A Summer Report

On

Customers Perception- A Survey Of Industrial Customer Of Gwalior

(Towards Cars)
At
MARUTI SUZUKI

Submitted to
JIWAJI UNIVERSITY GWALIOR

For The Partial Fulfilment Of The Award Of Degree

MASTER OF BUSINESS ADMINISTRATION (2014-2016)

FACULTY GUIDE

SUBMITTED

DR. SUBEER BANERJEE

HIMANSHU CHOUMAL

MAHARAJA INSTITUTE OF MANAGEMENT & TECHNOLOGY

Airport Road, Gwalior

DECLARATION

Himanshu Choumal, student of MBA III Semester from Maharaja Institute Of

Management , Gwalior, declare that all the information, fact and figures represented in
this report entitled CUSTOMER PERCEPTION- A SURVEY OF INDUSTRIAL
CUSTOMER OF GWALIOR TOWARDS CARS. Are first hand in nature. They are
actively based on my intensive research. I have made the project under the safe roof of
realistic data which was a sweet dream before handling due to strong faith and elastic
string of my heart. I have succeeded in equaling the efforts with the output, for which I
am very excited just like a blooming seed. Any resemblance to earlier project or
resource is purely coincidental.

Date .
Place: Gwalior

HIMANSHU CHOUMAL
MBA III Semester

CERTIFICATE

This is to certify that Mr. Himanshu Choumal student of MBA III Semester of
Maharaja Institute Of Management And Technology Gwalior affiliated to Jiwaji
University, Gwalior has completed his summer training of 6 weeks ( from 15 th of JULY to
30th AUGUST ) and prepared this report on CUSTOMER
PERCEPTION A
SURVEY OF INDUSTRIAL CUSTOMER OF GWALIOR TOWARDS CARS under my
guidance.

Date:
Place: Gwalior

DR.SUBEER BANERJEE
Faculty Guide

ACKNOWLEDGEMENT

It is privilege to express my gratitude & sincere thanks to Maharaja Institute Of

Management & Technology, Gwalior has given us the opportunity to summer training
report on the topic. I am thankful to Mr. Achal Pillai (Director-MIMT), Dr. Subeer
Banerjee (Dean Academics) and also Faculty Guide for his valuable guidance and
support throughout report preparation. I would also like to thank Mr. Sandeep Arora
(General Manager of Prem Motor).
I sincerely thank computer laboratory in-charge and library staff for their timely cooperation.
I would also like to thank to all people who directly or indirectly helped to complete
the report.

Date:
Place: Gwalior

HIMANSHU CHOUMAL
M.B.A. 3rd SEM

PREFACE

T h e p r o j e c t i s b a s e d o n t h e CUSTOMER PERCEPTION- A SURVEY OF

INDUSTRIAL CUSTOMER OF GWALIOR TOWARDS CARS. The project took 7
weeks for completion. The main motive of project report was to enhance my
expertise and extensive knowledge I gained through my course, by applying it
practically to the market of automobile Gwalior.
T h e p r o j e c t h a s b e e n c o m p l e t e d b y collecting the primary data by
interviewing the various companies of Gwalior. Secondary data was also used
as per the availability from different sources. In all the study was to find out at
which geographical area the potential customer may exist and also to study the
consumer behavior regarding automobile sectors.

During the project, I learnt the procedures and various other aspects of marketing of
automobile by applying theoretical knowledge and concepts to the best.
Needless to say, errors and omissions are bound to occur.
Last but not the least, I am grateful to all those who happened to be a part of
the successful completion of this Project and my mind and heart for going hand in
hand!

HIMANSHU CHOUMAL

CONTENTS

Chapter1. INTODUCTION OF THE COMPANY

1.1 History Of The Organization
1.2 Market Liberalization
1.3 Joint Venture Related Issues
1.4 Manufacture Facilities
1.5 Industrial Relations
1.6 Manesar Violence
1.7 Product And Services
1.8 Sales And Service Network
1.9 Maruti Insurance
1.10 Maruti Finance
1.11 Maruti True Value
1.12 N2N Fleet Management
1.13 Maruti Accessories
1.14 Driving School Maruti
1.15 Exports
1.16 Awards And Recognition
1.17 Maruti Growth Chart
1.18 Executive Summary
Chapter2. METHODOLOGY
2.1
2.2
2.3
2.4
2.5
2.6
2.7

Topic
Objective Of Study
Research Methodology
Research Design
Research Process
Exploratory Research
Data Collection

Chapter3. CONCLUSION
Chapter4. LIMITATION OF RESEARCH PROCESS
Chapter5. RECOMMENDATION
Chapter6. BIBLIOGRAPHY

History of Maruti

Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an

automobile manufacturer in India. It is a subsidiary of Japanese automobile and
motorcycle manufacturer Suzuki. As of November 2012, it had a market share of 37% of
the Indian passenger car markets. Maruti Suzuki manufactures and sells popular cars
such
as
the
Alto, Ritz, Celerio, Swift, WagonR, Zen,
DZire, Ciaz, Kizashi, SX4, Eeco, Omni, Ertiga, S-Cross.
The company's headquarters are at No 1, Nelson Mandela Road, New Delhi. In
February 2012, the company sold its ten millionth vehicle in India.
Maruti Udyog Limited was established in February 1981, though the actual production
commenced only in 1983. It started with Maruti 800, based on the Suzuki Alto key
car which at the time was the only modern car available in India. Its only competitors
were Hindustan Ambassador and Premier Padmini. Originally, 74% of the company
was owned by the Indian government, and 26% by Suzuki of Japan. As of May 2007,
the government of India sold its complete share to Indian financial institutions and no
longer has any stake in Maruti Udyog.

