PROJECT REPORT

ON

STUDY OF MARKETING STRATEGIES

OF

MARUTI SUZUKI

Submitted in Partial fulfillment of the requirements of

Bachelor of Business Administration (BBA)

Guru Gobind Singh Indraprastha University, Delhi

Submitted by:
Student name: Chirag Khurana
Enrollment No. 1172141708

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL

VASANT KUNJ NEW DELHI
 ACKNOWLEDGEMENTS

I owe my sincere thanks and gratitude to _______________who inspired

me by his able guidance and was a constant guiding light during the
course of project study.

The support and knowledge provided by him has been a great value
addition for me and will go a long way in building a promising career.

Last but not least, I am also thankful to all the respondents of my survey
without whom the project would not have been completed successfully.

(Chirag Khurana)
 INDEX
 INTRODUCTION OF THE COMPANY

 OBJECTIVE OF THE COMPANY

 RESEARCH METHODOLOGY

 LIMITATIONS

 CONCLUSION

 BIBILIOGRAPHY
 INTRODUCTION OF THE COMAPANY

MARUTI UDYOG LIMITED

Maruti is India's largest automobile company. The company, a joint venture with Suzuki of
Japan, has been a success story like no other in the annals of the Indian automobile industry.

Today, Maruti is India's largest automobile company. This feat was achieved by the missionary
zeal of our employees across the line and the far-sighted vision of our management.

The Company Mission:

To provide a wide range of modern, high quality fuel efficient vehicles in order to meet the need
of different customers, both in domestic and export markets.

The Company Vision:

We must be an internationally competitive company in terms of our products and services. We

must retain our leadership in India and should also aspire to be among the global players.

Their focus is on:

 Building a continuously improving organisation adaptable to quick changes

 Providing value and satisfaction to the customer

 Aligning and fully involving all our employees, suppliers and dealers to face competition

 Maximising Shareholder's value

 Being a responsible corporate citizen

At Maruti, they have a clear perspective on manpower. They see it as a unique resource, in the
sense that optimal productivity of other resources depends largely on the way human resources
are utilised. The basic philosophy of management that underlies the Maruti culture is that all
employees of the company should be moulded into a team which then strives as one, to achieve
commonly shared company goals and objectives. To make this philosophy tenable, the Company
takes several initiatives. Inputs are sought from employees at all levels. They believe that
everyone should contribute to the formulation of company policies, goals and objectives.
Secondly, at Maruti, they encourage leadership in the best sense of the word. According to us, a
leader is one who must be impartial, must have the ability to rise above his own subjectivity, and,
most importantly, must practice what he preaches.

They understand that the process of creating a sense of belonging that all employees can identify
with is a lengthy one. To ensure that this translates into concrete reality, they have taken several
simple but specific and well thought out measures. The first step in this direction has been the
introduction of a common uniform for all employees. Another measure is the creation of a
common canteen where all employees have lunch, stand in common queues, and sit on the same
table. Common toilets, common transport and similar facilities for all levels of employees are
other measures that reinforce their emphasis on genuine equality in the workplace.

At Maruti They do not believe in the notion of organisational hierarchies. As a matter of fact, the
management structure and systems in Maruti have been designed to promote decentralisation of
authority. Maruti has a horizontal management structure with only four functional levels of
responsibility to facilitate quicker decision making.

Another focus area of the Maruti culture is the maintenance of a smoothly functioning
communication network. Maruti believes that communication channels between labour and
management cannot simply consist of having a labour representative on the Board of the
Company. They have faith in the ability of labour to effectively participate in management and
make constructive suggestions. To encourage this, they ensure that there is a thorough
dissemination of information at all levels, through newsletters or via a letter from the Chief
Executive to all employees. Meetings with the Union are held regularly, and programmes being
contemplated by the Company are discussed with the Union. The Sahyog Samiti, a collection of
representatives of non-unionised employees, training programmes in Japan, Quality Circles,
productivity-linked incentive schemes, and an ethos of discipline and teamwork, all contribute to
the Maruti culture.

Several measures of performance have made amply clear that Maruti has established a truly
healthy work culture. They have met all project and performance targets since inception. Their
productivity levels are constantly improving. The Company has had good labour relations with
employees from the very beginning, and they have been successful in the export market. Yet, the
Maruti culture is one that does not believe in resting on its laurels. They adhere to the spirit of
Kaizen, which states that constant improvement is always possible. The most basic tenet of
productivity that they hold dear is that " Today should be better than Yesterday and Tomorrow
should be better than Today".

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to
meet the growing demand of a personal mode of transport caused by the lack of an efficient
public transport system.

Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due
not only to their undisputed leadership in small cars but also to their commitment to actively
bring to MUL contemporary technology and Japanese management practices (which had
catapulted Japan over USA to the status of the top auto manufacturing country in the world).

A licence and a Joint Venture agreement was signed between Government of India and Suzuki
Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

The objectives of MUL then were:

 Modernization of the Indian Automobile Industry.

 Production of fuel-efficient vehicles to conserve scarce resources.

 Production of large number of motor vehicles, which was necessary for economic
growth.

Core Value

 Customer Obsession

 Fast, Flexible and First Mover

 Innovation and Creativity

 Networking and Partnership

 Openness and Learning

Vision

The leader in the India Automobile Industry, Creating Customer Delight and Shareholder’s
Wealth; A pride of India”

Technological Advantage

We have introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range.
This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve
engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the ideal
combination of power and performance from his car.

Our other innovation has been the introduction of Electronic Power Steering (EPS) in select
models. This results in better and greater maneuverability. In other words, our cars have become
even more pleasurable to drive.

Production/R&D

Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the Maruti Udyog
Plant has already rolled out over 4.3 million vehicles. In fact, on an average, two vehicles roll out
of the factory every minute. And it takes on an average, just 14 hours to make a car. More
importantly, with an incredible range of 11 models available in 50 variants, there's a Maruti
Suzuki made here to fit every car-buyer's budget. And dream.
 Timeline of Maruti Suzuki

1970
 A private limited company named 'Maruti technical services private limited'
(MTSPL) launched on November 16, 1970. The stated purpose of this company
was to provide technical know-how for the design, manufacture and assembly of
"a wholly indigenous motor car".

1971
 In June, A company called 'Maruti limited' was incorporated under the Companies
Act and Sanjay Gandhi became its first managing director.

1977
 'Maruti limited' goes into liquidation.

1978
 A commission of inquiry headed by Justice A. C. Gupta, which probed the
'Maruti scandal', submits its report.

1980
 On June, 23'rd, Sanjay Gandhi dies when a private test plane he was flying
crashed.

1981
 The Indian Central government at the behest of Indira Gandhi salvages Maruti
limited and starts looking for an active collaborator for this company.
 Maruti Udyog Ltd was incorporated under the provisions of the Indian Companies
Act, 1956

1982
 License and Joint Venture Agreement(JVA) signed between Maruti Udyog Ltd.
and SMC of Japan

1983
  Maruti 800, a 796 cc hatchback, India’s first affordable car, is released in the
market.
 Production was started under the JVA commences.

1984
 Omni, a 796cc MUV, released.
 Installed capacity of the plant in Gurgaon, reaches 40,000 units

1985
 Launch of Maruti Gypsy (970cc, 4WD off-road vehicle)

1986
 Maruti 800 ( New Model-796cc, hatchback Car)
 100,000 vehicles produced by the company. [2]

1987
 The company's first export, when a lot of 500 cars were sent to Hungary.

1988
 Installed capacity is increased to 100,000 units in Gurgaon.

1989
 Maruti 1000(970cc, 3 box), India’s first contemporary sedan is released into the
market.
1991
 65 percent of the components, for all vehicles produced, are indigenised
(produced locally)
 Liberalisation of the Indian economy opens new opportunities but also brings
more competition to segment.

1992
 Suzuki increases its stake in Maruti to 50 percent, making the company a 50-50
JV with the Government of India the other stake holder.

1993
  Zen(993cc, hatchback Car), which was later exported in Europe and elsewhere as
the Alto

1994
 Esteem1.3L (1298cc, 3 box car) LX released in market, Maruti's second sedan
model.
 Produced the 1 millionth vehicle since the production commenced. The first
company in India to do so.

1995
 Esteem1.3L (1298 cc, 3 box car) VX released in market.
 Maruti 1000 production of Maruti 1000 stopped.
 Second plant opened , installed capacity reached 200,000 units

1996
 Five new models lanched:
o Gypsy (E) (970cc, 4WD 8 seater)
o Omni (E) (796cc, MUV, 8 seater)
o Gypsy King (1298cc, 4WD, off road vehicle)
o Zen Automatic (993cc, hatchback car)
o Esteem 1.3L (1298 cc, 3 box Car) AX
 Launch of 24-hour emergency on-road vehicle service, the first of its kind in the
country.
 United Front government formed, Murasoli Maran new Industries Minister.

1997
 Government nominated Mr. S.S.L.N. Bhaskarudu as the Manging Director on
August 27, as the then current Managing director, R.C.Bhargava, was completing
his tenure. Creating a conflict with Suzuki
 1998 Esteem (1299cc, 3 box car) LX, VX and AX models released.
 New Maruti 800 (796cc, hatchback Car) Standard and Deluxe released, the first
change in design since 1986.
 Two million vehicles produced.

