SMC increases its stake in Maruti to 50 percent
1991
Reaches cumulative indigenisation of 65 percent for all vehicles produced
1990
Maruti 1000(970cc, 3 box), India’s first contemporary sedan
1988
Installed capacity increased to 100,000 units
16
1987
Exported first lot of 500 cars to Hungary
1986
Maruti 800 ( New Model-796cc, hatchback Car)
Produced 100,000 vehicles (cumulative production)
1985
Launch of Maruti Gypsy (970cc, 4WD off-road vehicle)
1984
Omni, a 796cc MUV
Installed capacity reached 40,000 units
Maruti 800, a 796 cc hatchback, India’s first affordable car.
Production was started under JVA
License and JV agreement signed between Maruti Udyog Ltd. and
1983
1982
SMC of Japan
1.3.5 AWARDS 2005
Number one in JD Power SSI for the second consecutive year Number one in JD Power CSI for the sixth time in a row - the only car to win it so many times M800, WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the 2nd time in a row, Esteem number one in it s segment for
17
the 3rd year in a row, Swift number one in the premium compact segment WagonR and Esteem top their segments in the JD Power APEAL study TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05 Maruti bagged the "Manufacturer of the year" award from AutocarCNBC ( 2nd time in a row)-Feb 05 First Indian car manufacturer to reach 5 million vehicles sales Business World ranks Maruti among top five most respected companies in India-Oct 04 Maruti ranked among top ten (Rank7) greenest companies in India by Business Today - Sep '04
2004
Maruti Suzuki was No. 1 in Customer atisfaction, No. 1 in Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R) No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto) Business World ranked us among the country's five most respected companies Business World ranked us the country's most respected automobile company Voted Manufacturer of the year by CNBC
18
Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG
2003
Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003" J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003. MUL tops in J D Power CSI (2001) for 4th time in a row
2001
MUL tops in J D Power CSI (2001) for 2nd time in a row: another international first
2000
Maruti bags JD Power CSI - 1st rank; unique achievement by market leader anywhere in the world
1999
MSM launched as model workshop in India; achieves highest CSI rating. Central
Board
of
Excise
&
Customs
awards
Maruti
with
"SammanPatra", for contribution to exchequer and being an ideal tax assessee
19
1998
CII's Business Excellence Award
1996
Maruti wins INSSAN award for "Excellence in Suggestion Scheme" Awarded the Star Trading House status by Ministry of Commerce
1994-95
Engineering Exports Promotion Council's award for export performance
1994
Best Canteen award among Haryana Industries as part of employee welfare
1992-93
Engineering Exports Promotion Council's award for export performance.
1.4 ORGANISATION STRUCTURE
Maruti Udyog Limited has a flat organisation structure with a maximum of three levels. The Organisation Structure of Maruti Udyog Limited is follows:-
20
MANAGING DIRECTOR
Manufacturing
Financial
General
Director
Controller
Manager
DGMs/AGMs
DGMs/AGMs
DGMs /AGMs
Managers / AM
Managers /AM
Managers / AM
Engineers and Sr. Executives
Jr. Executives
Sr. Executives
Jr. Executives
21
Sr. Executives
Jr. Executives
1.4.2 THE PRODUCTION PROCESS AT MARUTI
STEEL COILS
BLANKING
PRESSING
WELDING
PAINTING
FROM
FROM ASSEMBLY
VENDOR
VEHICLE
FROM
INSPECTION
VENDOR
VENDOR
TEST RUN
SUPPLY & DISPATCH
22
1.4.3 Recruitment and Selection Process Of Maruti Suzuki
Meaning of recruitment
It is a process of searching the potential candidate and offers him or her the job. It is positive in nature in the Indian context. Process of identifying and hiring best qualified candidate for a job vacancy in a most timely and cost effective manner.
Meaning of Selection
It is the process of searching the potential candidate. It is negative in nature in the Indian context but positive in U.S context.
Steps involved in the Selection Process
Selection process consists a series of steps and at each stage facts may come into light that may lead to rejection of the application of the applicants. It is a series of successive hurdles or barriers which an applicant must have to cross.
A) Preliminary Interview
(Screening Applications) :- Initial screening is done to
weed out totally undesirable or unqualified candidate at the outset. It is essentially a sorting process in which prospective candidate are given necessary information about the nature of the job and the organisation at the same time, the necessary information is also elicited from the candidate about their education, skills, experience, salary expected and the like . It helps to determine whether it is worthwhile for a candidate to fill up the application form.
B) Application Form :- Application form is a traditional and widely used device for
collecting information about the candidate. It should provide all the information
23
relevant to selection, where refeErence for caste, religion, birth place, may be avoided as it may be regarded an evidence of description.
C) Selection Test :-
Psychological test are being increasingly used in employee
selection where a test may evolve some aspects of an individual’s attitude , behaviour and performance. performance. Tests are useful useful when the number of applicants applicants is large as at the best it reveals that the th e candidate who scores above the predetermined cutoff points are likely to be more successful than those scoring below the cut off points.
D) Employee Interview:- Interview is an essential element of selection and no selection
procedure is complete without one or more personal interview, where the information collected through application letter or application forms and test can be crossed checked in the interview.
E) Medical Examination :- Applicants who have crossed the above stage are sent for
the physical medical examination either to the company’s physician or to a medical officer approved for the purpose . Such examination serves the following purpose :-
1) It determines whether the candidate is physically fit to perform the job where those who are physically unfit are rejected. 2) It prevents the employement of people suffering from f rom contagious diseases. 3) It identifies candidate who are are otherwise suitable but requires specific job due to physical handicaps and allergies.
F) Reference Checks :- The applicants are asked to mention in his application form, the
names and address of two or more persons who knows him very well. These may be their previous employer , heads of educational institution or public figures. These people are requested to give their opinion about the candidate without incurring any liabilities.
G) Final Approval :-In most of the t he Organisations, selection process is carried out by the
Human resource department, where the decision of the departments are 24
recommendatory. recommendatory. The candidate shortlisted by the department are finally approved approved by the executive of the concerned department or the unit.
H) Employment :- Employment is offered in the form of an appointment letter
mentioning the post, the rank, the salary, grade, the date by which the candidate should join and other terms and condition in briefs.
I) Induction :-The process of receiving employee when they begin work introducing
thm to the company and to their colleagues and informing them of the activities, customes and traditions of the company is called “ induction”.
J) Follow ups :- All selection should be validated by follow ups, it is a stage where
employee is asked how he or she feels about progress to the date and the worker’s immediate supervisor is asked for comments which is compared with the notes taken at the time of selection.
1.4.4 Training and Devlopment Programs of Maruti Suzuki Suzuki
TRAINING & DEVELOPMENT
Annual Training Plan - All Levels
Training customised to meet Organisational Objectives
Topics selected based on Vision, Values & Departmental Managers
Competency Mapping to identify Individual Training Needs
Technical Technical Training on latest Technologies abroad at SMC, Japan
STRONG FOCUS ON TRAINING INITIATIVES
-
Build a Learning Organisation
-
Continuous Value Additions to Professional Skills
-
Customised Training
-
Training to the personnel of Business Partners
25
Feedback of Company-wide
Overseas training Training held in co-ordination with SMC, Japan and AOTS (Assoc. for Overseas Tech. Scholarship)(covered Scholarship)(covered 1600 employees under the various schemes)
6 months SMC Training for Technicians - OJT in SMC, Japan (2 batches/yr of 50 each)
9 months Javada Training for Press, Tool & Die Specialists - Design & Maintenance
AOTS Managerial Training (4-10weeks) for Manager & above - Managerial Best Practices
AOTS Technical Training (3.5 to 6 months) for Supervisors & above - Technological Knowhow
R & D Training (2 yrs.) - Research on new Technologies Technologies
1.4.5 APPRAISAL & REWARD
Appraisal
New Appraisal System based on KRAs & Targets
Review of Targets at regular Intervals
People Development Development an important i mportant KRA
Reward
Promotions based on Performance
Productivity & Profit-linked Incentive Schemes
Training including Long-term SMC Japan Trg.