Chronology Beginnings
Maruti's history begins in 1970, when a private limited company named 'Maruti
technical services private limited' (MTSPL) was 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". In June 1971, a
company called 'Maruti limited' was incorporated under the Companies Act and Sanjay
Gandhi became its first managing director. "Maruti Limited" went into liquidation in 1977.
On 23 June 1980 Sanjay Gandhi died when a private test plane he was flying crashed.
A year after his death, and at the behest of Indira Gandhi, the Indian Central
government salvaged Maruti Limited and started looking for an active collaborator for a
7

new company. Maruti Udyog Ltd was incorporated in the same year through the efforts
of Dr. V. Krishnamurthy.

Suzuki Enters
In 1982, a license & Joint Venture Agreement (JVA) was signed between Maruti Udyog
Ltd. and Suzuki of Japan. At first, Maruti Suzuki was mainly an importer of cars. In
India's closed market, Maruti received the right to import 40,000 fully built-up Suzuki in
the first two years, and even after that the early goal was to use only 33% indigenous
parts. This upset the local manufacturers considerably. There were also some concerns
that the Indian market was too small to absorb the comparatively large production
planned by Maruti Suzuki, with the government even considering adjusting the petrol tax
and lowering the excise duty in order to boost sales. Finally, in 1983, the Maruti 800 is
released. This 796 cc hatchback is based on the SS80 Suzuki Alto and is Indias first
affordable car. Initial product plan is 40% saloons, and 60% Maruti Van. Local
production commences in December 1983.In 1984, the Maruti Van with the same
three-cylinder engine as the 800 was released and the installed capacity of the plant
in Gurgaon reached 40,000 units.
In 1985, the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, was
launched. In 1986, the original 800 was replaced by an all-new model of the 796 cc
hatch back Suzuki Alto and the 100,000th vehicle was produced by the company. In
1987, the company's started exporting to the West, when a lot of 500 cars were sent to
Hungary. By 1988, the capacity of the Gurgaon plant was increased to 100,000 units
per annum.

Market liberalization
In 1989, the Maruti 1000 was introduced and the 970 cc, three-box was Indias first
contemporary sedan. By 1991, 65 percent of the components, for all vehicles produced,
8

were indigenized. After liberalization of the Indian economy in 1991, Suzuki increased
its stake in Maruti to 50 percent, making the company a 50-50 JV with the Government
of India the other stake holder.
In 1993, the Zen, a 993 cc, hatchback was launched and in 1994 the 1298 cc
Esteem was

introduced.

Maruti

produced

its

millionth

vehicle

since

the

commencement of production in 1994. Maruti's second plant was opened with annual
capacity reaching 200,000 units. Maruti launched a 24-hour emergency on-road vehicle
service. In 1998, the new Maruti 800 was released, the first change in design since
1986. Zen D, a 1527 cc diesel hatchback and Maruti's first diesel vehicle and a
redesigned Omni were

introduced.

The

1.6 liter Maruti

Baleno three-box saloon

and Wagon R were also launched.

In 2000, Maruti became the first car company in India to launch a Call Center for
internal and customer services. The new Alto model was released. In 2001, Maruti
True Value, selling and buying used cars was launched. In October of the same year
the Maruti Versa was launched. In 2002, Esteem Diesel was introduced.
Two new subsidiaries were also started: Maruti Insurance Distributor Services and
Maruti Insurance Brokers Limited. Suzuki Motor Corporation increased its stake in
Maruti to 54.2 percent.
In 2003, the new Suzuki Grand Vitara XL-7 was introduced while the Zen and the
Wagon R were upgraded and redesigned. The four millionth Maruti vehicle was built
and they entered into a partnership with the State Bank of India. Maruti Udyog Ltd was
listed on BSE and NSE after a public issue, which was oversubscribed tenfold. In 2004,
the Alto became India's bestselling car overtaking the Maruti 800 after nearly two
decades. The five-seater Versa 5-seater, a new variant, was created while the Esteem
was re-launched. Maruti Udyog closed the financial year 2003-04 with an annual sale of
472,122 units, the highest ever since the company began operations and the fiftieth lakh
(5 millionths) car rolled out in April 2005. The 1.3 L Suzuki Swift five-door hatchback
was introduced in 2005.
9

In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles
India", to build two new manufacturing plants, one for vehicles and one for engines.
Cleaner cars were also introduced, with several new models meeting the new "Bharat
Stage III" standards. In February 2012, Maruti Suzuki sold its ten millionth vehicles in
India. For the Month of July 2014, it had a Market share of >45 %.

Joint venture related issues

Relationship between the Government of India, under the United Front (India) coalition
and Suzuki Motor Corporation over the Joint venture was a point of heated debate in
the Indian media until Suzuki Motor Corporation gained the controlling stake. This highly
profitable joint venture that had a near monopolistic trade in the Indian automobile
market and the nature of the partnership built up till then was the underlying reason for
most issues. The success of the joint venture led Suzuki to increase its equity from 26%
to 40% in 1987 and further to 50% in 1992. In 1982 both the venture partners had
entered into an agreement to nominate their candidate for the post of Managing Director
and every Managing Director will have tenure of five years.