1998
 Zen D (1527 cc diesel, hatchback car) model released.
 Zen VX & Zen VX Automatic model released.
 New (Omni & Omni E) (796cc, MUV) model released.
1999
 Six new releases:
o Maruti 800 EX ( 796cc, hatchback car)
o Zen LX (993cc, hatchback car)
o Zen VXi (993cc, hatchback car with power steering)
o Omni XL ( 796cc, MUV, high roof)
o Baleno (1600cc, 3 Box Car) released. Advertised as 'Maruti Suzuki
Baleno'
o Wagon R launched in market.

2000
 First car company in India to launch a Call Center for internal and customer
services.
 New Alto model released.
 Altura, a luxury estate car released into the market.
 IDTR (Institute of Driving Training and Research) launched jointly with the Delhi
government to promote safe driving habits

2001
 Zen LXi
 Maruti True Value launched in Bangalore and Delhi
 Maruti Versa, India’s first luxury multi-purpose vehicle launched.
 Alto Spin LXi, with electronic power steering
 Alto Vxi
 Customer information centers launched in Hyderabad, Bangalore and Chennai

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 54.2 percent

2003
 New Suzuki Grand Vitara XL-7
  Redesigned and all-new Zen
 New upgraded WagonR
 Enters into partnership with State Bank of India
 4 million vehicles Produced since start of production.
 Maruti Udyog Ltd is Listed on BSE and NSE after a public issue, which is
oversubscribed 10 times.

2004
 New (non A/C) variant of Alto released.
 Alto becomes India's new best selling car overtaking Maruti 800.
 LPG variant of 'Omni Cargo'
 Versa 5-seater, a new variant created
 Baleno LXi, a new variant created
 Esteem undergoes cosmetic changes and is re-launched with a price cut.
 Maruti Udyog closed the financial year 2003-04 with an annual sale of 472122
units, the highest ever since the company began operations 20 years ago

2005
 The fiftieth lakh (5 millionth) car rolls out in April, 2005
 Growth in overall sales by 15.8%
 Suzuki Swift(1298cc 87 BHP 4Dr Hatch) Introduced into the Indian Market.
 Milestones Achieved by Maruti Suzuki

2009
 MSIL adopts voluntary fuel disclosure
 A-Star bags, Zigwheels “Car of the Year”
 A-Star rated best car of the year - Autocar – UTVi

2008
 World premiere of concept A-Star at 9th Auto Expo, New Delhi

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 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 its segment for 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 Autocar-CNBC ( 2nd time in a
row)-Feb 05
 First Indian car manufacturer to reach 5 million vehicles sales

2004
 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
 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
 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 "Samman Patra", for
contribution to exchequer and being an ideal tax assessee

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
1991-92
 Engineering Exports Promotion Council's award for export performance
 WHY MARUTI SUZUKI

The Quality Advantage

A car is an engineering product, only as good as the technology used to make it. Actual users of
our technology are saying something very clearly Maruti Suzuki is No.1 in quality:

Maruti Suzuki owners experience fewer problems with their vehicles than any other can
manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium
compact car segment and the Esteem in the entry level mid-size car segment across 9 parameters.

The J.D. Power APEAL Study 2004 proclaimed the Wagon R. No. 1 in the premium compact car
segment and the Esteem No.1 in the entry level mid-size car segment. This study measures
owner delight in terms of design, content, layout and performance of vehicles across 8
parameters.

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. The SSI study measures sales satisfaction across 6 parameters: deal
received, paperwork, dealer facility, salesperson, delivery timing and delivery process. Maruti
Suzuki has not only got the No.1 nameplate in the J.D. Power SSI study 2004, but also ranked
way above the industry average (Maruti Suzuki was at 784 while industry average was at 760).
What is significant is that it was ranked above Skoda, Ford, Chevrolet, Mitsubishi and Hyundai.

To be really happy with the car you own, it should have a reliable service network at hand and
within easy reach. Their 1036 city strong service network is equipped to service 20,000 vehicles
a day. No wonder Maruti Suzuki has been awarded the No.1 nameplate in customer satisfaction
in India for the fifth year in a row, a feat unprecedented for any automobile market leader in the
world.
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 in-service experience, most user-friendly service and best service
initiation experience.

In fact, 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 probable
recommend the same make of vehicle, while 90% owners would probable repurchase the same
make of vehicle.

A Buying Experience Like No Other

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a
workforce of over 6000 trained sales personnel to guide our customers in finding the right car.
Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D.
Power SSI Study 2004.

Quality Service Across 1036 Cities

In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters:
least problems experienced with vehicle serviced, highest service quality, best in-service
experience, best service delivery, best service advisor experience, most user-friendly service and
best service initiation experience.

92% of Maruti Suzuki owners feel that work gets done right the first time during service. The
J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably
recommend the same make of vehicle, while 90% owners would probably repurchase the same
make of vehicle.

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 the only cost you face when buying a car.
Although a car may be affordable to buy, it may not necessarily be affordable to
maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in
the case of a Maruti Suzuki. It is in the economy segment that 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 spares followed by the Maruti-800. The
Maruti-800 has the cheapest spares of any Indian car with a basket of just Rs. 23,422. 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 also need to combine quality,
drivability and have comfortable interiors. In this segment, the Maruti Suzuki Versa has
scored particularly well with the lowest cost of spares in the segment. In the Upper Mid-
size segment, the Maruti Suzuki Baleno has the segment's lowest prices on a majority of
the 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 run-
which 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.

Employee Quality Measures

Kaizen is based on the concept of making incremental improvements in our products. It

incorporates a series of continuous small and simple improvements, which aim at involving
employees at all levels.
The Suggestion Scheme is based on the same principle. Under this scheme, employees are
encouraged to make suggestions for improvement in any area of our operation. Over 50,000
suggestions are received from employees every year.

Maruti has won the First place in "Excellence in Suggestion Scheme Contest 2003", which is
the 6th consecutive award won in as many years. This contest is organized by Indian National
Suggestion Schemes Association (INSSAN). Since 1998 Maruti has won this award 10 times.

"Quality Circles" are groups of five to eight members from a particular work area who work as a
team to identify priorities and solve work related problems in the area.

We believe that it is this unwavering commitment to quality that will lead to the further growth
of the organization as competition increases.

ISO 9001:2000

At Maruti, our approach to quality is in keeping with the Japanese practice--"build it into the
product". Technicians themselves inspect the quality of work. Supervisors educate and instruct
technicians to continually improve productivity and quality. The movement of quality indicators
is reviewed in weekly meetings by the top management.

In 2001, Maruti Udyog Ltd became one of the first automobile companies anywhere in the
world to get an ISO 9000:2000 certification. AV Belgium, global auditors for International
Organization for Standardisation(ISO), certified Maruti after a four day long audit, covering
varied parameters like Customer Focussed organisation, Leadership, Involvement of people,
Process approach, System approach to Management, Continual improvement, etc.

In May 1995, Maruti got ISO 9002 certification. The audit for this covered quality assurance
in production, installation, marketing and sales as well as after sales services. We were also one
of the first companies in the world to pioneer ISO 9000 certification for our dealers.

In October 1993, MUL passed the Conformity Of Production (COP) Audit, which is based
on a European Union Directive. This authenticated our quality systems and testing facilities for
export to Europe.

Their emphasis on total quality has meant that today they are in a position to guide vendors and
dealers in establishing and consolidating their individual quality systems. This commitment to
quality has ensured a consistently satisfying product and world-class sales and after-sales
services.
TS16949:2002 - A new feather was added recently in Maruti’s cap in the field of quality
when the Quality Management System of its Press Shop & associated functions (collectively
termed as Press Function) got certification for conformance to the requirements of
TS16949:2002 standard.

The need for TS certification of Press Function had its genesis in the prestigious project that
Maruti earned for the supply of stamped panels to General Motors India for one of its
forthcoming models.

As a part of Quality system requirements, GM requires all its suppliers to be certified to either
ISO TS 16949 or QS 9000.

These standards address Quality System requirements, which are particularly specific to the
automotive industry and requires an organization to be in compliance with ISO 9000 systems as
a basic requirement. However, whereas QS 9000 would become defunct and cease to exist after
Dec 2006, TS 16949 is going to be the standard of the future.

The TS 16949 standard, brought out by ISO in the year 1999, is an extension of the ISO
9001:2000 standard that prescribes Quality management system requirements that are
specifically applicable to the automotive industry.

TS 16949 has gained high popularity and almost all major automobile players across the globe
including GM, Ford, Daimler Chrysler, Nissan, Honda are embracing & promoting it.
 THEORITICAL PERSPECTIVE

Consumer is strictly, the ultimate consumer of a product, the ultimate user of a product; the
person who derives the satisfaction or the benefit offered. The 'consumer' is not necessarily the
customer, since there are often 'customers' in the buying/ distribution chain; moreover, the
consumer is frequently not the person who makes the buying decision; for instance, in the case of
many household products, where the housewife may make the purchase but consumption or use
is by the whole family. 'Consumer' is not normally applied to the purchase of industrial goods
and services where the customer is usually a corporate body. Nevertheless, consumable goods
are sold to industry for corporate purposes and the consumers of these goods can be identified for
marketing practice.

Consumer behavior is the study of buying habits or patterns of behaviour of consuming public

either in general or in specific groups.