Highest paid workforce in the Industry, if not the Country
LEADERSHIP
Vision, Value & Team Building Workshops for Top Management
CFT (Cross Functional Teams) of Managers for Major M ajor Thrust Areas
Managers sent to Joint Ventures to upgrade their practices to MUL standards
26
1.4.6 INTERNATIONAL BUSINESS
In August, 2003 Maruti crossed a milestone of exporting 300,000 vehicles since its first export in 1986. Europe is the largest destination of Maruti’s exports and coincidentally after the first commercial shipment of 480 units to Hungary in 1987, the 300,00 mark was crossed by the shipment of 571 units to the same country. The top ten destinations of the cumulative exports have been Netherlands, Italy, Germany, Chile, U.K., Hungary, Nepal, Greece, France and Poland in that order. The Alto, which meets the Euro-3 norms, has been very popular in Europe where a landmark 200,000 vehicle were exported till March 2003. Even in the highly developed and competitive markets of Netherlands, UK, Germany, France and Italy Maruti vehicles have made a mark. Though the main market for the Maruti vehicles is Europe, where it is selling over 70% of its exported quantity, it is exporting in over 70 countries. Maruti has entered some unconventional markets like Angola, Benin, Djibouti, Ethiopia, Morocco, Uganda, Chile, Costa Rica and El Salvador. The Middle-East region has also opened up and is showing good potential for growth. Some markets in this region where Maruti is, are Saudi Arabia, Kuwait, Bahrain, Qatar and UAE. The markets outside of Europe that have large quantities, in the current year, are Algeria, Saudi Arabia, Srilanka and Bangladesh. Maruti exported more than 51,000 vehicles in 200809 which was 59% higher than last year. In the financial year 2008-09 Maruti exports contributed to more than 10% of total Maruti sales.
27
Continent wise export of Maruti Udyog
Sales
Limited Since ince tion
Asia Africa America Europe Oceania
Graph 1.1
Graph showing the Continent wise export of Maruti Udyog Limited Since Inception. Description :Asia
12%
Africa
7%
America
9%
Europe
70%
Oceania
2%
Refrence :- Official website of Maruti Suzuki (www.marutisuzuki.com)
28
1.5 Financial Structure of Maruti Suzuki
1.5.1 Capital structure The capital structure of Maruti Udyog limited are as follows :-
From Year
2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1993
Authorized Capital
Issued Capital
Paid Up Shares (Nos)
Paid Up Face Value
2010
Equity Share
372.00
144.46
288910060
5
144.46
2009
Equity Share
372.00
144.46
288910060
5
144.46
2008
Equity Share
372.00
144.46
288910060
5
144.46
2007
Equity Share
372.00
144.46
288910060
5
144.46
2006
Equity Share
155.00
144.46
288910060
5
144.46
2005
Equity Share
155.00
144.46
288910060
5
144.46
2004
Equity Share
155.00
144.46
288910060
5
144.46
2003
Equity Share
155.00
144.46
288910060
5
144.46
2002
Equity Share
135.00
132.29
13229162
100
132.29
2001
Equity Share
135.00
132.29
13229162
100
132.29
2000
Equity Share
135.00
132.29
13229162
100
132.29
1999
Equity Share
135.00
132.29
13229162
100
132.29
To Year
Class Of Share
Table 1.1 Showing the capital Structure of Maruti Suzuki From 2006 to 2010 Refrence :- Official website of Maruti Suzuki ( www.marutisuzuki.com) 29
Paid Up Capital
1.5.2 BALANCE SHEET OF MARUTI UDYOG LIMITED For the financial year 2006-10
Balance sheet Mar ' 10
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Sources of funds (in lakhs) Owner's fund
Equity share capital
144.50
144.50
144.50
144.50
144.50
Share application money
-
-
-
-
-
Preference share capital
-
-
-
-
-
11,690.60
9,200.40
8,270.90
6,709.40
5,308.10
26.50
0.10
0.10
63.50
71.70
794.90
698.80
900.10
567.30
-
12,656.50 10,043.80
9,315.60
7,484.70
5,524.30
10,406.70
8,720.60
7,285.30
6,146.80
4,954.60
-
-
-
-
-
Less : accumulated depreciation
5,382.00
4,649.80
3,988.80
3,487.10
3,259.40
Net block
5,024.70
4,070.80
3,296.50
2,659.70
1,695.20
387.60
861.30
736.30
238.90
92.00
7,176.60
3,173.30
5,180.70
3,409.20
2,051.20
Current assets, loans & advances
3,856.00
5,570.00
3,190.50
3,956.00
3,870.70
Less : current liabilities & provisions
3,788.40
3,631.60
3,088.40
2,779.10
2,184.80
Reserves & surplus Loan funds ( in lakhs)
Secured loans Unsecured loans Total Uses of funds (in lakhs) Fixed assets
Gross block Less : revaluation reserve
Capital work-in-progress Investments Net current assets (in lakhs)
30
Mar ' 10
Total net current assets
67.60
1,938.40
102.10
1,176.90
1,685.90
-
-
-
-
-
12,656.50 10,043.80
9,315.60
7,484.70
5,524.30
Miscellaneous expenses not written Total
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Notes:
Book value of unquoted investments
11.10
3,162.20
5,169.60
3,398.10
2,040.10
Market value of quoted investments
215.10
108.70
219.50
270.40
289.80
Contingent liabilities
3,657.20
1,901.70
2,734.20
2,094.60
1,289.70
Number of equity sharesoutstanding (Lacs)
2889.10
2889.10
2889.10
2889.10
2889.10
Table :- 1.2 showing Balance Sheet of Maruti Suzuki for the year 2006 to 2010 Refrence :- Official wesite of Maruti Suzuki (www.marutisuzuki.com)
1.5.3 PROFIT AND LOSS ACCOUNT The Profit and Loss account of Maruti Suzuki for the year 2006 to 2010 is as follows :Profit loss account Mar 10
Mar 09
Mar 08
Mar 07
Mar 06
Income
Operating income
29,317.70 20,729.40 18,066.80 14,806.40 12,197.90
31
Mar 10
Mar 09
Mar 08
Mar 07
Mar 06
Expenses
Material consumed
22,435.40 16,339.80 13,622.00 11,063.70 9,223.70
Manufacturing expenses
1,278.20 909.70
670.60
489.80
359.60
Personnel expenses
545.60
471.10
356.20
288.40
228.70
Selling expenses
916.00
738.20
560.20
499.90
356.00
Adminstrative expenses
404.60
389.20
326.30
274.50
170.60
Expenses capitalised
-
-22.30
-19.80
-14.30
-6.70
Cost of sales
25,579.80 18,825.70 15,515.50 12,602.00 10,331.90
Operating profit
3,737.90 1,903.70 2,551.30 2,204.40 1,866.00
Other recurring income
617.70
Adjusted PBDIT
4,355.60 2,451.30 3,007.40 2,565.50 2,134.10
Financial expenses
33.50
51.00
59.60
37.60
20.40
Depreciation
825.00
706.50
568.20
271.40
285.40
Other write offs
-
-
-
-
-
Adjusted PBT
3,497.10 1,693.80 2,379.60 2,256.50 1,828.30
Tax charges
1,094.90 457.10
Adjusted PAT
2,402.20 1,236.70 1,616.30 1,551.20 1,267.40
Non recurring items
44.30
Other non cash adjustments 51.10 Reported net profit
547.60
456.10
763.30
361.10
705.30
268.10
560.90
-55.90
37.90
-23.00
-83.70
37.90
76.60
33.40
5.40
2,497.60 1,218.70 1,730.80 1,561.60 1,189.10
Earnigs before appropriation 10,501.80 8,244.40 7,368.10 5,947.10 4,631.20 Equity dividend
173.30
101.10
144.50
130.00
101.10
Preference dividend
-
-
-
-
-
Dividend tax
28.80
17.20
24.80
21.90
14.20
Retained earnings
10,299.70 8,126.10 7,198.80 5,795.20 4,515.90
Table :- 1.3 Showing Profit and loss account of Maruti Suzuki Refrence :- Official website of Maruti Suzuki (www.marutisuzuki.com)
32
Chapter :- 2 Research Methodology
33
2.1 Meaning of Research
Redman and Mory define research as a “systemized effort to gain new knowledge.” Some people consider research as a movement, a movement from the known to the unknown. Research is an academic activity and as such the term should be used in a technical sense. According to Clifford Woody, research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.