Manufacturing facilities
Maruti Suzuki has two manufacturing facilities in India. Both manufacturing facilities
have a combined production capacity of 14, 50,000 vehicles annually. The Gurgaon
manufacturing facility has three fully integrated manufacturing plants and is spread over
300 acres (1.2 km2). The Gurgaon facilities also manufacture 240,000 K- Series engines
annually.
The Gurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni, Gypsy,
Ertiga, Ritz, and Eeco. The Manesar manufacturing plant was inaugurated in February
2007 and is spread over 600 acres (2.4 km2). Initially it had a production capacity of
10

100,000 vehicles annually but this was increased to 300,000 vehicles annually in
October 2008. The production capacity was further increased by 250,000 vehicles
taking total production capacity to 800,000 vehicles annually.

The Manesar Plant produces the A-star, Swift, Swift DZire, SX4, Ritz and Celerio. On
25 June 2012, Haryana State Industries and Infrastructure Development Corporation
demanded Maruti Suzuki to pay an additional Rs 235 corer for enhanced land
acquisition for its Haryana plant expansion. The agency reminded Maruti that failure to
pay the amount would lead to further proceedings and vacating the enhanced land
acquisition. It plans to set up a plant in Gujarat and has acquired 600 acres of land.

Industrial relations
Since its founding in 1983, Maruti Udyog Limited has experienced problems with its
labor force. The Indian labour it hired readily accepted Japanese work culture and the
modern manufacturing process. In 1997, there was a change in ownership, and Maruti
became predominantly government controlled. Shortly thereafter, conflict between
the United Front Government and Suzuki started. In 2000, a major industrial relations
issue began and employees of Maruti went on an indefinite strike, demanding among
other things, major revisions to their wages, incentives and pensions.
Employees used slowdown in October 2000, to press a revision to their incentivelinked pay. In parallel, after elections and a new central government led by NDA
alliance, India pursued a disinvestment policy.
Along with many other government owned companies, the new administration proposed
to sell part of its stake in Maruti Suzuki in a public offering. The worker's union opposed
this sell-off plan on the grounds that the company will lose a major business advantage

11

of being subsidized by the Government, and the union has better protection while the
company remains in control of the government.
The standoff between the union and the management continued through 2001. The
management refused union demands citing increased competition and lower margins.
The central government privatized Maruti in 2002 and Suzuki became the majority
owner of Maruti Udyog Limited.

Manesar violence
On 18 July 2012, Maruti's Manesar plant was hit by violence as workers at one of its
auto factories attacked supervisors and started a fire that killed a company official and
injured 100 managers, including two Japanese expatriates. The violent mob also injured
nine policemen. The company's General Manager of Human Resources had both arms
and legs broken by his attackers, unable to leave the building that was set ablaze, and
was charred to death. The incident is the worst-ever for Suzuki since the company
began operations in India in 1983.
Since April 2012, the Manesar union had demanded a three-fold increase in basic
salary, a monthly conveyance allowance of 10,000, a laundry allowance of 3,000, a gift
with every new car launch, These claims were denied by the company and the police
Maruti said the unrest began, not over wage discussions, but after the workers' union
demanded the reinstatement of a worker who had been suspended for beating a
supervisor.
The workers claim harsh working conditions and extensive hiring of low-paid contract
workers which are paid about $126 a month, about half the minimum wage of
permanent employees. Maruti employees currently earn allowances in addition to their
base wage. Company executives denied harsh conditions and claim they hired entrylevel workers on contracts and made them permanent as they gained experience. It was
also claimed that bouncers were deployed by the company.
12

The police, in its First Information Report (FIR), claimed on 21 July that Manesar
violence is the result of a planned violence by a section of workers and union leaders
and arrested 91 people. Maruti Suzuki in its statement on the unrest announced that all
work at the Manesar plant has been suspended indefinitely. The shutdown of Manesar
plant is leading to a loss of about Rs 75 crore per day.
On 21 July 2012, citing safety concerns, the company announced a lockout under The
Industrial Disputes Act, 1947 pending results of an inquiry the company has
requested of the Haryana government into the causes of the disorder. Under the
provisions of The Industrial Disputes Act for wages, the report claimed, employees are
expected to be paid for the duration of the lockout. The report claimed the salary
difference between contract workers and permanent workers has been much smaller
than initial media reports - the contract worker at Maruti received about 11,500 per
month, while a permanent worker received about 12,500 a month at start, which
increased in three years to 21,000-22,000 per month. n a separate report.
Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India, said
this kind of violence has never happened in Suzuki Motor Corp's entire global
operations spread across Hungary, Indonesia, Spain, Pakistan, Thailand, Malaysia,
China and the Philippines. Mr. Nakanishi went to each victim apologizing for the
miseries inflicted on them by fellow workers, and in press interview requested the
central and Haryana state governments to help stop such ghastly violence by legislating
decisive rules to restore corporate confidence amid emergence of this new 'militant
workforce' in Indian factories.
He announced, "We are going to de-recognize Maruti Suzuki Workers Union and
dismiss all workers named in connection with the incident. We will not compromise at all
in such instances of barbaric, unprovoked violence." He also announced Maruti plans to
continue manufacturing in Manesar, that Gujarat was an expansion opportunity and not
an alternative to Manesar. The company dismissed 500 workers accused of causing the
violence and re-opened the plant on 21 August, saying it would produce 150 vehicles on
the first day, less than 10% of its capacity.
13

Analysts said that the shutdown was costing the company 1 billion rupees ($18 million)
a day and costing the company market share. In July 2013, the workers went on hunger
strike to protest the continuing jailing of their colleagues and launched an online
campaign to support their demands.