THE BUYING PROCESS

The complexity inherent in understanding consumer behaviour has led to the construction of
models of the buying process which indicate the stages through which the consumer passes from
the time he or she first becomes aware of a need for a product or service to the time when a
product is purchased, a brand selected, and the consumer evaluates the success of his purchase
decides whether to buy that particular product and / or brand again. It the same time, such
models usually indicate the social and psychological forces which shape the potential buyer's
action at each stage in the process. The two principal aims of such model building are the
prediction of future behavior based on measurement of relevant variable and the explanation of
this behavior in terms of theoretically relevant constructs.
The starting point for understanding the buyer is the stimulus-response model shown below

Marketi Other Buyer's Buyer's Buyer's

ng stimuli Characterist decision decisions
stimuli ics process

Product Economic Cultural Problem Product choice

recognition
Price Technologi Social Brand choice
cal Information
Place Personal Dealer choice
search
Political
Promotio Psychologica Purchase timing
Evaluation
n Cultural l
decision Purchase
amount
Post-purchase
behavior

Stages in Buying Decision Process

Need Informatio Evaluation of Purchase Post-

recognition n search alternatives decision purchase
behavior

The consumer passes through five stages : Problem recognition information search, evaluation
of alternatives purchase decision and post-purchase behavior. Clearly the buying process starts
long before the actual purchase and has consequences long after the purchase.

This model implies that consumers pass through all five stages in buying a product. But this is
not the case, especially in low-involvement purchase. Consumers may skip or rreverse some
stages. Thus a woman buying her regular brand of toothpaste goes directly from the need for
toothpaste to the purchase decision, skipping information search and evaluation. However, we
have already used the model in above, because it captures the full range of consideration that
arise when a consumer facer a highly involving new purchase. We will allude again to Linda
Brown and try to understand how she became interested in buying a laptop computer and the try
to understand how she became interested in buying a laptop computer and stages she went
through to make her final choice.

MAJOR FACTORS INFLUENCING BUYING BEHAVIOR

Cultural

Social

Culture Reference Personal

group
Subculture
Age and life- Psychological
Family
Social Class cycle stage
Roles and Motivation
Occupation
statuses Perception
Economic
circumstances Learning
Beliefs and Buyer
Lifestyle
attitudes
Personality
and self-
concept

Rogers model for the adoption and diffusion of innovations Innovation Adoption
CURVE
The innovation adoption curve of Rogers is a model that classifies adopters of innovations into various categories,
based on the idea that certain individuals are inevitably more open to adaptation than others. Is is also referred to as
Multi-Step Flow Theory or Diffusion of Innovations Theory.

 Innovators

Brave people, puling the change. Innovators are very important communication.

 Early Adopters

Respectable people, opinion leaders, try out new ideas, but in a careful way.

 Early Majority

Thoughtful people, careful but accepting change more quickly than the average.

 Late Majority

Skeptic people, will use new ideas or products only when the majority is using it.

 Laggards

Traditional people, caring for the "old ways", are critical towards new ideas and will only accept it if the new idea has
become mainstream or even tradition.

 The diffusion of innovations curve (innovation adoption curve) of Rogers is useful to remember that trying to
quickly and massively convince the mass of a new controversial idea is useless. It makes more sense in these
circumstances to start with convincing innovators and early adopters first. Also the categories and percentages can be
used as a first draft to estimate target groups for communication purposes.

 Diffusion research focus was on five elements: 1) the characteristics of an innovation which
may influence its adoption; 2) the decision-making process that occurs when individuals consider
adopting a new idea, product or practice; 3) the characteristics of individuals that make them
likely to adopt an innovation.
 TARGET MARKETING

Target Marketing involves breaking a market into segments and then concentrating your
marketing efforts on one or a few key segments.

The beauty of target marketing is that it makes the promotion, pricing and distribution of your
products and/or services easier and more cost-effective. Target marketing is the selection of
customers you wish to service. The decisions involved in it are

 Which segments to target

 How many products to offer

 Which products to offer in which segments

There are three steps to targeting:

 Market segmentation

 Target choice

 Product positioning

One of the first things you need to do is to refine your product or service so that you are NOT
trying to be 'all things to all people’.

Next, you need to understand that people purchase products or services for three basic reasons:

 To satisfy basic needs.

 To solve problems.
 To make themselves feel good.

The next step in creating an effective marketing strategy is to zero in on your target market.
Target marketing is one of corporate America's most effective business strategies. The idea is to
increase sales by first identifying, and then targeting smaller, yet more profitable customer
groups within the total market.

Four Ways to Identify Target Markets

1. Geographic: The location, size of the area, density, and climate zone of your customers.
2. Demographics: The age, gender, income, family composition and size, occupation, and
education of your customers.
3. Psychographics: The general personality, behavior, life-style, rate of use, repetition of
need, benefits sought, and loyalty characteristics of your customers.
4. Behaviors: The needs they seek to fulfill, the level of knowledge, information sources,
attitude, use or response to a product of your customers.

One of the best ways to identify your target market is to look at your existing customer base.
Who are your ideal clients? What do they have in common? If you do not have an existing
customer base, or if you are targeting a completely new audience, speculate on who they might
be, based on their needs and the benefits they will receive. Investigate competitors or similar
businesses in other markets to gain insight.

TARGET MARKETING

 Who are your best customers? Where should you direct your marketing activities?

 Where and how should you allocate your advertising and promotional efforts?

Target Marketing, provides Focus for your business. It helps to establish critical Operational
goals and defines what must be done to achieve them

What Customers Want

 Marketing is more than an activity, it is an attitude

  Instead of trying to get customers to buy what the firm likes to make, or happens to have
on hand, the marketing oriented firm tries to produce or sell what its customers want
which can be sold at a profit.
 Do not simply throw out everything that you now have and replace goods or production
machinery with completely new items.
 However, as you analyze your market and customer profiles, and so gain an
understanding of their wants, desires, and perceived needs, you can begin to reorient your
business over time to take best advantage of these new insights. Consider both the short
term and long-term implications of developing and implementing the right Target
Marketing strategy for your business.

Customer Attitudes

 For a long time, people have believed that advertising can be used to change people's
minds about what they want. This is an incredibly difficult process at best, and an
extremely expensive one. Because of these two factors, it is a process that smaller firms
simply cannot afford to pursue. Instead, it is much more productive for any size firm to
tune in to target customer attitudes as they currently exist. Once they have identified the
actual prevailing attitudes, they can begin to organize company resources needed to
constructively address and satisfy these attitudes the key question is,

"What are the existing customer attitudes?"

With this as an objective, developing an understanding of existing customer attitudes becomes

essential, and their identification becomes an important part of the marketing process. Once these
customer attitudes, needs or preferences are identified, the entire firm can then organize itself to
satisfy these needs as completely and efficiently as possible.
Target Marketing
 MARUTI CULTURE

Their employees are their greatest strength and asset. It is this underlying philosophy that has
moulded their workforce into a team with common goals and objectives. Their Employee-
Management relationship is therefore characterized by:

 Participative Management.

 Team work & Kaizen.

 Communication and information sharing.

 Open office culture for easy accessibility

To implement this philosophy, they have taken several measures like a flat organizational
structure. There are only three levels of responsibilities ranging from the Board Of Directors,
Division Heads to Department Heads. Other visible features of this philosophy are an open
office, common uniforms (at all levels), and a common canteen for all.

This structure ensures better communication and speedy decision making processes. It also
creates an environment that builds trust, transparency and a sense of belonging amongst
employees.

For Investors:

Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader
of the Indian car market for about two decades. Its manufacturing plant, located some 25 km
south of New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per annum, with a
capability to produce about half a million vehicles.
The company has a portfolio of 11 brands, including Maruti 800, Omni, premium small car Zen,
international brands Alto and WagonR, off-roader Gypsy, mid size Esteem, luxury car Baleno,
the MPV, Versa, Swift and Luxury SUV Grand Vitara XL7.

In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor
Corporation's R and D hub for Asia. It has introduced upgraded versions of WagonR Zen and
Esteem, completely designed and styled in-house.

Maruti's contribution as the engine of growth of the Indian auto industry, indeed its impact on the
lifestyle and psyche of an entire generation of Indian middle class, is widely acknowledged. Its
emotional connect with the customer continues.

Maruti tops customer satisfaction again for sixth year in a row according to the J.D. Power Asia
Pacific 2005 India Customer Satisfaction Index (CSI) Study.

The company has also ranked highest in India Sales Satisfaction Study.

The company's quality systems and practices have been rated as a "benchmark for the
automotive industry world-wide" by A V Belgium, global auditors for International Organisation
for Standardisation.

In keeping with its leadership position, Maruti supports safe driving and traffic management
through mass media messages and a state-of-the art driving training and research institute that it
manages for the Delhi Government.

The company's service businesses including sale and purchase of pre owned cars (TrueValue),
lease and fleet management service for corporates (N2N), Maruti Insurance and Maruti Finance
are now fully operational.. These initiatives, besides providing total mobility solutions to
customers in a convenient and transparent manner, have helped improve economic viability of
The company's dealerships.

The company is listed on Bombay Stock Exchange and National Stock Exchange.