2.2 Objectives of Research The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has it’s own specific purpose. The main objectives of this research was to :1. To study about Maruti Suzuki i.e. when it was established , why it was established and by whom it was established, financial structure, Organisational structure etc. 2. To study about the marketing mix and the strategies adopted by Maruti Suzuki in order to cater the needs of the people and also to face tough competition in the market since after the Globalisation of the Indian economy many competitors have grown and tries to undermine the monopoly created by Maruti Suzuki. 3. To study the strategies adopted by Maruti Suzuki due to which they are able to dominate the Indian Automobile Sector since last three decades.
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2.3 Significance of Research
“All process is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry and inquiry leads to invention.” Is a famous Hudson Maxim in context of which the significance of research can well be understood. Increased amounts of research make progress possible. Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization. The role of research in several fields of applied economics, whether related to business or to the economy as a whole, has greatly increased in modern times. The increasing complex nature of business and government has focused attention on the use of research in solving operational problems. Research, as an aid to economic policy, has gained added importance, both for government and business
2.4 Research Methodology Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or techniques but also the methodology.
2.5 Data Collection Source Information for this project was collected primarly through secondary sources.The data collected from the secondary sources are called as Secondary data. Secondary Data:Any data, which have been gathered earlier for some other purpose, are
secondary data in the hands of researcher. Those data collected first hand, either by the
35
researcher or by someone else, especially for the purpose of the study is known as primary data. The data collected for this project has been taken from the secondary source.
Sources of secondary data are :
Internet
Magazines
Publications
Newspapers
Brouchers
2.6 LIMITATIONS
The biggest limitation of this project was time , due to lack of time the necessary data were collected from the secondary sources..
Due to tough competition in the market the companies are not willing to disclose their strategies adopted to face the competition so sufficient information were not collected and the information collected are not 100% accurate.
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Chapter: - 3 Marketing Strategies
3.1 Meaning of Marketing 3.2 Brand 3.3 Products 3.4 Price 3.5 Place 3.6 Promotion 3.7 Market Segmentation , Targeting and Positioning 3.8Market Share 3.9Other strategies adopted by Maruti 3.10Customer satisfaction 37
3.1 Marketing It is the process of directing of directing the flow of goods and services from the producers or the manufacturers to the customers or consumers. It is accountable for planning, organising, directing, coordinating, motivating, and controlling the market activities. According to American Marketing Association, “Marketing is the performance of the business activity that directs the flow of goods and services through producers to consumers to users”. According to Cundiff and Still, “Marketing is the business process by which the products are matched with the market and through transfer of ownership are affected”. Matching the products with the market means determining the needs and requirements of potential customer and supplying them the product which meets their requirements. According to Philip Kotler, “ Marketing is the social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging product of value with others”. According to
William J. Stanton, “Marketing is a total system of interacting business
activities designed to plan, price, promote, and distribute, wants satisfying products to target markets to achieve Organisational objectives”. In general we can say that Marketing includes all those activities carried on to transfer those goods from the manufactures or the producers to the consumers that can satisfy the needs and the requirements of the consumers.
3.2 BRAND Around 1970, Sanjay Gandhi the political advisor and younger son to then Prime minister of India, Indira Gandhi, envisioned the manufacture of an Indigenous, cost effective, low
38
maintenance and compact car for the Indian middle class. Indira Gandhi’s cabinet unanimously passed a resolution for the development and production of “people’s car”. Sanjay Gandhi’s company was christened Maruti Limited. The name was chosen as Maruti after a Hindu deity named “Maruti”. Unfortunately Sanjay Gandhi died without completing his project. After the death of Sanjay Gandhi, Indira Gandhi decided that the project should not be allowed to die. Maruti entered into collaboration with the Suzuki motors of Japan. The collaboration heralded a resolution in the Indian car industry by producing Maruti 800. The car went on sale on December 14, 1983.
3.3 PRODUCT Product mix involves planning, developing, and producing the right types of products and services to be marketed by the firm. It deals with the product range, durability and other qualities. Apart from producing right products, emphasis should also be laid on their branding, packaging, colour and other features. In short product planning and development involves decision about : i) quality of the product, ii) size of the product, iii) design of the product, iv) volume of the production, v) packaging, vi) warranties and after sale service, vii) product testing, viii) product range, etc.
Products Offered by Maruti Suzuki
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Maruti Suzuki comes with a large number of products i.e cars ranging from economy cars to luxury cars to super SUV’s. The economy cars includes :A) Maruti 800 B) Alto C) Zen Estilo D) Wagon R E) A - Star F) Ritz G) Swift H) Swift Dzire
The Utility Cars of Maruti Suzuki includes :A) Maruti Omni (Van) B) Maruti Eeco C) Maruti Gypsy D) Grand Vitara
The Luxury Cars of Maruti Suzuki includes :A) Maruti Esteem B) Maruti SX4
PRODUCTYEAR IN WHICH LAUNCHED Maruti Suzuki 800
1983
Maruti Suzuki Omni
1984
Maruti Suzuki Gypsy
1985
Maruti Suzuki Alto
2000
40
Maruti Suzuki Wagon R
2002
Maruti Suzuki Swift
2005
Maruti Suzuki SX4
2007
Maruti Suzuki A Star
2008
Maruti Suzuki Swift Dzire
2008
Maruti Suzuki Zen Estilo
2009
Maruti Suzuki Eeco
2010
Maruti 800 Maruti 800 is the most popular entry segment car in India. With the introduction of Maruti 800 in 1980’s Maruti Udyog Limited broke the hegemony of Ambassador and Fiat in the Indian Car market.
