Customer Satisfaction On Maruti 4 Wheelers

A SURVEY
ON CUSTOMER SATISFACTION
(With Special reference to MARUTI FOUR WHEELERS at VARUN MOTORS L.td,

VIJAYAWADA.)
A Project Report submitted to the

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY, KAKINADA
In partial fulfillment for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted by
N.SUDHEER
Under the guidance of
Dr C. LAKSHMINATH
PROFFESOR
ANDHRA LOYOLA INTITUTE OF ENGINEERING AND TECHNOLOGY

(APPROVED BY AICTE, NEWDELHI AND
AFFILIATED TO JNTUK, KAKINADA)
VIJAYAWADA-520008
(2012-2014)
DECLARATION
I,the under signed below declare that the project report titled "A
SURVEY ON CUSTOMER SATISFACTION (With special reference
to MARUTI FOUR WHEELERS at VARUN Motors
Ltd,VIJAYAWADA " is written and submitted by me under the
guidance of Sri LAKSHMINATH
The empirical findings in the report are based on the data collected by
me during the summer placement training programme and also that
the matter presented and is not a reproduction from any source.
I here by understand that only such coping is liable to be punished in

any way the university authorities deem fit.
N.SUDHEER
(REGD.NO : 12HP1E0056)
Place: VIJAYAWADA
Date:
ACKNOWLEDGEMENT
I avail this opportunity to express my sincere thanks to my project to

guide Dr C.LAKSHMINADH, M.B.A for their kind co-operation and
encouragement and suggest and preparation of the report.
I am extremely grateful to Dr C.LAKSHMINATH, M.B.A, M.Com,

M.Phil,Head of department of management
studies and N.JANARDHAN RAO, HOD OF P.G DEPARTMENT for
enabling me to pursue the project in this field. And I also expressed
thanks to all my faculty members.
I express my sincere Thanks to Sri Mr. V.RAJESH KRISHNA General

Manager, VARUN MOTORS LTD, VIJAYAWADA for sparing their
valuable time to give their useful suggestions during my project work.
It is a pleasure to me to thank my parents whole-heartedly who
extended their support doing this project as well as the course.
Finally, I would like to record my thanks to all my well wishers.
(N.SUDHEER)
CONTENTS
CHAPTER I
INTRODUCTION
NEED FOR THE STUDY
OBJECTIVE OF THE STUDY
METHODOLOGY
LIMITATIONS
CHAPTER II
PROFILE OF PASSANGER CARS IN INDIA
PROFILE OF MARUTI CARS
CHAPTER III
PROFILE OF VARUN MOTORS
CHAPTER IV
CUSTOMER SATISFACTION
Theoretical frame work
Data analysis
CHAPTER V
SUMMARY& SUGGESTION
BIBLIOGRAPHY
APPENDIX
INTRODUCTION
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
METHODOLOGY
LIMITATIONS
INTRODUCTION
India is first largest manufacture and producer of 4 Wheelers in the
World. Maruti, Indias foremost automobile company has over the
years created history with its collaborator, Suzuki of Japan. Join us
on this journey that has made an indelible mark on a Nation.
India 4 Wheelers industry started beginning in early
50s Automobile Product of India (API) Which was located as
Gaurgon, Delhi and Harayana State, started manufacturing Cars in
India.
The Primary reason for growth of 4 wheelers market is attributed to
the fact that Indians, especially in the rural and semi urban areas
retrying to change life style and people in metropolitan cities are
completely disappointed with the public transportation.
So, there is tremendous growth in the 4 wheeler segment. The

customer is now faced with proliferation of brand models. Getting new
customers as well as retaining them is an important task of
manufactures. So, service after sales are very important. A satisfied
customer brings in more name and goodwill to the company that in
why Customer Satisfaction is given more importance in todays
competitive World.
A study on this aspect with Maruthi 4 Wheelers at VARUN
MOTORS was made.
NEED FOR THE STUDY

The 4 Wheeler industry has been expanding rapidly those days have
gone to feel possessing a 4 wheelers was a luxury. Now a day it is
viewed as a more necessary.
This industry has also customers, ranging from all demographic
segments. It has been common signals that even college going P.G.
Students are using 4 wheelers. The common customers are also

increasing due to growth in women literacy and employment.
Functionally then getting a new one, retaining a new customer has
become more difficult one, cost effective wise, it is estimated that the
cost of attracting a new customer is five times to the cost of retaining
current customer. It requires a great deal of effort to induce satisfied
customer Satisfaction is been given top Priority in todays competitive
World.
1. To ascertain the customer Satisfaction towards Maruti 4
wheelers in VARUN MOTORS ltd a detailed study of
customer attitudes and their level of satisfaction.
2. To have a detailed study on customers complaints and
suggestions.
3. The study also includes assessing the future prospects of 4
wheeler Industry.
In this way an effort has been to gain insight into above aspects and
the detail of the organisation on these aspects. So that, this study can
be used in a constructive manner by them if desired so.
OBJECTIVE OF THE STUDY

The main objective of establishing and implementing the customer
Satisfaction is:1. To study the attitude and demographical factor of Maruti 4
wheeler Customer.
2. To analyses the factor influencing the Purchase of Maruti
Brand.
3. To assess the Customer Satisfaction with Maruti 4
Wheelers.
4. To study Customer Satisfaction with the service of Varun
Motors.
5. To enhance overall customer Satisfaction during the Sales
Process.
METHODOLOGY
Methodology is the branch of logic concerned with the application of
the Principal of reasoning to Scientific and Philosophical inquire. The
method that is to be followed to proceed with research is called
Methodology and the method adopted depends on the type of study

and the nature of the study.
The data for the Study was collected from:1. PRIMARY
DATA
A simple of 150 respondents was administered through mainly

questionnaire and personal interviews and phone inquiries to
know about the Customer Satisfaction with Maruti 4
Wheelers.
2. SECONDARY
DATA
The Secondary Data was collected from the VARUN MOTORS,

Front Office and Records and also Brochures.
AREA AND PERIOD OF STUDY

The Visakhapatanam has been covered for the survey and the
survey period is between May 26th to 30th June. The data
collected has been tabulated and analyzed.
LIMITATION OF THE STUDY
1. As Customer Satisfaction intangible the measurement was

difficult.
2. Some of the Customer was not responded properly.
3. The comparison between Varun Motors and other dealers has not
been made due to the flack of information.
4. New customers who bought the 4 wheelers recently were not
aware of services offered.
5. Analysis is based on the information given by the Customers.
PROFILE OF PASSANGER
CARS
PROFILE OF MARUTI CARS
PROFILE OF PASSANGER CARS IN

INDIA
The 4 wheelers industry is passing through is passing through a
critical but interesting phase. For many years, it was growing
continuously but the turning point came in 1996 Feb., when it started
slowing down. The impact was rally felt in the next year when the
overall growth was hardly 10%. This was also possible only because,
the cars segment showed a healthy growth of 50%.
The net result is that is that Maruti cars now account for 53% of the 4
wheelers market in April, May & June 2002.
The Varun Motors Ltd., mainly is the only dealers of the mature
Branded cars.
NEW SEGMENTS
A step through segment like Maruti ZEN, VERSA and WAGON R.
DRAMATIC CHANGES
The new products have contributed to 35% of the growth and helped
the producers improve their bottom line. The coming years will see
increasing competition due to the priority in products in products and
prices. The only differentiate will be technology, quality, product range
and service.
Imaginative market will emphasize relationship building and customer

satisfaction. New techniques such as direct marketing and
institutional sales are being explorer by all. Some of them are taking
the vehicle actually to the customers door step. Now the customer is
king.
Luxury cars, Passenger cars & Multi purpose / Commercial cars.
Product range from MUL had offers different cars of all these
classification, i.e., Baleno & Esteem Cares in luxury days, M-800,
ALTO, ZEN, WAGON-R falls in passenger cars, while OMNI, VERSA &
GYPSY for multi purpose / commercial cars.
According to MUL managing director Jagdish Khattar, Swift has been
positioned on the aspirational plank for young Indians.
PROFILE OF MARUTHI CARS
HISTORY:
Maruti Udyog Limited (MUL) was established as a private limited
company in India on February 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. MUL is wholly owned
by the Govt. of India at the time of its birth.
Suzuki Motor Company was chosen from seven prospective partners
world wide. 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)
MUL was classified in the Public Sector as long as the equity of
Government of India remained over 51% . A license and a Joint
Venture agreement were signed between Govt. of India and Suzuki
Motor Company (now Suzuki Motor Corporation of Japan) in Oct
1982, with Suzuki Motor Corporation (SMC) acquiring 26% of the
equity.
This newly formed organisation were given the primary objectives of:
1. Modernizing the Indian Automobile Industry by bringing in the
latest technology
2. Production of fuel- efficient vehicles to conserve scarce

resources.
3. Production of a large number of motor vehicles which is
necessary for economic growth.
Maruti created history by going into production in a record 13

months.
On 14 December 1983, the then Prime Minister of India. Mrs. Indira
Gandhi, released the first Vehicle for sale by handing over the keys of
a Maruti 800 to Mr. Harpal Singh of Delhi.
Maruti exceeded the volume targets, and in March 1994, it became the
first Indian Company to produce over one million vehicles, a landmark
yet to be achieved by any other car company in India. Maruti is the
highest volume cat manufacture in Asia. Outside Japan and Korea,
having produced over 4 million vehicles by April 2003. Maruti
revolutionized the way Indians looked at cars.
VISION , VALUES & ETHOS OF MUL:
MUL Vision is to be a leader in the Indian Automobile Industry,

Creating Customer Delight and Shareholders Wealth, transforming
Maruti to be A pride of India.
The Core values of MUL are customer Obsession, Fast, Flexible and
First Mover, Innovation and Creativity, Networking and Partnership
Openness and Learning, Quality Systems and Consumer Satisfaction
through Continuous Improvement of our Products and Services by
following PDCA (PLAN-DO-CHECK-ACT) in all functions of our
organization.
At Maruti, the approach to quality is in keeping wit 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
MUL believes that its employees are its greatest strength and asset. It
is this underlying philosophy that has molded the workforce at Maruti
into a team with common goals and objectives. The EmployeeManagement relationship is therefore characterized by :
o Participative Management .
o Team work & Kaizen1 .
o Communication and information sharing.

o Open office culture for easy accessibility
To implement this philosophy, several measures have been adopted

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.
DIRECTORS ON THE BOARD:

MUL is a Board-managed company. Currently the Directors on the
Board are:
Mr. Shinzo Nakanishi, Managing Director
Mr. Jagdish khattar, managing Director
Mr. Junzo Sugimori, joint managing Director

Mr. Shinichi Takeuchi, Joint Managing director
Mr. Kinji Saito, director ( Marketing and Sales )
Mr. Osamu Suzuki. Director
Mr. RC Bhargava, Director
Mr. S V Bhave, Director
The Independent Directors on the board of Maruti are:
Mr. Kumaramangalam Birla, chairman, A V Birla Group
Mr. Amal Ganguli. Former Chairman, Price Waterhouse coopers,
India
Ms. Pallavi Shroff, Senior Partner, Amarchand and Mangaldas
and Suresh A Shroff and co
Mr. Manvedndra Singh Bnamga, chairman Hindustan Lever Ltd.
( HLL )
SMC increased its equity to 40% in 1989. In 1992 Maruti ceased to be
a government company. As SMCs equity holding went up to 50% in
2002, SMCs share went up to 54.2% converting MUL into a
subsidiary of SMC. The Govt. of India, s holding became 18.3%
subsequent to an offer for sale of 27.5% of the companys equity to the

public including institutional investors.
To have a clear-cut idea regarding the latest share holding attern,
please refer to the Appendix-A.
AWARDS AND ACHIEVEMENTS:

In 2004, Maruti closed the financial year 2003-04 with an
annual sale of 472122 units, the highest ever since the
company began operations 20 years ago.
In 2003, Maruti Udyog Ranks Highest in Customer satisfaction
with dealer service in India for the fourth consecutive year in
the J.D Power Asia pacific 2003 India customer satisfaction
index (CSI)Study. A copy of the satisfaction index can be viewed
in appendix-B.
In 2003, Maruti has won the first place in Excellence in
suggestion scheme contest 2003 which is the 6th consecutive
award won in as many years. India National suggestion schemes
association (INSSAN) organizes this contest. Since 1998 Maruti
has won this a ward 10 times.
In 2002, Marutis Quality Management System of its press shop

& associated functions ( collectively ) termed as press function)
got certification for conformance to the requirements of TS
16947 : 20021standard. A copy of the ISO TS 16949: 2002
certificate received by Maruti true value (buying. Selling or
exchange of pre-owned cars), Maruti Finance (car financing),
Maruti Insurance and N2N (corporate lease & Fleet
management).
In 2001 2002 Maruti launched its new businesses. Maruti true
value (buying, Selling or exchange of pre-owned cars), Maruti
Finance (car financing), Maruti insurance and N2N (corporate
lease & Fleet management).
In 2001 Maruti Udyog ltd, became one of first automobile
companies anywhere in the world to get an ISO 9000:2000
certification. AV Belgium, global auditors for international
Organization for standardization ( ISO 0 certified Maruti after a
four day long audit, covering varied parameters like customer
focused organization, leadership, involvement of people, process
approach, system approach to management, continual
improvement, etc. A copy of the I so 9000:2000 certificate
received my Maruti can be viewed in appendix C.
In 1999, central board of excise & customs awarded Maruti with

Samman Patra for contribution to exchequer and being an
ideal tax assesses.
In may 1995, Maruti got ISO 9002 certification. The audit for
this covered quality assurance in production, installation,
marketing and scales as well as after saies services, we were
also one of the first companies in the world to pioneer I so 9000
certification for our dealers.
In 2004 Maruthi Suzuki was No.1 in Customer Satisfaction, No.1
in Sales Satisfaction, No.1 in Product Quality (Esteem and Alto)
and No.1 Product Appeal (Esteem and Wagon R)
No.1 in Total Customer Satisfaction (Maruti 800, Zen and
Esteem)
Our market share grew from 42% to 54% in the competitive A2
segment (with Wagon R, Zen and Alto)
Our overall sales increased by 23%. The Alto became Indias new
best-selling car.
Business World ranked us among the country five most
respected companies.
Business World ranked us the countrys most respected

automobile company.
Declared Manufacturer of The year by CNBC.
Business Today AC Nielsen ORG-MARG declared us one of
Indias Greenest Companies.
Hindustan Times Power Jobs proclaimed us the company with
the Most Innovation Human Resource Practices. And much
more.
TRANSFER OF TECHNOLOGY
Every minute two vehicles roll out of the Maruti Plant. It is therefore
imperative that the transfer of contemporary technology from partner
Suzuki is a smooth process. Great stress is laid on training and
motivating the people who maintain the equipment, since the best
equipment alone cannot guarantee high quality and productivity. From
the beginning it was a conscious decision to send people to Suzuki

Motor Corporation for on-the-job training for line technicians.
Supervisors and Engineers. This helps them to imbibe the culture in a
way that merely transferring technology through documents can never
replicate. At present 20% of our workforce have been trained under
this program.
PROFILE OF VARUN
MOTORS Ltd
HISTORY
VARUN group commenced its Hyderabad operations is 2nd Feb., 1996
with Maruti Udyog Ltd., as a Franchisee which is new popularly
known as VARUN MOTORS Ltd.
Mr. V.PRABHU KISHORE found the Varun Group in 1992 at
Hyderabad by establishing. Bajaj Auto Dealership, by a monthly sale
of 200 two and three wheelers initially. Now, it has reached a monthly
sales vol. Of 2500 units. By virtue of excellent progressive
performance at Hyderabad. Varun is awarded another dealership at
Vijayawada during the year 1999. Now, it has seven outlets in
Hyderabad and Vijayawada areas.
The Varun Group took Maruti Udyog Ltd., dealership in 1996 with one
of Indias largest and most modern automobile showrooms, measuring
18000 sft. On account of good work at Hyderabad. Maruti awarded
Hyderabad sales and service outlets to Varun Motors Ltd., As on
31st March, 2002 Varun Hyderabad Dealership sold 7856 cars and
Varun Hyderabad. Dealership sold 13165 cars. Now it has 7 outlets in
Hyderabad.
Varun Group is also involved in the construction of residential and
office buildings in Hyderabad, Vijayawada, Visakhapatanam and
Bangalore. So, far 5 lakhs sft. of residential and office accommodation
has been successfully built and handed over to the buyers by
associated companies namely, Varsha Builders Pvt. Ltd., and
Continental Builders.
Varun Group latest venture is in the fast growing mobile
communications sector. It has taken dealership of HUTCH., and now
has outlets in Hyderabad and Visakhapatanam.
The Varun Group offers many incentives and facilities to its
Workgroup such as in house training, Bonus, Monetary incentives for
attendance, performance ;and target achievement. It conducts get
together regularly to review and set targets for the group and also to
give prizes to Excellent Employees in sales, spares and service. Every
employees birthday is celebrated in the showroom. A novel housing
scheme is in place to provide housing to employees with repayment

spread over 10 years, with 30% concession of basic flask cost.
As of now the Varun Group is engaged in such business of vehicles,
hire purchase, construction, transportation and Dealership of mobile
phones. It has over 1000 employees on its pay roll with an annual
turn over of Rs. 250.00 crores with outlets in Hyderabad and
Vijayawada. It is targeting to achieve a turnover of Rs. 450.00 crores
for the current year, making it one of the fastest growing companies in
the state.
The Siripuram Branch of Varun Motors is the Main Branch, which
was first established in VSP City introduction the products
manufactured by Maruti. Varun Motors has three workshop in
Visakhapatanam (Local) city.
The Workshop in Visakhapatanam (Local) city is at:
1. City workshop located at Vuda Childrens theatre.
2. Auto Nagar workshop located near by SRMT.
3. Highway work shop located at beside Coco Cola.
Brief history of VARUN :

Our Founder and Managing Director, Mr. V. Prabhu Kishore has over 35
years of experience in Automobile business of top OEMs in India.
The start of automobile business for Mr. Prabhu Kishore began in 1975 with
Padmaja Commercial Corporation, a firm founded in 1950 by his late father
V.K.R.Chowdary.
In 1988, Mr. Kishore established his own enterprise VARUN FINANCE
(Auto finance) which marked the birth of the Varun group.
Sales & Service statistics of Varun at the end of 31st March 2010 :-
LOCATION
NO.OF
NO.OF
SALES
SERVICE
NO. OF
SHOW
WORK
VOLUME
VOLUME
VEHICLES
ROOMS
SHOPS
(ANNUALLY
(ANNUALY)
FINANCED
)
10218
89000
7538
Nijamabad
880
7608
656
(maruti)
Vizag
3855
55546
2226
(maruti)
Vijayawada
2686
33430
15357
( maruti)
Vizag
29
26
22424
119899
15357
( bajaj)
Vijayawada
22
21
17694
97180
12522
( bajaj)
Varun JCB
Mahindra
1
2
2
2
301
523
7960
3052
286
497
Hyderabad
(maruti)
navistar
Social Responsibility :
A modern medical diagnostic centre in memory of the M.D.s parents is serving

over 114 poor people a day at Vizag, in addition to an orphanage with 18
children
at
Vijayawada.
Varun Industrial Training Centre(I.T.C): We train 50 boys in diesel mechanic

and body shop skills over a period of one year and they are predominantly
absorbed by Varun Group for their various divisions.
Dealership Achievements :
The management practices at Varun complements the pursuit of perfection. The

speed of adaptation to change and commitment to growth largely boosted the
operational efficiency of the organisation. Behind the success of Varun Group, lies
the saga of team work, empowerment, aggressive marketing, discipline, higher
levels of sensitivity towards customers and excellent HR practices.
Our dealership practices and performance have made us the largest automobile
dealer in A.P and one of the top dealers for Bajaj and Maruti in the country. Varun,
by far has the largest net-work and own automobile infrastructure in A.P. Below
are few of our dealership achievements at the national level.
Varun Motors was awarded Maruti PLATINUM award Eight times
consecutively for the past 10 years in Balanced Scorecard ( Platinum award
is the highest rated award in Maruti)
Adjudged Indias No.1 Maruti dealer in Balanced Scorecard in 20032004.
Committed Customer Service got us the ISO 9001 2008 Certification.
Govt of AP awarded "Best dealer award for payment of tax (VAT) &
Compliance to APVAT provisions in2001-02 and 2006-07".
Varun's Success Mantra :
At Varun, the management interacts directly with customers, and

communication is seen across all levels of management, to increase
operational efficiency.
We follow best practices like Customer Education Meet, Exclusive Test
Drive Team and few other HR practices have been adopted by Maruti Suzuki
and other dealerships across the nation.
We empower people and truly believe in delegation with discipline.
Strong Systems and adherence to the same from M.D. to at tender.
Many innovative and flexible in-house finance schemes have raised the
affordability levels of customers.
We focus on total customer satisfaction.
Serving the customer at his door step with workshops expansion.
Rural marketing with mobile showrooms, Finance, and service back-up.
All vehicle related Services under one roof.
MASS:
Maruti Authorised Service Stations

1. Madhuri located at Gurudwara
2. Hyderabad Auto Scans located Begumpet Junction.
CUSTOMER FEEDBACK SYSTEM
o At the time of delivery a customer feedback card (postage

pre paid) must be handed over to 10% of customers for his
feed back.
o Once the feed back card is received from the customer, data
must be punched in a software system which is to be
provided by the Maruti Udyog Limited by the dealer.
o At month end analysis from the system should be reviewed
internally and necessary countermeasures should be
taken for improvement in weak areas.
o Analysis for the month must be sent to Regional Office by
3rd of next month.
PROMOTIONAL ACTIVITIES IN VARUN MOTORS

The promotional activities adopted by Varun Motors are:
o Advertising in News papers
o Free Campaigns
o Test Rides
o Mileage Contents
o Loan Melas
o Gift Schemes
o Hoarding and Wall Paintings
o Sponsoring Youth Events
Promotional expenses have been borne by both Varun Motors in
advertisement cost.
SERVICES OFFERED
o The Services offered to the customer in Varun Motors are:
o Three free services and Paid services after sales of Cars.
o Finance through Sundaram Finance company and Maruti
country wide finance company.
o Free check up campaigns.
o Demonstrations for new products.
o Acceptance of warranty claims.
WORKING TIME
Working hours in Varun Motors are 8 hours per day commencing from
9 AM to 7.00PM with two hours break for Lunch (1 PM to 3.00PM)
ORGANIZATION CHART
CARS & ITS TECHNICAL SPECIFICATIONS
Customers in market have differences in buying habits, differences in

the way the good s or service is used and also possess different
motives for buying one. Hence in such an hour of need its necessary
for the marketer to segment the market. Market segmentation allows
managers to visualize their prospective customers in designing a
marketing mix and also to concentrate their resources on only one or a
few market segments.
Hence Maruti manufacture as nearly as 10 different models of its cars
to suite the various tastes and preference sets of its customers. Each
model is in turn having a number of various tastes and flexibility,
safety and other desired preferences. Thus on the whole it turns out to
be something more than a 100 variants of cars.The car Market has
been segmented into 4 smaller, internally homogenous groups.
A Segment: This focuses on the middle class people. The models
designed for this segment are:
Maruti 800
Maruti Omni
B Segment: this focuses on the upper middle class people. The

models designed for this segment are;
Maruti Alto
Maruti wagon R
Maruti Zen
C Segment: this focuses on the lower upper class people. The

models designed for this segment are;
Maruti Versa
Maruti Gypsy
Maruti Esteem
Maruti Baleno
D Segment: This focuses on the upper class people, the model

designed for this segment is;
Grand Vitara
PRODUCT AVAILABILITY AT VARUN MOTORS
Varun Motors has single, franchise that is Maruti Cars. Maruti car
manufacture various types of Cars they are:
1. M 800
2. OMNI
3. ALTO
4. WAGON R
5. VERSA
6. GYPSY
7. ZEN
8. ESTEEM
9. BALENO
10.SWIFT
11. A-STAR
12.ERTIGA
13.RITZ
Key Credit Considerations:

Credit Strengths:
Strong credentials as the largest dealer of passenger vehicles of Maruti Suzuki

India Limited (MSIL) in Andhra Pradesh (AP)
Wide network with more than thirty showrooms, service centers and true value
outlets
Strong growth in revenues in the last two years; the operating income increased
from Rs 498.6 crore in FY2009 to Rs 766.9 crore in FY2011 on the back of
increased geographic reach of VMPL coupled with healthy sales growth of MSIL
Healthy demand outlook for passenger vehicle industry in the long term owing to
relatively low-penetration levels, favorable demographic profile, rising disposable
income levels, buoyant economic growth and strong demand from smaller towns
and rural areas
Credit Concerns:
Regional sales concentration with sales derived from only AP; however the
company has presence across major cities of AP - Hyderabad, Vijayawada &
Vishakhapatnam.
The company has received the BharatBenz dealership for Andhra and
Rayalaseema regions of AP in 2011.
Moderate financial risk profile as characterized by gearing of 2.46 times as on 31
Mar 2011.
Stable but low profitability as margins on vehicles, spares, service and accessories
are all controlled by MSIL; however the company receives income from
insurance commission, used car business, and finance payouts.
Rating Rationale:
The assigned ratings factor in strong credentials of VMPL as the largest dealer of
passenger vehicles of MSIL in AP; wide network with more than thirty
showrooms, service centers and true value outlets; and strong growth in revenues
in the last two years with the operating income increased from Rs 498.6 crore in
FY2009 to Rs 766.9 crore in FY2011. The ratings favorably factor in the healthy
demand outlook in the long term for passenger vehicle industry owing to
relatively low-penetration levels, favorable demographic profile, rising disposable
income levels, buoyant economic growth and strong demand from smaller towns
and rural areas. However, the ratings are constrained by stable but low
profitability as margins on vehicles, spares, service and accessories are all
controlled by MSIL; regional sales concentration with sales derived from only
Andhra Pradesh; and revenue concentration on a single principal. The ratings are
further constrained by moderate financial risk profile as characterized by gearing
of 2.46 times as on 31 Mar 2011 and interest coverage ratio of 3.6 times for
FY2011 and high competitive intensity from dealers of other OEMs resulting in
increased pressure to pass on price discounts to customers.
Company Profile:
Incorporated in 1996, Varun Motors Pvt. Ltd (VMPL) is into the business of
automobile dealership. The company has Maruti dealership for 11 districts of AP
including Hyderabad, Visakhapatnam, and Vijayawada cities. The company has
12 showrooms, 15 workshops and 14 true value outlets. The company sells more
than 18000 cars and services more than a lakh of cars each year. VMPL is part of
the Varun Group, which is into automobile dealership and real estate.
Business and Competitive Position:

Strong credentials as the largest dealer of passenger vehicles of Maruti Suzuki
India Limited (MSIL) in Andhra Pradesh (AP) with 38% market share VMPL is an
authorised dealer for Maruti in the passenger car segment for 11 districts of AP
covering Hyderabad, Ranga Reddy, Medak, Nalgonda, Mahabubnagar, Nizamabad,
Vijayawada, Khammam, Visakhapatnam, Vizianagaram and Srikakulam districts.
In addition to this, VMPL is also involved in servicing of vehicles, pre-owned
vehicle sales and sales of spare parts/accessories. With twelve showrooms and a
turnover of Rs 767.9 crore in 2010-11, VMPL is a large sized dealer. Over the
years, the company has established a strong position in AP and is the largest Maruti
dealer in AP accounting for around 38% of Maruti sales in AP.
Vehicle sales main revenue driver for VMPL accounting for 87% of the gross
income New car sales remain the major source of revenues for the company,
contributing to almost 87% of revenues per annum. VMPL has been witnessing a
healthy growth in its sales volumes during the last three years. In 2010-11, the
company has been able to record an increase of 20.8% y-o-y with recovery in the
consumer markets, as against Marutis sales growth of 30.1% y-o-y. The sales
growth of VMPL is lower than that of Maruti on account of intense competition
from other Maruti dealers. Swift remains the highest selling model for the
company, contributing ~33.9% of its revenues, followed by alto with ~29.4%
contribution in the last two years. In line with Maruti sales trend, the share of Omni
and Maruti 800 has witnessed a decline whereas Swift has picked up.
Wide sales and service network with more than thirty outlets spread across Andhra
Pradesh The company has 12 showrooms spread across AP covering Hyderabad
(5), Vishakhapatnam (2), Vijayawada (2), and 1 each in Srikakulam, Nizamabad
and Jaggaiahpet; 15 workshops spread across AP covering Hyderabad (6),
Vishakhapatnam (3), Vijayawada (3), and 1 each in Srikakulam, Vizianagaram, and
Nizamabad; 14 true value outlets spread across AP covering Hyderabad (6),

Vishakhapatnam (3), Vijayawada (2), and 1 each in Srikakulam, Vizianagaram, and
Nizamabad.
Further, the total area of the various showrooms, service centers and true value
outlets is 914,500 sft of which 873,000 sft is owned by the group companies
resulting lower rental costs for the company. This corresponds to approximately
95% of the total area under various outlets of VMPL. Wide sales network aiding
sales growth despite intense competition among dealers; new 3S outlet opened at
Nanakramguda, Hyderabad Intense competition amongst dealers and the OEM
control over dealer margins has resulted in thin margins for the industry. Despite
healthy volumes, continued competitive threats have resulted in VMPL having to
pass on discounts to the end customers. In Hyderabad, Maruti has 15 showrooms
of which VMPL has 5 showrooms; in Vishakhapatnam, VMPL has 2 showrooms
out of the 3 Maruti showrooms with the other showroom opened only in Mar 2011
and in Vijayawada, VMPL has 1 showroom out of 2 Maruti showrooms.
The company has recently added a 3S outlet at Nanakramguda in Hyderabad
with a total capital expenditure of about Rs. 17 crore. The expansion is funded
by a term loan of Rs 12 crore and remaining from internal accruals. The outlet
is opened in the month of August 2011 and is located in the middle of the IT
hub located at Gachibowli. The service center has a capacity to service 200
cars per day and is one of the largest MSIL service outlets in India.
Additionally, the company has plans to open one more 3S outlets in
Vishakhapatnam. With these new showrooms, the company will have five
Maruti showrooms in Hyderabad and four Maruti showrooms in
Vishakhapatnam which is likely to benefit the company in improving its
market share further. Non sales income is driven by vehicle servicing income
and commission received from MUL.
Around 50% of the non sales income is contributed by vehicle servicing in FY2011
which has increased from 35% in FY2006 in line with growing service network of
VMPL. The commission and incentives received from MUL contributed around
30% of the non sales income which improved consistently from 23% in FY2009.
The commission and incentives from MUL include margins on vehicle sales;
incentives from Maruti Achievers ICRA Credit Perspective Varun Motors Private
Limited ICRA Rating Services.
Club: incentives from MUL Balanced score card (platinum dealer); retail and
wholesale incentives on achieving sales targets; warranty claims; interest on MUL
dealership reserve fund. The other income contributed around 20% of non sales
income in FY2011. The other income includes payouts from financiers; insurance
payouts; handling charges etc. Future capital expenditure plans The company has
received the dealership for BharathBenz in the current financial year covering
Andhra and Rayalaseema region of Andhra Pradesh which covers 13 districts. The
company plans to start 3S outlets for BharatBenz at Vishakhapatnam, and
Vijayawada initially. BharatBenz is the brand of trucks manufactured and marketed
in India by Daimler India Commercial Vehicles Private Limited (DICV), a wholly
owned subsidiary of Daimler AG. It produces trucks in the range of 6 - 49 ton.
Financial Performance:
Healthy growth in revenues at a CAGR of 21.5% in the last 5 years with
improvement in operating margins The operating income increased at a CAGR of
21.5% between FY2006 and FY2011. The operating income increased from Rs 289
crore in FY2006 to Rs 767.9 crore in FY2011 on the back of increased geographic
reach of VMPL coupled with healthy sales growth of the principal, MSIL. The
operating margins gradually improved from 1.53% in FY2005 to 2.10% in FY2011
on the back of increased scale of operations and increasing share of service income
and spare sales wherein the margins are better than vehicle sales. The net profit
margins improved marginally in the last two years on account of improvement in
operating margins. Low working capital intensity however increased in FY2011 on
account of increased inventory. The working capital intensity as reflected by
NWC/OI is low at 7% for FY2011. However, the working capital requirements of
the company have increased over the past years on account of increased sales
outlets. As per MSIL, the company is expected to maintain one month of inventory.
Though the inventory days were lower at 16 days in FY2010 on account of supply
constraints at Marutis end, the inventory days increased in FY2011 to 34 days
increasing the working capital requirements. However, the overall working capital
requirements reduce on account of additional booking advances from customers
Increased gearing levels on account of increasing working capital borrowings and
moderate coverage indicators on account of thin margins as is the case in auto
dealership industry The gearing increased from 1.90 times as on 31 Mar 2010 to
2.46 times as on 31 Mar 2011 on account of increased working capital borrowings.
The total debt level increased from Rs 47.52 crore as on 31 Mar 2010 to Rs 75.65
crore as on 31 Mar 2011 with short term debt (including working capital limits)
accounting for Rs 57.85 crore as on 31 Mar 2011. The working capital
requirements are met through utilization of CC limits and trade advances.
The term loans accounted for Rs 14.39 crore as on 31 Mar 2011 and the loans were
taken to fund the fund the construction of outlets. Increase in total debt levels along
with thin operating margins resulted in moderate coverage ratios. However, with
improved margins in FY2011, the coverage ratios improved marginally with
interest coverage ratio improving from 3.10 times in FY2010 to 3.64 times in
FY2011. March 2012
Annexure I: Rating Amount in Rs crore
Fund Based Limits
80.84
Rating Action
[ICRA]BBB (Stable)
Non-Fund Based Limits

Unallocated Limits
assigned
[ICRA]A2 assigned
[ICRA]BBB (Stable)/
20.00
1.16
[ICRA]A2 assigned
ACHIEVEMENTS
AWARDS RECEIVED BY VARUN MOTORS Pvt Ltd.
1. The Main award is got by Government of Andhra Pradesh Best
Sales Tax Payer in Last Year.
2. And Second one is highest sales achiever out of 20 dealer
Maruti 800
Its the single choice when it comes to a value for money car. It has
won the title of the Best Economy Car in the NFO AA 2002 CS Study.
Major Variants:
o Bharat I Standard.
o Bharat II Standard.
The Mc Phercon strut suspension in every Maruti 800 gives a smooth

ride even over the roughest roads. Slim dimensions and tight turning
radius of just 4.4m guarantee amazing maneuverability, making it
easier to negotiate sharp corners, narrow lances and park in even
tighter spaces. The high mount stop lamp, collapsible steering column,
rear seat safety belts and side impact beams brings all the safety one
looks for.
Specifications:
Dimensions
Miscellaneous
Overall Length: 3335mm Engine Type: 4 stroke cycle, water- Overall

Width: 1440mm
cooled SOHC (1C2V).
Overall Height: 1405mm No. of Cylinders: 3

Seating Capacity:4 persons. Breaks Front/Rear Disc / Drum
Laden Weight: 1000Kg. Steering: Rack & Pinion.
Tyre size: (Radial) 145/70 R-12.
Fuel Tank Capacity:30 Liters. Min. Tuning Radius: 4.4 m.
Price list update as on 25th May 2006

at Vijayawada
Variant
Non Metallic Price
Metallic
AC Bharat III
2,39,873
2,42,534
Std. Bharat III
2,17,261
2,19,922
Maruti Omni
Its the Picnic, weekend party and adventure trip car. Fun solutions for your
entire family.
Major Variants:
Cargo LPG.
Omni CNG.
Bharat II 8 / 5 Setter.
Maruti omni is built up with the MPFI engine, which meets all the
stringent euro II emission norms. Ample luggage space, headroom &
legroom make long rides comfortable. Reclining front seats with
adjustable head restraints let you relax completely. Navigating through
congested city lanes is now a childs play because of the tight turning
radius of only 4.1 m., and this is backed up with all the necessary
safety features.
Specifications:
Dimensions.
Miscellaneous.
Overall Length: 3370mm Engine Type: 4 stroke cycle, water- Overall

Width: 1410mm
cooled SOHC (1C2V).