MUL is a Board-managed company. Currently the directors on the Board are:

 Mr Shinzo Nakanishi, Chairman

 Mr Jagdish Khattar, Managing Director

 Mr Hirofumi Nagao, Joint Managing Director

  Mr Shinichi Takeuchi, Joint Managing Director

 Mr Kinji Saito, Director (Marketing and Sales)

 Mr Osamu Suzuki, Director

 Mr R C Bhargava, Director

 Mr S V Bhave, Director

 Mr Kumar Mangalam Birla, Director

 Mr Amal Ganguli, Director

 Ms Pallavi Shroff, Director

 Mr Manvinder Singh Banga, Director

OBJECTIVE OF THE COMPANY

Maruti’s marketing objective is to continually offer the customer new products and services that:

 Reduce the customer’s cost of ownership of their cars; and

 anticipate and address the customer’s needs and preferences in all aspects and stages of
car ownership, to provide what they refer to as the “360 degree customer experience.”

They sell many models with more than 50 variants in segments A, B, C, and utility vehicle
segment of the Indian passenger car market. Of these, they manufacture nine models and import
the Grand Vitara as a completely built unit from Suzuki in Japan. Their models and variants are
designed to address the changing demands of the market and are periodically upgraded in
technology, styling and features. To take advantage of the brand recognition associated with their
products, they retain the brand name of the product through various stages of product upgrades
over time. For example, the version of the Maruti 800 brand currently sold in the market is a
significantly upgraded version, in terms of technology, design and styling, of the Maruti 800
launched in 1983.
 COMPETITION MODELS
Maruti Competition
Segment

A1 (Mini - Hatchback) M800 Tata Nano 

A2 (Compact - Hatchback) Zen, WagonR, Alto, Hyundai – Santro, i10 ,I 20& Getz; Tata - Indica
Swift Vista; Fiat- Pulto
Skoda- Fabia, Honda - Jazz
A3 (Mid Size) Esteem, Baleno Hyundai – Accent, Verna; Tata - Indigo & Petra;
Honda - City; GM - Corsa, Aveo; Ford - Ikon,
Fusion, & Fiesta Mahindra Logan

A4/A5/A6   Hyundai - Sonata; Honda – Accord, Civic; GM

(Exec./Prem./Luxury) -Optra; Ford - Mondeo; Skoda - Octavia &
Lavra,Superb; Toyota - Corolla & Camry

C (Van Type) Omni, Versa Tata ,Ace  

MUV (Utility Vehicles) Gypsy, Grand Vitara Mitsubishi - Pajero; Hyundai - Terracan &
Tucson; Ford - Endeavor; Toyota - Prado &
Innova; Nissan - X Trail; Honda - CRV; GM
-Tavera; Tata - Sumo & Safari; Mahindra -
Jeeps, Scorpio, & Bolero and Xylo
 COMPETITIVE STRENGTHS

MUL believes that they are well positioned to maintain and enhance their leadership position in
the small car segment in India, while continuing to offer products in most segments of the Indian
market, on account of their competitive strengths, which include the following:

Expertise in small car technology: As a subsidiary of Suzuki, they have access to globally
respected technology in the small car segment. They have the advantage of Suzuki’s expertise in
all aspects of small car technology and design, with respect to their products, their manufacturing
processes and business practices, the development of their supply chain and the training of their
personnel.

Extensive product portfolio: Their diverse product range includes cars in segments A, B and C,
and utility vehicles. They manufactured five out of the ten models that were sold in the combined
A and B segments in India in fiscal 2002. They are the only manufacturer of cars in segment A
(priced below Rs.300,000) where they have two models, the Maruti 800 and the Omni. The
Maruti 800 has been the largest selling car in India for several years, and continued to have the
highest sales volumes of any model, with a market share of 25.3%. The Omni, a versatile vehicle
that can seat more passengers than the Maruti 800 or be used as an ambulance or cargo vehicle,
had a market share of 10.5% in fiscal 2002. They are also the only manufacturer to sell three
distinct models, the Zen, the Alto and the Wagon R, in segment B (priced between Rs.300,000
and Rs.500,000). They believe that theirdominance in segment A and extensive product range in
segment B enables us to offer the customer a wider choice in the small car segment than any of
their competitors. In addition, the absence of other manufacturers in segments A gives their
dealers greater flexibility in promoting models in segment B.
Quality products: In November 2001, they were one of the first automobile manufacturers in
the world to receive the ISO 9001:2000 certification. They began to export products in 1988,
primarily in order to benchmark our products against international quality standards. They have
exported products to approximately 70 countries, including countries in Western Europe. Their
products for export are manufactured using the same assembly line as our products for the
domestic market.

Extensive sales and service network: They believe that they have the largest network of dealers
and service centers amongst car manufacturers in India. As of March 31, 2003, we had 178
authorized dealers with 243 sales outlets in 161 cities. They estimate their car parc to be in
excess of 3.5 million vehicles. To service this car parc, at March 31, 2003, they had 342 dealer
workshops and 1,545 Maruti Authorized Service Stations, or MASSs, which covered 898 cities
in India backed by Express Service Centers on 30 highways across the country. In addition to the
distribution of their cars, their dealership network is a critical resource in our efforts to provide
customers with a “one-stop shop” for automobiles and automobile related products and services
such as automobile finance, automobile insurance, Maruti-certified pre-owned cars available for
purchase, and leasing and fleet management, in order to promote customer loyalty.

Brand strength: They have been present in the Indian market for almost twenty years and have
built their brand on the basis of the values of trust and reliability. Most of their principal
competitors have been present in the Indian passenger car market for a significantly shorter
period. Certain manufacturers have ceased to manufacture certain products shortly after
introducing them, or have left the market altogether. In contrast, they continue to support the
maintenance of their products. This has contributed to the strength of their brand. In 2000, 2001
and 2002, J. D. Power Asia Pacific, Inc. ranked us No. 1 in the India Customer Satisfaction
Index, which assesses customer satisfaction with product quality and dealer service. They believe
that this was the first time that a volume leader in the automobile industry anywhere in the world
was ranked first on the JD Power Customer Satisfaction Index. NFO Automotives 2002 Total
Customer Satisfaction Survey ranked Maruti products as No. 1 in the “Economy”, “Premium
Compact” and “Entry Midsize” segments respectively, for 2002.

Integrated manufacturing facility: Their manufacturing facility comprises three integrated

plants with flexible assembly lines located at Gurgaon in the northern state of Haryana. Their
facility has advanced engineering capability and each plant is upgraded on an ongoing basis to
improve productivity and quality. As a result, their first plant set up in fiscal 1984 is
technologically at par with their newer plants and is also used in the production of their new
models. They believe that they are one of the most efficient among the vehicle manufacturing
facilities of Suzuki’s subsidiaries outside Japan in terms of productivity measured as the ratio of
number of vehicles produced to number of employees. They have an installed capacity of
350,000 vehicles per year, which is the highest among passenger car manufacturers in India and
among the passenger car manufacturing facilities of Suzuki’s subsidiaries outside Japan. They
have consistently produced in excess of their installed capacity in the five fiscal years ended
March 31, 002.

They believe that they would be able to expand their production to 500,000 cars per year with
minimal additional capital expenditure. This would enable them to benefit from significant
economies of scale.

Strong vendor base and higher rates of localization: They work closely with their vendor base
for the supply of raw materials, components and spare parts of their products. In order to
improve quality and generate economies of scale, they have reduced the number of their vendors
of components in India from 370 as of March 31, 2000 to 299 as of March 31, 2003, and intend
to continue to reduce the number of our vendors. 113 of their vendors at March 31, 2003 were in
technical collaboration with foreign entities. As of the same date, we had strategic equity
interests through joint venture agreements in 13 of their vendors, who together supply a
substantial portion of their purchases of components. A number of their vendors are their
dedicated suppliers in that they account for a majority of their turnover. Vendors located within a
radius of 100 kilometers from their facility supply the majority of their components. The
production systems of their vendors are generally aligned to their need for a reliable and timely
supply of components that meet their quality requirements. This has enabled them to increase the
proportion of locally sourced, lower cost components in their models, a concept they refer to as
localisation. They have been able, in collaboration with their vendors, to increase the rate at
which they are able to localise production of their new models over time. This has helped them
reduce the cost of their components.
Skilled labour and experienced management: Thei highly skilled labour force has become
increasingly productive in terms of vehicles produced per employee and receives training on an
ongoing basis, including training by Suzuki. As of March 31, 2003, 1,900 of their employees had
been trained at Suzuki’s facilities in Japan. They have been present in the Indian passenger car
market for a significantly longer period than most of their principal competitors. As a result, they
have been able to build a highly experienced management team that is familiar with conditions in
the Indian passenger car market. For instance, their managing director has almost ten years of
experience with them, and most of the heads of their divisions have more than 15 years of
experience with them.

Capital resources: They have cash and bank balances and current investments amounting to
Rs.9,992 million. As of the same date, they had relatively low levels of outstanding
indebtedness, in the amount of Rs.4,555 million. As a result, they have relatively low interest
expense and flexibility to raise funds, if necessary, for their working capital and capital
expenditure in the future.
 BUSINESS STRATEGY
They intend to continue to focus on the small car segment, while offering products in most
segments of the Indian passenger car market. They aim to achieve their principal objectives by
pursuing the following business strategies:

Maintain and enhance their product range: They intend to utilize Suzuki’s expertise in small
car technology to produce new variants of their existing models and to upgrade their products
with contemporary technology and features.