Products and services

Current models

14

Model

Launched Category

Omni

1984

Minivan

Image

Gypsy

15

1985

SUV

WagonR 1999

Hatchback

Swift

2005

Hatchback

DZire

2008

Sedan

Ritz

2009

Hatchback

Eeco

2009

Hatchback

16

Alto K10 2010

Hatchback

Ertiga

2012

Mini MPV

Alto 800

2012

Hatchback

Stingray

2013

Hatchback

Celerio

2014

Hatchback

Ciaz

2014

Sedan

Discontinued models

17

Model

Launched

Discontinued

Category

Estilo

August 2009

2013

Hatchback

Gypsy E

1985

2000

SUV

1000

1990

2000

Sedan

Zen

1993

2006

Hatchback

Esteem

1994

2008

Sedan

Baleno

1999

2007

Sedan

Versa

2001

2010

Minivan

800

1983

2012

Hatchback

18

Image

Sales and service network

As of 31 March 2014 Maruti Suzuki has 933 dealerships across 666 towns and cities in
all states and union territories of India. It has 3,060 service stations (inclusive of dealer
workshops and Maruti Authorized Service Stations) in 1,454 towns and cities throughout
India. It has 30 Express Service Stations on 30 National Highways across 1,436 cities in
India.
Service is a major revenue generator of the company. Most of the service stations are
managed on franchise basis, where Maruti Suzuki trains the local staff. Other
automobile companies have not been able to match this benchmark set by Maruti
Suzuki. The Express Service stations help many stranded vehicles on the highways by
sending across their repair man to the vehicle.
In the year 2015 Maruti Suzuki launched a new premium sales channel called NEXA.
Maruti Suzuki India Limiteds Managing Director & CEO, Kenichi Ayukawa said: NEXA
provides a new experience of hospitality from Maruti Suzuki. Indian market and Indian
society are rapidly changing and new segments of customers are emerging. We have to
take new initiatives to meet diversifying expectations from our customers.
He added: The mission of NEXA is to offer innovative value and direction so that we
can adequately respond to the new segments of Indian customers and offer them the
experience which they value. While we will of course continue to enhance customer
satisfaction in our current network, with NEXA, I am confident Maruti Suzuki will be able
to cater to a broader range of customers who value pampering, innovation and a
personal touch in their car owning experience.
19

S-Cross, Indias first premium crossover that debuts in August 2015 will be the first car
to be sold under NEXA. Several new models will be added to both channels as part of
the Companys medium term goal of 2 million annual sales by 2020.

Maruti Insurance
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the
help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal
Sundaram. The service was set up the company with the inception of two subsidiaries
Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt.
Limited.
This service started as a benefit or value addition to customers and was able to ramp up
easily. By December 2005 they were able to sell more than two million insurance
policies since its inception.

Maruti Finance
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January
2002. Prior to the start of this service Maruti Suzuki had started two joint ventures
Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide
respectively to assist its client in securing loan. Maruti Suzuki tied up with ABN Amro
Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and
Sundaram to start this venture including its strategic partners in car finance. Again the
company entered into a strategic partnership with SBI in March 2003. Since March
2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti
Finance is currently available in 166 cities across India.

20

Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and
Maruti Udyog Limited its primary business stated by the company is "hire-purchase
financing of Maruti Suzuki vehicles". Citi Finance India Limited is a wholly owned
subsidiary of Citibank Overseas Investment Corporation, Delaware, which in turn is a
100% wholly owned subsidiary of Citibank N.A. Citi Finance India Limited holds 74% of
the stake and Maruti Suzuki holds the remaining 26%. GE Capital, HDFC and Maruti
Suzuki came together in 1995 to form Maruti Countrywide. Maruti claims that its finance
program offers most competitive interest rates to its customers, which are lower by
0.25% to 0.5% from the market rates.

Maruti True Value

Maruti True service offered by Maruti Suzuki to its customers. It is a market place for
used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki
vehicles with the help of this service in India. As of 31 March 2010 there are 342 outlets.

N2N Fleet Management

N2N is the short form of End to End Fleet Management and provides lease and fleet
management solution to corporate. Clients who have signed up of this service include
Gas

Authority

of

India

Ltd, DuPont, Reckitt

Benckiser, Doordarshan,

Singer

India, National Stock Exchange of India and Transworld. These fleet management
services include end-to-end solutions across the vehicle's life, which includes Leasing,
Maintenance, Convenience services and Remarketing.

Maruti Accessories
Many of the auto component companies other than Maruti Suzuki started to offer
components and accessories that were compatible. This caused a serious threat and
21

loss of revenue to Maruti Suzuki. Maruti Suzuki started a new initiative under the brand
name Maruti Genuine Accessories to offer accessories like alloy wheels, body cover,
carpets, door visors, fog lamps, stereo systems, seat covers and other car care
products. These products are sold through dealer outlets and authorized service
stations throughout India.