Technical Specifications:Dimensions
Length
3335 mm
Width
1440 mm
Height
1405 mm
Unladen Weight
655 Kgs (AC Euro I) , 640 Kgs (AC Euro I) , 665 Kgs ( AC Euro II), 650 Kgs (AC Euro II)
Ground Clearance
170 m
Wheel Base
2175 mm
Power 41
Engine Type
4 Stroke, Water cooled SOHC
Piston Displacement
796 cc
Max. Power
39.5 bhp @ 5500 rpm
Max. Torque
5.7 N m @ 2500 rpm
Fuel System
Carburettor
Transmission and
Manual, 4 Forward (Synchromesh), 1
gear box
reverse
Suspension
Front
McPherson strut and coil spring
Rear
Leaf Spring
Steering
Type
Manual Rack and Pinion
Turning radius
4.4 mts
Brakes
Type
Dual Circuit
Front
Disc
Rear
Drum
Tyres
5.65 – 12 – 4 PR
Capacities
Seating
4 Persons
Fuel Tank
30 Litres
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Maruti Alto
Maruti Alto is one of the hottest selling compact cars in Indian market. Alto uses Maruti 800’s proven and highly fuel efficient , 3 pot motor with a four valve head and its electronic tachometer results in unmatched fuel efficiency . It is the most fuel efficient car in A2 Segment.
TECHNICAL SPECIFICATIONS :Dimensions
Length
3495 mm
Width
1495 mm
Height
1460 mm
Wheel base
2360 mm
Tread
1290 mm
Min. turning radius
4.6 m
Ground clearance
160 mm
Weight
Alto
725 kgs
Alto LX, LXi
740 Kgs
Gross vehicle weight
1165 Kgs
Engine
43
Swept volume
796 cc
Engine type
FC Engine, 4 valve per cylinder MPFI
No. of cylinder
3
Engine control
32 bit computer
Max. Power
47 bhp @ 6200 rpm
Max. Torque
62 Nm @ 3000 rpm
Transmisson
5 Speed all synchromesh, Manual
Suspension System
Front
McPherson strut with Torsion type coil anti roll bar
Rear
Coil sprint with double action telescopic shock absorbers
Seating Capacity
4 persons
Tyres
145/80 R12
Maruti Omni ( Van)
Maruti Omni is popularly known as Maruti Van. Maruti Omni comes in three variants and they are :- Omni 5- Seater , Omni 8- seater and Omni LPG. Maruti Omni is a perfect family car. It has enough space for our life style needs whether we are going on a picnic, weekend outing or for a game of golf. We can pick our entire luggage without thinking twice. Omni provides ample headroom and legroom to ensure a comfortable and enjoyable journey.
TECHNICAL SPECIFICATIONS :Dimensions 44
Length
3370 mm
Width
1410 mm
Height
1640 mm
Wheelbase
1840 mm
Ground clearance
165 mm
Min turning radius
4.1 m
Weight
Omni
785 Kgs
Omni E
800 Kgs
Engine
Type
4 Stroke cycle, water cooled
No. of cylinders
3
No. of cylinder valves
6
Piston displacement
796 cc
Max. Power
35.0 bhp @ 5000 rpm
Max. Torque
601 NM @ 3000 rpm
Power Transmisson
Type
Manual, 4 forward all synchromesh
Front
Booster assisted disc
Rear
Drum
Brakes
Fuel tank capacity
36 Litres
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Maruti Eeco EECO was introduced in India by Maruti Suzuki during 2010. This car is essentially an updated Versa, this is an urgent refresh in lines with Maruti Suzuki not being able to come up with a new minivan. EECO comes with 5 seater and 7 seater options. EECO is equipped with advanced Engine Management System for optimizing fuel efficiency and performance. It is branded by the manufacturer as a perfect car for every occasion-a business trip or a picnic with the loved ones[1]. A new minivan from Maruti Suzuki is expected in 2011 to replace the Eeco/Versa and (possibly) the ageing Omni.
Maruti EECO is available in following variants :5 seater, standard 5 seater, AC 7 seater, Standard EECO is powered by Bharath Stage IV compliant engine.
TECHNICAL SPECIFICATIONS :-
Fuel:
Petrol
Engine type:
Aluminium
Fuel distribution:
Multipoint Injection
Power:
73 bhp (54 kW; 74 PS) @ 6000 rpm
Displacement:
1196 cc
Layout:
4 cylinder in-line
Max. Torque:
101 N·m (74 ft·lbf) @ 3000 rpm 46
Valve train:
16 valves / 4 per cylinder
Transmission:
Manual-5 speed
Suspension
Front Suspension:
McPherson strut
Rear Suspension:
3 Link Rigid
Brakes
Front Brakes : Rear Breakes :
Ventilated disc Drum
Tyres:
155 R-13 LT
Tyre type:
Tubeless
ZEN ESTILO
Maruti Zen is a clear leader in the premium compact car segment in India. It has several technology that makes it stand out from other cars in its segment. Maruti Zen comes equipped with 16 x 4 all aluminium hyper tech engines, with its power to weight ratio of 78.4 bhp per tonnes , the highest in its class, the engine also offers optimum fuel economy , excellent pick up and acceleration. The 16- bit Micro processor in Zen delivers ideal combo of speed, power and fuel efficiency. Its electronic power steering ensures effortless maneuverability, more control and a better grip.
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TECHNICAL SPECIFICATIONS :-
Capacities
Seating Persons
5
Fuel in litres
35
Engine in CC
993
Unladen weight in kgs
765
Laden weight in kgs
1190
Tyres
145 / 80 R 12 (Front
&
rear) PETROL Bharat Stage II
LX
LXi
VXi
All aluminium engine
16 valve, 4 cylinder inline engine
16 bit ECM
Multipoint fuel injection
Maximum
engine
output
in
60@ 6000
engine
torque
in
8@4500
bhp/rpm Maximum kgm/rpm Compression ratio
9.4:1
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PETROL Bharat Stage III LX
LXi
VXi
All aluminum engine
16 valve, 4 cylinder inline engine
32 bit ECM
Multipoint fuel injection
Maximum
engine
output
in
60 @ 6200
engine
torque
in
8 @ 4500
bhp/rpm Maximum kgm/rpm Compression ratio
9.4:1
DIMENSIONS Overall length
3535mm
Overall width
1495mm
Overall height
1405mm
Wheelbase
2335mm
Ground clearance
165m
WAGON R Wagon R is a hugely successful car which comes in four variants-
Maruti Wagon R LX,
Maruti Wagon R LXi, Maruti Wagon R VXi and Maruti Wagon R AX.Wagon R comes with 1064 cc MPFI low friction engine that delivers an awesome 64 bhp @6200 rpm for smoother pick up and faster acceleration. Dual Distributor less Digital Ignition (DDLI) ensures an
49
instant hassle free start every time and a more efficient power distribution. Wagon R’s tall body , high seats and wide opening doors make it easier to get in and out.
TECHNICAL SPECIFICATIONS :Dimension in MM
Length
3495
Width
1495
Height
1660
Wheelbase
2360
Front track
1295
Rear track
1290
Min. ground clearance
165 m
Weight in Kg
Kerb weight
825(LX,LXi,VXi) 840 (AX)
Gross Weight
1225 (LX,LXi, VXi) 1240(AX)
Engine
Swept volume
1061 cc
Type
FC Engine , 4 Valve per cylinder , MPFI
Fuel distribution
Multipoint injection
Engine control
16 – Bit Electronic Control Module (ECM)
No. of cylinders
04
50
Max. Power
64 bhp @6200 rpm
Max. Torque
84 NM @ 3500 rpm
Power Steering
Type
Electronic Power Steering (EPS)
Transmission
Manual ()- 5 speed , All synchromesh
Suspension
Front
McPherson strut with torsion type roll control device
Rear
Coil spring, gas filled shock absorber with 3 link rigid axle isolated trialing arms.