Increase reach and penetration: They plan to continue to utilize their extensive sales and
service network to increase the reach, in terms of geographical spread, and penetration, in terms
of sales volumes, of their products across India.

Increased availability of automobile finance: They continue to seek opportunities to expand

the size of the Indian passenger car market, especially in the small car segment, through
facilitating easy availability of automobile finance. To that end, they have recently entered into
an agreement with the State Bank of India.

Secure repeat purchases by offering a “360 degree customer experience”: On the basis of
their belief that securing repeat purchases from an existing customer requires less expenditure
than acquiring a new customer, they aim to provide customers with a “one-stop shop” for
automobiles and automobile-related products and services.

Continue to benchmark their manufacturing capabilities: They plan to continue to

benchmark our manufacturing capabilities with the most efficient car manufacturing facilities of
Suzuki and its subsidiaries.

Continue to reduce costs to offer more competitive products:

Cost competitiveness has been, and continues to be, central to their strategy as the leading
manufacturer in the small car segment to expand the size of the market by offering competitively
priced, high quality products. The components of this strategy are:

 Higher levels of localization

 Vendor participation in cost reduction

 Cost reduction on warranties

 Reduction in initial investment cost

 Reduction in number of vehicle platforms

 Achieve further cost reduction through higher productivity

Lower cost of ownership:

Through their business strategies, they seek to reduce the consumer’s cost of ownership
of their cars, which comprises the cost of purchase, the cost of fuel and maintenance,
including spare parts and repairs, during the life of the vehicle, insurance, and resale
value.
 SALES NETWORK

Dealers: They offer their products to the customer through a network of 178 authorized dealers
with 243 sales outlets across 161 cities. They believe that this is the largest network of dealers
amongst car manufacturers in India. Their dealers employed more than 3,500 sales executives.
They are linked to their sales network through their secure extranet-based information network.
The sales of their spares, accessories and automobile-related services such as insurance and
finance serve as additional sources of revenue for our dealers. They believe that the availability
of these related products and services at sales outlets also helps to attract customers to the outlets
and promotes sales of their cars.

Agreements with dealers: They generally appoint a limited number of dealers for a certain
geographical territory. Their dealers provide services to customers such as pre-delivery
inspection of vehicles, sales of cars, after sales service, supply of spare parts and other services
that promote sales of cars within the territory for which they are appointed. They have the right
to sell their products and services through other dealers or intermediaries in any territory,
whether or not one of their dealers is already established in that territory. Their dealers are
required to maintain their outlets in accordance with their specifications and employ well-trained
sales staff.

Their agreements with their dealers usually have terms of five years. These agreements are
generally renewable for successive terms of three years, by mutual agreement. The agreements
typically permit termination by either the dealer or them with six months’ prior notice.

Enhancing dealer performance: Their central office in Delhi, their regional offices and their area
offices monitor and assist their dealer network. They have nine regional offices, five area offices
and 187 sales and marketing personnel. They follow the performance of their dealers and
frequently suggest improvements. In order to assist their dealers in enhancing their performance
and capabilities, they have introduced a concept of “Balanced Scorecard”. Using this tool, they
seek to measure the performance of a dealership in several areas of operations, including sales,
service, spares and accessories, financial management and management systems. They reward
dealers who perform well on the “Balanced Scorecard” with a cash payment at the end of the
fiscal year. They believe that the “Balanced Scorecard” serves as an effective incentive for
dealers to enhance their performance.

Dealer training: They have established standard operating procedures, showroom ambience and
service quality standards for dealerships. They provide periodic training through their training
centres located at their manufacturing facility and at Chennai, Kolkata, Guwahati and Pune. They
have trained more than 2,600 and 3,400 dealer sales personnel. Their subsidiary, True Value
Solutions Ltd., provides value-added services, such as manpower recruitment and training, to
their dealers.

AFTER-SALES SERVICE
Network

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 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 Stations”.

To promote sales of their spare parts and the availability of high quality, reliable spare parts for
their products, they sell spares under the 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.

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.

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 customer to exchange his existing
Maruti car for a new Maruti car, or upgrade to a new Maruti car.
 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”.

Atithi Devo Bhava: One-stop shop

Inspired by the spirit of India. Atithi Devo Bhava, 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
Suzuki to ensure that the dream car is within everyone's reach. Similarly, Maruti Insurance
brings together some of the biggest names in the car insurance industry to provide insurance
solutions to every type of car consumer. Then, finally, there is N2N, which offers fleet related
solutions.
 THE PLAYERS IN THE INDIAN AUTOMOBILE
INDUSTRY
Hyundai Motor India Ltd

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest and the fastest growing car manufacturer in
India. HMIL presently markets 31 variants of passenger cars in six segments. The Santro in the B
segment, Getz in the B+ segment, the Accent in the C segment, the Elantra in the D segment, the
Sonata Embera in the E segment and the Tucson and Terracan in the SUV segment.

The company recorded combined sales of 252,851 during calendar year 2005 with a growth of
17.26% over year 2004. HMIL is India's fastest growing car company having rolled-out over
970,000 cars in just over 80 months since its inception and is the largest exporter of passenger
cars with exports of over Rs. 1,800 crores. HMIL has recorded a growth of 27.2% in exports
over the year 2004.

HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the
most advanced production, quality and testing capabilities in the country. In continuation of its
investment in providing the Indian customer global technology, HMIL has announced plans for
its second plant, which will produce 300,000 units per annum, raising HMIL’s total production
capacity to 600,000 per annum by 2007. The plant will be built on a 2.1 million square meter site
adjacent to the existing facility .HMIL is investing to expand capacity in line with its positioning
as HMC’s global export hub for compact cars. Apart from expansion of production capacity,
HMIL plans to expand its dealer network, which will be increased from 157 to 200 this year.
And with the company’s greater focus on the quality of its after-sales service, HMIL’s service
network will be expanded to over 1,000 in 2006.

The year 2005 has been a significant year for Hyundai Motor India. It achieved a significant
milestone by rolling out the fastest “200,000th” export car. HMIL exports to around 60 countries
globally and recently made a foray into the highly competitive UK market by exporting its first
shipment of 820 cars.
Propelled by the strong performance in year 2005, Hyundai Motor India is on the threshold of
yet another grand milestone of rolling out its ‘One millionth’ car which is expected soon.

Tata Motors

Tata Motors is one of the largest companies in the Tata Group with a total income of US$ 2.35
billion. More than 3 million Tata vehicles ply on Indian roads making Tata a dominant force in
the Indian automobile industry.
Tata Motors is India's only fully integrated automobile manufacturer with a portfolio that covers
trucks, buses, utility vehicles and passenger cars. It would be no exaggeration to say that Tata
Motors provides the wheels for India's growth.

Tata Motors has the unique distinction of giving India its first and only indigenously built
passenger car - The Tata Indica and the premium feature sedan - The Tata Indigo. The Indica,
launched in 1998, reached the 2,50,000 sales mark within 52 months of launch.

Tata Motors owes its leading position in the Indian automobile industry to its strong focus on
indigenisation. This focus has driven the Company to set up world-class manufacturing units
with state-of-the-art technology. Every stage of product evolution-design, development,
manufacturing, assembly and quality control, is carried out meticulously. Their manufacturing
plants are situated at Jamshedpur in the East, Pune in the West and Lucknow in the North.

Ford India Limited

The Ford Motor Company has a rich legacy of translating better motoring ideas to the roads. It
has manufactured notable brands such as the Ford, Lincoln, Mercury and the Jaguar. It is among
the top five industrial corporations in the world and is available in more than 200 countries
around the world.

Ford has entered the Indian market through a tie - up with Mahindra Motors to manufacture the
Ford Escort. A project that has been set up with a investment of Rs.1700 crore. Ford India
Limited is a subsidiary of Ford Motor Company, currently Ford has a 78% stake, which is going
up to 92% soon. The Maraimalai Nagar Plant of Ford India Limited, located roughly 45k.m.from
Chennai, provides employment to over 20000 people.The plant has the capacity to manufacture
1,00,000 vehicles per annum, equipped with state-of-the-art vehicle manufacturing technology
from Ford.
Presently offering seven different models, Ford India Limited (FIL) is catching up fast with the
Indian consumer. This is secured through a quality check program based on the principles of
NOVA - C (New Overall Vehicle Audit - Customer) wherein daily random checks are conducted
from a customer's point of view. To be doubly sure, routine calls are made to dealerships to
check the quality of cars delivered to them.

At Mahindra's dealerships are present trained professionals who provide the best levels of service
in India. Its intensive manpower training, advanced service equipment and dedicated consumer
satisfaction are the are its plus points which is being followed by the entire industry.

Acknowledgement has come in the form of the J D power 1997 India Initial Quality and
Customer Satisfaction Awards. These internationally acclaimed and recognized awards voted the
Ford Escort as the Best Quality car and the Mahindra Ford and its dealerships were rated the
highest in Customer Satisfaction. This is an honour as it its only the second time in automotive
history that the same brand/manufacturer has received both the awards in the same year.

General Motors India

General Motors India, incorporated in 1994 as a 50-50 joint venture company with the C.K. Birla
Group of Companies, became a fully owned subsidiary of GM in 1999 when GMOC bought the
remaining shares. The company was restructured in 1999 and was converted from a Public
Limited company to a Private Limited company. GM APH LLC currently holds 86 percent of
voting shares, and Holden (Australia) holds 14 percent. The SPO business was integrated with
the main business in the same company in 2000.