Driving School Maruti

A Murti Driving

As part of
its corporate social
responsibility
Maruti Suzuki
School
in
launched
the Maruti Driving
School in Delhi. Later the
Bangalore
services
were extended to other cities of India as well.
These
schools are modeled on international standards,
where
learners go through classroom and practical
sessions. Many international practices like road behavior and attitudes are also taught
in these schools. Before driving actual vehicles participants are trained on simulators.
A launch ceremony for the school Jagdish Khattar stated "We are very concerned about
mounting deaths on Indian roads. These can be brought down if government, industry
and the voluntary sector work together in an integrated manner. But we felt that Maruti
should first do something in this regard and hence this initiative of Maruti Driving
Schools".[

Exports
Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports
and it does not operate in the domestic Indian market. The first commercial
consignment of 480 cars was sent to Hungary. By sending a consignment of 571 cars to
the same country Maruti Suzuki crossed the benchmark of 300,000 cars.
Since its inception export was one of the aspects government was keen to encourage.
Every political party expected Maruti Suzuki to earn foreign currency.
22

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

Awards and recognition

The Brand Trust Report published by Trust Research Advisory, a brand analytics
company, has ranked Maruti Suzuki in the thirty seventh position in 2013 and eleventh
position in 2014 among the most trusted brands of India.
Blue bytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed
Car Company in their Reputation Benchmark Study conducted for the Auto (Cars)
Sector which launched in April 2015

Maruti Suzuki
Parent Company

Suzuki Motor Corporation

Category

Sedans, Hatchbacks, SUVs

Sector

Automobiles

Tagline/ Slogan

Way of life; Count on us

USP

Maruti has car models in every segment with a wide price range to
choose from, apart from being the most reliable name in Indian
automobile market

STP
Segment
23

Complete automobile segment including sedans & SUVs

Target Group

Indian urban and semi-urban middle class and upper middle class

Positioning

Indias No.1 automobile brand with strong legacy

Product Portfolio

1. Maruti 800 2. Maruti A Star 3. Maruti Alto

4. Maruti Eeco 5. Maruti Grand Vitara 6. Maruti Gypsy King
7. Maruti Omni 8. Maruti Swift 9. Maruti Swift Dzire
Models

10.Maruti SX4 11.Maruti Wagon R 12.Maruti Zen Estilo

SWOT Analysis

Strength

1. Maruti is the largest passenger car company in India, accounting

for
around
45%
market
share
2.
Over
6,000
people
are
employed
with
Maruti
3. Good advertising, product portfolio, self-competing brands
4. Largest distribution network of dealers and after sales service
centers
5. Strong brand value and strong presence in the second hand car
market
6. Having different revenue streams like Maruti finance, Maruti
Insurance
and
Maruti
driving
schools
7. Over 700,000 units sold in India annually including 50,000
exports

Weakness

1.Inability
to
penetrate
into
the
international
2.Employee management, strikes, worker wage problems

24

market

Opportunity

1. Developing hybrid cars and fuel efficient cars for the future
2.Tapping emerging markets across the world and building a global
brand
3.Fast growing automobile market and increased purchasing power

Threats

1. Government policies for the automobile sector across the world

2.
Ever
increasing
fuel
prices
3. Intense competition from global automobile brands and cheaper
brands
4. Substitute modes of public transport like buses, metro trains etc

Competition

Competitors

1.
2.Toyota
3.Nissan
4.Hyundai
5.Fiat
6.Mitsubishi
7.Chevrolet
8.Tata
9.
10.
11.
12. Ford