A-STAR Indian car market leader Maruti Suzuki has launched A-Star in the hatchback car segment in which the company holds ruling position with 55% market share. Maruti has unveiled A Star as a next generation model of its model Alto which is already selling greatly in the segment. Scroll down to know more about the sporty and striking features of all new A Star Car.
TECHNICAL SPECIFICATIONS :Dimension in mm
Length
3500
Width
1600
Height
1490
Wheelbase
2360
Front track
1295 51
Rear track
1290
Min. Ground clearance
170
Min. Turning radius
4.5
Weight In Kgs
Kerb weight
870
Gross Vehicle weight Capacity
Seating capacity
5 persons
Fuel tank capacity
35 litres
Engine
Swept volume
1061 cc
Type
KB series
Fuel distribution
Multipoint injection
Displacement
998 cc
No. of cylinders
03
Max. power
67 bhp @6200 rpm
Max. Torque
90 NM @ 3500 rpm
Steering
Rack and pinion , Power assisted
Transmission
Manual () – 5 Speed , All synchromesh
Suspension system
Front
McPherson strut and coil spring
Rear
Isolated trailing link and coil spring
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SWIFT Maruti Swift brings a feeling of freshness to the compact car segment . It’s appealing looks , spacious interiors, and a whole a lot of user friendly features at once catch our attention. It comes in three variants :-Maruti Suzuki Swift LXi, Swift VXi, Swift ZXi.
TECHNICAL SPECIFICATIONS :-
Body Type Body Type :-
Hatch back
No. of doors :-
5
Seating Capacity :-
5
Engine
Capacity :-
1298 cc
No. of cylinders :-
4
Bore X stroke :-
74.0 X 75.5
Compression Ratio :-
9.0 :1
Max. Power :-
87 bhp @ 6000 rpm
Max. Torque:-
113 Nm @ 4500 rpm
Fuel distribution :-
Multipoint injection
Transmission
53
Type :-
5 Speed Manualwith synchromeshin all and 1 reverse
Gear ratios :-
1
st
3.545
2
nd
1.904
3
rd
1.208
4
th
0.966
5
th
0.757
Reverse
3.0272
Power Steering
Type :-
Electronic power steering (EPS)
Suspension System
Front:
McPherson Strut with torsion type roll control device
Rear :-
coil spring, gas filled shock absorber with 3 link rigid axle isolated trailing arms
MARUTI GYPSY
It is manufactured in India by Maruti Suzuki. It was introduced in the Indian market in 1985 with the 970 cc F10A Suzuki engine and was an instant hit in the civilian market as well as with law enforcement. It was codenamed MG410 that stood for Maruti Gypsy 4 cylinder 1.0
54
litre engine. Initially, it was only available as a soft-top; but a bolt on hardtop was later introduced to the public after the aftermarket hardtops became extremely popular. In July 1993, Maruti introduced the "widetrack Gypsy" codenamed MG410W replacing the MG410. Both front and rear track of the wheels are increased by 90mm (from 1,210 mm (47.6 in) to 1,300 mm (51.2 in) for front wheels and from 1,220 mm (48.0 in) to 1,310 mm (51.6 in) for rear wheels) and these Gypsys are instantly recognizable by the pronounced painted fender flares.
TECHNICAL SPECIFICATIONS :Dimensions
Length 4,010 mm (157.9 in)
Width 1,540 mm (60.6 in)
Height 1875/1845 mm*
Wheelbase 2,375 mm (93.5 in)
Front Track 1,300 mm (51.2 in)
Rear Track 1,310 mm (51.6 in)
Kerb Weight 985 kg/1, 040 kg*
Gross Vehicle Weight 1585 kg/1,620 kg*
Engine
Type G13BB MPFI 16 Valve Gasoline
Cylinders 4
Displacement 1298 cc
Maximum Power 80 bhp (60 kW; 81 PS) @6000 rpm
Maximum Torque 103 N·m (76 lb·ft) @ 4500 rpm
Transmission Type Five forward (all Synchromesh), One reverse
Transfer gearbox Two-speed
Type constant mesh
Transfer gear ratio High : 1.409; Low : 2.268
Suspension Front and Rear Rear Leaf spring with Double action damper
55
Brakes With Booster
Front Disc
Rear Drum
Tyres F78-15-4 PR 205/70R15
Capacities
Fuel tank 40 L (11 US gal; 9 imp gal)
Engine oil 4 L (1.1 US gal; 0.9 imp gal)
MARUTI SUZUKI SX4
Designed by GiorgettoGiugiaro'sItaldesign studio, the SX4 (an abbreviation of "Sports Xover 4 all seasons ") replaces the Aerio (some markets called Liana). The "SX 4" designation was used by American Motors (AMC) for a sporty liftback model in its all-wheel drive AMC Eagle passenger cars.
Technical Specifications :Dimensions & Weight
Length (mm)
4490
Width (mm)
1735
Height (mm)
1560
Wheelbase (mm)
2500
Kerb Weight (kgs)
1170
56
Seating Capacity
05
Engine
Model Designation
1.6 L 16 V
No. Of Cylinders
04 Inline
Configuration
DOHC
Displacement (cc) Transmission Top Speed (kmph)
1586 5 Manual 175
Suspension
Front
Independent strut
Rear
suspension
gas-filled
McPherson
& anti-roll bar
Semi-independent torsion beam with gas filled shock absorbers
Brakes
Type Disc Front / Rear Brakes
Ventilated Discs/ Drums
Tyres
Type
with
195/65 R15
Wheels
15" Steel
Fuel Tank
50 Litres
Performance Max. Horsepower (ps/rpm)
103 PS @ 5500 rpm
Max. Torque (kg m/rpm)
145 Nm @ 4200 rpm
57
GRAND VITARA
Grand Vitara is meant for the people who want to live life grand size. With 127 KW @ 6000 rpm on call, the 2.7 litres DOHC V6 engine can empower the Grand Vitara to climb up steep terrains; Zip effortlessly down the highway and with plenty of low end torque, the high performance vehicle can take on snowy ramps and muddy tracks with equal ease. Its four wheel drive gives Vitara the power to go places.
Technical Specifications :Dimension in MM
Length
4760
Width
1780
Height
1740
Wheelbase
2800
Front track
1500
Rear track
1500
Min. Ground clearance
183 m
Weight in Kgs
Kerb Weight
1700
Gross Weight
2300
58
Capacity
Seating
7 persons
Fuel tank
66 litres
Engine
Type
H27A V6 type
No. Of cylinders
06
No. of valves
24
Piston displacement
2736 cc
Bore X Stroke
88 X 75
Compression ratio
9.5 : 1
Max. Output
166 bhp @ 6000 rpm
Max. Torque
236 NM @ 4500 rpm
Fuel distribution
Multipoint injection
Max. Speed
183 Km / Hr
Steering
Rack and Pinion
Brakes
Front
Disc
Rear
Drum
Suspension
Front
McPherson strut
Rear
5 – Link rigid with coil spring
Tyres
235 / 60 R 16 Tubeless tyres
59
3.4 PRICES OF MARUTI PRODUCTS
Car market leader Maruti Udyog Limited has announced a marginal increase in price of certain models. .The price increase is due to rise in input costs and freight costs, which increased following the rise in oil prices. In this phase, the company has decided to pass on only a part of the increase in costs to the customers. There is no change in the prices of Swift, Zen, and WagonR (Petrol). Ex-Showroom Prices in Delhi (in Rs) :Models
Prices (Rs.)