In India, GM strengthened its presence with new product launches Chevrolet Optra in 2003 and
Chevrolet Tavera (Multi Utility Vehicle) in 2004. Similarly in 2004, GM India is expected to
register a growth of 90% over 2003. With sales volume going up, the market share of GM India
has gone to nearly 2%. The sales volume in 2003 was 15,155 units while 2004 figure is expected
to be around 27,000 units. In 2004, the company sold a total of 26,166 cars as against 15,155
cars in 2003 registering a growth of 73% while overall passenger car growth during the year was
only around 23-24%. These included 9191 Chevy Optras in Entry 'D' Luxury sedan segment,
8369 Opel Corsas and 8417 units of the new generation premium multi-utility vehicle (MUV)
Chevrolet Tavera.

The existing GM India plant was originally built by Hindustan Motors. In 1994, GM India
entered into a 50% Joint Venture partnership with Hindustan Motors and modernized the 45,000-
square-meter plant near Halol, 45 kilometers northwest of Vadodara, in the western state of
Gujarat. In February, 1999, GM bought the holdings of Hindutan Motors and GM India became
a 100% subsidiary of General Motors Corporation of USA. The plant produces the Opel Corsa,
Corsa Sail, Chevrolet Optra, and Chevrolet Tavera. The Chevrolet Forester and Opel Vectra are
sold as CBUs (Completely Built in Units) and as imported from Japan and Germany
respectively.

Toyota Motor Corporation is the third largest automaker in the world. They have 34 dealers in
India and in Delhi they have 2 dealers, first one is ‘South Delhi Toyota’ and second one is in
Moti Nagar in which I have visited during my survey. Dealer in Moti Nagar which is “Galaxy
Toyota” have predetermined mission that-Customer comes first and everything they do is to
meet their customer needs, basically they work for creating a lifetime customer.

They work by dividing their work like in one showroom they have separate teams for every
product like relating to Corolla it comprises of 7 or 8 executives who handle all the work weather
it is of sale or any enquiry or telemarketing call that team must have some specific target to
achieve. They reach to the customers either by distributing Leaflets, Brochures to the customers.
They collect customer database from Directory (Yellow Pages) or through customer references
even they solve customers query online and give information through e-mails. Recently they
organized one drawing competition between the kids of their existing customers just to interact
with the customer and build loyalty of their company products. They judge their customer
satisfaction by analyzing that repeat buyers are more or not & moreover they have customer
feedback form in which they can analyze customers background and can forecast customer
future demands. They target only high profile customers.

They build customer loyalty by giving happy calls to the customer after sale of every 1,3,7
month. They provide Periodic maintenance schedule, which will ensure that vehicle, is kept in
best able-bodied at all times. The maintenance schedule may include periodic inspection,
adjustment and lubrication that will keep vehicle in the safest and most efficient condition, they
provide one booklet in which they give simple and useful tips for maintenance of the car. They
offer good schemes like providing free Test Drive worth Rs 250 petrol at the time of sale of any
car. They do road shows to attract customers. To promote their product they organize exchange
mela, events, various cash discounts like currently they are running one discount scheme on
purchase of any of their car (Innova, Toyota) they are giving free accessories worth Rs15000.
They provide 4 free services after sale and with full clean diesel.

All employees of Galaxy Toyota shall consider how they should act and how they might change
their ways to benefit the company. They launch one “Co Branded Credit Card” to provide
additional benefits and services to the Toyota customers. This Credit Card will give Toyota
customers a better payment flexibility and convenience, like Customer gets free service voucher
with the card, Special Invite to co-sponsored events, Personal accident insurance coverage: Up to
20 lakhs etc. They have one Guest Book in which they store valuable comments of customers,
which they think are very important for them, which will help them to improve their service.

HONDA

Honda is one of the leading manufacturers of automobiles and power products and the largest
manufacture of motorcycles in the world. They have 20 dealers in 42 different cities around
India. In New Delhi they have 6 dealers, I have visited one of them, which is in Najafgarh Road.
They do surveys to know customers need. They target either existing or their perspective
customers by giving advertisement in the newspaper or through there satisfied customers which
give references. They don’t believe on targeting competitor’s customers because by not doing so
they have such a brand reputation with good quality products, only through this they are able to
make good sales.

They display their models in 8th Auto Expo, which held in New Delhi. They are now focusing
on their new model ‘Civic’. Honda's Civic perhaps drew the maximum attention. The reason is
simple: Civic is a new car from the house of Honda. During my survey I get to know that Honda
City Model is the second largest selling car in the ‘C’ segment. They have a good superiority
with superior brand name in the country.

They prefer to have mode of communication with the customer through mail, telephone and
sometimes by letter. Customers who don’t have time even to see the model or to call the dealer
to make inquiries about their reservation they desire to solve their query online itself.

To judge customer satisfaction they some times invite their customers to have a get together, to
have interaction with customer in a minute to know that are they satisfied with their services and
what they are expecting from them in the near future. They make maximum of their sales from
the fresh customers rather than their repeat purchasers. To increase their sales they try to extort
surreptitious information from the customers and on their end they aim to ensure that the product
quality and product quantity should be available in required quantity in their dealership.

They have Feedback form in which they take feedback of the customer as well as their
salesperson because through this they are able to get the information of both the customer & their
salesperson that are they giving the full information to the customer. This Dealership even
provide technical skills and techniques to their employees that how to deal with the customer
thoughtfully every after 6 months.
 NEED FOR CRM IN AUTOMOBILE INDUSTRY

The global automotive industry exhibits most of the characteristics of mature industries and
closely follows their business cycles. While vehicle industry sales have been strong for the past
several years, they have started to slow recently due to the current global economic slowdown.
Deteriorating economic conditions result in a drop in consumer confidence, which quickly
impacts automotive sales due to their big-ticket status and the relative low cost of extending the
life of an existing vehicle through maintenance and repair.

The advent of the Internet as a research tool (75 to 80 percent of auto consumers research using
the Internet) has shifted power to consumers, further increasing pressure on prices. At the same
time, government regulation and consumer demands for sophisticated features have increased
development, production, and marketing costs. Regional economic fluctuations favor
consolidation among car companies, suppliers, and retailers -resulting in fewer, larger companies
that have more complete product lines targeted at existing and new markets. Consolidation has
heightened competition in all vehicle segments. Low-cost manufacturers are expanding beyond
their home markets with entry level vehicles, traditional passenger car manufacturers are
expanding into the light truck markets, and luxury manufacturers are moving down market with
passenger cars and SUVs. As a result of these product and market extensions, consumers find it
difficult to exhibit brand loyalty because vehicles have unclear brand identities, similar features,
and comparable prices. In addition, an overpopulation of dealers has resulted in local and
regional competition among same make dealers. This further reduces margins and damages the
brand images the car companies spend large amounts of money to build.

Relations between the car companies and their suppliers traditionally have been difficult. In
response to competitive pressure, suppliers have been forced by the car companies to provide
higher-quality components at constantly lower costs. The resulting decrease in margins and the
reduction in volume due to slowing sales have increased the pressure to consolidate and forced
some suppliers to the brink of bankruptcy. Dealers too have a long history of adversarial
relationships with the car companies. Independent entrepreneurs who view some of the car
companies with skepticism or serious mistrust, dealers believe that many manufacturer-
sponsored customer satisfaction programs are actually designed to force smaller dealers out of
business or to gain control of customer relationships that the retailers believe they "own."

These difficult relationships have prevented car companies and dealers from maximizing the
lifetime value of their combined customers. There are few incentives or efficient methods for
dealers and car companies to share critical data, resulting in ineffective management of product,
service, and household information. In addition, consumers receive conflicting marketing
communications from the two groups, which results in reduced brand value.

Key Industry Pain Points

 Decreasing sales and market share - The long-term battle for market share continues to
intensify. In the mature automotive industry, where business cycles drive sales
fluctuations, market share is critical to survival. Consumers are less brand-loyal than in
the past, and every market segment has an increasing number of vehicle choices. To
increase sales and gain ground in the market share battle, companies must improve their
ability both to acquire first-time customers and to develop customer loyalty to their
current brands. To achieve these related objectives, companies must set an aggressive
goal -deliver the best customer experience in the automotive industry.

 Difficult dealer relationships and a lack of dealer collaboration - As the consumer 's
primary touch point ,the dealer network is a critical component of customer-facing
operations. Therefore, the integration of the dealer network is absolutely essential to
improving the quality of the customer experience. Only with an infrastructure that
enables the effective flow of information to and from dealers can companies create a
complete view of their customers. Car companies must take the initiative in
understanding the customer 's perspective throughout the buying cycle.

 Lack of multichannel capabilities - With the advent of the Internet as a research tool,
the majority of customers are accessing the automotive enterprises through several
 different channels. Many times, the switch between channels happens very rapidly as a
prospect or customer can view a Web site, make a phone inquiry, and visit a retail store
within days or even hours of an initial contact. To improve customer satisfaction and
secure customer lifetime value, companies must be able to capture these multiple
interactions, provide seamless management between channels, and leverage shared
customer information to create rewarding experiences and to develop and execute highly
targeted marketing campaigns.