Honda

Motors
Skoda
Toyota
Suzuki

Maruti

Market Growth In Value

25

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital

151.00

151.00

151.00

144.50

144.50

Equity Share Capital

151.00

151.00

151.00

144.50

144.50

Share Application Money

0.00

0.00

0.00

0.00

0.00

Preference Share Capital

0.00

0.00

0.00

0.00

0.00

Reserves

23,553.20 20,827.00

18,427.90

15,042.90

13,723.00

Net worth

23,704.20 20,978.00

18,578.90

15,187.40

13,867.50

Secured Loans

0.00

0.00

0.00

0.00

0.00

Unsecured Loans

180.20

1,685.10

1,389.20

1,078.30

170.20

Total Debt

180.20

1,685.10

1,389.20

1,078.30

170.20

Total Liabilities

23,884.40 22,663.10

19,968.10

16,265.70

14,037.70

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

12 mths

12 mths

12 mths

12 mths

12 mths

Application Of Funds
Gross Block

26,076.90 22,435.00

19,633.90

14,678.30

11,718.60

Less: Revaluation Reserves

0.00

0.00

0.00

0.00

Less: Accum. Depreciation

13,817.60 11,644.60

9,834.70

7,157.60

6,189.20

Net Block

12,259.30 10,790.40

9,799.20

7,520.70

5,529.40

Capital Work in Progress

1,882.80

1,940.90

611.40

862.50

Investments

12,814.00 10,117.90

7,078.30

6,147.40

5,106.80

Inventories

2,615.00

1,705.90

1,840.70

1,796.50

1,415.00

Sundry Debtors

1,069.80

1,413.70

1,469.90

937.60

824.50

Cash and Bank Balance

18.30

629.70

775.00

2,436.10

2,508.50

Total Current Assets

3,703.10

3,749.30

4,085.60

5,170.20

4,748.00

Loans and Advances

2,891.80

3,256.70

3,830.20

2,852.50

2,178.40

Fixed Deposits

0.00

0.00

0.00

0.00

0.00

Total CA, Loans & Advances

6,594.90

7,006.00

7,915.80

8,022.70

6,926.40

Deferred Credit

0.00

0.00

0.00

0.00

0.00

Current Liabilities

8,013.60

6,996.90

5,892.00

5,338.00

3,861.60

Provisions

1,653.00

875.70

874.10

698.50

525.80

Total CL & Provisions

9,666.60

7,872.60

6,766.10

6,036.50

4,387.40

Net Current Assets

-3,071.70 -866.60

1,149.70

1,986.20

2,539.00

Miscellaneous Expenses

0.00

0.00

0.00

0.00

Total Assets

23,884.40 22,663.10

19,968.10

16,265.70

14,037.70

Contingent Liabilities

9,228.60

7,210.20

8,193.30

6,108.00

6,384.80

Book Value (Rs)

784.70

694.45

615.03

525.68

479.99

Source : Dion Global Solutions Limited

26

0.00

2,621.40

0.00

Maruti Growth Chart

The Consumer Behavior Regarding Automobile Sector

Customer Perception is also known as geographical market analysis and it is the
Easiest Way to Identify Where Your Customers Come From and Who They Are. This
project focus on to know the profile and from which geographical part of Gwalior the
potential customer of Maruti Suzuki cars can be and what is the consumer behavior

27

of various users of cars like how many cars do they have and after how much do they
like to change their cars .
The whole survey has been done in various parts of Gwalior city like Focal Point,
Industrial Area, Gwalior (M.P.).
So, in this research I studied the Perception of the customers and behavior of the
customers. So, overall it was great learning experience for me to get such an intro spect
about automobile industry and various aspects related to its marketing strategy.

Executive Summary
Customer Perception is the Easiest Way to Identify Where Your Customers Come
From and Who They Are.
Customer Perception Analysis may include:
A customer profile to understand where to find more like them.
Market penetration and market share reports showing performance in existing markets
and expected performance in new markets.
Market ranking reports allowing company to prioritize resource deployment into new
markets.

Customer Perception helps to know market potential by using

following steps.
Map Customer Locations
Create a "pin map" of where your customers live. Find out at a glance what parts of
town you draw from and where to advertise. If you have your names and addresses in a
data file, you can order right now with no payment required in advance.
Identify Your Trade Area
Map your customers to see what your trade area is. Compare your customers with the
market potential to see your market penetration.
Define Customer Profile
Once you have your customers mapped, you can analyze the demographic
characteristics and define a profile of your best customers. From this it is a short step to
finding more potential customers like them.
Target Your Advertising
Given your trade area, and your customer profile, you can focus advertising to
the places and media that are most likely to hit your target market.

28

Customer Perception
Customer Perception shows organizations which neighborhoods and markets they are
serving with their products. The results of customer Perception can often be surprising
and show trends that were otherwise unknown. In addition, customer Perception can be
applied not only to an entire client database, but also to selected kinds of customers
such as:
Those who have bought certain products, or certain services.
Those whose purchases exceed a specified amount gain the greatest value from
Customer Perception, it can be combined with market share analysis to reveal the
strongest areas that are being reached, and those that are not being reached.
Strategies for Customer Perception
What is a geographic market worth to your business? Perception Analytics will help you
find the answer. Market potential can be expressed as a function of:
The number of customers purchasing.
Amount purchased.
Frequency of purchase.
In other words, market potential = (how many * how much * how often).

Bottom Up or Top Down Market Analysis

It all depends on your specific needs. Perception Analytics can advise you on the best
approach to sizing any market. We employ various methodologies and data sets to get
you the answers you need.
A bottom up approach to market sizing starts with your customers. How much and
often do they buy? What is their profile? How many potential customers do you have in
the market based on your customer profiles? How can you reach them?
A Top down approach starts with market and industry data. It takes a close look at a
geographic market area and profiles the consumers and/or businesses to let you know
their propensity to buy your products and services. Perception Analytics has expertise in
both these approaches to market sizing. We also have a wealth of data sources through
partnerships with the best data providers in the industry. We can match the right data for
market analysis to your business and market strategy.

Cluster Analysis for Customer Perception

29

We often use lifestyle clustering systems to size consumer markets. Clustering systems
operate under the premise that "birds of a feather flock together." That means people
with similar buying behaviors and demographic profiles tend to live close together. This
helps you identify neighborhoods or markets where your potential is highest.
Cluster analysis identifies key segments in the population that are more likely
to purchase your products than the average consumer.
Knowing in which clusters people reside provides a
of understanding and predicting how they will behave.

reasonable

means

Understanding which clusters are more likely than others to purchase allows
better targeting.
Clusters are tied to geography, allowing you to identify and prioritize neighborhoods,
trade areas and markets.

Access Market Opportunity

Market analysis services from Perception Analytics will provide the key intelligence we
need to rank and prioritize markets. We will know:
The top new geographic markets to target based on customer or revenue potential.
Which markets where we currently do business have untapped potential Gaining this
market understanding is essential to growing and expanding our business. But it isn't
enough on its own.