Maruti Suzuki 800
1,94,620
Maruti Suzuki Omni
2,09,757
Maruti Suzuki Alto
2,28,982
Maruti Suzuki Eeco
2,84,488
Maruti Suzuki Zen Estilo
3,31,412
Maruti Suzuki Wagon R
3,39,058
Maruti Suzuki A Star
3,63,220
Maruti Suzuki Ritz
4,09,822
Maruti Suzuki Swift
4,27,635
Maruti Suzuki Swift Dzire
4,96,671
Maruti Suzuki Gypsy
5,28,818
Maruti Suzuki SX4
7,08,062 60
Maruti Suzuki Grand Vitara
17,19,226
In Price case
They provide a list of different types of models of cars
They also gives a discount in the range of 20 % to 25 %.
3.5 PLACE
The Place of Maruti cars is in the whole world. Maruti Udyog Limited decides its distribution channel for selling cars like some time or level or sometimes two levels marketing channels. They decide area in which they deal customers. They show the permanent location for selling the cars. They provides many useful inventory they define the transport facility of the company to the market and market to the customers. Many showrooms of MUL are there in our India.
3.6 PROMOTION
Main Promotion of Maruti Suzuki cars is done by the advertising. The advertising is mainly done in the form of different Television channels , different newspapers, holdings etc. Now a days the main promotion is done by the brand Ambassador such as film stars, celebrities, sportsmen etc. and in this case they decide their actual and equired sales force for selling their cars. They also maintain customer relation and they do direct marketing .
3.7 SEGMENTATION
3.7.1 Meaning of segmentation :Market segmentation is the process of dividing a potential market into distinct sub- markets of consumers with common needs and characterstics. Market segmentation is the starting 61
steps in applying the marketing strategies. Once the segmentation takes place , the marketers targets the identified customer groups with proper marketing- mix so as to position the products/ brands/ company as perceived by the target customer.
3.7.2 Objectives of Segmentation :-
The main objective of segmentation is to provide those products to the customer they can :1. Satisfy their basic needs 2. Solve their problem 3.
Make themselves feel good
3.7.3 Segmentation of Market by Maruti Suzuki:-
Maruti Udyog Limited was set up to manufacture low price cars that can be afforded by the Indians but after 1990 that means after the globalisation ( i.e opening of Indian economy for rest of the world) many competitors started in enter the Indian market . Further with the develoment of the Indian economy the income of the peoples of India also increased and people started to afford luxury cars also. They have also catogorised their cars into different segments depending upon the choices of different peoples depending upon their income and other behaviours and these segments are :
Mini hatch back segment or A1 segment :-
Maruti 800
Compact hatchback segment or A2 segment :-
Maruti Alto Zen Estilo Wagon R A – Star Swift
Mid size segment or A3 segment :62
Maruti Esteem SX4
Utility Vehicle or MUV :-
Maruti Eeco Maruti Gypsy Grand Vitara
3.8 Market Positioning
3.8.1 Meaning :Market positioning means placing the potential product in the market that can satisfy the needs and requirements of the target customers.
3.8.2 Positioning of products by Maruti :Management of Maruti’s always tries that their products should be available at the authorised outlets in every city of India. In case of any new product they tries to make it available at every outlets in metropolitian cities and by getting the response of customers they increases the production and extends the availability in urban , semi urban and to the rular areas also.
3.9 Other Strategies adopted by Maruti Suzuki
3.9.1 After Sale service :As on date there are 342 Maruti dealer workshops and 1,545 Maruti Authorised Service Stations, or MASSs, covering 898 cities in India. In addition, 24-hour mobile service is offered in 38 cities under the brand “Maruti On-road Service”. They intend to extend this service to an additional 25 cities over the next three years. As a benchmark for dealers with 63
respect to service quality and infrastructure facilities, they have launched service stations under the brand “Maruti Service Masters, or MSMs, in three locations in India. They have service stations on 30 highways in India under the brand “Express Service Sta tions”. To promote sales of their spare parts and the availability of high quality, reliable spare parts for their products, they sell spares under th e brand name “Maruti Genuine Parts”, or MGP. These are distributed through their dealer network and through authorised sellers of their spare parts, to whom they refer as stockists. Many of their MASSs are at remote locations where they do not have dealers. In order to increase the penetration, in terms of sales volumes, of their products in these remote areas, they are exploring opportunities to integrate some of the MASSs into the sales process in order to increase sales of their cars and related products and services such as spares and accessories, insurance and financing.
3.9.2 Genuine Accessories They have also entered the business of marketing car accessories under the brand name “Maruti Genuine Accessories”, or MGA, through their dealership network. They seek to provide customers with the opportunity to customize their vehicles with accessories such as music systems, security systems, car-care products and utility products.
3.9.3 Warranty and Extended Warranty Program They offer a two-year warranty on all their vehicles at the time of sale. Their dealers are required to address any claim made by a customer, in accordance with practices and procedures prescribed by them, under the provisions of the warranty in force at that time. The dealers subsequently claim the warranty cost from them. They analyse warranty claims from dealers and either claim the cost from vendors, in the case of defective components, or bear the cost ourselves, in the case of manufacturing defects. They offer an extended paid-warranty program marketed under the brand, “Forever Yours” for the third and fourth year after purchase. They have entered into arrangements with insurance companies to cover the costs of warranties offered under this program. The extended warranty program is intended to maintain the dealer’s contact with the customer and increase the revenue generated from sale of spares, accessories and automobile-related services. An effort is made during the period of the extended warranty to encourage the
64
customer to exchange his existing Maruti car for a new Maruti car, or upgrade to a new Maruti car.
3.9.4 New business Initiatives As the largest manufacturer and leader in the small car segment, they continually seek new ways to utilize their vast car parc, range of products and extensive sales and service network to expand the size of the passenger car market in India. They have recently launched new initiatives to develop the market for automobile insurance, automobile finance, leasing and fleet management, and pre-owned cars. They aim to provide customers with a “one-stop shop” for automobiles and automobile-related products and services, and build on their wide customer base and extensive sales and service network to make available to their customers a wide range of Maruti-branded services at different stages of ownership, which they refer to as the “360 degree customer experience”. AtithiDevoBhava: One-stop shop
Inspired by the spirit of India. AtithiDevoBhava, in Sanskirit, means “a guest is like God”. It captures the Indian tradition of honouring guests. It's also the inspiration for the welcome you’ll receive at a Maruti Suzuki dealership, and the caring relationship they share with those who drive their cars. At Maruti Suzuki, you will find all your car related needs met under one roof. Whether it is easy finance, insurance, fleet management. services, exchange Maruti Suzuki is set to provide a single window solution for all your car related needs. That’s why they have Maruti True Value, the best place to buy and sell reliable used cars . Maruti finance an agglomeration of the biggest finance companies in India brought together by Maruti Suzukitoensurethat the dream car is within everyone’s reach. Similarly Maruti Finance brings together some of the biggest names in the car insurance industryto provide insurance solution to every type of the car consumer.