 Inefficient demand chain planning and high associated IT cost - Cost reduction is an
ongoing competitive requirement. Just as supply chain management must be supported by
a sophisticated information infrastructure, effective demand chain management also
requires the right supporting infrastructure, enabling car companies to fully leverage each
customer relationship through exceptional customer service, efficient lead generation and
management, and effective promotions and campaigns. In addition, global automotive
enterprises operate a wide variety of IT systems in their various business units and
functional groups. Rationalizing these systems offers significant cost savings.

 Lack of effective information sharing - Car companies must integrate global operations
in order to achieve the benefits of consolidation -cost reduction, effective
communication, and true integration of core competencies. In addition, internal alignment
between business units and functional groups is required to create a unified view of
consumers, products, and services. Currently, each business unit, functional group, and
brand operates through independent systems, programs, and touch points. As a result,
there is limited synergy across the ecosystem, leading to significant inefficiencies, lack of
coordination, and most important, an inability to maximize "share of wallet "from every
customer through well-targeted marketing and cross-selling. Synergy between
traditionally independent business units such as captive finance companies and between
functional groups such as sales, service, and marketing is more critical now than ever
 before. Only by sharing customer information can customer lifetime value be maximized
among different groups.

 Complex data governance requirements - Global automotive enterprises have large,

complex information technology ecosystems. While customer information must be shared
within this ecosystem in order to fully maximize global operations, it must also be
protected. Proper management of customer information requires a sophisticated
capability to manage a variety of access rules and to accommodate legal restrictions that
can change very quickly. The trust required for successful collaboration between groups
in the automotive enterprise must be built by demonstrating that customer information
can be shared while observing these complex requirements.

 Difficulty managing employee relationships - In today 's fast-paced business

environment, automotive companies need to ensure that their most valuable asset -their
employees -have immediate access to the critical information, services, and applications
required to be productive. Organizations must enable employees to make better decisions,
work collaboratively, enhance customer relationships, and maximize productive time.
Global automotive enterprises must be able to enact and enforce consistent policies
across business units, instill a common corporate culture across a geographically
dispersed and diverse workforce, equip employees with effective search tools to access
corporate knowledge bases, and provide employees with the training necessary to service
customers in a volatile and demanding market.
 FINDINGS FROM SURVEY

Total Number of Respondents: 10 Officials

Which company does the customer prefers??

Companies Preferred Number of Respondents

Maruti Suzuki 6
Hyundai Motors India Ltd 2
Tata
Honda 1
Skoda
General Motors 1

Do you face problems in maintaining good and effective relationships with

customers?

Companies Yes No
Maruti Suzuki 4
Hyundai Motors India Ltd 2
Tata 1
Honda 2
Skoda
General Motors 1
 Maruti Suzuki

Yes
No

Findings: According to the responses of the respondents it can be concluded that all
the respondents face problems in maintaining good and effective relationships with
customers. With changing customer needs its quite obvious that maintaining good
relations with customers need an effort on part of the Dealers and Manufacturers.

How well can your company identify its end user customers?

 Maruti Udyog Limited: According to the officials of MUL, the company’s endeavor is
to be close to the customer, to anticipate and fulfill their needs. They believe that the
new business initiatives taken by MUL have expanded the scope of this relationship.
Maruti offers auto insurance, auto finance, corporate lease and fleet management
and resale of pre-owned cars in partnership with its dealers. For the first time, car
customers in India are able to access these services through a one-stop shop,
backed by the leader brand. The way they look at it is that this will provide complete
mobility solutions to the Maruti customer. This also enables them to extend their
relationship with the customer beyond the point of purchase to the entire ownership
life cycle. Since these services play a vital role in the car customer's ownership
experience, the new initiatives enable them to offer Maruti owner’s greater value,
assurance and convenience.
 Hyundai Motors India Ltd: According to the officials of Hyundai Motor India is at a
very exciting stage in India today. They are experiencing tremendous growth - which
is a true sign of enjoying customer confidence. In order to strengthen their position
further in the Indian market, they need to continuously work on building their
corporate reputation while aggressively positioning their products. For HMI's focus
and commitment to the Indian automobile customers is of critical importance. Its
been their continuous endeavor to fulfill the entire spectrum of customer needs and
desires, across all socio-economic & lifestyle groups. They have therefore, in just 6
years of HMI's young life, established nationwide sales & service network, scaled up
state-of-the-art manufacturing capacity, launched global-standard cars in rapid
succession and exported cars made-in-India across the globe. Getz, a much
admired lifestyle brand in Europe and elsewhere, is a step in the same direction and
is a cutting-edge, addition to HMI's extensive product portfolio.
 General Motors: According to the officials at General Motors is positioned as a
mature and responsible car manufacturer, which offers great value-for-money
products to its customers. The company leverages its global expertise to
manufacture and market well engineered and safe products through its well-
established retail network that provide an excellent ownership experience to its
customers.
 Tata Motors: According to the officials of Tata Motors the foundation of the
company’s growth over the last 50 years is a deep understanding of economic
stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D.
 Ford India Limited: According to the officials of Ford India has reaffirmed its
commitment to enhancing the purchase and ownership experience for its customers
with the rollout of Ford Brand@Retail concept across the country. Ford India has
been revamping all dealerships under the Ford Brand@ Retail, a global corporate
identity program to offer a world-class purchase experience to the customer. Ford
India continues to expand its distribution network and will grow to 115 dealer outlets
in 79 locations by the end of 2005. The officials also mentioned that Ford India
provides training support to dealers in areas including customer satisfaction, sales,
 technical and non-technical aspects of the business and in the financial
management of the dealership.

Can your company differentiate its customers based on their value to

you and their needs from you?

Companies Yes No
Maruti Suzuki 4
Hyundai Motors India Ltd 1 1
Tata 1
Honda 2
Skoda
General Motors 1

Findings: According to the respondents (officials) at all the Five Automobile Majors their
company was able to differentiate its customers based on their value to them and their
needs from the company. This is important for the automobile industry because the
dynamics of selling cars is changing and manufacturers and dealers who fail to meet
the rising needs and expectations of their customers will lose out to those who can.
Buying a new car is an experience customer will remember for a long time and ensuring
that this experience is a satisfactory one is essential in building brand loyalty and
customer advocacy.

How well do you interact with your customers?

 Maruti Udyog Limited: According to the officials of MUL, their overall strength lies in
building an organization that is sharply focused on the voice of the customer.
Maruti's consistent performance over the past several years has resulted in a steady
increase in the percentage of its customers who say they intend to remain loyal to
the brand. n order to be closer to the customers, it is essential that we should have
multiple avenues of one-to-one interaction with our customers. As a major step in
 this direction they have started Call Center service with toll-free number for the
people of National Capital Region in year 2000. This service, named Anytime
Maruti, is now available nation-wide. Customers in over 700 cities/towns across
India can contact them any time during the day and all days of the week. The toll-
free service is 1800 1800 180, it is accessible from any fixed-line or mobile phone of
BSNL/MTNL network across the nation. The Anytime Maruti Call-center can also
be accessed using telephones on other networks by dialing 09811801515 (not toll-
free). The objective of this service is to ensure that customers have quick and easy
access to all information on their models, prices, dealers, value added services,
finance options, and the locations of our numerous service stations. Anytime Maruti
helps customers to learn more about their Maruti Cars and also about other services
offered by Maruti. For prospective buyers, Anytime Maruti can help them deciding
amongst various Maruti Models and benefits of buying from Maruti.

 Hyundai Motors India Ltd: According to the officials at HMI The Company has set up
more than 70 dealer workshops that are equipped with the latest technology,
machinery, and international quality press, body and paint shops, across the
country, thereby providing a one-stop shop for a Hyundai customer. Hyundai also
has a fleet of 78 emergency road service cars - specially equipped Santro that can
provide emergency service to all its customers anytime, anywhere. The customers
can also call on 1800-11-4645 (Toll Free - Only from MTNL & BSNL numbers)
011- 26924645 (For all GSM Connections / Landline other than MTNL & BSNL
numbers) for any queries & customer complaints. 

 General Motors: According to the official at GM, to bring greater value and service to
customers, they have introduced the GM Service Plus – a unique cluster of services,
designed to compliment every aspect of owning a car and ensuring complete peace
of mind. So be it emergency assistance, an urgent car servicing or even sourcing
genuine accessories, Customers can be assured of yet another great moment from
General Motors. For any car related query or emergency requirement, customers
can call 24-hour assistance at 30308080. The unique 3-hour service programme
 comes with a promise of servicing your car in just 3 hours, or you get the service
free. With their 24-hour workshops, customers can now conveniently get their car
serviced, when they use it the least. Widespread sales and service outlets across
the country ensure that you have the assurance of great service wherever you travel
in India.
 Tata Motors: according to the officials of Tata Motors the company has strengthened
its distribution and customer care network and today has 77 dealers and 230
authorized service outlets spread across 119 locations in India.
 Ford India Limited: According to the officials at Ford solutions aims to provide
quality, peace-of-mind products for the customer and embodies a brand
synonymous with its ability to provide products that can be tailored to suit one's
individual needs. Ford Solutions serve to develop products for Ford and the Dealer
body that enhance customer satisfaction. When your vehicle needs a repair or a
component replaced, you need Quality Care service. Your Ford Dealership is simply
the best place to have your vehicle serviced. Brakes, shocks, batteries or anything
your vehicle may need, your dealership is the place to get it. Customers can place a
online service request at Ford.