Demographic Site Selection

When we work with Perception Analytics, we will discover that demographic site
selection leads to a sound business site selection decision. We include a series of
important analyses when helping we select new sites, including:
Customer profiling.
Perception customer locations.
Competitive analysis.
Trade area development and Perception.
Demographic, Census, and market data analysis.
Market potential analysis.

30

Customer Profiling
Customer profiling services from Perception Analytics create descriptive segments or
groups of your customers. Each segment has specific defining characteristics. A
customer segment is not as simple as applying a demographic label, such as "women
age 45-54" or "businesses with revenue >$500 million.
"Those descriptions alone won't tell you enough about your customer. For example, not
all women age 45-54 have the same tendency to purchase your products. So a profile
like this may not help you much, and you may waste resources marketing and selling to
the wrong people.
That's why Perception Analytics takes a more comprehensive and disciplined approach
to customer profiling. We use your own customer data, lifestyle cluster data, and
analytical techniques.
The result is a more accurate description of your customer that can be used to identify
areas where you can find more of your best customers.

What Goes Into a Customer Profile?

What makes up a customer profile? It depends on whether your customers are
businesses or consumers. In either case, you typically start with your own customer
data (such as location, purchases, spending volume), append additional consumer or
business data, and then group into segments that share similar characteristic.

Perception Customer Attitudes

By Cliff Allen
However, it's hard to predict which car someone will buy just by knowing demographic
characteristics. While one person of a certain age, income level, and family situation
may drive an expensive imported car, his next-door neighbor might share the same
demographic profile and drive an inexpensive domestic car.
Thus, the demographic data doesn't explain the difference in automotive preferences.
But understanding the differences in how these two consumers perceive the features
and benefits of automobiles could help marketers understand their needs and interests
and which cars they are likely to prefer.
By surveying consumers about their attitudes toward the leading products in a market,
marketers can map customers' dominant attitudes toward products. Market research
companies such as Simmons conduct detailed interviews to gather the data needed to
identify clusters of buyer attitudes.

31

Introduction To Prem Motors

The Beginning
It was a humble beginning with a small spare parts shop in 1981 at Gwalior. The
journey from that day till now was not always smooth but with true grit and
determination of the promoters and the employees of the company we have
reached where we are today. The turnover of the company during the financial year
32

2014-15 has been more than Rs 775 corers approx. We shall continue to grow and
have positive impacts on the social and economic life of our surroundings.

Profile of the Company

Prem Motors Pvt. Ltd. a company incorporated under the Companies Act having its
registered office at Knawels Complex, A G Office Road, Gwalior came into
existence as a Private Limited Company on the 28 th day of November, 1990. Mr.
Charanjeet Nagpal is the main promoter of Prem Motors Pvt. Ltd. who established
the organization in the year 1990 when he acquired a dealership of Rajdoot
Motorcycles, formerly a proprietary firm called Prem Motors. Over the period, with
strong intentions, determination and commitment, he re-established the dealership
as a market leader and earned the image of a hardworking successful entrepreneur.
Since then, there was no looking back, the business kept on increasing in
manifolds. The company has the honor of being associated with various automobile
houses as their authorized dealers. Other than being Maruti Suzuki authorized
dealers in Gwalior, Jaipur, Agra, and e-outlets, Prem Motors is also an authorized
dealer for Piaggio, Suzuki and Yamaha. The transport venture was started in 2011
based out of Gurgaon possessing a fleet of 81 trailers.

Quality Policy
Prem Motors are fully committed towards total customer satisfaction.We believe in
continual professional improvement. Hence we keep updating our systems and
facilities to offer the very best for:
Total Commitment to customer satisfaction.
Focus on employees involvement and improve retention.
Work professionally and honestly.

Strategy:
A long-term strategy is being the leading benchmark company in the Indian auto motive
market by constant investments in our people and facilities.

Objectives of the Study

33

The study has been under taken to analyze the customer profile and mapping to
understand the consumer behavior regarding automobile sector.

Objectives:
To know the customer profile.
To analyze the exact segregation of the industry of Gwalior.
To know at which geographical segment the potential customer exist.
To know the consumer behavior regarding cars on following parameter:
I.

To analyze the factors influencing the customer before buying a car.

II.

To find out the replacement pattern of customers.

III.

To find out the purchase pattern.

34

Research Methodology
A research process consists of stages or steps that guide the project from its conception
through
the final
analysis, recommendations
and ultimate
actions.
The research process provides a systematic, p l a n n e d a p p r o a c h t o t h e
research project and
ensures that all
aspects of the
research
p r o j e c t a r e consistent with each other. Research studies evolve through a
series of steps, each representing the answer to a key question.
This chapter aims to understand the research methodology establishin
g a f r a m e w o r k o f evaluation and revaluation of primary and secondary research.
The techniques and concepts used during primary research in order to arrive at
findings; which are also dealt with and lead to a logical deduction towards the analysis
and results.

Research Design
I p r o p o s e t o f i r s t c o n d u c t a i ntensive secondary research to understand
the full impact and implication of the industry, to review and critique the
industry norms and reports, on which certain issues shall be selected, which I feel
remain unanswered or liable to change, this shall be further taken up in the next
stage of exploratory research. This stage shall help me to restrict and select
only the important question and issue, which inhabit growth and segmentation in the
industry. The various tasks that I have undertaken in the research design process are:
Defining the information need.
Design the exploratory, descriptive and causal research.