3.9.5 Maruti Insurance :It was launched in 2002. Maruti Suzuki provides vehicles insurance to its customers with the help of National Insurance Company , Bajaj Allianz , New India Assurance and Royal Sundaram. The service was set up by the company with the inception of two subsidiaries Maruti Insurance Distributors Pvt. Ltd. and Maruti Insurance Brokers Pvt. Ltd. The services started as a benefit or value addition to the customers and was able to ramp up easily. By
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December 2005
they were to sell more than two Million Insurance policies since its
inception.
3.9.6 Maruti Finance :To promote the bottom line growth Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Country wide with City Group and GE countrywide respectively to assist its clients in securing loans. Maruti Suzuki tied up with ABN Amro Bank , HDFC Bank , ICICI Limited , Kotak Mahindra , Standard Chartered and Sundaram to start this venture including its strategic partnership with SBI in March 2003. Since March 2003, Maruti had sold over 12,000 vehicles through SBI – Maruti Finance. SBI – Maruti Finance is currently available in 166 cities across India.
“ Maruti Finance marks with coming together of the biggest players in the car finance business. They are the benchmark in quality and efficiency. Combined with Maruti volumes and networked dealership , this will enable Maruti Finance to offer superior services and competitive rates in the Market place”. -
JagdishKhatter, Managing Director of Maruti Udyog Limited
Citycorp Maruti Finance Limited is a joint venture between Citicorp
Finance India
and Maruti Udyog Limited. Its primary business started by the company is “hire – purchase” financing of Maruti Suzuki Vehicles . Citi
Finance India limited is a wholly
owned
subsidiary of City Bank Overseas Investment Corporation Delaware which inturn is a 100% wholly owned subsidiary of City Bank N.A. City Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%. GE Capital , HDFC and Maruti Suzuki together came in 1995 to form Maruti Countrywide. Maruti Claims that its finance program
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offers most competitive interest rates to its customers which are lower by 0.25% to 0.5% from the market rates.
3.9.7 Maruti True Value :Maruti True service offered by Maruti Suzuki to its customers. It is a market place for the used Maruti Suzuki Vehicles. One can buy ,sell or exchange used Maruti Suzuki Vehicles with the help of this service in India. As of 2009 there are 315 Maruti True Value Outlets.
3.9.8 Maruti Driving school :As a part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving school in Delhi. Later the service extended to other cities of India as well. These schools are modelled on international standards, where the learners go through the classroom session and practical sessions. Many standards facilities like road behaviour and attitude are taught in these schools. Before driving actual vehicles participants are trained on stimulators.
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3.10 MARKET SHARE
Graph 3.1 Showing Market Share of Maruti Suzuki Refrence :- Official website of Maruti Suzuki (www.marutisuzuki.com)
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2008- 2009 Market Share Segment A2
Sales
Maruti Tata Hyundai
Chart 3.1 Showing Market Share in A2 Segment Description Maruti
59%
Tata
20%
Hyundai
21%
Refrence :- Auto India (Automobile Magzine), March 2010
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2008 – 2009 Market share Segment A3
Sales
Tata Ford GM Honda Maruti Hyundai Others
Chart 3.2 Showing Market Share in A3 Segment Description Tata
20%
Ford
14%
GM
6%
Honda
20%
Maruti
17%
Hyundai
16%
Others
7%
Refrence :- Auto India (Automobile Magzine), March2010
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2008 -2009 Market Share Passenger Car
Sales
Hyundai Maruti Tata Honda Ford GM Toyota Others
Chart 3.3 Showing Market Share of passenger cars Description Hyundai
17%
Maruti
55%
Tata
16%
Honda
4%
GM
3%
Toyota
10%
Others
3%
Refrence :- Auto India ( Automobile Magzine), March 2010
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MARUTI ALL INDIA SALES – 3 YEARS TREND
Segment
2006-07
A1 (Mini - Hatchback)
167,561
17% 116,262
A2 (Compact - Hatchback)
176,132
47% 271,280
A3 (Mid Size) A4/A5/A6 (Exec./Prem./Luxury) C (Van Type)
Growth 2007-08 Growth 2008-09 Growth
-31%
89,223
-23%
54% 335,136
24%
14,173
28%
29,637
109%
31,939
8%
NA
NA
NA
NA
NA
NA
59,526
15%
65,019
9%
66,366
2%
Passenger Cars - MUL
417,392
28% 482,198
16% 522,664
8%
Passenger Cars - Total Industry
758,123
26% 885,029
17% 948,669
7%
MUV (Utility Vehicles)
3,555
12%
46%
5,204
4,374
-16%
Passenger Vehicles - MUL
420,947
28% 487,402
16% 527,038
8%
Passenger Vehicles - Total Industry
901,150
24% 1,050,24 6
17% 1,129,31 6
8%
Table 3.1 Showing Sales of Maruti cars in the year 2006 to 2009 Reference : Autocar ( Automobile Magzine) , March 2010
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COMPETITION MODELS
Segment
Maruti
Competition
A1 (Mini - Hatchback)
M800
A2 (Compact - Hatchback)
Zen, WagonR, Alto, Swift
Hyundai - Santro& Getz; Tata Indica&Palio; GM - Spark & Beat
A3 (Mid Size)
Esteem, SX4
Hyundai - Accent; Tata - Indigo & Petra; Honda - City; GM - Corsa, Optra, &Aveo; Ford - Ikon, Fusion, & Fiesta
A4/A5/A6 (Exec./Prem./Luxury)
Hyundai - Elantra& Sonata; Honda Accord; GM - Vectra; Ford - Mondeo; Skoda - Octavia & Superb; Toyota Corolla & Camry; Daimler Chrysler C,E, & S Class;
C (Van Type)
Omni, Versa
MUV (Utility Vehicles)
Gypsy, Grand Vitara
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Mitsubishi - Pajero; Hyundai - Terracan& Tucson; Ford - Endeavor; Toyota - Prado &Innova and Fortuner; Nissan - X Trail; Honda - CRV; GM - Forrester &Tavera; Tata - Sumo & Safari; Mahindra - Jeeps, Bolero, Scprpio and Xylo.
3.11 Customer Satisfaction By Maruti Suzuki Now a day’s Customer satisfaction is the main aim or objectives of all the business organisations. With the Globalisation and Liberalisation (i.e. opening of Indian market ) the competition has increased to a great extent. All the Indian companies or the business organisations have to match their products with the International standard level in order to remain in the market. A marketer can remain in the mind of the customers only if he is able to satisfy the needs and requirements of the potential customers (i.e. when customers get value for their money). In such situations Maruti Suzuki took an initiative to satisfy its customer in the following ways. 3.11.1 Customer Service:-
The CRM Program allows Maruti Suzuki to acquire customers, service the customers, increase the value of customers to the company, and retain good customers and to determine which customer can be retained or given a higher level of service. A good CRM program can improve customer service in several ways. Provides Product Information, product use, information and technical
assistance on
websites that are accessible 24 hours a day and 7 days a week Identifies how each individual customer defines quality and then designs service strategies for each customer based on these individual requirements and expectations. Provides a fast mechanism for managing and scheduling follow up sales call to assess post purchase cognitive dissonance, repurchase, probabilities repurchase times and repurchase times. Provides a mechanism to track all points of contact between customer and the company and do it in an integrated way so that all sources and the types of contact are included and all the user of the system see the same view of the customer (reduces confusion).m It also helps to identify problems quickly before they occur. Provides a user friendly mechanism for registering customer
complaints (complaints
that are not registering with the company cannot be resolved and are a major source of customer dissatisfaction).