Seating Capacity:5 or 8 per. Breaks Front / Rear. Drum / Drum
Approx. weight: 740Kg. Steering gear box: Re-circulating,
Tyre size: 4.50-12-6PR ULT. Ball and nut type.
Fuel Tank Capacity: 30 Liters. Min. Tuning Radius: 4.1 m.

at Vijayawada
Variant
Non Metallic Price
Metallic
Cargo Bharat III
2,21,394
2,24,055
Ambulance Bharat II
2,81,732
2,81,732
5 Str Bharat III
2,41,745
2,44,406
8 Str Bharat III
2,43,651
2, 46,516
Cargo LPG Bharat II
1,99,412
2,01,879
Omni LPG Bharat II
2,49,209
2,51,870
Maruti ALTO
Its the 16 bit computer controlled Lets Go car. It has been credited as The
car of the year 2001 by business standards motoring organiztions.
Major Variants:
o Alto Bharat II.
o Alto LX Bharat II.
o Also spin LXIBharat II.
The electronic power steering uses computer controlled sensors that

take into account speed, driving style and road condition thus giving
you a smooth ride, which is backed up with the most powerful and
effective air-conditioning system that keep you cool and comfortable
during the hottest summers also. Alto comes packed with active &
passive safety feature like multiple crumple zones that ensure
maximum safety.
Specifications:
Dimensions
Miscellaneous
Overall Length: 3495mm Engine Type: FC Engine,.4valves per

Overall Width: 1495mm
cylinder MPFI

Seating Capacity: 4 persons. Breaks Front / Rear. Disc / Drum
Laden Weight: 1165Kg. Steering: Rack & Pinion.
Tyre size: (Radial) 145/80 R-12.
Fuel Tank Capacity:30 Liters. Min. Tuning Radius: 4.6 m.
at Vijayawada
Variant
Non Metallic Price
Metallic
LX Bharat III
2,78,332
2,81,971
LX Bharat II
2,74,391
2,78,030
LXi Bharat III
2,98,005
3,01,645
LXi Bharat II
2,94,065
2,97,704
Std Bharat III
2,42,346
2,45,986
Std Bharat - II
2,38,406
2,42,045
Maruti Wagon R
Its the car with a positive all round view, a high driving position and
modular space inside.
Major Variants:
Wagon R AX minor
Wagon R LX
Wagon R VXI
Wagon R LXI
The excellent electric power steering, aid parking speed maneuvers

and greatly improved quality levels to give you a pleasant surprise
tight now one looks for. The automatic 3-speed gearbox provides an
excellent gearing ratio. Wagon R is designed to deliver an ideal
combination of style, power & Comfort of a first class airline seat. Its
got an excellent fuel efficiency ratio of 15.15 km/l.
Specifications:
Dimensions.
Miscellaneous.
Overall Length: 3195 mm Engine Type: 4 stroke cycle, water- Overall

Width: 1395 mm cooled SOHC (1C2V).
Seating Capacity:4 persons. Breaks Front / Rear. Drum / Drum
Approx. weight: 1040Kg. Steering: Rack & Pinion
Tyre size: (Radial) 145/70 R - 12.
Fuel Tank Capacity: 30 Liters.

at Vijayawada
Variant
Non Metallic Price
Metallic
AX Bharat III
4,80,766
4,84,405
LX Bharat III
3,45,713
3,49,352
LX Bharat II
3,32,821
3,36,461
VXi Bharat III
3,91,326
3,94,965
VXi Bharat II
3,78,435
3,82,074
VXi with Air Bag & ABS
4,24,370
4,28,010
LXi Bharat III
3,66,969
3,70,608
Lxi Bharat II
3,54,078
3,57,717
Maruti Versa
Its van-like car or car like van. Its the tallest of all Maruti vehicles. Load
carrying flexibility is very good.
Major variants:
Versa-DX /DX2
Versa SDX
Versa STD 5-seater
The versa is expected to create a new market segment between utility

vehicles like the Quails and sedans like the Esteem. The excellent twin
A.C. with separate controls provides all round uniform cooling. The
flip folding seat in the third row creates options for luggage or
passenger space. True response electronic power steering provides a
fatigue free driving. Also the Diagnostic breakdown system aids in the
hour or need.
Specifications:
Dimensions.
Miscellaneous.
Overall length: 3675 mm Engine Type: 4-stroke cycle, water cooled
Overall width: 1475 mm
SHOC,MPFI in line 4 drum
Overall Height: 19055mm No. of cylinders: Rack& pinion power

assisted.
Seating capacity 8 persons. Breaks front /rear.
Laden weight: 1585Kg.
Tyre size: 155/80 R-13 LT.
Fuel tank capacity; 40vlitres.

at Vijayawada
Variant
Non Metallic Price
Metallic
DX 5S Bharat III
4,19,577
4,23,217
DX Bharat III
4,19,577
4,23,217
DX2 - 5S Bharat III
4,57,417
4,61,056
DX2 Bharat III
4,57,417
4,61,056
Std Bharat III
3,46,184
3,49,824
Maruti Gypsy
Its the car for altitudes and attitudes. Its versatile four wheel drive system
can sustain knocks and keep running on rugged terrain.
Major Variants:
Gypsy soft Top 1.3
Gypsy Hard Top 1.3
The Gypsy King is real adventure gear. Superb maneuverability,

Smooth handling and raw energy packed into a sleek yet rugged
frame. Whether ploughing through dirt track, climbing formidable
terrain or making your way through the urban jungle, Gypsy satisfies
them all. To go off the beaten track of daily life, to explore and discover
the unknown, motoring to new places & picnics hitherto unchallenged
are all possible now.
Specifications:
Dimensions.
Miscellaneous.
Overall length: 4010 mm Engine Type: G 1388 MPFI 16
Valve Gasoline
Overall width: 1540 mm No. of cylinders: 4
Overall Height: 1875mm Breaks front /rear.
Seating capacity 4 persons. Steering: Disc / Drum
Laden weight: 1620Kg. Fuel Tank Capacity 40 Liters
Tyre size: F78 15 4 PR Engine Oil Capacity 4.0 Liters

at Vijayawada
Variant
Non Metallic Price
Metallic
Ambulance - BharatIII
5,16,217
5,16,217
Hard Top Bharat III
5,09,912
5,12,805
Soft Top Bharat III
4,90,231
4,93,123
Maruti Zen
Its the car having a fan club in Andhra Pradesh and the fuel efficiency of
this little car is 18 kpl. Assured with a good Responsive steering system.
Major Variants
o Zen Bharat I LX
o Zen AT Bharat II
o Zen Bharat II D/Di/LX
o Zen Bharat II Lxi/Vxi
o Zen AX Easy Drive TRD/TRC
o Zen AX Easy Drive - TRF/TRI
The Zen has the highest power to weight ratio in its class 78.4
bhp/tonne and the fastest 0-60 timings in its segment. It has clear
multi reflector headlamps that mesmerize you and its speed sensitive
electronic power steering heightens the sensation of the perfect drive,
offering amazing agility and grip on the move. The collapsible steering
column & protective monocoque body transform Zen into an
impregnable fortress of safety.
Specifications:
Dimensions.
Miscellaneous.
Overall length: 3535 mm Engine Type: Peugeot TU D5

Overall width: 1495 mm No. of cylinders: 4
Overall Height: 1405mm Breaks front /rear. Disc / Drum
Seating capacity 5 persons. Steering: Rack & Pinion

at Visakhapatanam
Variant
Non Metallic Price
Metallic
LXi - Bharat III
3,70,943
3,74,582
LXi - Bharat II
3,58,052
3,61,691
VXi Bharat II
3,83,400
3,87,039
VXi Bharat III
3,96,291
3,99,930
LX Bharat III
3,46,431
3,50,070
LX Bharat - II
3,33,540
3,37,179
Maruti Esteem
Its The family Quick Silver. It thrills your sense & pleases
your eyes and has the ability to impress you with engineering
thats world class.
Major Variants
o Esteem D . Di Bharat II
o Esteem LX / LXi
o Esteem VXi / AX
The cutting edge engine technology provides a blazing 0 100 km/h in

a mere 11.49 seconds. A 16 bit on board engine management
computer (EMC), precisely calibrate the air fuel mixture and ignition
timing thus increasing fuel efficiency and reduce exhaust emission.
Along with McPherson struts and coil springs, a high ground
clearance let the new Esteem glide over bumps and potholes with ease.
Specifications:
Dimensions.
Miscellaneous.
Overall length: 4090 mm Engine Type: 4 Stroke cycle,

water cooled SOHC (1C2V)
Overall width: 1575 mm No. of cylinders: In Line 4
Seating capacity 5 persons. Steering: Rack & Pinion
Tyre Size: (Radial) 175/70 R - 13

at Vijayawada
Variant
Non Metallic Price
Metallic
VXi - Bharat III
4,91,127
4,91,127
LXi - Bharat III
4,56,236
4,56,236
LX Bharat II
4,26,369
4,26,369
Maruti Baleno
Its the most handsome car among all the Maruti models. Its The
Luxury of Silence built using 13 advanced noise reduction
technologies.
Major Variants
o Baleno Sedan LXi

o Baleno Sedan VXi
o Baleno Altura Bharat II
All aluminum 1600 cc smart 1 Engine provides lively response and

superior fuel management. Also independent McPherson suspension
strut is provided on all four wheels mounted on separate sub-frames.
Which gives superior grip and road handling. The Multi-Point fuel
injection system provides uniform fuel distribution thus giving the
vehicle a max speed of even 175 km/h.
Specifications:
Dimensions.
Miscellaneous.
Overall length: 4225 mm Engine Type:
All Aluminum
contemporary 16 Valves SOHC.

Overall width: 1690 mm No. of cylinders: In Line 4
Seating capacity 5 persons. Steering: Rack & Pinion with
hydraulic power assistance.

Tyre Size: (Radial) 165/80 R - 13

at Vijayawada
Variant
Non Metallic Price
Metallic
Sedan VXi Bharat - III
6,46,279
6,46,279
LXi - Bharat III
5,75,896
5,75,896
Maruthi Swift
Swift has been positioned on the aspirational plank for young
Indians.
Major Variants
Swift LXi
Swift VXi
Swift ZXi
The Swift is targeted at a new kind of Indian customer, who while

valuing the traditional Maruti Suziki attributes including fuel
efficiency also desires contemporary looks and attributes in the

Vehicles.
Specifications:
Dimensions.
Miscellaneous.
Overall length: 3695 mm Engine Type: 1298 capacity, 4 cylinders,
16 Valves, 87 Bhp, Fuel distribution Multi
Injection. Max. Speed 160 Km per hour.