Research Process
The research process has four distinct yet interrelated steps for research analysis. It
has a logical and hierarchical ordering:
Determination of information research problem.
Development of appropriate research design.
35

 Execution of research design.

Communication of results. Each step is viewed as a separate process that
includes a combination of task, step and specific procedure. The steps undertake are
logical, objective, systematic, reliable, valid, impersonal and ongoing.

Exploratory Research
The method I used for exploratory research was:
I.
II.

Primary Data.
Secondary Data.

Primary Data
New data gathered to help solve the problem at hand. As compared to
secondary data which is previously gathered data. An example is information
gathered by a questionnaire. People and includes information gathered from
surveys, focus groups, independent observations and test results. Data gathered by the
researcher in the act of conducting research. This is contrasted to secondary
data,
which
entails
the
use
of data gathered by someone other than
the researcher information that is obtained
directly
from first-hand
sources
by means of surveys, observation or experimentation. Primary data is basically
collected by getting questionnaire filled by the respondents.

Secondary Data
Information that already exists somewhere, having been collected for another purpose.
Sources
include census reports, trade publications,
and subscription
services.
There are two types of secondary data:
Internal and External Secondary Data.
It can be internal data, such as existing sales-tracking information, or it can be
research conducted by someone else, such as a market research company
or the U.S. government. Secondary source of data used consists of books and
websites. My proposal is to first conduct a intensive secondary research to
understand the
full impact
and
implication
of theindustry, to review and critique the industry norms and reports, on which certain is
sues shall be selected, which I feel remain unanswered or liable to change, this shall
be further taken up in the next stage of exploratory research.

Data Collection
Data collection took place with the help of filling of questionnaires. The questionnaire
method has come to the more widely used and economical means of data
collection. I found it
essential
to make sure the questionnaire was easy to
read and understand to all spectrums of people in the sample. It was also important as
36

researcher to respect the samples time and energy hence the questionnaire
was designed in such a way, that its administration would not exceed 4-5 minutes.
These questionnaires were personally administered. The first hand information was
collected by making the people fill the questionnaires. The primary data collected by
directly interacting with the people.

37

Conclusion
I have analyzed the attached Balance Sheet of (Maruti Suzuki India LimitedFormely
Maruti Udyog Limited), as of Five years comparison and the related Profit and Loss
Account and Cash Flow Statement for the year ended on that dates Annexed thereto !
These financial statements are the Responsibility of the company's management. M y
pleasure is to express an opinion on these financial statements
b a s e d o n a n a l ys i s T h o s e S t a n d a r d s a n a n a l ys i s i n c l u d e s e x a m i n i n g ,
o n a t e s t b a s i s , e v i d e n c e supporting the amounts and disclosures in the financial
statements. An analysis also includes assessing the accounting principles used and
significant estimates, marketing Techniques, HRM strategies, financial position of the
Maruti Udyog Limited.

The company analysis done by me on Maruti Udyog Limited, sorted out that the
automobile industry in India is prosperous and growing with innovating technology.

Cars in the market through different marketing strategies such as pricing

strategy, products development etc. Finally Maruti Udyog Limited has it financial trend
in ascending order from previous four years.

Thus, Maruti Udyog Limited, is counting its profits, and fulfilling the Social responsibility,
by making its tag line to be implemented i.e.

38

Limitations of The Research Project

The research study suffers from following limitations:

The Gwalior market was too vast and it was not possible to cover each and every
customer in the available short span of time.

Generally, the respondents were busy in their work and were

responding.

Respondents were reluctant to disclose complete and

not interested in

information about

themselves and their organization.

Most respondents were reluctant to provide exact information as in why they

preferred particular companys car.

The research was

conducted
in
present prevailing conditions.
There can be some fluctuations in the market, which can offset the findings.

The project is carried out for the period of 45 days only.

Measurement of customer satisfaction is complex subject, which uses nonobjective methods, which are not reliable.

39

Recommendations

40

Maruti Suzuki should increase their service stations.

Facilities regarding after sales services should be increased.

People were aware about Maurti brand, there should be more brand awareness
in the market

They should increase advertisement activities.

They should promote more road shows in the respective areas.

The company should promote about the entire feature offered by it.

Everyone is knowing Maruti Suzuki but they are aslo promote their new product
because other competitor are doing that i.e. they are also use all that strategies
for stand in market growth.

Bibliography
References Books

1. Learning C.N. Sontakki, Marketing Research, Himalaya Publishing House, New

Delhi, 2006.
2. C.R. Kothari, Research Methodology Methods and Techniques, New Age
International (Pvt.) Ltd., publishing New Delhi, 2004.
3. Churchill, Gilbert and Dawn Iacobucci, Marketing Research Methodological
Foundations, South-Western, Thomson, 2002.
4. Crosby, Philip, Quality is free: The art of making quality certain, McGraw Hill Custom
Publishing, 1978.
5. Dr S.C.Gupta, Statistical Methods, Sultan Chand & Sons Educational Publishers,
New Delhi, 2006.

Websites www.marutisuzuki.com
www.automobile.com

41