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Provides a fast mechanism for handling problems and complaints (complaints that are resolved quickly increased customer satisfaction). Provides a fast mechanism for correcting services deficiencies (correcting the problem before other customer experience the same dissatisfaction). Uses internet cookies to track customer interest and personalize product offerings accordingly. Use internet to engage in collaborative customization or real time customization. Provides a fast mechanism for managing, scheduling, maintenance, repair and ongoing support (improve efficiency and effectiveness). The CRM can be integrated into other cross functional systems and thereby provides accounting and production information to customers when they want it.
3.11.2 Improving Customer Relationships :-
CRM programs are also able to improve customer relationship. Proponents say this is so because:CRM Technology can track customer interests, needs and buying habits as they progress their life cycles and tailors the marketing efforts accordingly. This way customers get exactly want they want as t hey change. The technology can track customer products use as the product progresses through its life cycle and tailors the service accordingly. These way Customers get what they need as the product ages. In Industrial markets, the technology can be used to micro- segment the buying centre and helps co – ordinate the conflicting and changing purchase criteria of its members. When any of the technology driven improvement in customer service (mentioned above) contribute to long term satisfaction they can ensure repeat purchases, improve customer relationship, increase customer loyalty, decreases customer turnover, decreases marketing costs (associated with customer acquisition and customer training), increases sales revenue and thereby increases profit margins. 75
Repeat purchase however comes from customer satisfaction which inturn comes from deeper understandings of each customer, their individual business challenges rather than a “one size fits all” approach. CRM software enables sales people to achieve this one on one approach to selling and can automate some elements of it via tailorable marketing communication. However all of these elements are facilitated by or for humans to achieve. CRM is therefore a companywide attitude as much as software solution.
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Tata Ford Mahindra Renault Chervolet Toyota Honda Skoda Mahindra Hyundai Mitsubishi Maruti 660
680
700
720
740
760
780
800
Graph 3.2 Showing Customer Satisfaction Index Ranking Refrence :- Autodrive ( Automobile Magzine), June 2010
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820
840
Chapter :-4
Findings And Analysis
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After the study of the project , we have got several information and real facts about Maruti Suzuki :
It was the idea of Sanjay Gandhi, son of Indian Prime Minister Indira Gandhi to provide cheap and low maintenance cars to Indiansand for this purpose Maruti limited was established but after his death Maruti limited went into collaboration with the Suzuki Motors of Japan.
Maruti Suzuki focuses on overall segment of market and the strategied adopted by Marutis are very appealing and interacting for the customers.
Initially it focused on providing cheap cars to the customers but after Globalisation of the Indian economy (1990s) many foreign companies started to enter the Indian market then to stand in the market Maruti Suzuki also started to manufacture luxury cars also.
Along with manufacturing of cars Maruti also started another operations li ke :- Maruti finance, Maruti Insurance, Maruti genuine parts, After sale service, Maruti True value, Maruti Driving school etc..
Some other findings about Maruti Suzuki A Buying Experience Like No Other
Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D. Power SSI Study 2004. Quality Service Across 1036 Cities
In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience. 92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably 79
recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle. One Stop Shop
At Maruti Suzuki, you will find all your car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all your car related needs.
The Low Cost Maintenance Advantage
The acquisition cost is unfortunately
not only the cost
Although a car may be afforded to buy , it may not
we face buying a car.
necessarily be afforded to
maintain as some of its regularly used spare partsmay be priced quite steeply. Not so in the case of Maruti Suzuki. It is in the economy segment thatb the affordability of spares is most competitive and it is here where Maruti Suzuki shines. The recent auto car survey conducted in August 2004 bears testimony to this fact. In the Maruti Suzuki Stable, the Omni has the lowest aggregate cost of the spares followed by the Maruti 800. The Maruti 800 has the cheapest spares of any Indian car. In the lower Mid Size segment as well price consciousness is very high , Where the cars have to be not only affordable on purchase price but alsoneed to combine quality and have comfortable interiors. In this segment the Maruti Suzuki Versa had scored particularly well with the lowest cost of spares in the segment. In the upper Mid Size Segment the Maruti Suzuki Baleno had the segment lowest price on a majority of spares.
Lowest Cost of Ownership To be really happy with the car one owns, it should be easy on the pocket to buy and to runwhich is why the cost of ownership is so important. And here again, a Maruti Suzuki is a clear winner, as shown by the recent J.D.Power CSI study 2004. It is clear that a Maruti Suzuki delights you even when you run it for years. The 6 highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni. They are proud to have the lowest cost of operation / km (among petrol vehicles) - the top 5 models are all Maruti Suzuki models: Maruti 800, Alto, Zen, Omni and Wagon R. 80
SWOT ANALYSIS SWOT Analysis is the analysis of a company. SWOT analysis stands for Strengths , Weakness, Opportunities and threats. With the help of this analysis we can get the information about a company’s strengths and weaknesses and also about the opportunities and threats that a company is going to face or facing. After getting the knowledge about the weakpoints and threats from the external environment the management tries to overcome the weaknesses and the threats.
SWOT analysis of Maruti Suzuki are as follows :-
STRENGTHS :-
1. Brand Image 2. Reliable and cheap 3. Established brand in the Indian marke. 4. Great service and nationwide penetration 5. Experience in the Indian market 6. Very old player in the Indian market 7.
First major player
8. Established distribution and after sales network WEAKNESSES :-
1. Diseconomies of scale 2. No Online presence 3. Not diversified
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OPPORTUNITIES
:-
1. Acquisition 2. Innovation 3. Online 4. Product and service expansion 5. Takeovers THREATS :-
1. Competition 2. Cheaper technology 3. External changes ( Government policies, taxes, etc) 4. Lower cost competitors and cheap imports 5. Price war 6. Product substitution
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Chapter :- 5
Conclusion
83
Conclusion
This chapter concludes the study by highlighting the key findings of the study and some recommendations for Maruti Suzuki for future. The aim of the study is to critically analyse Maruti’s marketing strategies in India and to examine the effect on its sales . For this purpose secondary sources were used to collect information about the Marketing Strategies of Maruti Suzuki. The conclusion that can be drawn are :1. The main driver of the sales of Maruti cars in India are the Product features. 2.
The marketing strategies though aggressive and very customer specific are not prime force towards the sales.
3. The prices of Maruti cars are competitive but they are not the pri ce leaders. 4.
However much information on the distribution network can not be gathered.
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Chapter : 6
Recommendations
85
Recommendations
There is need for Maruti Suzuki to differentiate itself from past . This can be done by becoming more customer friendly to the Indian as well as Asian market.
Due to the opening of the Indian market that means globalisation and due to entry of many competitors in the Indian automobile market Maruti should project itself more aggressively to the low end, means market with its low range ( but high quality ) products.
Maruti was established to provide low cast cars to the Indians so it should carry on its objectives but it should also focus on the customer satisfaction by providing them quality products at low cost.
Maruti have developed a brand name and the customer have a high brand preference. There is need to incash on this by continuing to launch good quality products.
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BIBLIOGRAPHY
Books :
Kotler, Philip Principles of Marketing Management, prentice hall India, 2003
Chhabra, T.N Marketing Management,DhanpatRai and co., 2010
Kothari, C.R Research methodology, Vikas Publishing house, 1997
Magzines :
Overdrive
Autocar
Autodrive
Websites :
www.marutisuzuki.com
www.surfindia.com
www.carwale.com
www.driveinside.com
www.carindia.com
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