Overall width: 1690 mm
Overall Height: 1530mm
Seating capacity : 5 persons.
Luggage Capacity: 232 Lts.
Fuel tank capacity; 43 liters.
at Vijayawada
Variant
Non Metallic Price
Metallic
VXi
4,07,685
4,07,685
VXi (ABS)
4,27,710
4,27,710
ZXi
4,87,801
4,87,801
Lxi
3,89,659
3,89,659
VARUN MOTORS Pvt Ltd

.VIJAYAWADA
BRAND POSITION IN THE MARKET
Production Marks were used in olden days to distinguish a product

that is product that is produced form different production units.
These are now known as brand names. Brand name is strongly
associated with the product quality in the minds consumer.
In order to be successful you need to be effectively communicating

your product to the prospects. This process of communication of a
message of the brand/product so that it could be seen, Heard &
Accepted by the human mind of you prospect, is defined as the
positioning of your brand.
Brand is a major issue in product strategy. On the one hand,

developing a branded product requires a great deal of long term
investment, especially for adverting, promotion and packaging
The Brand name can convey up to six levels of meanings. They are:
Attributes: A brand brings to mind certain attributes. Maruti
suggests durable, low priced, well-built, well-engineered, high
prestige automobiles.
Benefits: Attributes must be translated into functional and
emotional benefits. The attribute durable could translate into
I won t have to buy another car for several years.
Values: The brand also says something about the producers
value Maruti stands for high performance, safety and prestige. It
s social status symbol.
Culture: The brand may represent a certain culture. Maruti

represents world class culture, organized effort, efficiency and
high quality.
Personality: The brand can also project a certain personality.
User: The brand suggests the kind of consumer who buys or
uses the product.
One of the first steps in building the brand is to find out what
promises to keep. Then figure out what promises you
realistically can keep. Finally take a long careful look at your
competition and decide which promise would give you the best
competitive advantage. This process of arriving at a focused,
credible value proposition is the kernel of brand building
activities.
Such are the activities being done by Maruti. This systematic

approach resulted in the fact that a common man too knows about
Maruti cars. Every hook and corner of the Maruti`s market domain
has a Maruti servicing center with 24hr service facility.
Maruti ranked No. I in customer satisfaction by j d power CSI ( 2001 )

for 4th time in a row and also JD power ranked 3 models ( 2003 Oct ) of
Maruti on top: Wagon R, Zen and Esteem given the scale of 50 lakh
cars on road, the sheer diversity of Maruti customers and the fact the
Maruti sells more than all competitors is simply incredible.
Imagine making 70000 precisely engineered components and

assembling them perfectly in to a car imagine doing this for more than
50,000 cars in a row, with 10 different models and over 100 variants.
Now that tells why India trusts Maruti more than anyone else to build
the cars of the future.
Lets see the brand position of the Maruti`s products in the local
markets in terms of the different attributes as indicated below
Technologically. Maruti is having a preference percentage of 80%

Maruti uses the advanced high-end engineering design equipment in
the manufacture of its cars.
The highly structured. Well-organized and disciplined servicing teams

and the technicians at Maruti services stations attend to & repair the
faults in no time. Thus the survey resulted in a customer rating of
95%.
In terms of the features of t he car, Maruti enjoys comparative 65%

availability. This could be due to the particular target group being
focused by Maruti. Which require a good cost-benefit analysis.
Nearly 80% fell that Marutis cars are quite economical and nearly
85% fell it to be a social status symbol to own a car of this brand
name.
The customer survey even showed that 75% do agree with the fact
that the Comfort derived is very much satisfactory and also that the
mileage is good, at times above expectation.
If you talk about change but dont change the reward and recognition
system, nothing changes. Says Paul Allaire, CEO, Xerox corp in a
similar sense its very essential that, only when you have a clear
understanding of what your present status is in the market will make

you design effective strategies for success.
So far the clear understanding of the brand position in the market,

lets visualize the above data in the form of a bar chart, I hope a
picture speaks more than a thousand words.
The above chart clearly shows the amount of competitive pressure that
exists for Marutis products in the market. Using this data we can
design strategies for expending the markets. For a well trained eye,
the above chart speaks of the cost of mistakes with special emphasis
on the growing customer expectations.
Finally the chart presents the current status of the brand position in
the market in terms of all the parameters represented in the x axis of
the chart.
SERVICES OFFERED BY THE COMPANY
Services offered by the company, which are non-tangible, do play a

major role in the buying decision of the customer. The attributes of the
services add upon the value and would make a lot of difference
between buy and not to buy. Usually the cost-benefit analysis made by
the customer do account for the after purchase services offered by the
company.
Services thus play a major role in the formation of a positive image of

the company in the mindset of the customer, Having considered the
importance of the impact of services on the buying process of the
customers, lets view it with special reference to the company under
consideration. I.e., MUL services
Maruti Udyog Limited offers a number of services to its customers.

Some of the major ones include:
S1. N2N Fleet Management.
S2. Maruti True Value
S3. Maruti Finance.

S4. Maruti Insurance
S5. Maruti On-road Services
S6. Forever Yours Extended Warranty.
S7. Maruti Genuine Accessories.
S8. Anytime Maruti- Call center.
Lets Discuss about each of these services in detail to understand the

kind of attributes Maruti has considered to fill up the service package.
This gives us a birds eye views of the kind of Marketing Mix it has
designed and also the effective strategies it uses to capture a large
market share.
S1. N2N Fleet Management : Kick the worries. Enjoy the Car.
Car maintenance is a time- consuming process, especially if you own a

fleet. Marutis new N2N Fleet Management solutions for companies,
takes care of the A-Z of your automobile problems. This service
includes end-to-end backups/ solutions across the vehicles life :
Leasing, Maintenance, Convenience services and Remarketing.
Besides Company owned cars, Maruti also offers this service for
Employee-owned cars. With N2N on board, Problems are things that
happen to others. So just sit back, relax & race ahead with the times.
There are three stages in the lifecycle of corporate fleet ownership. The
are:
1. Acquisitions: Where Corporate formulate fleet policy, Identify &
evaluate options for various levels of employees, negotiate with
dealers/OEMs and Acquire corporate fleet.
2. Operations : Now maintenance budget is prepared, Maintenance
contracts with workshops are negotiated to Operate and
maintain fleet. Track expenses are also taken care off.
3. Re Marketing : Market value of existing fleet is assessed and
Cars are auctioned to employees or a quotation invited from
external brokers and finally a new fleet is acquired.
Similarly there are three types of risks in the lifecycle of fleet

ownership.
Residual value risk : A fleet acquired by cash purchase, hire
purchase or loan, is in the name of the corporate and the assets
are reflected in its balance sheet. At the end of the corporate

usage tenure ( typically 3-5 years), the corporate faces the risks
of not realizing a fair value, delay in the disposal of the asset,
and administrative overheads. The risk is high if the vehicle is
not maintained as per OEM prescribed standards.
Maintenance risk: During the fleet ownership stage, if the
corporate decides to maintain the fleet on its own or contract
with workshops for maintenance on actual expense basis, the
corporate faces the risk of unplanned maintenance expenditure.
Most corporate budget for maintenance expenditure on the
basis of historical data, which results in sub-optimal
forecasting. The corporate also faces the risk of poor
maintenance quality because of absence of monitoring go the
jobs performed by maintenance workshops.
Obsolescence risk : The increase in the rate of innovation in technology
and design in automobiles makes newer and better technology
models available to consumers, which considerably increases the risk
of obsolescence.
Marutis suite of N2N services covering acquisition, maintenance and

sales are enlisted below :
N2N Acquire:
Comprehensive Vehicle Acquisition Program with competitive
interest rate and pre-owned car business backed residual values
that provides attractive lease EMI.
After the end of the lease period, the organization can either
renew the lease with the same set of cars or replace the old fleet
with a new fleet through Maruti exchange schemes.
Doorstep delivery at the address of choice, insurance,
registration and road tax management services.
N2N Cover:
A Comprehensive Insurance & Accident Management

Program with virtually cash less claim transactions.
Replacement vehicles in case maintenance downtime are

more than 24 hours.
N2N Mentor:
Driver Training and Safety Program with training course for
drivers at Marutis Drivers Training Institute.
Training course for individual users as well.
N2N Check In:

Convenience Services Program with 24X7X365 Call Center
supports for all queries, guidance & emergency.
Valets for vehicle pick ups for maintenance and home delivery.
N2N Physio:
A Comprehensive OEM backed full Service Maintenance
Program.
Timely reminders for monthly servicing checks with extended
servicing hours & quick-fit drive in services.
Tyre/battery replacements as per OEM recommendations.
Extensive MIS reporting of cars condition from time to time.
N2N Rescue:
On the spot emergency plus speedy accident repairs, towing

services
if stranded and home drops as well.

Delivering of repaired cars at the doorstep.
N2N Re- Marketing:
A Vehicle Resale Program for your fleet with transparent pricing

& speedy transactions
Hassle-free resale of vehicles through Marutis Pre-Owned Car
channels.
S2 : Maruti True Value :
Get the best value for your car.
Maruti True Value helps you to buy, sell or exchange a pre-owned car.
You get the full value for you dealings, in terms of Quality, Reliability,
Transparency and Convenience with your eyes Closed. Buying or
selling a used cat is a gamble With Maruti True Value, Its like holding
the winning hand All services are aimed at making your transactions
with Maruti as hassle free and enjoyable as possible Marutis
dedicated and honest team will ensure that you have rewarding
experience at Maruti True Value.
At Maruti True Value, a pre-owned car is Re- conditioned to Maruti

standards in state of-the-art workshops by trained mechanics using
genuine parts. Cars are put through a stringent 120-point check that
covers all major systems, like the engine, brakes, transmission etc.
This transparent free evaluation system, which looks in to the merits
of your car, would take 15-20 minutes to give you the best possible
price of your Maruti Suzuki. After which, Engineers certify their
trustworthiness. The payment in full, to the seller is made
immediately, once verified at the RTO as genuine. Only then the car is
put to sale.
Doorstep evaluation service for your convenience is also available.
With the doorstep evaluation service you can sell your car from the
comfort of your home. True Value says Just call us and well come .
Marutis team works hard to make all its customers happy.
Every pre-owned car brought through True Value scheme comes with
a Maruti warranty that guarantees complete peace of mind. Three free
services are also availed only when Maruti Suzuki engineer certifies
the car. The car is refurbished with Maruti genuine parts (MGP) and
by Maruti Suzuki trained personnel at the state- of-the art Maruti
Suzuki authorized workshops.
Maruti Suzuki cars up to 10 years old and mileage up to 1,00,00km
are sold under True Value . As per the warranty policy provided in the
owners manual, all mechanical and electrical parts are covered up to

ONE full year depending upon the rating given by the 120 point
checkup.
Wear and Tear parts, parts worn due to aging, consumables like oil,
filters. Spark plugs, C.B. points, fuses, bulbs, paint problems; A/C gas
leak, battery , tyres, rubber and plastic items are not covered by the
Maruti Suzuki warranty.
On purchase of a Maruti Suzuki true value pre-owned car, you will
be entitled to three free inspection services at the workshops of any
Maruti Suzuki true value after sales service center. The three free
services will be available at the following intervals or mileage, as the
case may be:
First free inspection service:
Within 45 to 60 days or running 1000 5000 km, (over and
above the mileage at the time of delivery) Which ever occurs
earlier?
Second free inspection service:
Within 90 to 120 days of running 5000 5500 km, (over and
above the mileage at the time of delivery) whichever occurs
earlier?
Third free inspection service:

Within 210 to 240 days or running 10,000 10,500 km, (over
and above the mileage at the time of delivery)Whichever occurs
earlier.
And before we conclude lets see what the customers have got to speak
about Maruti true value:
True value has successfully organized the disorganized
secondhand car market in the capital. Good work. ND Karla
Indian air Force.
Very good concept. Genuine interest shown by sales person. Not
a moneymaking business. One feels very reassured with the
purchase. Best of luck. John Israel Hyderabad.
Maruti true value is a good outlet for business in second hand
Maruti vehicles. D Kumar-New Delhi
Why settle for anything but the best? Every Maruti car is a
technologically superior product that is backed by a countrywide network of service stations, authorized workshops and
other auto related services that only Indias largest car
manufacturer can offer. so if you want to replace your old car
with a brand new one, pick the car that enjoys the highest
resale value in the market. Pick a Maruti.
S3. Maruti Finance:
Buy Now, Pay later as EMI.
This new initiative is a long term proposition besides acting as an

enabler to the core business of Maruti. This special purpose scheme is
centered on the customer through transparent deals and availability of
other bundled services.
Maruti finance is now banking on Maruti Udyogs extensive dealership
network that reaches every corner of the country. Using this service,
customers can get car finance at competitive prices. After the
establishment of this new wing, the sales volume increased
appreciably.
The countrys largest bank (SBI) and the largest Carmaker (MUL) have
joined hands to makes car finance available to the large customer pool
across the country. This Mega-alliance makes car loans available at
lower interest rates to a wider section of people, with transparent
terms and conditions. The unmatched combined network of SBI
branches and Maruti put less support it and make it realty.
Here is the list of Unbeatable Advantages of SBI-Maruti Car Loans:
Two market leaders in their respective industries with trusted

brand names.
Lowest interest rates of 9.50% (Note: Interest rates at the time of
purchase of the car will be applicable. Interest rates are subject
to change and are at the sole discretion of SBI. Internet rate of
9.50% applicable on repayment periods yup to 36 months. An
interest rate of 10.00% is applicable for a repayment period of 7
years. Credit at the sole distractions of SBI.)
No processing fees or hidden costs to ensure transparency.
No extra charge for repaying loans ahead of schedule.
Standardized loans that offer fixed interest rates across models
and locations.
Car loans available for diverse categories of customers including
government employees and agriculturists.
More loans available for diverse categories of customers including
government employees and agriculturists.
More loan amount available as it is extended on the basis of the
cars on road price. Not ex showroom price.
Longer loan repayment period up to seven years
Thus the alliance did worked our well and resulted in a rich
experience for the prospective customers. But Maruti isnt contented
with that. It thought that its the right time to join hands with some of
the big bosses like the HDFC, GE Capital etc.
Maruti Countrywide was set-up when GE Capital, HDFC and Maruti
Udyog Limited formed a captive finance company in 1995. A
professionally managed company, which would share the ideals and
work culture of the parent companies. The prime objective being to
cater to the needs of Maruti car buyers by offering innovative finance
schemes for the purchase of Maruti cars.
Later , Citicorp Maruti Finance Limited was formed when Maruti
joined hands with Citibank in May 1998. Located in 23 cities, This is
the first company that provides services to finance the purchase of
secondhand cars nationally. Citicorp Maruti Finance Limited also offer
a wide range of flexible and customized financing options at affordable
rates to individuals buying a Maruti car.
Apart form all these above mentioned standardized alliances, the
organization also gave the dealers the flexibility to choose form this
wide rage of organize a genuine & more beneficial one himself. Thus
with such a systematic procedure being followed, its the Marutis
customers who are always at a wining edge.
S4. Maruthi Insurance :

Maruthi had tied with Bajaj Alliance and National Insurance
Corporation, two of the foremost Insurance companies to bring this
service for all its customers. Maruthi Insurance allows customers to
send enquiry and get a free renewal remainder and claim. Post
accident repairs saving valuable time and efforts through an
appointment contract person.
S5. Maruti On-road Services
Even with the most stringent quality measures, complex machines like
cars can sometimes malfunction. Just call the 24-hour Maruti Onroad Service (MOS) center during an emergency and help will be on its
way to you.
The MOS ensures:
Round-the 0clock services in almost every city.
A common contact number across the country : 9622-9622-00
A computerized call-monitoring system dispatches a mobile MOS
van to you at the earliest.
The MOS also ensures :

All MOS vans are manned by qualified Maruti Authorized
Dealers /MASS technicians who are trained by Maruti in
problem diagnosis
You are charged only Rs.100 on labour and spares
The charges do not apply if the vehicles is under warranty
The first 24 hour MOS was launched on a pilot run in Delhi in Jan
1999. This service was then extended to Bangalore, Calcutta,
Chandigarh, Chenai, Hyuderbad, Ludhiana, Mumbai and Pune in Sep
1999. The success of the service in these stations led to the addition
of nine more cities in April 2000.
Today MOS is available in the following 41 cities across the country .
Ahmedabad Cochin Indore Nagpur Surat

Ajmer Coimbatore Jaipure Noida Trivandurm
Ambala Delhi Kanpur Palwal Vadodara
Amritsar Erode Lucknow Panchkula Varanasi
Bangalore Faridabad Ludiana Patna Vizag
Bhopal Ghaziabad Madurai Pune
Calcutta Gurgaon Mangalore Rajkot
Chandigarh Howrah Mumbai Secundrabad
Chenai Hyderabad Mysore Sonipat
S6 Marutis forever yours Extended Warranty :

As everyone knows, no Maruti really needs a warranty, But just to go
that extra bit to show how much Maruti cares, They have enhancing
the 2- years primary warranty on your car with the Forever Yours
Extended Warranty * Program. Now you can buy Extended Warranty
with your Maruti, if your Maruti is purchased on or after 14th May
2001, and the vehicle is still covered under the primary warranty. This
new service has come into effect from 1st April 2002. The warranty will
be valid at all 400 * authorized dealer workshops across India and

comes at a very attractive price. You can now get up to 4 years or up
to 80,000 km of warranty coverage! Choose between two options.
OPTION I : Extended warranty for additional 1 year or up to 60,000

Kms, whichever comes earlier, from the date of expiry of primary
warranty. The below table gives the values calculated for each model
(new vehicle).
OPTION 1 (3rd Year or up to 60,000 km, whichever is earlier)
S.No. Model
Amount payable (Rs.) from date of delivery

0-60 days
61-365 days
366-730 days
M800
1,495
1,719
1,943
Omini
1,690
1,934
2,193
Alto
1,790
2,058
2,327
Zen
1,895
2,179
2,463
Wagon R
1,890
2,173
2,457
Gypsy
3,095
3,559
4,023
Esteem
3,495
4,019
4,543
Versa
3,495
4,019
4,543
Baleno
3,990
4,588
5,187
OPTION II : Extended warranty for additional 2 years or 80,000 Kms,

whichever comes earlier, from the date of expiry of primary warranty.
The below table gives the values calculated for each model (new
vehicle).
OPTION 2 (3rd 4th Year or up to 80,000 km, whichever is earlier)
S.No. Model
Amount payable (Rs.) from date of delivery

0-60 days
61-365 days
366-730 days
M800
2,995
2,444
3,893
Omini
3,495
4,019
4,543
Alto
4,190
4,818
5,447
Zen
4,595
5,284
5,973
Wagon R
4,390
5,048
5,707
Gypsy
6,190
7,118
8,047
Esteem
5,885
6,767
7,650
Versa
5,885
6,767
7,650
Baleno
7,990
9,188
10,387
So simply you need to sign on the Extended Warranty Program. And

drive a car thats not just built with superior technology and backed
by over 800-city network of service stations but one that guarantees
total peace of mind.
S7. Maruti Genuine Accessories:

Maruti Genuine Accessories (MGA) is a new initiative to offer you High
quality accessories at competitive prices. Maruti follow world class
engineering and design processes to develop each and every item of

MGA. Many of these items are imported from Suzuki, Japan. Every
MGA item has perfect mechanical and electrical compatibility with the
vehicle and offers you Unmatched performance.
The below table shows a sample list of the accessories and the
advantage one can derive using them.
ITEM
THE MGA ADVANTAGE
Alloy
Perfect Match with vehicles. Safe and reliable. Virgin
Wheels
Aluminum from ISO certified sources. 100 % x-ray tested.

Endurance tested. Excellent finish. Better cooling, better
Braking efficiency.
Body
High Quality imported Fabric. Water- resistant. 1-Year
Cover
Warranty. UV Ray protection (UV rays cause paint fading ).

Very light and easily handled. Matches body profile perfectly.
Clamp mechanism. Comes in convenient carry bag.
Carpets
Imported materials used. Perfectly fits the contour of vehicle

floor. Attractive designs, matching the interior. Odors free
resistant. Fully Washable. Anti Slip mechanism to Prevent
slipping on floor. Special thread interlocking. Dust absorbing.
Reinforced cushioning at drives area to prevent balding.
Door
Perfect fit with vehicle profile. Unique attachment provided for
Visors
strong fit. Suzuki(Japan) product. Weatherproof. Offers

protection from sun-rain Long lasting and unlike other visors,
do not become brittle or crack.
Fog Lamps Comes with complete electric wring, protection relay, switch
and lamps. Electrically compatible with the vehicle electrical
systems, therefore perfectly safe for the vehicle . No need to
cut/splice original vehicle wires, clip-on mechanism . Perfect
fit mechanically. Tested for long distance visibility. Beam
adjustment screws.
Stereo
Electrically compatible with vehicle electrical system,
System
theretofore perfectly safe for the vehicle. No cutting/splicing of

original wiring on vehicle needed (Clamp-on system). High
Quality sound and wide features. Easy installation Tested over
50,000 Kms. Durable. Approved by Suzuki, Japan. High
Quality speakers & antenna.
Security
Many Advanced Features from complete vehicle protection.
system
Electrically compatible with vehicle electrical system, therefore

perfectly safe for the vehicle. No cutting/splicing of original
wiring on vehicle needed (clamp-on system) . 3-years
Warranty .
Spollers
Designed by experts to perfectly match the vehicle profile.

Gives the best aerodynamic and sporty look. Best fit. Special
high strength and low weight materials used If light provided,
the electrical are perfectly compatible with the vehicle electrical
systems. Excellent surface finish.

Seat
Leather Seat Covers are made from genuine Italian seat covers.
Covers
In Fabric Seat covers the best quality fabric used. High levels
of craftsmanship. Perfect fit and finish. Matches interiors .
Abrasion tested. Same quality as those fitted from factory.
Car Care
Body Polish, Glass Cleaner, Shampoo, Tyre Polish, Upholstery
Products
cleaner, Dashboard Shiner, etc. Besides these there are a host

of other accessories like Warning Buzzer Assembly warns a
driver when the door is open and reminds him to fix the seat
belt. There are high quality rear parcel tray made of reinforced
PP, FUCOT anti Rust Treatment (from Fucon), Bardahl Fuel
Additive (from Bardahl) etc.
S8. Anytime Maruti Call Center:

In addition to the existing channels of communication. Maruti always
explore new avenues of one-to-one interaction with our customers. As
a major step in this direction. It started a Pilot Call Center for the
people residing in Delhi and Gurgaon. This service , named Anytime
Maruti, has now been extended to Chennai, Bangalore, Hyderabad
and Mumbai . Customers in these cities can contact at any time using
a Toll-free number 1600-11-1515 from their MTN/BSNL phones.
Now there is one more channel for you to contact MARUTI . Any time
Maruti is now accessible to the customers using mobile phones also.
The number is (0) 98118-01515. This Mobile number will not only
connect a mobile phone user but also allow subscribers of Touchtel.
WLL,Tata, etc, to connect to anytime Maruti. Please note that the
calls to this mobile number will not be toll-free.
The objective of this call center is to ensure you have quick and easy
access to all information on Marutis models , prices, finance options,
dealers and the locations of the numerous services stations. There
exist future plans to launch this service nationally.
There is also a web site designed by Maruti Udyog Ltd. To provide
latest online information regarding various facilities and other related
stuff to all the Internet savvy. When is also playing a major role
influencing the customer. The Rediff.com in collaboration with the
Chetna Institute of Management & Research in Mumbai have

conducted an online survey. The survey has thrown up some
interesting facts accounting for the fact that 31% of the respondents
said they were influenced by the information available on the Internet.
Among the car brands where the Internet played an important role in
influencing customers, were Alto. Zen,Esteem, Optra and Baleno. The
list shows that Maruti Udyog ltd. Has been successfully using the
Internet to reach its consumers. The study reflected that MUL, which
advertises its brands on the Net, has been able to convert prospects
into customers.
Theoretical frame
work
Data analysis
Customer satisfaction is a customers feelings of pleasure of

disappointment resulting from comparing a product perceived
performance in resulting to his or her expectations.
Today, more and more companies are recognizing the importance of
satisfying and retaining their current customers. Many companies are
aiming for high satisfaction level because customers who are just
satisfied offer come along. Those who are highly satisfied are much
less ready to switch, high satisfied or delight creates an emotional
bond with the brand, not just a rational preference. This result is
high customer loyalty.
How so buyers from their expectations? From past buying experience
Friends and associates, advice, and marketers and competitors
information and promises. If marketer raise expectations to high,
there buyers is likely to be disappointed. Some of tow days most
successful companies are raising expectations and delivering customer

satisfaction. For example, Nissan invites potential infinity buyers to
drop in for a guest drive (not a test drive, because the Japanese
word for customer is Honored Quest).
In addition to tacking customer value expectations and satisfaction,
companies need to monitor their competitors performance in these
years.
For customer centered companies, customer satisfaction is both a goal
and marketing tool. Companies that achieve high customer
satisfaction ratings make sure that their market knows it. The
MARUTI Ltd. has received the number one rating in customer
satisfaction from J.D.Powers for the year 2006.
Although the customer centered firm seeks to create high customer
satisfaction, its main goal is not to maximize customer satisfaction. If
the company increased customer satisfaction by lowering its price or
increasing its services, the results may lower profits. The companies
might to able to increase its profitability by means other increase
satisfaction.
Ultimately, the company must operates on the philosophy that it is
trying to delivery a high level of customer satisfaction subject to
delivering acceptable level of satisfaction to the stake holders with in
the constrains of its total resources.
And also quality is the totality of features and characteristics of

products or service that bare on its ability to satisfy stated or implied
needs. Today companies have no choice but to implement total quality
management programs if they are remain solvent and profitable. Total
quality is the key to value creation and customer satisfaction.
The best sales of company are its satisfied customers as the value of
publicity and sales they generates for exceeds the value of advertisings
and promotion under taken the company.
When rate their satisfaction with an element of the companys

performance say delivery the company needs to recognize that
customers vary in how they define good delivery. It could mean early
delivery, on time delivery, order completeness and so on. Yet if the
company had to spell out every element in detail, customers could face
a huge questionnaire. The company must also realize that two
customers can report being Highly Satisfied for different reasons one
may be easily satisfied must of time and the other might be hard to
please but was pleased on this occasion.
Listening is not enough however. The company must respond quickly
and constructively to the complaints. Because loyal customer account
for substantial amount of company profits, the company should not
risk losing a customers by ignoring a grievance of quarreling over a
small amount. Winning back lost customers is an important
marketing activity and often cost less than attraction first time
customers.
Some companies navigate all these pit falls to research their customer
value and satisfaction goals. We call the companies high performance
business. Finally, a highly satisfied customer is:
Stays loyal longer
Buys more as the companies introduce new products and
upgrades existing products
Talks favorably about their company and its products/services.
Pays less attention to competing brands and advertising and is
less sensitive to price
Cost less to serve than new customers because transaction are
reutilized
Customer satisfaction is the extent to which a product perceived

performance marches buyers expectations. Customer satisfaction
with a purchase depends on how well the product performance lives
up to the expectation. It is the key influence on future buying
behavior. Dissatisfied customers often switch to competitors and
disparage the product to others.
If performance exceeds expectations the customers are highly satisfied

or delighted. Smart companies aim to delight customers by promising
only what they can deliver, then delivering more than they promise.
Highly satisfied customers produced several benefits for the company.
Satisfied customers are fewer prices sensitive. They talk favorably to
other about the company and its products and remain loyal for a
longer period. However, the relationship between customer satisfaction
and loyalty varies greatly across industries and competitive situations.
MARKET SHARE OF VARUN MOTORS IN LOCAL

MARKET
Varun Motors grabs 75% of the Market Share in Visakhapatanam and

others holds 25%.
ANALYSIS OF THE STUDY

To know about the attitude of Customer towards Maruti Four
Wheelers and also about VARUN MOTORS and also to ascertain the
level of Customer Satisfaction at VARUN MOTORS a structural
questionnaire was prepared and canvassed among the Customers of

VARUM MOTORS (Sample of 150 was taken).
On Sample Random basis Maruti 4 wheelers cases was sampled and
the questionnaire was canvassed among them and at times they were
also interviewed. Reasonable to get more information and the data
thus collected was tabulated and the findings reveal the following:-
1. AGE GROUP
AGE (YEARS)
NO. OF CUSTOMERS
PERCENTAGE%
25 - 45
60
60
45 - 65
30
30
65 ABOVE
10
10
TOTAL
100
100
250
200
150
Series 3
PERCETAGE%
100
NO.OF CUSTOMERS
50
0
25-45
45-65
65 ABOVE
TOTAL
The age composition of the respondents revealed that the age group
between 25-45 were 60% and between 45-65 were 30% and the
remaining people were aged above 65 years were 10%. This shows that
the four wheelers were preferred mainly by the respondents below 2545 years of age as data shows that 75% of samples have less than 45
years of age.
The remaining 25% of respondents were between the age 45-65 and 65
above years. The data shows that 30% of respondents using the 4wheelers were in the age group between 45-65 and 30% were in the
age of above 65 years.
2. GENDER ANALYSIS
GENDER
MALE
FEMALE
TOTAL
NO.OF CUSTOMERS
PERCENTAGE (%)
95
95
05
05
100
100
250
200
150
Column1
NO.OF CUSTOMERS
100
50
0
MALE
FEMALE
TOTAL
From the above table a graph we can observe that among the 100
Customers 95% were males and 5% were female.
3. OCCUPATION ANALYSIS
OCCUPATION
NO.OF CUSTOMERS
PERCENTAGE(%)
EMPLOYEE
43
43
PROFESSIONAL
25
25
BUSINESS
32
32
TOTAL
100
100
120
100
80
NO.OF CUSTOMERS
60
PERCENTAGE%
40
20
0
EMPLOYEE PROFESSIONAL BUSINESS
TOTAL
The occupation of the respondents reveals that 43% of them were

employees, 25% of them were professionals. And Business people were
32% who were doing apprentice and Self Employment.
4. INCOME STATUS (PER MONTH )

INCOME STATUS (PER
NO.OF
PERCENTAGE
MONTH )
CUSTOMERS
(%)
15 ,000 25,000
39
39
25,000 35, 000
34
34
ABOVE 35,000
27
27
TOTAL
100
100
15000-25000
25000-35000
ABOVE 35000
TOTAL
INCOME STATUS
Monthly Income of all the respondents revealed that 39% of them were
between 25,000 to 50,000, 34% of them had monthly income range of
50,000 to 1,00,000 and 27% of them had monthly Income above
1,00,000. The analysis shows that the Customers constituted of
mainly middle class and the upper middle class and High class
segment.
5. PREFERRED PARAMENTERS OF MARUTI/ANY OTHER BRAND
IN VARUN
PARAMETERS
NO. OF
PERCENTAGE(%)
CUSTOMERS
MILEAGE
25
STYLE
11
COMFORT
31
SERVICE/SPARES NET
13
25
11
31
13
WORK
ALL FACTORS
TOTAL
20
100
20
100
100
90
80
70
60
50
40
30
20
10
0
NO.OF CUSTOMERS
PERCENTAGE%
The preferred parameters of Maruti/ Any other Bran in Varun of the

Respondents reveals that 25% of them were interested in mileage
improvement and 11% of them were offered style, 31% of them were
choosing for the comfort, 13% of the were offered for the
Service/spares net work. Most of the Customer were offered for above
all the factors their percentage was 50.67%.
6. NO.OF YEARS OF PARTICULAR DURATION OF USING 4WHEELERS
NO. OF YEARS
NO. OF CUSTOMERS
PERCENTAGE (%)
Less than 1 Year
20
20
1-2 Years
18
18
2-5 Years
27
27
5-10
18
18
Above 10 Years
17
17
TOTAL
100
100
100
90
80
70
60
50
40
30
20
10
0
NO.OF CUSTOMERS
PERCENTAGE%
The response for the question since how long are you using the
particular four wheelers shows that 18% of the respondents were
using the particular 4-wheeler for 1-2 years, 20% were using since les
than 1 years, 27% of them were using since 2-5 years and 17% of the
respondents were using the particular 4-wheeler above 10 years and
18% of the people are using the 4-wheeler between 5 10 years.
7. RATING OF SERVISCE OFFERED BY VARUN MOTORS TO

THE CUSTOMERS
SERVICE RATING
NO.OF CUTOMERS
PERCENTAGE (%)
EXCELLENT
22
22
VERY GOOD
24
24
GOOD
38
38
AVERAGE
16
16
TOTAL
100
100
200
180
160
140
120
100
PERCENTAGE%
80
NO.OF CUSTOMERS
60
40
20
0
The ratings of the respondents with respect to services of VARUN

MOTORS shows that 24% of them rated as very Good. 38% of them
rated good and 22% of them rated excellent and 16% revealed as
satisfied little bit of their services
8. RECOMMENDED MODIFICATION IN MARUTI PRODUCT

RANGE
MODIFICATIONS
NO. OF CUSTOMERS PERCENTAGE
EXTRA MILEAGE
34
34
MORE SPARE FOR LUGGAGE
25
25
MORE PICK UP
34
34
CHANGE IN STYLE
07
07
TOTAL
100
100
200
180
160
140
120
100
80
PERCENTAGE%
60
NO.OF CUSTOMERS
40
20
0
From the above table any graph it can be known that 34% of the
Customers need additional features that 75 of them extra mileage.
25% of them suggested that there is and or increasing the space for
luggage. 7% members gave is as more pick up and 34% of them asked
for change in style.
9. INFLUENCED YOU TO PURCHASE
INFLUENCE
NO. OF CUSTOMERS
PERCENTAGE (%)
SELF
19
19
FAMILY
25
25
FRIENDS
24
24
ADVERTISEMENT
10
10
SALES FORCE
22
22
ANY OTHER
00
00
TOTAL
100
100
120
100
80
60
40
NO.OF CUSTOMERS
PERCENTAGE%
20
0
When the customers who were influenced of new offerings were

enquired as to how they had came to know about them, it was found
that around 19% came to know though. Self influence and around
22% through the sales force approach 10% came to know through
advertisements, 25% people are influenced by their family
members.24% & 1.33% are influenced by the friends and other
reasons respectively. Hence, self influence seems to have played

important role in creating awareness of new models offering of the
Maruti.
10.CHOOSE VARUN MOTORS WHY BECAUSE OF
CAUSE
NO. OF
PERCENTAGE
CUSTOMERS
(%)
11
11
PROMOTIONAL SCHEMES
23
23
SERVICE OFFERED
20
20
FINANCIAL AVAILABILITY
26
26
ANY OTHER
20
20
TOTAL
100
100
NOT AWARE OF OTHER