How well does your company customize its products and services
based on what it knows about its customers?

Companies Highly Somewhat Not Customer

Customer Customer centric centric
centric

Maruti Suzuki 1 3
Hyundai Motors India 2
Ltd
Tata 1
Honda 1 1
Skoda
 General Motors 1

Maruti Suzuki

Highly Customer centric

Somewhat Customer
centric
Not Customer centric

Findings: All the officials of the Automobile Majors agree that all products and services
are highly customer centric and based on the information they know about the
customers.

Does the company have established quality assurance processes?

Companies Yes No
Maruti Suzuki 4
Hyundai Motors India Ltd 2
Tata 1
Honda 2
Skoda
General Motors 1
 Maruti Suzuki

Yes
No

Findings: According to all the respondents their respective companies have established
quality assurance processes.

Does the company take customers' needs into consideration when

selecting and implementing technology?
Companies Yes No
Maruti Suzuki 4
Hyundai Motors India Ltd 2
Tata 1
Honda 2
Skoda
General Motors 1
 Maruti Suzuki

Yes
No

Findings: According to all the respondents their respective companies take customers'
needs into consideration when selecting and implementing technology.
As per officials of GM the Tavera is a classic case of an India-specific product. Though
it is an international product, the car has been totally re-engineered for Indian market
requirements.
At Hyundai Segment-needs and budgets are specific and a suitable variant strategy is
inevitably required to meet different segment-needs and to be a volume player in the
segment. The variants are decided after considerable research. They have been
targeted at different segments and they presently witness a healthy mix. As this
segment evolves they rationalise the variant strategy and add or delete variants to meet
market requirements. They have put in place a customer contact programme where
they interact with customers in groups as well at an individual level at regular intervals
to assess their needs and overall experience with their product.

The typical Indian consumer looks for value and does not mind paying a little more for it.
Fuel efficiency, airconditioning and reliability along with ease of service and low cost of
ownership are major considerations during the purchase process in India.
Does the company provide its employees with technology that
enables them to help customers?

Companies Yes No
Maruti Suzuki 4
Hyundai Motors India Ltd 2
Tata 1
Honda 2
Skoda
General Motors 1

Maruti Suzuki

Yes
No

Findings: According to all the respondents the company provides its employees with
technology that enables them to help customers. Employee and Dealer Training is a
part of every company Customer Service Initiative. This enables them to provide the
customers with state of art products and service to customers.
 Does the company maintain a strategy for collecting and using

information about customers?

Companies Yes No
Maruti Suzuki 4
Hyundai Motors India Ltd 2
Tata 1
Honda 2
Skoda
General Motors 1

Maruti Suzuki

Yes
No

Findings: According to all the respondents they have proper information about their
most profitable customers. Companies use Informal Meetings, Sales Interaction and
calls to collect relevant information needed to maintain good customer relationship. The
most effective companies like Tata Motors use all the above while most of other track
the data during sales interaction. All the Automobile majors surveyed used CRM
software for tracking Customer Information. According to the officials Customer and
Supplier Feedback are gathered through Call Centers, Mails and Direct Interviews.
There are other methods too but the above three are the most cost effective.

How effectively does the company combine information on customers with its
experiences to generate knowledge about its customers?
 Companies Very High Substantial Very Low

Maruti Suzuki 3 2
Hyundai Motors 2
India Ltd
Tata 1
Honda 2
Skoda
General Motors 1

Maruti Suzuki

Very High
Substantial
Very Low

Findings: All the 80% officials of the Automobile Majors their company highly effective in
combining information on customers with its experiences to generate knowledge about
its customers while 20% said that the company was somewhat effective.
 CONCLUSION

The price of a car is just one-third of what it cost you over its lifetime. Running and maintaining
it make up the other two-thirds. Take into account resale value and its real cost becomes clear.
Maruti Suzuki stands for value as much as it stands for performance. In spite of rising input
costs, we try our best to keep prices down. Their running costs and resale values are unbeatable
too. Nothing matches the delight their cars deliver. In the JD Power CSI study 2005, 85% of
Maruti Suzuki owners stated that they would definitely recommend the car they drive to
someone else. Infact, you don’t buy a Maruti Suzuki. You invest in it.

After the rash of new cars launches the past two years, the relative lull in the auto industry is
showing up in the customer satisfaction indices. According to the 2008 four-wheeler Total
Customer Satisfaction (TCS) study conducted by the specialist division of TNS Automotive, the
automobile ownership experience or customer ownership experience has declined in all areas
compared to 2004. The study is one of the largest syndicated automotive studies in India,
representing the responses of more than 7,000 new car buyers. The comprehensive study covers
over 50 models with customer evaluations taken in the key areas of sales satisfaction, product
quality, vehicle performance and design, after-sales service, brand image, and cost-of-ownership.
The TCS index score provides a measure of satisfaction and loyalty a given model enjoys with
its customers. According to TNS Automotive, the decline is predominantly for older, small and
entry mid-size car models. The ageing of these models seems to be posing a stiffer challenge for
manufacturers to sustain past performance levels at a time when customer expectations are rising
sharply.
The study reveals a significant increase in the importance of sales satisfaction, product quality
(both performance and design) and brand image since 2003, indicating rising customer
expectations over the years. This year's study shows the Maruti Suzuki Swift and the Toyota
Innova as the winners, with the two vehicles achieving segment-best ratings by performing well
in areas of greater relevance, particularly product and brand image. Sales satisfaction is weak in
both these models, largely because of the longer waiting time for new deliveries.

TNS Automotive's TCS Study has, since its inception in 2002, surveyed over 25,000 car buyers
and hasbuilt a sizeable sample base. Some of the key findings, indicators and inferences from the
2005 study are:

Progressive reduction in car ownership cycle-time from an average of 61 months in 2002 to 53

months in 2005: This shortened cycle-time is bringing these owners for repeat purchases sooner
and will, therefore, further fuel the growth of the four-wheeler market. This trend is already
visible in the growing additional/replacement purchases. Growth in additional (multi-car
households) and replacement purchases up from 51 per cent in 2002 to 65 per cent in 2005: This
will impact the volume growth in higher-end segments as the current car owners show upward
mobility.
Increasing budget for future purchases: Future intenders with a budget of Rs 6 lakh plus have
increased from 44 per cent in 2002 to 58 per cent in 2005. While first-time buyers are declining
as a composition of total volumes, the figure in absolute terms is high, fuelled by the up-
gradation by two-wheeler owners The study also throws up the question as to whether it is also
possible that the first-time car buyer who is generally a two-wheeler owner, is getting more fuel
efficiency conscious and tending towards postponing the car purchase decision due to the high
cost of fuel. Of course a shift in composition is also to be expected with the upper premium
compact and mid-size segments projected to grow at a much faster rate than rest of the industry.
The TCS study was conducted from August through October across 21 cities. Small sample
models have not been featured in the charts. These include the Fiat Petra Diesel, Ford Fusion,
Ford Mondeo, Hyundai Terracan, Maruti Esteem Diesel, Maruti Suzuki Grand Vitara, Maruti
Zen Diesel, and Opel Corsa Sail. TNS has a global network spanning 70 countries and is listed
on the London Stock Exchange.
The above show the positive result of the marketing strategy of marketing strategy of maruti. The
sales has increase by1% in passenger cars, 1.5%in domestic cars and exports has increase by
32.1%. Thus total sales have increase by 3.6%. Sales of Maruti800, Maruti Omni and Versa has
fallen down by 29%% and 13.1% respectively whereas sale of alto, wagon R, Zen estillo, Swift,
A-star has increase by2.4% and sales of SX4, Esteem and desire sales has increase by 53.9%.
Maruti Udyog Ltd is one of India's leading automobile manufacturers and the market leader in
the car segment, both in terms of volume of vehicles sold and revenue.

Good Technology

Uniform Pricing

Good Strength

More Coverage Area

Frequent /Regular Product Launch

Market Leader (with 47% share)

Oriented Driven Company

More Product Offering

Healthy Annual Report

Brand Image

Maximum Dealership as compared to other brands

Good Sale Service

Spare parts are cheap as compared to any other brand

Cheap & reliable quality

AREAS FOR IMPOVEMENT / RECOMMENDATION

Facade/Quality of Dealership should be improve

Uniform of Sales Executives

 Proper visiting cards should be available to the executives

Mostly dealers don’t have their specific website

All Japanese 5’s concept (Seiro, Sieton, Sciso, Seioetse, Shitsuke) should be put into
practice at Dealership

Maruti should regard as generous discount offers during Festival Season like Navratra,
Dusshera, and Diwali to gear-up their sales

Maruti should advertise in Sports because sports are increasingly cutting into the share
of mass entertainment channels

Maruti can start Money Bond Scheme instead of giving Cash Discount with more
value. Customers eligible for an income bond, encashable after a 15year period.
 BIBLOGRAPHY

Websites:
www.maruti.com
www.wikipedia.com
www.carwhale.com
www.google.com
www.zimbio.com

Newspaper:
The Economics Time
Business Time

Magazine:
Autoindia
Hotwheels

Tv Shows:
Speed
Velocity