DEALERS
NOT AWARE OF OTHER

DEALERS
PROMOTIONAL SCHEMES
SEVICE OFFERED
FINANCIAL AVAILABILITY
ANY OTHER
TOTAL
The response form the Customers regarding the reason for choosing
Varun Motors to buy 4- wheelers revealed that 20% of them Varun for
service offered. 30% people were not aware of the dealers. 23% for
promotional schemes and 26% & 20% were for finance availability and
any other causes. Such as reputation near to the service station
respectively.
11. SATISFACTION WITH SALES FORCE APPROACH
SATISFIED
NO. OF CUSTOMERS
PERCENTAGE (%)
YES
100
100
NO
00
00
TOTAL
100
100
100
90
80
70
60
NO.OF CUSTOMERS
50
PERCENTAGE%
40
30
20
10
0
YES
NO
Most of the Customers were satisfied with the Varun Sales force
approach the satisfied percentage was 100% Remaining persons are
not satisfied with the sales force approach why because they are not
maintaining the time, and they are approaching in add timings.
12.ADVANTAGE OF VARUN
ADVANTAGES
NO. OF CUSTOMERS PERCENTAGE (%)
WIDE RANGE OF CHOICE 17
17
CONVENIENCE
22
22
FINANCE
22
22
ALL FACTORS
39
39
TOTAL
100
100
NO.OF CUSTOMERS
WIDE RANGE OF CHOICE

CONVENIENCE
FINANCE
ALL FACTORS
TOTAL
From the above table it can be observed that the total of the no. of
Customers are more than 100. It is because of the Customers
preferring 4- wheelers vilified as their reasons for Varun as their
dealer.
13. ANY SERVICE PROBLEMS AFTER SALES

PROBLEMS
NO. OF
LPERCENTAGE
CUSTOMERS
(%)
06
06
TIPS DEMANDED BY SERVICE 13
13
UNTIMELINESS
BOYS
NON AVAILABILITY OF SPARE
09
09
PROBLEM IN CHARGING
06
06
NO COMMENTS
66
66
TOTAL
100
100
PARTS
100
90
80
70
60
50
40
30
20
10
0
NO.OF CUSTOMERS
Series 2
From the above table it can be observed that there are very large
members of Customers who are satisfied with the services of Varun
Motors. Very few members are not satisfied with the Varun Services
why because they are not maintaining the time and tip demanded by
the service boys and non-availability of spares and maintaining is
billing.
14. MODE OF PURCHASES
MODES
NO. OF CUSTOMERS
PERCENTAGE (%)
CASH
46
46
CREDIT FINANCE
54
54
TOTAL
100
100
250
200
150
PERCENTAGE
NO.OF CUSTOMERS
100
50
0
CASH
CREDIT FINANCE
TOTAL
Most of the customers are purchasing the 4- wheelers by credit. It will

be provided by the banks. Like ICICI and HDFC banks by credit mode
Customers were 54% by ready cash buyers are 46%.
SUMMARY &
SUGGESTION
BIBLIOGRAPH
Y
APPENDIX
Questionneire
ANALYSIS
This is about analyzing the answers, or responses of customers to the
questions in the given questionnaire. About their car model, income,
occupation, awareness of Varun Motors, reasons for buying from
Varun Motors, its advertising like that questions which helps us in
analyzing the Varun Motors overall customer satisfaction so that we
can find out some positive and negative responses towards Varunm
Motors. So that we can offer some suggestions to improve the
organization.
SUMMARY
A Study of Customer Satisfaction at Varun Motors was done with the
sample size of 100 Respondents. The data is mainly divided into two
types i.e. Primary Data and Secondary Data. Primary data was
collected through Questionnaire and personal interviews and
Secondary Data was collected from Journals, magazines, dailies,
websites and Industrial Survey.
To ascertain the Customer Satisfaction towards Maruti Four Wheelers
in Varun Motors a detailed study o Customer attitudes and level of
satisfaction and their complaints and suggestion was taken under, the
study also includes assessing the future prospects of four wheeler
industry.
India is the first largest manufacturer and producer of four wheelers in
the world. The four wheeler industry made a small beginning in the
early of 50s when automobile Products of India (API) started
manufacturing Cars in the Country. The industry has smoothly
started manufacturing even all types of Cars and Vans. The India
Four- wheelers industry can be broadly classified as Cars, Vans and
Mini Cars.
Maruti Udyog Limited occupies a market share of 52% with emergence

of MNCs like Hyundai, Daewoo, Fiat, Honda, Ford. Marutri Udyog
Limited is facing stiff competition for its Maruti 800 and Zen. Even in
mid car segment Maruti occupies number one position with its Maruti
Esteem model.
Maruti has strategically positioned its products in various segments
targeting, different customers preferences, unlike other companies
Maruti Udyog Limited has been providing services to the Customers
not only before but also after sales service with its wide range of
network.
Varun group commenced its Hyderabad operations in with the Name
and style of Maruti Franchisee, which is now popularly known to be as
VARUN MOTORS . Varun motors had captured total 80% of the
Visakhapatanam and Other cities around Visakhapatanam. Varun
has captured the 80% of Four Wheelers and all types of Two Wheelers
also in and around Visakhapatanam. As of now, Varun Motors has a
work force of 150 members, with an annual turnover of more than 50
crores. They have also opened a separate service station for better
Customer Care. Varun Motors has also opened a Separate Finance
Institutes for the Customers Satisfaction to attract more customers.
The essence of the marketing concept is that organization must adopt
customer oriented features and focuses their attention on building
programs, offerings and strategies that satisfy customer needs and

wants. Many organizations maintain their focus on operations or
product or sales efforts and thereby get dislocated by mistaking the
means for the end.
Customer Satisfaction is a persons feelings of pleasure or
disappointment resulting from the comparing comparing a products
perceived performance ( or out come ) in relation to his or
expectation.
Some of the important findings are,

Majorities of the customers of Varun Motors were Males.
The target customers were mainly in upper middle class income
group and Upper class.
Most of the Customers of Maruti were Business men.
Most of Four wheelers used by the Customers of Varun Motors
are Maruti .
Alto, Baleno, Maruti 800CC, Zen and all types of Brands are the
specialized brands for Varun Motors.
Majority of the Customers were self- influenced to purchase the

Four Wheelers of Maruti
The main reason for Customers to choose Varun Motors to but
their Four wheelers for the service orientation.
50% of the Customers were Recommended for the modification
offered by Varun Motors to the Customers .
70% of Customers who were aware of the new offerings of Maruti
four Wheelers have got information through Advertisements and
Hoarding .
The cost of the spare parts were found to be high at Varun
Motors than outside.
SUGGESTIONS
Varun Motors should maintain the stock of spares of all brands

of Maruti Four wheelers so that it does not cause any
inconvenience to the Customers.
The charges for servicing the four wheelers may be slightly
reduced. For the quality of unpaid service should be kept at par
with that of paid service.
As a promotional measure of Varun Motors may increase free

services camps. This will increase the Customers loyalty.
A few more service stations smaller in size may be set up in areas
where there is more demand which satisfy more customers of all
areas.
As per the study after service, cleaning and servicing vehicles
should be given importance and improved upon.
Care should be taken to see that delivery of new car as well as
serviced car should be on time.
Customers are expecting some complaints during the delivery of
Car. Hence, such items may be given to improve Customer
satisfaction.
Varun motors should concentrate on female customers to
increase its sales.
BIBLIOGRAPHY
1. Principles of marketing
--
Philip Kotler
&
Gray Armstrong
2. Fundamentals of marketing
3. Articles of customer satisfaction
4. Marketing research
5. Magazine:
Business of India
Business world
Business today
Company brouchers and manuals
--
William J.stanton
-- Business India
--
Barri
APPENDIX
QUESTIONNEIRE
Q1;
Name
: ---------------------
Age
: ----------------------
Occupation : ---------------------Dealer
: -----------------------
Q2; which model preferred by the customer: ----------------
Q3; How do you first come to about VARUN motors?

a. Television
b. News papers
c. Friends
d. Neighbors
Q4; Are you satisfied with the quality of MARUTI 4-wheelers ?
a. Very much satisfied
b. Satisfied
c. Not satisfied
d. Very much not satisfied
Q5; How do feel about the price of MARUTHI 4-wheelers compared to

other 4-wheelers?
a. Affordable
b. High
c. Low
Q6: Are you satisfied with the service provided by VARUN motors?
a. Yes
b. No
Q7; The most reasons for buying this model?
a. Good looks /style
b. Suits my personality/image
c. Fuel efficiency
d. Easy access to service station
Q8; what major purpose would you use this 4-wheelers?

a. For communication
b. For going to college
c. Riding around for fun
d. Going for long drives
Q9; Are you satisfied with the spare parts available with dealer?
a. Yes
b. No
Q10; How are the prices of the spare parts of MARUTI 4-wheelers?
a. High
b. Affordable
c. Low
Q11; do you think any promotional schemes requires ?
a. Yes
b. No
Q12; Did you avail finance scheme or made full cash payment?
a. Full payment
b. Finance scheme
Q13; what is you are option on the statement MARUTI 4- wheelers is

the
worlds no-1 4-Wheelers company?
a. Yes
b. No
Q14; Do you wants to mention any complaints?
Thanks for response

Customer Satisfaction On Maruti 4 Wheelers

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Customer Satisfaction On Maruti 4 Wheelers

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A SURVEY

(With Special reference to MARUTI FOUR WHEELERS at VARUN MOTORS L.td,

A Project Report submitted to the

MASTER OF BUSINESS ADMINISTRATION

ANDHRA LOYOLA INTITUTE OF ENGINEERING AND TECHNOLOGY

I here by understand that only such coping is liable to be punished in

I avail this opportunity to express my sincere thanks to my project to

I am extremely grateful to Dr C.LAKSHMINATH, M.B.A, M.Com,

I express my sincere Thanks to Sri Mr. V.RAJESH KRISHNA General

NEED FOR THE STUDY

OBJECTIVES OF THE STUDY

So, there is tremendous growth in the 4 wheeler segment. The

NEED FOR THE STUDY

Students are using 4 wheelers. The common customers are also

OBJECTIVE OF THE STUDY

Methodology and the method adopted depends on the type of study

A simple of 150 respondents was administered through mainly

The Secondary Data was collected from the VARUN MOTORS,

AREA AND PERIOD OF STUDY

LIMITATION OF THE STUDY

1. As Customer Satisfaction intangible the measurement was

PROFILE OF PASSANGER CARS IN

Imaginative market will emphasize relationship building and customer

PROFILE OF MARUTHI CARS

2. Production of fuel- efficient vehicles to conserve scarce

Maruti created history by going into production in a record 13

VISION , VALUES & ETHOS OF MUL:

MUL Vision is to be a leader in the Indian Automobile Industry,

o Communication and information sharing.

To implement this philosophy, several measures have been adopted

DIRECTORS ON THE BOARD:

Mr. Junzo Sugimori, joint managing Director

subsequent to an offer for sale of 27.5% of the companys equity to the

AWARDS AND ACHIEVEMENTS:

In 2002, Marutis Quality Management System of its press shop

In 1999, central board of excise & customs awarded Maruti with

Business World ranked us the countrys most respected

the beginning it was a conscious decision to send people to Suzuki

scheme is in place to provide housing to employees with repayment

Brief history of VARUN :

A modern medical diagnostic centre in memory of the M.D.s parents is serving

Varun Industrial Training Centre(I.T.C): We train 50 boys in diesel mechanic

The management practices at Varun complements the pursuit of perfection. The

Varun's Success Mantra :

At Varun, the management interacts directly with customers, and

Maruti Authorised Service Stations

CUSTOMER FEEDBACK SYSTEM

o At the time of delivery a customer feedback card (postage

PROMOTIONAL ACTIVITIES IN VARUN MOTORS

CARS & ITS TECHNICAL SPECIFICATIONS

Customers in market have differences in buying habits, differences in

B Segment: this focuses on the upper middle class people. The

C Segment: this focuses on the lower upper class people. The

D Segment: This focuses on the upper class people, the model

PRODUCT AVAILABILITY AT VARUN MOTORS

Key Credit Considerations:

Strong credentials as the largest dealer of passenger vehicles of Maruti Suzuki

Business and Competitive Position:

Nizamabad; 14 true value outlets spread across AP covering Hyderabad (6),

Non-Fund Based Limits

The Mc Phercon strut suspension in every Maruti 800 gives a smooth

Overall Length: 3335mm Engine Type: 4 stroke cycle, water- Overall

cooled SOHC (1C2V).